International Financial Reporting Standards (IFRS)

International Financial Reporting Standards (IFRS) are standards and interpretations issued by the International Accounting Standards Board (IASB). IFRS is considered more principles-based and is less detailed than, for example, U.S. GAAP. Over 100 countries have already adopted IFRS for public company filing. Countries currently in the process of adopting IFRS include Brazil, Chile, and Canada. Other countries such as Japan and India have begun converging their national GAAP to IFRS. In the United States, the Securities and Exchange Commission (SEC) has proposed a roadmap outlining the potential adoption of IFRS by U.S. issuers. The proposed roadmap could allow some American corporations to start filing under IFRS as early as 2011.

While full IFRS adoption might still seem far away, the IFRS transition is a process that has to be in place three years before the date of actual conversion. Organizations should therefore start evaluating the impact IFRS will have on their systems and processes today. Oracle has been addressing IFRS requirements for many years and offers a variety of solutions that can assist with the transition to IFRS. In the over 100 countries already required or permitted to use IFRS today, many organizations are already using Oracle solutions to comply with IFRS requirements.

ORACLE SOLUTIONS TO HELP WITH THE TRANSITION TO IFRS

Oracle Enterprise Resource Planning

Governance, Risk, and Compliance Management

Oracle Enterprise Performance Management

ONLY ORACLE OFFERS SIGNIFICANT BENEFITS

Leverage	Gain
Oracle Enterprise Performance Management	Oracle is the leader in Enterprise Performance Management (EPM), unifying Performance Management and Business Intelligence (BI), supporting a broad range of strategic, financial and operational management processes. Oracle Hyperion Financial Management, part of the Oracle EPM Suite, supports the collection, consolidation and reporting of financial results in multiple GAAPs as well as IFRS, and the reconciliation of differences among the various standards. Hyperion Financial Management can be deployed quickly to integrate data from multiple Oracle and non-Oracle transactional systems, provide top-side reporting that conforms to IFRS requirements, and help organizations make the transition to IFRS.
Oracle Enterprise Resource Planning	Oracle's Enterprise Resource Planning (ERP) solutions, E-Business Suite, PeopleSoft, and JD Edwards, have many customers reporting using IFRS in many countries. Each ERP solution has features needed to support IFRS. With Oracle's ERP solutions, users will find support for IFRS in both familiar features and features developed specifically for IFRS. Each of Oracle's ERP solutions has an accounting architecture that facilitates the transition to IFRS by simultaneously supporting both IFRS and local GAAP. For example: E-Business Suite: Subledger Accounting, Ledger Sets, Multiple Ledgers PeopleSoft: Book Code, Multiple Ledgers, Multi-Book JD Edwards: Multiple Ledger Types
Oracle Governance, Risk, and Compliance	IFRS requires making choices and changes to accounting principles which will have significant impact on your control environment. Oracle Governance, Risk, and Compliance (GRC) applications allow you to manage adjustments to internal controls during the transition period. With a central repository to document processes, risks and associated controls, Oracle GRC applications manage an audit trail of differences between U.S. GAAP and IFRS. The solution can embed automated application controls into your ERP systems to enforce proper segregation of duties and application configurations. Coupled with integrated dashboards and alerts to identify areas of heightened risk, Oracle GRC applications make for an effective IFRS roll out.