BusinessCompany NewsUK readiness for IAS hits new low

UK readiness for IAS hits new low

Financial staff in UK listed companies are less prepared for the impact of international accounting standards than they were three months ago, an Accountancy Age survey has revealed.

Link: IAS special report

The number of listed companies stating that their financial staff are poorly prepared for IAS 2005 has risen by 4% to 45%. Despite the looming deadlines 16% of respondents stated their readiness as ‘very poor’ compared to a mere 7% who said their preparation was ‘very good’.

The controversial IAS39 covering financial instruments ð a major stumbling block to compliance in some countries ð is seen as the most worrying element of IAS.

Click here for IAS graph

A third of respondents believed that problems would be ‘fairly likely’ to undermine the introduction of the new standards next year. More generally, 19% of staff showed ‘moderate concern’ towards IAS39.

The survey also highlighted that a staggering 50% of people didn’t know whether IAS39 would cause problems or not. A total of 16% of respondents said that IFRS4: insurance contracts, caused them concern, while IFRS3: business contributions and IFRS2: share-based payments scored 13% and 11% respectively.

It also seems that a combination of ignorance or lack of information still exists on the subject of IAS, with 30% of FTSE350 and 26% of FTSE100 companies still unsure of how to rate the readiness of their staff.

One anonymous respondent said: ‘I believe that the profession and the standard setting bodies need to do more to inform and educate.’

To register for our free monthly IAS electronic edition go to www.vnuservices.co.uk/accountancyage

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