New accounting standards and frameworks
Lead or follow into 2015 – the change is coming
A recent Deloitte survey of CFOs of Irish entities indicated that almost 60% of those surveyed had not decided on which accounting framework to use from 2015. Entities will have a choice of framework between FRS 102 and IFRS and some may also have a choice of FRSSE or, indeed, FRS 101. What framework is adopted will depend on the business and the circumstances, but these changes are coming, ready or not, and it would be most prudent for entities to put systems in place to effect a smooth and early transition
So what is changing? There are many significant changes to accounting, including deferred tax, foreign currency, pensions, intangibles, investment property and a host of others. The general understanding is that for many the most significant change is the accounting for financial instruments. The degree to which companies will be affected depends on what is in their financial statements, the nature of business and complexity of transactions.