IFRS Survey 2017
In Q1 2017 Deloitte conducted a questionnaire-based survey among nearly 70 companies to assess what businesses think about IFRS adoption, its timing and the toughest challenges.
- Based on the figures for March 2017, 130 companies have adopted standalone reporting under IFRS so far.
- Nearly 60% of the companies surveyed plan to adopt IFRS reporting and taxation within 5 years, while 9% have already made the transition.
- 33% of respondents currently have no intention to adopt IFRS reporting.
- 36% of the companies surveyed are of the opinion that adoption will not have a considerable impact on their financial position since, based on their expectations and information, the difference between their pre-tax profit under the IFRSs and the profit calculated according to the Hungarian accounting rules will be less than 10%
Motivation of adoption, challenges
Potential adopters indicated pressure from the parent company and statutory requirements as being the primary motivation for adoption.
The majority of respondents selected taxation as the number one technical challenge concerning adoption.
The respondents consider the following points to be the most significant obstacles of adoption (in the order of importance):
- Lack of a sufficient number of qualified IFRS professionals
- Higher time requirement of preparing IFRS financial statements
- High one-off costs related to adoption (expert fees, IT costs, etc.)