GAAP Conversion and Adoption of New Standards

Overview

The conversion of existing financial statements to a new set of accounting rules can be time-consuming and requires an exhaustive exercise of comparing existing accounting policies and practices with requirements of the new accounting framework, quantifying differences and preparing financial statements. Moreover, the changes in the accounting rules also have an entity-wide impact in terms of collating the right numbers, training business and finance teams and making changes to systems and processes. 

Similarly, the adoption of new standards requires a precise understanding of requirements and a transition plan to identify potential changes to numbers, systems and processes.