IFRS readiness & conversions

All UK main listed companies were required to comply with International Financial Reporting Standards (IFRS) from 1 January 2005. AIM listed companies from 1 January 2007. Companies seeking a listing on either market will be required to prepare their financial track record in accordance with IFRS. Other unlisted companies seeking a trade sale to an IFRS reporter may also seek to report under IFRS. Furthermore, many multi-national corporations are considering converting their subsidiaries to IFRS.

PwC has a proven track record in helping companies successfully complete the transition to new accounting standards. Our Transition IFRS methodology, to assist with conversions, has been applied to more than 200 conversion projects in the last few years. This methodology, as well as getting the numbers right and guiding companies through operational problems, focuses on effective knowledge transfer to ensure lasting benefits.

Our conversion specialists bring technical, training, communications and change management expertise to the project – reflecting the complexity of the task at hand. And while a lot of the issues are common across all businesses, some impact more on certain sectors so we’ll make sure our industry specialists are involved. We have technical accounting, treasury, tax, human resource, M&A valuations and project management specialists to scope out and assist with your company’s conversion to IFRS.

How we can support you
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Potential issues

• You need to understand the changes affecting financial hedging and instruments, pensions, tax as well as how the standards are likely to impact on your industry
• You want to know the impact on reported performance measures and whether your profit is likely to be more volatile
• You need to ensure you have enough people with the right skills to complete the transition and embed the changes within the company
• You are unsure of the additional data you are required to collect, whether your systems are able to capture it or if your controls are adequate
• You want to assess the tax implications of moving to IFRS
• You will communicate your first results under IFRS
• You want to ensure that all decisions are the best for the business and that any wider business opportunities are considered as part of this exercise