The switch from local accounting standards to IFRS

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Is this is end of local accounting standards

The Internationalisation of Accounting Standards

The UK’s Accounting Standards Board is proposing that in the next few years some UK companies and other reporting entities will be required to, or have the option to, move to a more IFRS-based financial reporting framework.

The current situation in relation to IFRS

All EU listed companies have been reporting under IFRS (International Financial Reporting Standards) in their group accounts Since 2005.

The US is also considering a transition to IFRS, as are many other countries such as India and Japan.

Switching from local accounting standards to IFRS

The switch from local accounting standards to IFRS must be well thought-out, and its implications understood.

It is easy to think that only those involved with accounting and finance need to get involved or will be affected by it. However, the lessons learned by the EU’s listed companies in the last phase of conversion to IFRS indicate that a much broader perspective is needed, and that the conversion must be treated as a project to be carefully planned and executed.

Find out more with our online course on managing the transition to financial reporting under IFRS