The goal of Phase 2  of the 5 Phase IFRS Project model (Design and Planning) is to set up the structure and project management organization. This is extremely important – conversion will fail if not planned properly. Since the conversion project is not only an accounting exercise, it is necessary to include cross functional team members (Tax, business, IT and process changes etc).

The key activities include;
• Launch project, and gain buy in from sponsors and stakeholders.
• Set up project structure and infrastructure.
• Identify key project resources.
• Set up PMO organization.
• Define training plan, and train core team.
• Define internal and external communication plans.
• Prepare conversion framework and milestones.

Design & Planning Phase 2 outcomes;
• Operational start of conversion.
• Confirm and document business objectives.
• Establish or confirm sponsorship.
• Define scope and deliverables, cost and roles – document in Charter.
• Identify risks.
• Plan schedule.
• Assign resources.
• Launch project.

Project plans – define specifics for managing Project;
• Formal organizational structure.
• List of deliverables.
• Detailed work plan.
• Task-level effort and duration estimates.
• Project Budget.

Key activities for the work plan and timetable:
• Identify deliverables requiring Steering Committee and Audit Committee sign-offs.
• Assign deadlines (refer to CSA 52-320) for requirements in 2008, 2009, 2010 and 2011.
• Work back strategy – determine requirements at the end, and then work back to meet milestones. These are then articulated as key milestones.

I hope this helps. This is one of a series of blogs that is meant to convey information relating to Canada’s transition from Canadian GAAP to IFRS.

For further information, please refer to the ongoing series of IFRS blogs on the GFS Consulting web-site and please remember to contact your accounting professional for further guidance.