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Tribune news network
doha
Preparing for two important upcoming changes in International Financial Reporting Standards (IFRS) is essential for businesses and organisations to protect reputation, liquidity and avoid any regulatory action, KPMG has said.
IFRS 15 (revenue from contracts with customers) and IFRS 16 (leases), which will be effective on January 1, 2018 and January 1, 2019, respectively, aim to ensure that the highest professional standards are met consistently and were the primary focus at an event hosted recently by KPMG.
The session was attended by over 170 CFOs, financial controllers, finance managers, internal audit staff and other financial professionals and focused on equipping participants to prepare for the upcoming implementation of the standards, particularly the importance of assessing current practices and the organization's ability to migrate.
As well as giving a detailed overview of the requirements set out in the new standards, the event highlighted a variety of challenges, which organisations will need to overcome to ensure compliance and a smooth transition to the new standards. These include assessing the capability of IT systems and, if necessary, carrying out upgrades, changing or adapting processes and controls and training staff.
About the session, Gopal Balasubramaniam, partner at KPMG in Qatar and the firm's head of audit said,"It is absolutely essential for Board and Audit Committee members, executives, staff, management, stakeholders and government representatives to keep abreast of developments in the ever-evolving global financial reporting framework, to ensure that their organisations remain compliant with international guidelines and local regulations.
"Failure to comply can not only lead to regulatory action but also have significant impact on reputation and liquidity - through diminishing credit reliability. It was a pleasure to help so many organizations in Qatar to get to grips with the standards which will ultimately, improve how the profession operates."
