FINANCE chiefs are unprepared for a raft of fundamental changes to financial reporting standards in the UK and across the world, according to a survey from Ernst & Young.
The survey found a lack of preparedness and also concern about convergence with US generally accepted accounting practice (GAAP), lease reporting and revenue recognition.
“We are experiencing a big bang of regulation that will transform how companies analyse and report their financial information and make decisions,” said Andrew Davies, Ernst and Young partner and leader of financial accounting advisory services.
Over two-thirds of finance executives supported the move away from UK GAAP in subsidiary accounts. However, many have yet to assess the tax implications of these changes.
“The large number of companies yet to embark on any assessment of their future accounting is a concern,” said Davies.
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