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IFRS' Impact on Loan Agreements: 3 Covenants to Watch

February 17, 2011

by Karen M. Kroll

in

The move toward convergence between U.S. GAAP and international financial reporting standards (IFRS) will have a major impact on corporate financial statements, and could actually lead companies to inadvertently violate loan covenants.

3 Ways IFRS May Impact Your Debt Covenants | Source: The Big Fat Finance Blog.

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Average: 8 (1 vote)

This change has the

On March 22nd, 2012 Jackie Torres (not verified) said:

This change has the potential to impact many companies’ performance metrics, and potentially cause them to inadvertently violate debt covenants. To navigate the transition to IFRS without unwelcome surprises. - BrandStar Entertainment

Now, that the U.S. is

On March 15th, 2012 bryanblack06 (not verified) said:

Now, that the U.S. is clearly moving toward IFRS, as re-emphasized by the recent SEC (U.S. Securities and Exchange Commission) proposal, one wonders what the potential impacts of the differences between these two frameworks on the financial statements will be? online marketing

This convergence could

On December 22nd, 2011 Jeremy Hughes (not verified) said:

This convergence could affect financial accounting software all over the world as well. Books need to be rewritten in order to conform to new standards. Though this must be done, the implementation must be gradual to avoid mass confusion.

Economy...

On February 21st, 2011 J.Thomson (not verified) said:

A good and fresh piece of writing :) economies almost all around the world are in shaky grounds, and monetary policies are being changed on daily basis, lets hope it get settled soon :)