Companies around the world are working to increase transparency in their financial reporting while also reducing the regulatory burden. Two global standards help enable these objectives: International Financial Reporting Standards (IFRS, a set of accounting standards) and eXtensible Business Reporting Language (XBRL, a technology standard). These distinct yet complementary standards often work hand in hand; for example when IFRS-based financial statements are submitted electronically in XBRL.
Organizations all over the world are adopting IFRS, a set of methodologies and disclosure requirements for the preparation and presentation of financial statements. With the goal of implementing a common set of accounting standards worldwide, regulators and standards setters are increasingly requiring companies to use IFRS.
To cope with the systemic demands that IFRS and XBRL impose, companies must prepare their infrastructures for these changes. SAP (Systems Applications and Products in Data Processing) provides the software and solutions to help simplify transitions to IFRS or XBRL reporting.
If adopting IFRS or XBRL is in your company’s future, your mission is clear: Begin treating the transition as an opportunity rather than just a mandate. With careful planning and thoughtful execution, you can use the adoption of IFRS and XBRL as a chance to review and improve your financial consolidation and reporting systems and enable rapid legal compliance.
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