What is IFRS?

International Financial Reporting Standards (IFRS) is one of the hot topics of discussion at the Financial Accounting Standards Board (FASB). It's an attempt to get U.S. companies accounting and reporting on the same standards as other companies around the world. It's not clear when/if they will be required to be implemented. They may not apply to local churches. But, if adopted, this could require significant investment in staff, IT, and other support. I read this article and noted this:



"If we set a date for adopting [IFRS], we need a minimum of a year, if not two years, of no new accounting systems," said FASB member George Batavick. "Companies need a break." Batavick, who said he is a "strong believer in moratoriums before and after" a future switch to IFRS, discussed the concept in response to a question from the audience at a mid-year update webcast. He also said there should be "at least a one-year quiet period" during which no interpretive guidance would be issued.



"In addition to needing time to manage such a massive changeover, said Batavick, companies "also need a period to have their [IT] systems run two [accounting] systems." That's a reference to the fact that any changeover to IFRS will probably require U.S. companies to manage two sets of books for at least two years."