Morgan Hunter Companies

Savvy Companies and Accountants Pursuing IFRS Skills

A financial meltdown may be in progress, but that’s not curbing the demand for accounting and finance professionals with international experience.

The impending convergence of the Generally Accepted Accounting Principals (GAAP) and the International Financial Reporting Standards (IFRS) to govern public companies is exacerbating the need for professionals with global accounting and finance experience – and it’s a skill set that doesn’t currently exist within the U.S. accounting curriculum.

The Securities and Exchange Commission (SEC) has approved early adoption of the IFRS starting in 2009. IFRS filings would begin for large, accelerated filers in 2014. That’s just a few years away, yet 58 percent of U.S. companies are unprepared to train staff for the convergence of the GAAP and IFRS, according to the Institute of Management Accountants.

“Recruiters have to compete on a global scale for accountants,” says Bruce Pounder, author of The Convergence Guidebook. “Unfortunately, U.S. recruiters are at a disadvantage because we have a shallow pool of IFRS talent here. Employers and recruiters have to begin to think globally about financial professionals.”

Begin Preparing…Now

Accounting industry watchers suggest U.S. companies begin searching for IFRS-ready talent now – or grooming them in-house. Likewise, experts recommend candidates begin to prepare themselves for the coming convergence that will create a global playing field for financial professionals.

There is a clear shortage of U.S. accountants that understand how to navigate the IFRS. Looking to Europe for accounting professionals may be the recruiter’s best bet in the short-term, but experts warn to examine a candidate’s actual experience rather than a list of unrelated, yet impressive degrees and credentials. Just because an accountant is European doesn’t mean he has IFRS conversion experience. By the same token, U.S. accountants with overseas experience may also offer a solution to the immediate needs of public companies and the accounting firms that serve them in the midst of the IFRS transition.

“Accounting firms with global clients are already starting to tool up for IFRS,” says David Campbell, Ph.D., CPA, an accounting professor at Drexel University. “Representatives from the Big Four accounting firms are making a big push to get into college courses on IFRS so they can tap into the ranks of freshly educated college graduates. At the same time, companies are training their internal staff on IFRS through seminars and continuing education.”

While accounting firms are preparing to staff up with financial professionals that understand IFRS mandates, accountants should also begin preparing for the coming convergence, according to industry experts. Campbell insists accountants looking to enhance their professional mobility need to be equipped to handle IFRS. That doesn’t mean accountants need to know every standard, he explains, but there should be an awareness of the differences between the GAAP and the IFRS and how that impacts public companies.

A Career Move for Accountants

“Accountants need to think ahead of the curve,” Campbell says. “You can’t just wait around until the IFRS is formally adopted to learn these skills. You have to give yourself a couple of years to get up and running with the conversion process. You can sign up for online seminars that deal with specific aspects of the IFRS, or day-long programs. There will be more opportunities for training in the next 18 months.”

Pounder has completed an exhaustive study of the managerial and career implications of IFRS for U.S. companies and individual professionals. As he sees it, accountants need to make smart career choices for a hypercompetitive labor market. U.S. accountants, he predicts, will face fierce competition for jobs from foreign financial professionals.

“You have to educate yourself and be relevant to what employers want – and what employers want is changing,” Pounder says. “If you want to have a job 10 years from now in the same line of work, you need to change with the market.”

Pounder also stresses visibility for candidates. The best career opportunities, he insists, go to those who are the most visible in their field. Of course, staying visible is more difficult in a global workforce, so Pounder suggests candidates begin efforts now to raise awareness of their personal brand through blogging, writing books and public speaking.

“You have to think ahead,” Pounder says. “It’s going to be a different marketplace three years from now than it is today. You have to be flexible. Most people don’t want to change, so if you stay flexible you have an advantage.”

Flexible might translate to continuing education. Universities are priming the pump with new courses that include IFRS principles. The American Institute of CPAs has a Web site – www.ifrs.com – that offers self-study courses, and the Financial Executives International offers various training programs aimed at helping accountants arm themselves with the knowledge they need in a changing environment.

“IFRS is coming. It’s a matter of getting on the same page,” Campbell says. “It takes a couple of years to become familiar enough with the principles to help a company get through the conversion process. My advice to accountants is to start now.”