Pronouncement Describe what the company is currently doing under GAAP. What changes will occur under IFRS? How will the transition to IFRS impact the company? IFRS 1: First-time Adoption of International Financial Reporting Standards IFRS 15: Revenue from Contracts with Customers IAS 1:Presentation of Financial Statements IAS 7: Statement of Cash Flow IFRS 13:Fair Value Measurement IAS 2: Inventory Accounting IAS 16: Property, Plant and Equipment IFRS 9: Financial Instruments IAS 12: Income Taxes IAS 17: Leases IAS 10: Events After the Reporting Period Impact Analysis Chart [Name of Company] 1 Running head: IMPACT ANALYSIS 5 IMPACT ANALYSIS Adoption of International Financial Reporting Standards (IFRS) Unit 1 IP Betty Thompson ACCT655-1702A-01 Dr, Bih Horng-Chiang April 16, 2017 Contents Introduction 3 Major requirements of IFRS 1 for companies adopting IFRS for the first time 3 Key impacts of IFRS 15 on US companies during transition 3 Effects of adoption of IFRS 15 on the Statement of Cash Flows 5 Necessary updates to financial statements 5 References 6 Adoption of International Financial Reporting Standards (IFRS)Introduction The Pelicans Corporation is a home equipment manufacturing company that was previously using the US GAAP laws to run its operations. The company is, however, planning on how to adopt the IFRS because it is a publically traded company. This impact analysis is to provide The Pelicans Corporation with a guide towards adopting the IFRS 1 and all the other laws. Major requirements of IFRS 1 for companies adopting IFRS for the first time For a company to adopt IFRS for the first time, they are required to present their financial statement. From this, the IFRS will decide on which procedure to follow next. If the most recent financial statements presented are either under the GAAP, with a partial application of IFRS or with some reconciliation with the IFRS, they will then be considered. They will be considered also if the entity or company has prepared IFRS statements both for external use or if they haven’t prepared any Key impacts of IFRS 15 on US companies during transition Revenue recognition has been the most common difference creating the biggest gap between IFRS and US GAAP; the gap is caused by the processes involved in IFRS and vice versa. Other laws e.g. the IAS have broad and wide revenue laws that are hard to make out, as a result, some companies ignore the laws and even create their laws regarding the revenue recognition. This step is a big leap into failure as some companies lack the knowledge to create effective laws. Some companies have established their IFRS policies which they based on US GAAP laws. This was a mix up of both policies hence creating an uneven situation to parties, the company, and the government. Enterprises that have adopted IFRS 15 have an advantage over those who don't have it because the model presents .

1. Pronouncement
Describe what the company is currently doing under GAAP.
What changes will occur under IFRS?
How will the transition to IFRS impact the company?
IFRS 1: First-time Adoption of International Financial
Reporting Standards
IFRS 15: Revenue from Contracts with Customers
IAS 1:Presentation of Financial Statements
IAS 7: Statement of Cash Flow
IFRS 13:Fair Value Measurement
IAS 2: Inventory Accounting
IAS 16: Property, Plant and Equipment

2. IFRS 9: Financial Instruments
IAS 12: Income Taxes
IAS 17: Leases
IAS 10: Events After the Reporting Period
Impact Analysis Chart
[Name of Company]
1
Running head: IMPACT ANALYSIS
5
IMPACT ANALYSIS
Adoption of International Financial Reporting Standards (IFRS)
Unit 1 IP
Betty Thompson
ACCT655-1702A-01
Dr, Bih Horng-Chiang
April 16, 2017

3. Contents
Introduction 3
Major requirements of IFRS 1 for companies adopting IFRS for
the first time 3
Key impacts of IFRS 15 on US companies during transition 3
Effects of adoption of IFRS 15 on the Statement of Cash Flows
5
Necessary updates to financial statements 5
References 6

