Institute asks companies to explain IFRS impact

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.

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