IFRS update summer 2006 - time to reflect
So, it’s a year-and-a-half since IFRS had to be implemented and, broadly speaking, everyone who should have been reporting using the new standards has.
In association with PwC
There shouldn’t be a soul in the world of finance who hasn’t heard about
them. There shouldn’t be a finance director in a publicly quoted company who
hasn’t sweated over them and cursed them.
Link: Access IFRS –
PwC’s IFRS resource centre
They are here to stay, however. But, as one of our writers points out in this
latest IFRS briefing, this is a good time to take stock and reflect on the
progress so far. Because though none of it would have been easy, and none of it
would have been cheap, IFRS has become part of everyday life.
That said, another of our writers reveals, few feel that IFRS has produced
very much by way of advantages to individual companies. We report that even the
new standards’ biggest fans say that the benefits don’t have an impact on the
bottom line.
That’s an interesting view, but it begs the question: what is IFRS for? They
were intended for global comparability, global transparency and, as a result,
cheaper and easier movement of capital.
Has that happened? Experts question whether the ‘international homogeneity’
will be achieved, and complain about a host of unresolved issues. As for cheaper
capital, the jury is still out on that one as, if one is being honest, it still
seems early days to make a call.
But one thing is for sure. In the UK, at least, a lot of companies, finance
directors, accountants, auditors and regulators have thrown themselves at
implementation and overseeing IFRS with energy and commitment.
In this they have probably learned a lot about themselves, their staff and,
not least, the financial position of their organisations. Hopefully, this latest
IFRS special will help you learn even more.