Ifrs

Gill GittingsGill Gittings Well-KnownRegistered Posts: 121
Hi All,

Wonder if someone can offer some advice please. I have read in lots of media that SME's are soon going to have to report under IFRS. Does anyone know what the implications of this will be for us and how straight forward it will be?

There seems to be so much to deal with at the moment:ohmy: Has anyone dealt with international accountancy standards before?

Thanks
Gill

Comments

  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    There shouldn't be that many problems when we change over because UK standards are more or less similar to IFRS - though having said that when the auditing profession changed to international standards there were all sorts of confusion amongst practitioners! There are some differences between UK GAAP and IFRS which I covered in an article at the back end of last year. The main difficulty I envisage is the re-statement of prior year accounts to comply with IFRS which might confuse a lot of practitioners. The IASB have not yet issued their final version of the SME standard - it's due out anytime now but they might delay the issuance of it as they were suppose to issue it at the back end of 2008.

    I think the main bone of contention is the fact that under IFRS, the cash flow statement becomes mandatory whereas under FRS 1 small companies do not have to prepare one.

    Accounting software and the disclosure checklists will be amended accordingly so there will be support out there.

    Kind regards
    Steve
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