More than a quarter of top UK companies will not be ready by early 2005 to report on an International Financial Reporting Standards (IFRS) basis, research from Atos KPMG Consulting has warned.
According to the research, companies in the UK are less prepared for the deadline than their counterparts in France, Germany and the Netherlands.
The findings revealed that 26 per cent of UK companies will not be ready by 2005, compared with an average of 12 per cent in France, Germany and the Netherlands. Only two per cent of UK companies are ready now, compared to an average of 20 per cent in the other three countries.
Philip Davies, IFRS practice lead, Atos KPMG Consulting, said that many companies believe they are on track to implement the new standards on time within their finance functions.
But he added in a statement: "It is where the new standards affect core processes, IT systems, staff retraining and the way the business is managed that companies are moving too slowly."
UK firms may also have a nasty surprise in store, with five times as many companies in the latter stages of preparation believing that IFRS compliance will cost over €1m than those in the early stages of preparation.
Scott Parker, managing director of Atos KPMG Consulting, urged companies to review delivery risks and benefits in their IFRS projects now.
He said that companies that are already looking at business results and budgets prepared on an IFRS basis, and that are able to explain the impact to investors, are companies that will improve their peer ranking over the next few years.
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