Software checks for IAS halted

Link: IAS special report

At last week’s meeting of BASDA members, representatives from companies such as SAP and GEAC discussed the likely impact of international accounting standards on business systems. According to BASDA chairman Eduardo Loigorri: ‘It quickly became apparent this was like peeling an onion – there are many layers to the problem.’

Previously, Dennis Keeling, BASDA’s CEO, had said: ‘We plan on preparing a certification programme, using Deloitte’s guide to IAS as a starting point.’

At the time, BASDA council member John Sinclair expressed doubts about whether it would be possible to create certifications saying it would be ‘an ambitious project’.

Loigorri said the IASB had muddied the waters over how big an issue IFRS would be to software developers. ‘The IASB sent us to sleep in March.

It gave us the clear impression that the new IAS regime would only affect a tiny percentile of companies. We now see this is not the case at all – many companies will have to comply.’

In the meantime, BASDA plans to hold a series of summits designed to raise awareness in both the vendor and user communities, and will continue to use Deloitte’s work as a guide for vendors to review their systems.

The 7,000 listed companies in Europe have to prepare accounts under international financial reporting standards for year ends after January 2005. There are 1,650 listed companies in the UK and, according to an Accountancy Age survey earlier this year, many FDs fear listed companies outside the FTSE100 will not be ready.

Related reading