Anxiety over IFRS called 'overdone'.The online United Kingdom-based publication Company Reporting (www.companyreporting.com) has published "Coping with IFRS," explaining what users of financial statements can expect and offering suggestions for dealing with the challenge of the 2000-plus pages of International Financial Reporting Standards (IFRS). Written by Company Reporting Editor Mark Sproul and Chris Higson, a professor at the London Business School, the report discusses how IFRS is likely to affect the appearance of the balance sheet and income statement. It goes on to examine the impact of IFRS in terms of balance sheet completeness, presentation and valuation, then discusses its impact on the income statement Income Statement A financial report that - by summarizing revenues and expenses, and showing the net profit or loss in a specified accounting period - depicts a business entity's financial performance due to operations as well as other activities rendering gains or losses. Also known as the "profit and loss statement" or "statement of revenue and expense".Notes: The income statement is the most analyzed portion of the financial statements. and segment disclosure. Areas of significant change identified by the report include: share-based payments, goodwill amortization, deferred taxation, financial instruments and recognition of pension liabilities Pension liabilities Future liabilities resulting from pension commitments made by a corporation. Accounting for pension liabilities varies widely by country.. Finally, the authors argue, "IFRS anxiety has been overdone." They say the transition to IFRS means additional work for analysts but, "with preparation, the potential for unpleasant surprises should be limited." The full report is available at www.companyreporting.com. |
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