This question was asked during the Proformative
What are the major transition challenges for GAAP/IFRS convergence? (Webinar Attendee Question)
Answers
First things first, you need to worry about the following key issues first:
1. Will IFRS be ever be adopted in U.S.?
If answered "NO", you do not need to answer the questions below.
2. What is the timing of the adoption of IFRS in the U.S.?
If answered say 5 years from now, then you need to only consider
Once you know the relevant accounting standards, the key challenge will be to understand which all accounting standards will be applicable to your organization. Then you need to understand the data requirements, any system changes that will be required. It always takes time to make changes to any big ERP system - so you need to plan ahead.
Another key challenge you will face will be the people issues - accountants who are preparing the financial statements, senior
This list goes on and on, as you might need around 3 - 5 years for companies to successfully implement IFRS.
One of the KEY challenges that you will face will be application of the principles based accounting standards. Check out my webinar presentation that I had done at Proformative.com in March, 2012 - where I had explained the participants the difficulty of application of principles based accounting standards.