International Financial Reporting Standards…What Would IFRS Mean to Me

The International Accounting Standards Board (IASB) recently released an exposure draft of the small and medium sized entities version of IFRS. Will you be required to adopt these standards? The simple answer is we don’t know at this point. Here are some things to consider as we wait to see:

• Do you account for oil and gas properties under the full cost method?  You may not be allowed to under IFRS.
• Is your accounting staff sufficient to understand the changes and the impact on your business, and if not, how do I accomplish this? You may be able to hire an accounting firm to consult and evaluate your current accounting compared to IFRS.
• When will this possible conversion be required? By most reports, the switch to IFRS could be as early as 2013.

International standards would have a significant affect particularly on oil and gas companies. Read the rest of this entry »