4. Adoption of International Financial Reporting Standards
(IFRS)Introduction
The Pelicans Corporation is a home equipment manufacturing
company that was previously using the US GAAP laws to run its
operations. The company is, however, planning on how to adopt
the IFRS because it is a publically traded company. This impact
analysis is to provide The Pelicans Corporation with a guide
towards adopting the IFRS 1 and all the other laws. Major
requirements of IFRS 1 for companies adopting IFRS for the
first time
For a company to adopt IFRS for the first time, they are
required to present their financial statement. From this, the
IFRS will decide on which procedure to follow next. If the most
recent financial statements presented are either under the
GAAP, with a partial application of IFRS or with some
reconciliation with the IFRS, they will then be considered. They
will be considered also if the entity or company has prepared
IFRS statements both for external use or if they haven’t
prepared any Key impacts of IFRS 15 on US companies during
transition
Revenue recognition has been the most common difference
creating the biggest gap between IFRS and US GAAP; the gap
is caused by the processes involved in IFRS and vice versa.
Other laws e.g. the IAS have broad and wide revenue laws that
are hard to make out, as a result, some companies ignore the
laws and even create their laws regarding the revenue
recognition. This step is a big leap into failure as some
companies lack the knowledge to create effective laws. Some
companies have established their IFRS policies which they
based on US GAAP laws. This was a mix up of both policies
hence creating an uneven situation to parties, the company, and
the government.
Enterprises that have adopted IFRS 15 have an advantage
over those who don't have it because the model presents
comprehensive direction on how to account for approved

5. contract modification. This will enable any company to be front
based to any of its operations. Using this advantage, the
company will be able to ascertain on every contract made and
the improvements that resulted from them. Following this deal,
the policy will help the company to keep clear records and
avoid suing other companies for the wrong reasons. This will
also decrease the amount of losing incorporated to the company
annually.
Moreover, IFRS gives the company a performance
obligation towards providing sufficient service to the
customers. This will ensure that the company assesses the
liability of its goods and service before delivering it to the
customer. A closer reference into the goods will make sure that
the demands of the contracts are met and hence reduce the
legibility of the company. This will increase the company’s
income and a sale because of few complaints from the
customers. In the cross-reference from the apparent situation,
Pelicans Corporation will increase its chances into the shelves
of many shops in the state. Its relevance is of much importance
if it gives flawless results and products to its customers. The
company's customers will reap many benefits because the policy
forces the entities to transfer the goods and services at their
best shapes.
The IFRS policy measures an entity’s progress; this
will enable the company to keep track of its progress throughout
a given time. This will open up the company’s ability to keep
track of its progress, henceforth giving it a firm foundation
towards creating a limited amount of eminent and traceable
changes. This will also help the company’s progress towards
complete satisfaction the company’s performance obligations
set by the policy. Using this policy, the company will be
obligated to finding appropriate touch towards making of profits
from all of its operations daily.Effects of adoption of IFRS 15
on the Statement of Cash Flows
Considering both direct and indirect methods, IFRS 15 will
create an improvised cash flow which takes into consideration

6. the whole process. IFRS rules allow the company to allocate
interest expenses as part of financing or investing the cash flow.
This will hence cause a lot of changes as the cash flow will be
controlled by the interest expenses. Although many companies
choose to enhance their cash flow from operations and
excluding the interest expenses, they change once they begin to
scope from IFRS.Necessary updates to financial statements
The date of transition begins at the first period in which
comparative statements are presented. The financial statement
of a company also includes a balance sheet of the previous year
starting from the time it took effect. Companies which have
adopted IFRS are therefore liable and should incorporate
balancing sheets to their policies. This is new as a lot of
companies do not advocate for the same. It also means that they
include the statement of their financial position, statement of
profits and loss, cash flow and changes in equity. All the
statements should be presented in pairs.
References
Vitez, O.(2016) Impact of technological change on business
activity. Chron. Retrieved from
www.smallbusiness.chron.com/impact-technological-change-
business-business-activity-2191.html
Catropa, D. & Andrews, M. (2013)The Most Significant
Change. Strategy. Retrieved from
https://www.insidehinhered.com/blogs/stratedgy//survey-
results-what-has-been-most-significant-change