A global set of accounting standards provides the global economy with one measure to assess both the potential and progress companies have made in achieving their goals. The move to International Financial Reporting Standards (IFRS) is the single most important initiative in the reporting world, the impact of which stretches far beyond accounting to affect every key decision you make, not just how you report it. Authoritative, responsive and timely advice is essential as the new system evolves — wherever you are in the world.
We have acted to develop deep global resources — people and knowledge — to support our advisory teams working with clients, to help make this transition happen and our assurance teams who independently audit performance using the new standards. And because we understand that, to achieve your potential, you need a tailored service as much as consistent methodologies, we work to give you the benefit of our broad sector experience, our deep subject matter knowledge and the latest insights from our work worldwide. It’s how EY makes a difference.
Today, all European listed companies have made the conversion to IFRS and more than 8,000 listed companies throughout the European Union released their financial statements based on IFRS in 2007.
One of the key features of IFRS standard setting has been the alignment of US Generally Accepted Accounting Principles and IFRS recognition, measurement and disclosure requirements wherever possible. In addition, on November 15, 2007, the SEC decided to allow foreign private issuers to file the financial statements prepared in accordance with IFRS as issued by the International Accounting Standards Board without reconciliation to US Gaap.
As the new accounting framework matures, there will continue to be changes in accounting practices in the next decade. Companies will need to keep up-to-date on IFRS-related developments to ensure that their financial statements reflect these changes.
To assist you with the challenges of complying with IFRS or converting to IFRS, this section provides: