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Runninga Head:a ACCa 675a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 1
7-2a Finala Projecta Milestonea Four:a IFRSa Report
ACC675
SNHU
2
Va a IFRS
Trinity’sa compliancea witha Internationala Financiala Reportinga Standardsa (IFRS)a hasa beena
examined.a Thea changesa thata thea companya woulda havea toa makea toa complya witha IFRSa hasa beena
identified.a
a. Implicationsa ofa changea ina accountinga standards
Changea ina accountinga standardsa cana havea aa directa anda significanta impacta ona thea processesa anda
approachesa thata area adopteda withina thea Trinitya organization.a Onea ofa thea basica areasa ofa differencea isa
thea adoptiona ofa aa holistica approacha toa leasea classification.a Thea accountantsa ina thea companya woulda
havea toa relya ona theira owna judgmenta fora thea purposea ofa classifyinga thea leasesa ofa thea business.a Thea
movea toa IFRSa standardsa woulda alsoa havea aa significanta impacta ona thea controla activitiesa ofa thea
company.a Currently,a thea controlsa ina thea companya area designeda toa ensurea compliancea witha rulesa
(assumption).a Thea alterationa ina thea underlyinga logica willa forcea thea companya toa makea adjustmentsa
ina thea controla processes.a Ita cana alsoa havea aa majora impacta ona thea informationa systema thata isa adopteda
throughouta thea company.a Therea willa bea aa needa fora newa data,a anda changesa ina calculationsa anda
reportinga methodsa willa alsoa havea toa bea madea (Schultze,a 2011,pa .a 20).a
b. Changesa toa improvea internala controla compliance
Trinitya Industriesa willa havea toa takea aa numbera ofa stepsa toa strengthena itsa internala controla
compliance.a IFRSa stressesa diversea aspectsa sucha asa riska managementa asa wella asa businessa processesa
soa thata robusta internala controla cana exista ina place.a Thea internala audita teama needsa toa possessa profounda
knowledgea relatinga toa thea IFRSa standarda soa thata thea financiala statementsa cana representa accuratea
detailsa bya emphasizinga clarity,a relevance,a comparabilitya asa wella asa reliabilitya (Morley,a 2016).a Aa
fundamentala changea thata Trinitya willa havea toa makea isa ina itsa informationa systema soa thata necessarya
3
anda appropriatea dataa cana bea captured,a whicha cana strengthena thea reporting.a Thea inventorya
transactionsa musta bea captureda ata aa comprehensivea levela soa thata theya cana presenta complete,a timelya
anda accuratea information,a anda thea valuea ofa inventorya musta bea correctlya captured.a Thea controlsa
musta bea thoroughlya checkeda anda maintaineda soa thata thea possibilitya ofa gapsa cana bea reduceda ora
eliminated.a
c. Impacta ofa standardsa ona Trinitya duea toa IFRS
Somea ofa thea maina standardsa ofa thea Internationala Financiala Reportinga Standardsa thata willa havea aa
significanta impacta ona Trinitya Industriesa includea IFRSa 16,a whicha relatesa toa leasesa anda IFRSa 10,a
whicha relatesa toa financiala statementsa (Schultze,a 2011).a Ita isa assumeda thea companya followeda USa
GAAP,a whicha alreadya hasa aa numbera ofa rulesa pertaininga toa leasea classification.a However,a whilea
followinga IFRS,a thea accountantsa woulda havea toa expanda theira knowledgea ofa leasea treatmenta anda thea
company’sa leasea agreementsa soa thata accuratea classificationa cana bea made.a Similarly,a whilea
preparinga thea consolidateda financiala statements,a consistenta principlesa needa toa bea followeda asa IFRSa
isa aa principles-baseda methoda (Morley,a 2016).a a
d.a Rolea ofa infrastructurea ina supportinga IFRSa compliancea projecta
Thea infrastructurea thata isa ina placea ata Trinitya Industriesa willa playa ana instrumentala rolea ina
enablinga thea companya toa supporta thea IFRSa compliancea project.a a
• Trinitya governancea infrastructurea –a Thea governancea infrastructurea thata existsa withina thea
companya willa playa aa keya rolea ina complyinga witha IFRS.a Currently,a thea Informationa Systemsa
Audita anda Controla Associationa (ISACA)a focusesa ona developinga suitablea standardsa whilea
providinga guidancea anda educationa relatinga toa informationa systemsa governancea anda audit.a
4
• Trinitya ITa infrastructurea –a Thea existinga ITa controlsa thata area adopteda withina thea
organizationa needa toa bea strengtheneda soa thata thea generala controlsa cana becomea morea
detaileda anda focuseda anda helpa toa createa aa morea effectivea internala controla environmenta
withina thea firm.a
• Trinitya processa infrastructurea –a Thea processesa thata area adopteda withina thea companya
needa toa bea madea morea systematica anda methodicala soa thata gapsa thata maya affecta controlsa cana
bea identifieda anda tackleda effectively.a Thea processesa needa toa bea madea morea robusta anda
consistent.a a
References
Morley,a M.a (2016,a Decembera 1).a Clarity:a Thea firsta principlea ofa IFRSa (parta 1a ofa 4).a TheGAAP.net.a
Retrieveda Decembera 21,a 2022,a froma https://thegaap.net/clarity-the-first-principle-of-
international-financial-reporting-standards-part-1-of-4/a
Schultze,a U.a (2011).a Thea SOXa compliancea journeya ata Trinitya Industries.a Journala ofa Informationa
Technologya Teachinga Cases,a 1(2),a 91-113.
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