Deloitte Releases IFRS White Papers For US Automotive And Aerospace Industries

by Glen Shapiro, LawAndTax-News.com, New York

11 September 2008

Deloitte, the professional services firm, has issued two new white papers that provide information to chief financial officers, senior finance leaders and other corporate executives regarding the adoption of International Financial Reporting Standards (IFRS) for the automotive and aerospace and defense industries.

The papers, part of a series launched by Deloitte, are considered particularly timely given the Securities and Exchange Commission’s (SEC) recently proposed IFRS roadmap to mandatory adoption of IFRS, which proposed rule changes that would allow certain US companies the option to prepare and issue financial statements using IFRS.

“Financial executives of companies across all industry sectors need to fully understand the impact IFRS will have on their organization, including the potential costs and benefits,” said Karen Mazer, a principal with Deloitte Consulting LLP and national managing partner, US Industries.

“IFRS will impact companies in each industry sector differently depending on the issues unique to the sector. Some companies have significant regulatory and capital market considerations, while others may have complex organizational structures that include multiple subsidiaries and joint venture relationships. These papers are expected to help financial executives understand the key issues affecting their industry so they can make informed decisions on when and how to embark on conversion to IFRS in a measured way," she added.

Each of the Deloitte papers provides an overview of the key impacts of IFRS implementation: technical accounting, process and statutory reporting, technology infrastructure, and organizational issues, and examines specific potential differences when converting to IFRS from US GAAP.

D.J. Gannon, a partner with Deloitte & Touche LLP and leader of Deloitte’s IFRS Solutions Center, added: “A successful IFRS conversion project will involve not only understanding the technical accounting and financial reporting issues, but also issues around internal processes and controls, regulatory, statutory, and management reporting, technology infrastructure, and organizational issues such as tax, treasury and cash management, legal and human resources.”

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