IN THIS ISSUE

May 1, 2009

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Are IFRS and XBRL the Next SOX?  And Does the World Really Need More Acronyms?

I jest when I ask if the world needs more acronyms, because two very important global initiatives are looming large on the horizon for organizations that are facing increased challenges and opportunities posed by changes associated with eXtensible Business Reporting Language (XBRL) and International Financial Reporting Standards (IFRS).

XBRL computer language for the electronic communication of business and financial data is revolutionizing business reporting around the world. It provides major benefits in the preparation, analysis and communication of business information and offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using financial data. Although XBRL has been around for more than a decade, new mandates have caused increased interest for many companies.

IFRS, a set of global accounting standards developed by the International Accounting Standards Board (IASB) are quickly becoming the worldwide norm for financial statements in publicly traded companies. The SEC is currently considering a timetable for IFRS to replace Generally Accounted Accounting Principles (GAAP) in the U.S. as it has abroad.

The IIA Research Foundation is at the forefront of these new initiatives, having recently released two new reports, available as free IIA member downloads, that address your role in a successful XBRL and IFRS implementation:

XBRL - The Impact on Assurance, New Challenges for the Audit Profession This research, issued in March 2009, provides an overview of XBRL and the opportunity it presents for internal auditors to provide value throughout the entire compliance and reporting process.

International Financial Reporting Standards (IFRS): What Internal Auditors Need to Know
This research report, released in January 2009, provides internal auditors with an overall knowledge of IFRS and how and when it will potentially impact their organizations.

When you have an opportunity, visit our Research Reports page to view all of our new and upcoming initiatives.

Also, during the GAM Conference in Washington, D.C., on March 18, I had the honor of presenting an IIA Research Foundation Advocates and Friends Award to former Foundation President Rod Winters and Microsoft Corporation in recognition of their support of The Foundation. Please read more about that award and our other two recipients, the IIA Chicago Chapter and Denny Beran later in this issue of RF Report.

In closing, your continued support of The Foundation will enable us to continue to initiate and sponsor innovative research and to share those findings with you in a timely manner; your ongoing donations to The Foundation will help us fund important new initiatives including the 2010 Common Body of Knowledge study. By encouraging your organization to contribute to The Foundation, either as a Master Key Subscriber or as a Matching Fund Donor to your individual contribution, will help us to move the profession forward in spite of today’s adversities.