The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Rhetoric grows as IFRS approaches

The warnings are nothing new. But they are certainly getting louder and more earnest. Corporate education, information and communication on upcoming IFRS is urgently needed, according to a report released by KPMG.

The study says that companies must step up their efforts to assess and communicate the impact of International Financial Reporting Standards (IFRS) on their financial reports or risk an impact on share price.

In a survey of 100 buy- and sell-side investment analysts, 53% believed that the introduction of IFRS would have an impact on the valuations of company shares, but said that the markets had not yet factored these impacts into pricing. A further 5% were as yet unsure. Just over half said that there would be some market turmoil as a result of the change in reporting requirements, with 35% saying they would mark down the shares of a company that showed unexplained volatility in earnings.

IFRS will in many cases change the complexion of the financial information that analysts use to assess company performance. When asked whether they felt confident enough that they would be able to distinguish between changes that are the result of underlying business performance and those due to accounting changes, 46% expressed doubts.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree