PwC’s team was in the Bahamas on Sept. 19 and in the Cayman Islands on Sept. 21 to help organizations to better understand and prepare for International Financial Reporting Standards 15 and 16.
The reporting standards will impact people, policies, processes and systems, and the practical application of the standards to specific facts and circumstances around a business can be challenging, PwC stated in a press release.
Companies that earn revenue and apply IFRS or U.S. GAAP will face a major change as the accounting requirements for revenue change under IFRS 15 from 2018. The new standard will impact the revenue cycle, key performance indicators, systems and processes of businesses, PwC said.
Organizations that use leases to obtain access to assets will see significant changes of the accounting requirements from 2019. IFRS 16 eliminates operating leases for lessees and will affect almost all commonly used financial metrics with substantial changes to both balance sheet and income statement presentation. These changes may have knock-on effects on a company’s arrangements with various stakeholders, PwC noted.
“As a market leader in financial services in the Caribbean region and globally, we want to ensure our clients are preparing for these significant changes and help them with facilitating transitions to IFRS 15 and 16,” said Graeme Sunley, PwC Cayman leader.
“The new standards do not need to be onerous and complex. Our team of specialists has deep local knowledge backed by the experience of our global network to help our clients with their IFRS 15 and 16 implementation plan.”