Chris Field, practice manager at Geac, discusses why many British companies are still not making enough progress with IFRS
A recent survey of British companies resulted in some worrying findings.
With IFRS deadlines looming, only 44% had made some progress towards compliance with International Financial Reporting Standards, IFRS. The main reasons given for this were inadequate compliance knowledge, skills and training. These, not software issues, are the chief reasons holding many back from meeting their IFRS requirements.
But do many of these companies really know, in detail, what's ahead of them? A deep understanding is vital because IFRS does not involve any half measures. Companies either comply or not. If they don't, their auditors will be forced to qualify their accounts. This is a very serious matter for any Financial Director of a publicly listed company. Such a disgrace will undoubtedly have an impact on that company's ability to raise finance; its own stock valuation and could even risk a 'delisting from the stock market.' Non compliance is simply not an option.
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