Deloitte Audit: When capital markets know no boundaries. A common language makes all the difference IFRS conversion: What does it mean?Publish date: 10-10-2012
Following the June Order 881 of the Ministry of Finance, listed companies are required to comply with the International Financial Reporting Standards (IFRS) starting FY 2012. From now on, all companies listed on the Bucharest Stock Exchange (BVB) will have to report under IFRS; also, companies seeking a listing will be required to present financial track records in accordance with IFRS, while unlisted companies dealing with IFRS reporters might also have to comply with these new accounting requirements.
"The move towards global standards means a common language for cross-border businesses and multi-nationals, as all participants in the market need high-quality, transparent, and comparable financial information to make sound economic decisions,” underlines Ahmed Hassan, Country Managing Partner Deloitte Romania. "IFRS implementation is a complex process that brings profound changes to the accounting reporting process, has a significant impact on financial data and also requires the restructuring of internal information systems.
It can have an impact on almost all aspects of a company, including financial reporting systems, internal controls, taxes, treasury, management compensation, cash management and legal, among others.”
In order to aid companies in effectively implementing the new accounting standards, Deloitte has dedicated two days to IFRS-related issues.
Today's half-day conference "Investor Information and Transparency. The IFRS Standards” was organized in partnership with the BVB.
"There are at least three reasons for the BVB listed companies to report under IFRS: to increase the transparency level of reports according to BVB Corporate Governance Code, to help investors assess companies from the same industry and on various markets, and to provide international investors with a standard analysis instrument they are already accustomed with. On a medium and long term, all these factors lead to the increased liquidity of the companies complying with IFRS,” said Pompei Lupsan, vicepresident of the BVB Board.
Separately, Deloitte professionals will deliver a specialized training on IFRS issues on Thursday, October 11, as part of the Deloitte Academy program.
"A succssful transition to the new accounting standards depends on the quality and skills of professionals involved in the process,” says Farrukh Khan, Deloitte Audit Partner. "Given our multidisciplinary capabilities acknowledged by industries all over the world, our Firm has the right knowledge and abilities to identify IFRS-related needs in terms of accounting processes, tax implications, project management and other transition-related processes, data and systems, employees IFRS trainings.”
On a global level, Deloitte has a proven track record in successfully supporting IFRS convergence by providing implementation, reporting advisory, and cross-border offering services, always through industry-focused and tailored solutions.
With Romanian listed companies now joining the global trend, Deloitte remains committed to supporting and facilitating such a challenging, yet beneficial process.
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