UK readiness for IAS hits new low

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.

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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.’

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