Deloitte today announced it is furthering its alliance with Oracle, the world's largest business software company to help executives address organizational challenges associated with the conversion to International Financial Reporting Standards (IFRS).
Deloitte, a leader in IFRS planning and conversion, will team with Oracle to focus on industry-specific challenges of adopting IFRS in the United States and other countries.
IFRS is a single set of accounting principles that focuses on objectives and principles and is less reliant on detailed rules than U.S. Generally Accepted Accounting Principles (U.S. GAAP). Potential benefits of IFRS include reduced complexity, greater transparency, increased comparability and improved efficiency, all of which have helped spread global acceptance of IFRS, particularly among investors wanting a more common basis of comparison for and clearer insight into corporate performance. While no definitive required conversion dates have yet been set for current U.S. GAAP filers, the U.S. Securities and Exchange Commission has published a roadmap for IFRS adoption and transition that runs from 2011 to 2016. The transition to IFRS impacts a company's financial regulatory reporting, tax, business processes and systems to varying degrees depending upon the industry and countries in which a company operates.
According to Deloitte, IFRS can affect many aspects of a company's business, creating effects that may ripple throughout the organization. Moreover, there can be unique internal and external reporting and performance measurement implications associated with IFRS for organizations depending on their industry. The combined Deloitte and Oracle teams will assist leading Fortune 1000 companies plan for the transition and capitalize on the benefits of IFRS by delivering guidance and innovative solutions. Oracle's highly specialized IFRS integration team and financial management solutions, combined with Deloitte's cross-functional service capabilities, yield an unprecedented depth of industry experience to help organizations improve information quality, manage multiple accounting frameworks, capitalize on opportunities, improve business processes and enforce global standards and controls while complying with local regulations. Over the past two years, Deloitte has made investments in IFRS methods and tools to optimize its multidisciplinary delivery of IFRS services, including an Oracle-specific IFRS solution set that streamlines the IFRS assessment and planning processes. The combined Deloitte and Oracle team will work together to refine this tool set by industry.
Deloitte, a global multidisciplinary professional services organization, provides world-class capabilities in consulting, tax, accounting, auditing and financial advisory services to serve Oracle's customers with their IFRS planning and implementation. As a Certified Advantage Partner, the highest membership level in the Oracle(R) PartnerNetwork, Deloitte's worldwide Oracle service line has more than 5,400 professionals possessing deep industry and functional knowledge across Oracle's full line of applications and technology. Oracle recently recognized Deloitte, awarding the organization top honors in a record four categories of the Oracle PartnerNetwork North American Titan 2008 Awards. This is the third consecutive year that Deloitte has been honored with multiple awards and the first time any organization has received four awards.
"Deloitte has been successfully implementing global Oracle solutions for more than 15 years, making us uniquely positioned to evolve this time-tested relationship even further," said Colin Hartnett, principal, Deloitte Consulting LLP. "The combination of our IFRS and industry specific regulatory reporting and award winning Oracle implementation capabilities will help make Deloitte distinctively qualified as an IFRS advisor to Oracle's customers."
"As the United States enters this period of historic transition to global accounting and financial reporting standards, companies should be preparing for change," said Terrance Wampler, vice president, Financials Product Strategy, Oracle. "Oracle customers can feel confident in Oracle solutions, as Oracle has been addressing requirements for many years and offers a variety of solutions that can assist with the transition to IFRS. In fact, over 100 countries already require or permit the use of IFRS today, and many organizations are already using Oracle solutions to comply with IFRS requirements."