Why IFRS matters for European businesses?

International Financial Reporting Standards (IFRS) have in the past decade made a significant contribution to bring transparency, accountability and efficiency to the world economy. Research has shown that it has reduced the cost of capital and cost of reporting.

IFRS were made mandatory for the listed companies in the European Union in 2005. Since then these global standards have been adopted by more than 100 countries. More than two thirds of the G20 members now use IFRS.

The application of IFRS has got its own challenges. The key issue for preparers is that IFRSs are a moving goal post. We have new standards on revenue recognition, financial instruments and leasing effective in the next two to three years. These standards will have a significant effect on the business decisions and performance. In addition, the existing standards can often be complex to apply and analyse. This makes it essential for both preparers and users to have a thorough understanding of the standards and its impact on financial statements.

The one day course on “IFRS for Controllers” in Zagreb covers the key topics – financial instruments, revenue recognition, tangible fixed assets (including leases) and consolidation which would be applicable to controllers in corporate and financial institutions.

Saket Modi, CFA has spent considerable time working, advising and training on IFRS, in particular financial instruments. He has worked with delegates from over 30 countries in Europe, Africa, Middle East and Asia, and has been invited by the International Auditing and Assurance Standards Board® (IAASB®) to present on IFRS 9 at their board meeting in New York. He is a qualified accountant and CFA® charterholder.