IFRS - anyone know of a small guide?

PwC
#1

Hi there

I have an assesment day for pwc on Tuesday, and think I have everything covered apart from IFRS which I’m still quite shady about. Does anyone know of a good guide about its effects on the audit market?

I had a little browse on this forum and couldn’t see anything relating to this but apologies if this has already been brought up 100’s of times! Any help would be greatly appreciated.

#2

No you’re absolutely right! IFRS, or International Financial Reporting Standards, is an international standard in accounting that is replacing the local accounting standards of many countries, including the UK. The current UK standard is called UK GAAP - Generally Accepted Accounting Principles, and it has been done this way for a long time.

There are a few significant differences between IFRS and UK GAAP. Moving across is not too much trouble, however there are some issues with regards to comparing between the two. As the accounts have been prepared under different guidelines, a UK GAAP set of accounts won’t be the same as an IFRS set.

What has really happening at the moment is that it is still being adopted, and consequently accounts are prepared in several formats. A client I worked on required accounts prepared in UK GAAP, IFRS, US GAAP and Canadian GAAP. It can be a little confusing!

Overall the motivation behind this move to IFRS is to make everybody’s lives easier. For the meantime, the biggest thing for auditors to understand are the differences between UK GAAP and IFRS, although for trainee auditors, you will learn this on this job.

Hope this helps! Any more questions, fire away!

#3

Thanks for that, really helped.

Think I am as prepared as I ever will be, well after reading the FT tomorow. And doing a load of diagrammatic tests as finding them impossible at the moment, the ones in the online test were so easy, but the ones in the book are insane lol.

#4

Is there a deadline for all companies to switch over to IFRS? also is this only for listed companies or all companies?