IFRS is more than changing the look and feel of the Financial Reports.

IFRS will have a significant impact on how you conduct your business in the following functional area outside of finance/tax/treasury:

• Legal Contracts
• HR – Compensation package
• Investor Relations
• Operations
• Purchasing
• Inventory Management
• Fixed Asset Management

The SunPoint Implementation is based on a 5-phase approach with set milestones during each phase. The detail project plan will breakdown the phases into more depth. Resources will be assigned to each activity. The length of the project will be unique to the individual client. Some of the factors affecting the duration of the project are:

• Adaption of the IFRS that are materially different from Canadian GAAP
• Analytical impact to investigate the various options
• Availability of the data
• Size of the enterprise and the number of entities
• Capital Assets owned by the enterprise
• Resources assigned and available for the project
• Type of industry
• Decision making ability of the Steering Committee

Each phase is interdependent on each other. However, some activities will commence in a later phase while remaining activities will continue during the earlier phase. The project plan is updated on a regular basis to ensure activities are progressing to plan. Any delay on the critical path activities will be reported to the Steering Committee for action/resolution.

The matrix for each Phase is described in detail below.

Click on each Phase for a detailed breakdown of activities

Our SunPoint Management Accountants have extensive experience in leading complex implementations. We were functional accountants at the Controller and or VP level with the unique hands-on experience and knowledge in the practical operation of a business and in information systems with the goal of improving business processes.

Phase 1: Diagnostic

Goals/Activities:

• Identify changes, differences and business consequences of IFRS conversion including:
• Accounting & Reporting differences
• Potential areas of business affected
• Changes in processes & systems
• Identify areas of focus in future Phases
• Identify & assess interaction b/n IFRS conversion & current or planned initiatives
• Scope the size of the implementation
• Impact on Business Units
• Impact on key conversion champions
• Impact on Accounting, Tax, Treasury, IT, Legal, Customers, HR, Training and Communications
• Create awareness of IFRS, potential Consequences & understanding that it’s not just an accounting exercise
• Identify the accounting differences & assess consequences on policy & procedures

Outcome:

• Report the high level differences GAAP to IFRS
• Document the expected impacts on the main business units
• Assess the likely impacts on IT systems & modifications necessary to facilitate appropriate data collection to meet Disclosure requirements
• Document the major change management issues
• Document any hurdles to conversion
• Document any significant industry-specific issues
• Document a resolution plan to resolve IFRS issues
• Draft a communication plan to advise the status of the Project to all stakeholders
• Provide base information to facilitate structuring
• Provide recommendation on the structure & approach for the implementation

• Review IFRS Standards.
• Identify reporting options.
• Obtain Management key-decision factors.
• Review Industry reporting standards.
• Analysis each option and prepare recommendation.
• Analyze layering impact.
• Analyze data collection requirements.
• Active participation

• Provide data on tax status for all business units.
• Provide data on existing debt covenants.
• Provide detail on contacts with vendors, suppliers, customers and employees.
• Assess impact of IFRS on above items.

• Provide documentation on existing accounting and business processes.
• Analysis above documentation and identify high-level area for change as a result of accounting reporting and disclosure changes.

• Review Industry standard reporting in ROW.
• Identify and form an Industry Standard forum to communicate and to provide input on industry related issues.

• Document the communication channel.
• Document a communication plan: - who, what & when.

Project Office: Launch Project, review implementation methodology, co-ordinate activities, create Phase 1 project plan, communicate to steering committee and project sponsor, communicate and resolve issues, educate project members on IFRS where possible, communicate outcome.