There are many reasons why companies move from their current accounting framework to International Financial Reporting Standards (IFRS). But what is common to all companies is the need to look at the options available, the consequences of those options, and understand how their transition to IFRS will bring economic benefits.
You may be thinking of listing in the UK, in which case IFRS financial statements are mandatory to meet the listing requirements. If you are a multinational corporation you’ll no doubt want to know how you can benefit from subsidiaries applying the same set of accounting rules. And for those companies applying UK GAAP there’s challenging times ahead with new UK GAAP (FRS 102) coming into force from 1 January 2015. Although this is similar to IFRS, some companies will benefit by moving to full IFRS, or from applying the reduced disclosure framework (FRS 101).
Iain Selfridge looks at some of the considerations for companies considering a move from UK GAAP to IFRS.
There are a number of important issues to consider in planning your transition to IFRS. You’ll want to ensure that all decisions taken are the best for the business and that any wider business opportunities are considered at this stage.
You’ve made the decision to convert to IFRS. But that’s only the first step. Now you need to think about the operational challenges, knowledge transfer, change management and project planning – as well as getting the numbers right. This is where we can help.
Our Accounting Advisory team has experience in helping companies successfully complete the transition to new accounting standards. As well as helping you get the numbers right, we can guide you through the operational challenges. Our flexible and scalable methodology focuses on effective knowledge transfer, so you get lasting benefits. We can help you prepare for IFRS with: