What is IFRS?

International Financial Reporting Standards (IFRS) are principles-based Standards, Interpretations and the Framework adopted by the International Accounting Standards Board (IASB). IFRS implementation affects several areas of a business entity – presentation of accounts, accounting policies and procedures, drafting of legal documents, approach to assets and their usage, and communication with stakeholders.

• IFRS has already been adopted by many countries in Asia and Europe and many more including the US will be adopting it from 2011-2016.
• Over 100 countries are moving toward IFRS compliance to bring in uniformity in global reporting systems, enabling businesses and financial institutions to access more opportunities.
• FDIs and FIIs are more comfortable with compatible accounting standards. Therefore, companies feel the need to recast their accounts in keeping with the globally accepted standards.

IFRS is expected to affect the following public entities in India:

• Listed companies
• Banks, insurance companies, mutual funds, financial institutions
• Companies with a turnover of more than INR 1 billion in the preceding year
• Companies with borrowings exceeding INR 250 million in the preceding year
• Companies that are holdings or subsidiaries of the above

IFRS compliance for Indian public entities is applicable from April 1, 2011.

What TCS Provides?

TCS offers IFRS implementation on both SAP and Oracle platforms. Our IFRS service offering includes the following features:

• A dedicated team of functional consultants including former CFOs, controllers and CIOs with the relevant expertise for IFRS Gap evaluation
• Dedicated teams of research and thought leadership professionals who provide insights into the issues confronting finance professionals.
• Solution Accelerators/Automation Solutions to map Indian GAAP, US GAAP, and IFRS statements to XBRL
• Ability to integrate consulting, BPO, technology and transformation expertise

Why TCS?

• End-to-end finance and accounting services provided by TCS BPO coupled with our expertise on IFRS consulting and implementation
• Expertise in handling large complex transformation projects
• Partnership with SAP and Oracle as preferred vendors
• Experience with IFRS conversions for European clients
• Reduced operational efforts with the integration of people, process and infrastructure
• Sharing of industry best practices

Success Story: IFRS Implementation for NXP

The challenge was to enable IFRS compliance at NXP through SAP SEM and empower customers to effectively leverage this solution. The key objectives were to ensure compliance to regulations for the impairment of assets and achieve fast close and integrated financial reporting of R&D expenditure.

NXP derived the following business benefits after the successful implementation of IFRS:

• Organizational
• Business transformation to IFRS without affecting existing processes
• Integrated reporting and analytics solution for better internal controls
• Financials
• Impact on share price and corporate value
• Lesser time and effort involved in compliance tasks
• Process
• IFRS is integrated with other planning applications
• IFRS closing is streamlined with the existing financial closing
• SOX compliance is achieved through detailed Audit Trail Reports