International Financial Reporting Standards (IFRS) represent the most significant shift in financial reporting and the biggest accounting change in a generation. 2005 was the year that many countries around the world adopted IFRS, or standards that are so close that few significant differences remained. All 25 EU countries were required by the 2002 Regulation to adopt IFRS for listed groups.
In Greece, all listed companies and public sector organisations must prepare their stand-alone and consolidated financial statements under IFRS and, under certain conditions, so should subsidiaries of listed Greek companies.
Implementing IFRS is far from over. IFRS being an evolving area are subject to new guidance and interpretations. A need for replacement of certain existing or issuing of new standards has also emerged from the global financial crisis. The next few years are likely to be a period of significant change in financial reporting.
In the next two years, the International Accounting Standards Board expects to issue several new standards on financial instruments, consolidation, leasing, provisions, financial statement presentation, post employment benefits, revenue recognition and other.
Getting through the IFRS conversion process and initial reporting period is a great challenge. Companies converting to new accounting standards tend to underestimate what is involved, particularly in terms of time and resources.
Conversion to IFRS is much more than a technical accounting issue. IFRS may significantly affect any number of a company's day-to-day operations or even impact the reported profitability of the business itself. Companies that have benefited most from the transition are those that looked at this as a chance to make improvements to their systems and processes and have used it as a focus for more efficient, timely and meaningful internal and external financial information.
PwC helps companies to successfully complete the transition to IFRS. We have a range of specialists to assist your company on effective transition methodology, technical accounting expertise, treasury, tax, human resource, M&A, valuations and project management.
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