International Financial Reporting Standards (IFRS)

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.
 

If you need:

  • To assess the impact of implementation of IFRS
  • To ensure you have enough people with the right skills to complete the transition and embed the necessary changes within the company
  • To be sure of the additional data you are required to collect and that your systems are able to produce that data
  • To optimise all decisions related to IFRS transition and ensure that any wider business opportunities are considered
  • To know the impact on reported performance measures and whether your profit is likely to be more volatile
  • To understand the changes affecting financial instruments, pensions and tax, as well as how the standards are likely to affect your industry
  • To integrate IFRS and improve reporting processes, systems and controls

We offer you:

  • Objective evaluation of project processes, controls and deliverables
  • Transition IFRS project management tool
  • Advice on adapting processes, systems, data and manuals
  • Advice on communicating with key stakeholders
  • Training and ongoing coaching support
  • Technical accounting advice and support tools relating to:
    • Identification of significant differences between current GAAP and IFRS
    • Determine what financial and non-financial disclosures are required
    • Financial instruments and hedging
    • Employee benefits and share compensation programmes
    • Purchase price allocation related to business combinations
    • Valuation and impairment testing
  • Range of publications with the very latest information and guidance for existing preparers and first-time adopters of IFRS