Maintaining IFRS standards

The biggest accounting change for decades is less than a month away.

January 1, 2005 is the date that listed group companies will have to adopt International Financial Reporting Standards (IFRS).

This is also the date that many unlisted subsidiaries on unlisted parent companies will voluntarily follow IFRS instead of UK accounting standards.

Even if a company is not voluntarily opting for IFRS, new UK Financial Reporting Standards are following a convergence route with IFRS and so UK companies will indirectly by applying many IFRS in the disguise of UKFRS. For example: The FRS on share-based payments – FRS 20, will mirror the accounting requirements of IFRS and pending FRS on financial instruments are based on IAS 32 and IAS 39.

Uncertainty over standards and a shortage of skilled accountants has left many companies and firms of accountants unprepared and feeling at risk – according to a recent report in Accountancy Age.

Accountancy Age also conducted an exclusive IFRS survey, which revealed that less than half of the 1,000 companies polled had yet to begin preparing for the impact of international standards.

MacIntyre Hudson has been working with professional advisers (accountants and lawyers) for over a year, both internally and externally, helping them to prepare for and understand the commercial, as well as financial, impact IFRS. In order to ensure the transition to these international standards is as stress-free as possible, a number of one day IFRS training courses have been scheduled for the New Year.

Nicki Cole, from award winning, specialist training provider MacIntyre Advisory Services, said: “Many people have been putting IFRS to the back of their minds for a long time. It simply has not felt like a priority and they have not wanted to think about the changes that will affect them. But, it cannot be put off any longer. IFRS is just round the corner. Our message is to not panic. It is not too late but it will be if you do not act now”.

MacIntyre Advisory Services offer both specialist, tailored courses and public courses to help those who need to, understand the IFRS changes – and how they will affect their business. Public courses are being run in Central London in February, March and April. For details of these and availability for tailored in-house courses, contact Nicki Cole on 020 7583 7575 or email nicki.cole@macintyrehudson.co.uk