ceos need to take account of IFRS b

ceos need to take account of IFRS by Jennifer Hughes
A
'No one anticipated how big it was going to be!' says Ken Wild, global International Financial Reporting Standards (IFRS) leader at Deloitte, 5 speaking of the European switch to the new international accounting standards. 'Every company was too late and too slow in preparing - even the good ones.'
B
Accounting used to be in the hands of only the bookkeepers and auditors. Not any more. The change in account- ing rules has forced many Chief Executive Officers (CEOs) to roll up 15 their sleeves. Even when they have reached the first milestone of the changeover, they need to keep up to date with ongoing developments in !FRS in order to deal with the way their 20 company's financial performance will be viewed from the outside.
C
A changeover to IFRS involves far more changes than might at first appear. These range from retraining staff UNIT 3 .... INTERNATIONAL FINANCIAL REPORTING STANDARDS to ta e account 0 25 and altering data-collection systems to potentially changing pay policies and adjusting key accounting policies in order to avoid anomalies in the reported accounts. Changing over was more 30 difficult than many originally antici- pated. It required a lot of adjustments to the computer information systems to try to build the final financial statements.
D
Mark Smith, Director of External Reporting at Tomkins, led his engineer- ing group through the change. 'There were really two phases to the whole project,' he says. 'Firstly, we had to 40 work out which accounting policies had to change. Secondly, we had to understand how to produce the new style of accounts.' The extra disclosure requirements caused headaches. 'It 45 was not necessarily huge additional amounts of data, but the differences in the data which caused problems - col- lecting it and explaining why you need it.'
E
Externally, there were also big chal- lenges. Executives had to educate the market as to what the different numbers meant and prepare investors and ana- lysts for any significant changes. 55 During the UK conversion, PwC staff tracked the share price movements of companies on the first day they reported results under IFRS. 'The moves were normally I or 2 per cent, ffi so that is not bad, but that is, in fact, a big deal for something that was pro- moted as only a change in book keeping,' says Ian Dilks, head of the !FRS conversion team at PwC.
F
No two companies go through exactly the same experience, and the extent of the change depends on the complexity of the company. Financial services and multinational firms tend 70 to be at one end of the scale, and small companies that operate only domesti- cally at the other.
G
In Europe, the process was compli- cated further by different accounting 75 rules in each country. Some of these were more geared towards tax collec- tion and requ·ired a major reorient- ation towards capital markets, in line with IFRS.
H
Interestingly, European companies with less-developed accounting sys- tems were generally better prepared for the switchover, whereas many UK companies had to rush to work 85 through the unexpected detail of the new requirements. UK at counting was considered quite similar to !FRS. Some companies made the mistake of think- ing that the change would be 'Xl relatively easy.
I
'This is absolutely not just a techni- cal issue,' says Mr Dilks. 'Should CEOs be panicking? No - but neither should they be thinking that they 95 can simply leave this issue to some- one else much lower down [their organisation].'

Kết quả (Việt) 1:

CEO cần phải có tài khoản của IFRS bởi Jennifer Hughes A 'Không ai dự đoán như thế nào lớn nó sẽ!' nói Ken Wild, lãnh đạo quốc tế tài chính báo cáo tiêu chuẩn (IFRS) toàn cầu tại Deloitte, 5 nói về việc chuyển đổi châu Âu tiêu chuẩn kế toán quốc tế mới. ' Mỗi công ty là quá muộn và quá chậm trong việc chuẩn bị - thậm chí cả những cái tốt.' B Kế toán sử dụng để trong tay chỉ có bookkeepers và kiểm toán viên. Không phải bất kỳ chi tiết. Sự thay đổi trong tài khoản-ing quy tắc đã buộc nhiều giám đốc điều hành sĩ quan (CEO) để cuộn lên 15 tay áo của mình. Ngay cả khi họ đã đạt đến cột mốc quan trọng đầu tiên của chuyển đổi, họ cần phải giữ cho đến nay với sự phát triển liên tục! FRS để đối phó với cách thức hoạt động tài chính của công ty 20 sẽ được xem từ bên ngoài. C Một chuyển đổi để IFRS liên quan đến việc thay đổi nhiều hơn có thể lúc đầu tiên xuất hiện. Phạm vi từ đào tạo lại đội ngũ nhân viên 3 đơn vị... Tài chính báo cáo tiêu chuẩn quốc tế để ta e tài khoản 0 25 và thay đổi hệ thống thu thập dữ liệu để có khả năng thay đổi trả chính sách và điều chỉnh chính sách kế toán để tránh bất thường trong báo cáo tài khoản. Thay đổi là thêm 30 khó khăn hơn nhiều người ban đầu antici-pated. Nó đòi hỏi rất nhiều điều chỉnh để hệ thống thông tin máy tính cố gắng để xây dựng các báo cáo tài chính cuối cùng. D Mark Smith, Director of External Reporting at Tomkins, led his engineer- ing group through the change. 'There were really two phases to the whole project,' he says. 'Firstly, we had to 40 work out which accounting policies had to change. Secondly, we had to understand how to produce the new style of accounts.' The extra disclosure requirements caused headaches. 'It 45 was not necessarily huge additional amounts of data, but the differences in the data which caused problems - col- lecting it and explaining why you need it.' E Externally, there were also big chal- lenges. Executives had to educate the market as to what the different numbers meant and prepare investors and ana- lysts for any significant changes. 55 During the UK conversion, PwC staff tracked the share price movements of companies on the first day they reported results under IFRS. 'The moves were normally I or 2 per cent, ffi so that is not bad, but that is, in fact, a big deal for something that was pro- moted as only a change in book keeping,' says Ian Dilks, head of the !FRS conversion team at PwC. F No two companies go through exactly the same experience, and the extent of the change depends on the complexity of the company. Financial services and multinational firms tend 70 to be at one end of the scale, and small companies that operate only domesti- cally at the other. G In Europe, the process was compli- cated further by different accounting 75 rules in each country. Some of these were more geared towards tax collec- tion and requ·ired a major reorient- ation towards capital markets, in line with IFRS. H
Interestingly, European companies with less-developed accounting sys- tems were generally better prepared for the switchover, whereas many UK companies had to rush to work 85 through the unexpected detail of the new requirements. UK at counting was considered quite similar to !FRS. Some companies made the mistake of think- ing that the change would be 'Xl relatively easy.
I
'This is absolutely not just a techni- cal issue,' says Mr Dilks. 'Should CEOs be panicking? No - but neither should they be thinking that they 95 can simply leave this issue to some- one else much lower down [their organisation].'