Difficulty in Opting a common Accounting Procedure
The major problem that ASB faced on implementing IFRS was that it was costly and difficult as it has to be properly understood to avoid grave misinterpretations. The learning of this system required cost effective ways to develop qualified staff. Converging to IFRS required changes in the information system of many companies besides this the collection of relevant information required various processes.
The convergence with IFRS required synchronization of external and internal reporting. It would also impact on Business plans, earning estimates and management remuneration plans. Managing investors and market expectations would also be a critical component. Some standards of IAS were technical and required incorporation of new skills.
Implications for Accounting Professionals
The accounting profession would suffer from a lack of trained professional. Besides these they would be trained on a principle based that would rely more on professional judgment. Moving to IFRS would affect a company’s business, accounting systems and information technology. The entire business systems, processes and internal cost must be reviewed. Cost associated with IFRS would be high. It would require Accounting professional to focus more on the difference between the current procedure that the countries are using and IFRS.This conversion would require a change a management reporting and the format in which data is required. Further all the systems must be upgraded to gather information. The firms have to adopt a definite procedure for gathering and reviewing a cost that is related to development. The entire department the finance, Operations and Human resource would be upgraded.