MENLO PARK, Calif., Oct. 26 /CNW/ --

New Protiviti resource guide and webinars identify steps companies should
take now to prepare for conversion to new financial reporting standards

The expansion of the global economy continues to affect the way companies do business, and the U.S. Securities and Exchange Commission's current timeline for the adoption of international standards will have a significant impact on how companies report financial results. To help business leaders prepare now for the expected challenges, Protiviti Inc., a global business consulting and internal audit firm, has released the Guide to International Financial Reporting Standards: Frequently Asked Questions.

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Recent communication from the SEC stating that convergence to International Financial Reporting Standards (IFRS) is going to be a priority of its staff over the coming months has reignited the discussion of the potential impacts of adopting IFRS by many companies. Additionally, the G-20 summit meeting in September sent a clear message of the need to achieve a single set of high-quality global financial reporting standards. More than 100 countries adhere to IFRS currently, and they will be joined shortly by additional countries converting to IFRS, such as Canada, India, Japan and Mexico. The global standards reflect a predominantly principles-based approach to financial reporting, rather than the predominantly rules-based approach found in generally accepted accounting principles (GAAP), including U.S. GAAP.

"Businesses that have been through other shifts in regulatory standards, such as the Sarbanes-Oxley Act, recognize that it's important to prepare early," said Chris Wright, managing director with Protiviti and co-leader of its IFRS practice. "Now is the time to begin formulating the steps needed to ensure that either a conversion to IFRS or convergence to IFRS one standard at a time is as seamless, efficient and cost- effective as possible."

Regulatory agencies and investors increasingly have sought a consistent worldwide standard for financial reporting due to the continued globalization of capital markets, cross-border investing and capital flows, as well as the need to assess the financial health and condition of organizations using a common approach. As currently proposed, the SEC's roadmap sets forth several milestones that, if achieved, could lead to required use of IFRS by U.S. public companies as early as 2014.