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Running head: IFRS COMPLIANCE REPORT 1

IFRS COMPLIANCE REPORT 5

IFRS Compliance Report

Name of Student

Institution Name

Course Number: Course Name

Term Month and Year

IFRS Compliance Report

Trinity underwent several overhauls in the controls they were previously using as a result of the SOX compliance Audit which was very successful. Since this step was very successful, they should move to the next step of changing their accounting standards. Trinity had spent money and time on closing gaps in SOX compliance and changing controls. The next big step is to change the FASB based practices to the IFRS approach in financial accounting. This process of converting the financial accounting would cost them money, but they had a previous experience that will help them to proceed well. This change encompasses the whole company (Ingram, 2009)

When changing the accounting standards, some inevitable implications will be faced. In the case of Trinity changing from FASB to IFRS one significant change that will be seen is in the information technology. Information Technology has been availing critical information to accounting team. This shift may lead to a new process of IT, or new reports have to be presented. An example is the new revenue recognition and how it impacts on software used by Trinity. Due to this potential change different information will have to be captured, new methodologies and estimates will have to be developed with variables. There are some new calculations necessary depending on the requirements of the new standards. Hence accounting department has to come up with the new process that will aid in completing the required calculations (Chen, 2010).

For improving the internal control compliance, Trinity will need to evaluate its current processes and identify those areas that need to be updated so that they can comply with the new IFRS standards. The best way is through getting an internal control management team that will look at the differences between FASB and IFS, which will help, make the necessary change to comply. They can also work with outside auditors to help them understand, and the final strategy is through preparations for new internal control that will help them.

Standards that may affect Trinity because of IFRS may include how to treat fixed assets i.e. depreciation will require Trinity to reestablish their accounting to comply. The second standard is in the reports of the year’s income statement. With IFRS adjustment will be introduced on the opening balance of retained earning which will eliminate the cumulative effect adjustment to current income.

Infrastructure roles in Trinity that are supporting compliance project like IFRS. The first one will be on Trinity governance infrastructure. It embodies new cultural process. Top down management was in use, which limited personnel adoption and adjustment. The new process will allow more depth especially in the decisions and organizational leadership. Governance of internal process will increase (Schultze, 2011).

Trinity information technology infrastructure in Trinity constitutes of many components, which are all in charge of the organization core processes. All this are important in ensuring accurate processing of systems and security. New IFRS standards will ensure that proper processes of information exist. New standards of integrity and data mining will lead to possible upgrading and shift to digital infrastructure. Leading to Trinity having unlimited possibilities in future centralized accounting systems (Schlutze, 2011)

Trinity’s process infrastructure involves many jobs that are done to complete the workflow of operational control. Through understanding this process, it will help give an insight of how accurate observation can be introduced. Hence compliance with IFRS standard will be made possible. This will create harmony across departmental structures within Trinity.

Conclusion

In conclusion, a change in the financial accounting approach comes with different changes in different departments that are involved. Trinity is the perfect example that shows that shows how the changes in accounting system lead to changes in the company itself and its infrastructure

Trinity industries Operating Procedures retrieved from: http://www.trin.net/invsrela/pdfs/CorporateWhistelblowerPolicy.pdf