This week, the UK’s leading banks will present their restated 2004 IFRS accounts to a market still coming to terms with the new standards.
In guidance issued towards the end of last year, most banks revealed that adjusted earnings per share would drop by approximately 5% – but analysts have expressed concern that the new figures could still cause confusion as auditors and banks grapple with the new interpretations.
‘It might not be much clearer, as I think different levels of details may be provided by some of the banks,’ CSFB’s Michael Lever told the Financial Times.
Helen Weir, the finance director of Lloyds TSB said she was not sure analysts were prepared for the changes in the new standards.
‘I’ve been talking to analysts and I’m not sure they are fully prepared for the changes as they come through,’ said Weir.
Experts have said that the interpretation of standards affecting insurance will be particularly complex.
The standard for insurance – IAS12 – affects the value of the existing book of life assurance businesses and its interpretation is still a topic of debate among auditors.
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Craig Maxwell joins the audit and assurance team in Scotland
Stephen Grayson to join the audit department in Manchester