Swift Cycles is a publicly held, mid-sized manufacturer, with $40 million dollars in annual revenue. Swift has been producing high-end custom cycles currently in the US for the past ten years. Swift has decided to start operations in various locations in Europe in the next five years. In a recent board meeting, the CEO and CFO faced difficult questioning from outside members of the board regarding the impact that adoption of International Financial Reporting Standards might have on the company. Both officers lack a depth of knowledge on the subject and their preparedness for the changes that may be presented.

The CFO has asked you as the Controller to do some preliminary research about the possible transition from US GAAP principles to IFRS standards. The company is publicly held; therefore, it must follow all reporting requirements of the Securities and Exchange Commission (SEC).

Prepare an analysis and presentation of the impact that adoption of International Financial Reporting Standards would have on the company's financial statements and its investors. Also, prepare an analysis and operational plan of how this adoption may be accomplished by the company.

Instructions:

Write a proposal that provides an operational plan of how adopting IFRS may be accomplished in the company. Consider the following in your Operational Plan:

1. Resources
2. What policies and procedures should be modified in order to meet IFRS requirements?
3. How the project should be managed
4. What organizational structures, policies, or procedures should be in place to ensure that the implementation is ethical and compliant with all IFRS requirements?

Answer rating: 100% (QA)

International Financial Reporting Standards IFRS The international financial reporting standards IFRS were developed for the purposes of the publicly traded companies and not for the interest of the o... View the full answer