Institute asks companies to explain IFRS impact
The ICAEW is urging companies that are to switch to International Financial Reporting Standards in 2005 to explain the impact of the changes to investors as soon as possible.
Link: IFRS special report
Responding to the Committee of Securities Regulators’ consultation paper on transition to IFRS, the institute suggested including in 2003 annual reports a narrative on the preparatory process.
It also advised companies to provide a narrative explanation of key changes to accounting policies in the 2004 annual report or preliminary announcement, or even in a separate announcement to the market.
‘Users need to be able to differentiate real changes in business performance from the impact of the application of a different set of accounting standards, and will look to companies for clear, transparent disclosures to help meet this challenge,’ said ICAEW president David Illingworth.