International Financial Reporting Standards

The change to International Financial Reporting Standards (IFRS) represented the most significant shift in financial reporting in the UK for more than a generation. Its implications reached far beyond technical accounting, and many companies found that their entire business practices have been impacted.

From financial instruments such as hedging, and pensions and tax, companies must understand how the new standards affect them, and the wider industry sector in which they sit. As expected, companies that moved to IFRS in 2005 are now more familiar with the standards and are finding many aspects of IFRS reporting easier as time goes on. Nevertheless, the current economic climate brings new challenges for management. Annual reports are under scrutiny and investors are demanding greater transparency through additional disclosures.

AIM companies benefited from the experiences of the listed companies to plan and implement their IFRS conversions for 2007. Their challenge has been to put in place frameworks that are robust enough to sustain in the long term.

The UK public sector will be adopting IFRS for their 2009/2010 accounts. This will have a substantial impact for many public sector organisations, encompassing areas such as the setting and measurement of performance targets, budgeting and forecasting, in addition to financial reporting.

Already converted to IFRS?
Conversion to IFRS is not, however, the end of the story. The continued need to embed IFRS reporting across wider systems and processes will mean that companies must continually adapt their finance function to meet the IFRS challenge and achieve long-term efficiency.

How can we help?

PricewaterhouseCoopers' IFRS specialists have extensive expertise in understanding the implications and processes of IFRS reporting both at the conversation stage and in this crucial period that follows in a tailored way that meets their needs. We help clients to navigate their way through each stage of the process. In addition, we have developed Access IFRS, a free website offering research material, news and feature articles, publications and podcasts for all professionals affected by IFRS. To take advantage of this market-leading resource log on to: www.ifrs.co.uk