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Finance directors are less enthusiastic about key effects of International
Financial Reporting Standards (IFRS) than those who invest in their companies,
according to a survey by PricewaterhouseCoopers (PwC).
The survey of found that UK companies have mixed feelings about the impact and
benefits, having now reported their results for the first time under IFRS.
This is a difference of opinion from a PwC survey last month on the investors’
view, which found fund managers have become more comfortable with IFRS.
The poll of 93 FTSE 350 companies found that although they encountered few major
problems, some found the process more complicated than expected, more costly,
with unclear benefits.
Most found it more difficult to explain their results than under UK GAAP.
Half of those surveyed said IFRS had neither helped nor hindered management
decision-making. In addition, 40% said the new standards were unhelpful to the
board. Only 4% found a real benefit.
Ian Dilks, IFRS conversions leader at PwC, explained: "Expectations that a major
benefit of the new standards would be international comparability is matched by
concerns over complexity and increased volatility in reported earnings.
"It may be that finance executives are suffering from the after-effects of the
high intensive conversion activity."
Source:
Credit
Control Journal
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