Watchdog to target interims
Interim accounts are to come under intense scrutiny in 2005, as the main financial reporting watchdog prepares to ensure compliance with international financial reporting standards.
Link: Help for directors struggling with IFRS
In announcing new checks, the Financial Reporting Review Panel said it would pay ‘particular attention’ to interim reports with a view to identifying companies whose year-end accounts are expected to show significant changes following IFRS adoption.
It also said it would conduct ‘targeted reviews’ to check compliance with specific accounting requirements.
Carol Page, secretary and director at the FRRP, said the panel and the Financial Reporting Council could meet by February to agree procedures and sign a memorandum of understanding on how the mechanics would work.
‘The first year will be very dramatic, but we are remaining cautious about how things will work,’ she said. ‘We will treat interims the same way as we treat annual reports, but we will be talking to the FRC in order to find a manageable and practical way of approaching this without tying ourselves down to any unnecessary meetings.’