Is there a “switch I can flip” or a “patch I can apply” to make Oracle ERP systems IFRS compliant?
By Tony Ouk on Jul 30, 2009
Oracle Financials product management and product marketing often get asked, “are Oracle ERP solutions IFRS compliant?” Although this may seem like a straightforward, “yes or no” answer, the answer is actually not as simple as it may appear.
Oracle’s ERP solutions are very flexible because they were designed to meet the needs of many industries and geographies. With this flexibility customers can configure their systems based on the needs of their industry and geography, and it is the responsibility of management to ensure that they’ve implemented their system in compliance with the regulations that are applicable to them. It’s no different with IFRS. All of our solutions can be and are being used by companies reporting to their shareholders using the IFRs principles today.
Organizations work with their accounting compliance advisor (e.g. Deloitte, PricewaterhouseCoopers, KPMG, etc.), to ensure that they configure their systems to be in compliance with IFRS. They often use an internal audit department to help ensure ongoing compliance. Not only do Oracle’s ERP solutions deliver features that support IFRS as well as various other regulatory standards, we also provide a complete Governance, Risk, and Compliance Applications suite to assist management, the controller, internal and external auditors, and accounting consultants to get it done easily and with lower cost.
It is very important to consult with an accounting compliance advisor to determine the impact of IFRS on the organization. Every company will be different, as different industries will be impacted differently. Once the impact is known, then a plan can be put in place to address their current ERP implementation. You don’t need a switch or a patch for IFRS: existing Oracle ERP features will provide support for IFRS just as they support local GAAP requirements. However, some reconfiguration might be required
To learn more about this topic, visit the Oracle IFRS website. There, you will find white papers, podcasts, and news features that provide further information on IFRS.