The IFRS Conversion Playbook: Policies, Systems, Data, and Controls that Actually Work

Executive Summary

Converting to IFRS is not just a technical accounting exercise—it is a coordinated change across policy, process, systems, and people. This Playbook breaks the work into executable sprints, with decision gates that reduce risk and prevent rework. Use it to plan a first-time adoption or to remediate a stalled conversion.

Outcomes this Playbook drives

• Signed-off IFRS 1 elections and opening balance sheet

• Restated comparatives and disclosures with traceable audit evidence

• Configured ERP/COA and subledgers for leases, revenue, and ECL

• A faster, more controlled month-end close—by design

Call to Action
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1) Mobilize the Program

Governance

• Executive Sponsor (CFO), PMO Lead, Workstream Owners (Policy, Systems/Data, Controls/Close, People/Change).

• Steering cadence (bi-weekly), risk & decision logs, dependency tracker.

Scope definition

• Entities, segments, and material processes (order-to-cash, procure-to-pay, record-to-report, treasury, tax).

• Reporting calendar and go-live date; external auditor engagement plan.

2) Readiness & Gap Assessment (Weeks 1–6)

Deliverables

• Policy gap map vs. current GAAP; IFRS hot zones (IFRS 15/16/9, IAS 12/36/21).

• Systems/data inventory; COA structure, subledgers, data quality grading.

• Controls maturity; close timeline; training needs by role.

Decision gate

• Confirm IFRS 1 reliefs to explore and whether to restate comparatives.

• Approve detailed plan, budget, and milestones.

3) Accounting Policy & IFRS 1 Elections (Weeks 6–14)

• Draft position papers with alternatives, judgements, and references.

• Model quantitative impacts on equity, profit, KPIs, and covenants.

• Choose IFRS 1 exemptions (business combinations, cumulative translation, deemed cost, etc.).

• Align with auditors; finalize and socialize the accounting policy manual.

Checklist—Policy Pack

• IFRS 1 elections memo

• Revenue (IFRS 15) policy & contract review procedure

• Leases (IFRS 16) policy & discount rate methodology

• Financial instruments (IFRS 9) classification/ECL framework

• Impairment (IAS 36) methodology & triggers

• Taxes (IAS 12) deferred tax & uncertain tax positions

• FX (IAS 21) functional currency assessment and translation policy

4) Systems & Data Enablement (Weeks 10–22)

ERP & COA

• Define IFRS reporting segments; rebuild Chart of Accounts; freeze change window.

• Configure subledgers (lease accounting engine; revenue recognition rules; ECL calculators).

Data

• Build contract registry; create lease master file; catalogue financial assets.

• Data cleansing rules; master data governance; migration scripts.

Testing

• Unit tests → integration tests → user acceptance; reconciliations to legacy GAAP.

• Evidence pack saved to audit folder with version control.

5) Mock Closes & Opening Balance Sheet (Weeks 18–28)

• Mock Close #1: Opening IFRS Balance Sheet (OIB). Validate IFRS 1 adjustments, tax effects, and disclosures.

• Mock Close #2: Restated comparatives; draft notes; KPI bridges.

• Dry-run auditor walkthroughs; resolve review comments before go-live.

Cutover checklist

• COA & mappings migrated

• User access & roles tested

• Journal policy & templates issued

• Reconciliation packs complete

• Disclosure templates populated

• Communications to lenders and Board prepared

6) Controls & Close Optimization (Weeks 20–32)

• Close calendar with day-level activities and dependencies.

• Materiality thresholds, review controls, and analytic procedures embedded.

• Automation quick-wins: journal workflows, reconciliation tools, and disclosure links.

RACI example

• Finance: ownership of policies, journals, reconciliations.

• IT: master data, integrations, user access.

• Tax: deferred tax calculations, disclosures.

• Audit liaison: evidence, queries, and cutover governance.

7) Go-Live, Audit, and Stabilization (Weeks 28–52)

• Publish first IFRS financials; run lender education; update budgets/forecasts.

• Track adoption metrics: close days, error rates, late adjustments, audit points.

• Lessons-learned session; backlog grooming for Phase 2 automation.

8) Sector Playbooks (Snapshots)

• Financial Services: EIR calculations, staging for ECL, hedge documentation.

• Telecom & Media: Bundled arrangements, customer incentives, and content assets.

• Energy & Resources: Decommissioning provisions, joint arrangements, and impairment.

• Retail & Hospitality: Lease portfolios, break clauses, and variable consideration.

9) Artifacts & Templates You’ll Receive

• Readiness & gap report; IFRS 1 elections matrix

• Policy manual & position papers

• COA blueprint & mapping workbook

• Data dictionaries and loaders (leases, revenue, financial assets)

• Mock-close playbook & reconciliation packs

• Disclosure shell with example notes and bridges from local GAAP

10) Frequently Asked Questions

Q: How long does conversion take?
A: Typical programs run 6–18 months, depending on size/complexity, systems landscape, and comparative restatement choices.

Q: Do we need a new ERP?
A: Not always. Many projects succeed with targeted configuration, subledgers, and disciplined data governance.

Q: What is the biggest risk?
A: Late policy decisions that force rework across data and systems. Lock elections early and prototype disclosures.

Q: How do we manage lender covenants?
A: Model impacts early, align definitions, and share KPI bridges and reconciliations pro-actively.

Next Steps!!

Schedule a discovery call with our IFRS specialists to confirm scope, timeline, and workstream leads. Dawgen Global can act as advisor, co-pilot, or turnkey integrator.

Ready to simplify IFRS?
WhatsApp: +1 555 795 9071 | Email: [email protected]

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