The impact of International Financial Reporting Standards to European companies

1. Introduction Companies around the world be liner unmatchable of the biggest-ever assemble in monetary reporting. In Europe, from 2005 there is the indispensableness to spread abroad consolidated financial statements prepared in accordance with world-wide standards, instead of the old national accounting rules. 2. The principal(prenominal) issues facing companies in making the transition to IFRS The preparation of IFRS-based financial statements need richy careful planning and good change management. asunder from the skilful issues there is the need of Training & Recruitment, domiciliate inner(a) awareness, review contracts dependant on old accounting rules and at long last prepare a good converse with the market. 2.1. Managing Change a. Training The first contend in organisations is to delay the staff has the knowledge to guarantee a smooth switch to international financial reporting standards and afterwards the implementation they mountain do their jobs under the newborn schema - both at head-office level and at local run units. The use of fictile resources with knowledge in IFRS and the investment in cookery are two solutions adopted by intimately of the companies. The Big quadruple firms are playing a real important role, dower companies in this transition period by elaborating plans, building processes and training staff.

The training demand is wider than purely from pay functions, as several(prenominal) of roles are affected by the new IFRS: the board members, denotation and equity analysts, M&A teams, traders who buy and wander derivatives, tax and regulatory teams are fair a some examples. b. Data and Softwar e Meeting IFRS requirements means providing ! new selective discipline or present it in a several(predicate) style for both 2005 and the comparative period, so identifying the new requirements to a fault need attention as the collection of this data may kindle difficult. There is the believe that the most appropriate dodge for providing information of auditable quality is to... If you want to get a full essay, enact it on our website: OrderEssay.net

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