PracticeAuditIFRS to cause more restatements

IFRS to cause more restatements

The ICAEW has warned that the number of companies restating their accounts will increase following the introduction of international financial reporting standards across Europe next year.

Andrew Ratcliffe, chairman of the institute’s audit and assurance faculty, also said it was inevitable that more companies will delay their 2005 financial statements due to lagging behind in their preparation for IFRS.

‘Auditors have a critical role to play in helping their clients get up to speed with new requirements under International Financial Reporting Standards,’ said Ratcliffe. ‘As the deadline draws near for their introduction, recent ICAEW research suggests some companies are struggling.’

‘There will be a major change in the format of the accounts; different accounting policies need to be formulated, and there are more extensive disclosure requirements,’ he added. ‘To achieve all this entails a significant project for companies that will affect their entire reporting process and may result in changes in their accounting systems. Being ready only at five minutes to midnight will not be good enough.’

Related Articles

PwC’s appeal against 2 year audit ban in India rejected

Audit PwC’s appeal against 2 year audit ban in India rejected

2m Alia Shoaib, Reporter
PwC found negligent by US judge over Colonial Bank's $2bn fraud

Audit PwC found negligent by US judge over Colonial Bank's $2bn fraud

3w Alia Shoaib, Reporter
Deloitte South Africa investigated over Steinhoff audits

Audit Deloitte South Africa investigated over Steinhoff audits

1m Alia Shoaib, Reporter
Top 5 audit fines of 2017

Audit Top 5 audit fines of 2017

1m Alia Shoaib, Reporter
PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

1m Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2m Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2m Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

2m Alia Shoaib, Reporter