IFRS - impact on financial reporting for the software and computer services sector

January 2006

The software and computer services sector continues to be dominated with consolidation, developing new technologies and the need to continually show consistent growth in its reported revenue. The changes in accounting rules brought about by the introduction of IFRS will have a significant impact on how these elements are reported.

Using information from interim results and press releases, this document examines the adjustments made and the impact that they have had on the companies within your sector.

The key observations include:

• Use of share-based schemes will reduce
  
• Research and development costs need to be captured
  
• How companies report goodwill and intangibles must change
  
• Revenue recognition under IFRS is subject to a great degree of judgement
  
• Embedding IFRS into your business is essential
  

If you would like to order a hard copy of this report, please contact Julie Fewell on +44 (0) 20 7212 3350.