Report on implementation of IFRSs in the United Kingdom
04 Dec 2006
The United Kingdom Financial Reporting Review Panel has published a report on its preliminary findings in respect of IFRS implementation by UK listed companies in their annual accounts.
The Panel found 'a good level of compliance with IFRSs' but also identified a number of recurring issues that are highlighted in the report, including the following:
- There is "a tendency to use 'boiler-plate' descriptions for disclosure of accounting policies, irrespective of whether those policies had been applied in the accounts. IFRS accounts have been said to be too long and too complicated. More focused and thoughtful approaches to these areas might reduce their length and increase understanding of the complexities which are inevitable in sophisticated commercial operations."
- IAS 1 disclosures relating to subjective or complex judgements made by management were sometimes bland and uninformative.
- Not all companies complied with the requirement to disclose the possible impact on their financial statements of published Standards and Interpretations not yet effective at their reporting date.
- Disclosures relating to intangible assets and goodwill acquired in business combinations needed improvement in some cases.
- Similarly, disclosures relating to impairment testing of goodwill and indefinite-life intangible assets were inadequate in some cases.
- The report reminds companies that all key management personnel are related parties under IAS 24 (even if they are not directors) and IAS 24 requires disclosure of remuneration.
- Report on IFRS Implementation (PDF 114k)
- Related Press Release (PDF 12k)
