Biggest IFRS Cost? IT
What is the largest component of IFRS conversion costs? According to KPMG, the answer is information technology.
The firm estimates that 50 percent to 70 percent of a typical conversion effort’s costs relates to IT.
This puzzles at least one expert …
“As more and more businesses launch into their IFRS conversion projects, I find myself increasingly bemused at the large number that do not appear to fully comprehend the sheer scale of the IT implications of such projects,” reports Edge Zarrella, global head of IT advisory at KPMG and a partner in the Hong Kong firm.
Here’s a link to the full story. ###
April 3rd, 2009 at 6:39 am
Right on Eric. The issue is data architectures and how they are heterogeneous across companies. During normal operations the disconnects are masked by accounting groups and consolidation systems such as Hyperion and Cognos. When its time to change though, everythign nees to get blown up and re-drawn.
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