International Financial Reporting Standards

For many companies, the International Financial Reporting Standards (IFRS) revolution will have a significant impact on financial statements, directly affecting the outcomes of valuation metrics that analysts use to measure and evaluate company performance. To help businesses meet these challenges, KPMG has developed a global methodology, which presents a structured approach to the change. By 2005 all EU listed companies must apply International Financial Reporting Standards (IFRS) in their financial statements. This means companies will have to have a set of comparative accounts in 2004, so it is vital that they have a structured action plan now to help them implement an effective and efficient conversion.

IFRS is more than just a technical accounting exercise; it is an important business priority. For many the IFRS revolution will have a significant impact on the financial statements. Major areas affected will be, financial instruments, business combinations, share based payments and pensions. Ultimately early adoption and communications may assist competitive advantage. To help businesses meet these many challenges ahead, KPMG has developed a structured approach to change.

KPMG has inevitably gained vast experience in the application of IFRSs in Malta because these standards have been the basis upon which statutory financial statements of all limited liability companies registered in Malta were prepared for many years.