IFRS: The most widely discussed accounting topic of the moment
The volume of discussion has intensified firstly when the public companies were required to prepare their consolidated account in accordance with IFRS in the EU zone with effect from 1 January 2005, and secondly when the US Securities & Exchange Commission (SEC) proposed a roadmap that would allow some US companies to adopt IFRS as soon as 2009 and require adoption by all companies by 2014, 2015 or 2016, depending on the company's size and filing status. To date, more than 100 countries, including the United States, require or permit the use of IFRS or are converging with the standard. Accordingly, IFRS have become global accounting language in the world and that number will continue to grow. Turkey, as the 17th largest economy in the world will follow the same path and with mandatory transition proposed by the New Turkish Commercial Code all, entities (ASs and LSs) will be required to prepare their accounts by applying Turkish Accounting Standards (TAS) which are equivalent of IFRS. Our view is that IFRS conversion is more than just a change of numbers or accounting standard compliance. Instead, companies should approach IFRS conversion as an opportunity to strengthen their distinctive capabilities. Indeed, companies that use IFRS adoption to drive improvements in key areas such as finance and supporting Information Technology (IT) applications will be better positioned for competitive advantage and high performance than those that approach IFRS conversion simply as a compliance initiative. Considering this radical change in the accounting system introduced by New Turkish Commercial Code, the key question surrounding IFRS (or TAS) for Turkish companies is no longer "if” but "how and when”. How Cerebra can help you?Cerebra can help you in managing your conversion process smoothly. IFRS/TAS services that are provided at Cerebra:
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