PwC launches pocket guide to small firms’ financial reporting standards

TO HELP businesses cope with required changes in the preparation of accounts, PricewaterhouseCoopers has launched the Pocket Guide to International Financial Reporting Standards (IFRS) for small to medium sized firms.

Issues raised by the proposed new standards for SMEs are dealt with in the book, intended as a practical and easy-to-read summary of the new reporting guidelines.

PwC said the recent proposals made by Britain’s Accounting Standards Board (ASB), meant the current rules are due to replaced by new IFRS for small to medium sized business.

The changes will have implications for a large number of Irish “private entities”, it said.

With the ASB’s consultation document just issued “it is now timely for companies to consider how this would impact on their financial statements”, PwC said.

Irish businesses face significant challenges ahead as a result of the proposed changes in how companies and other bodies present their accounts, PwC said.

According to the consultancy group, those affected by the upcoming changes need to start preparing now and are advised to get involved in the ABS consultation process to ensure they are up to speed on what will be required.

The new standard is to apply to non-quoted firms who publish general purpose financial statements for external users.

Preparing financial statements in accordance with IFRS for SMEs would see a significant number of British and Irish entities coming to terms with a very different look and feel for their financial statements.

There are also a number of areas where presentation requirements and measurement principles under IFRS are very different to British and Irish GAAP guidelines.

“Conversion to the new standards will involve a significant amount of work for a large number of private companies in Ireland but should lead to enhanced cross-border comparability, as well as consistency of accounting frameworks within multi-national groups”, said Irene O’Keeffe, of PwC.

Companies should start planning and working on the basis that the ASB will require adoption of IFRS for SMEs in Ireland by 2012.

This may seem a long way off but companies should start thinking about the changes now, Ms O’Keefe said.