All UK groups that are listed on the London Stock Exchange or AIM are required to produce their year-end and interim consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as endorsed by the UK.

It is also becoming increasingly common for non-listed companies to choose to prepare their financial statements in accordance with IFRS if:

• A listing is intended to take place in the future
• Shareholders have requested it
• They wish to aid comparison with other companies in their industry
• They are an international group
   

Working with us on IFRS

If you are considering transitioning to IFRS, we can help you to understand and prepare for the changes that will take place. We can assist you in managing this process, assessing the impact of the adopted accounting standards and implementing them.

We identify the precise implications of the changes to your financial statements, the first-time adoption adjustments and highlight potential second order impacts such as the timing and amounts of tax payments to HMRC. We can also help you prepare for conversion and support you through the implementation process for IFRS to ensure it runs smoothly.

We have significant experience in helping companies and other organisations through the process of transitioning to IFRS.

Issues arising after conversion can include disputes about bonuses or earn-outs that are linked to revenue or profit, higher finance charges where interest rate margins are linked to key ratios, and breaches of bank covenants.

Find more details of how we can help.
 

IFRSs

Some of the accounting standards that have become effective in recent years are particularly complex and/or are pervasive in their scope and impact on how a company presents its performance and financial position in its financial statements. More details on the specific impacts of each of these accounting standards can be found on the specific page for that standard, which can be accessed from the following: 

• IFRS 9 Financial Instruments
• IFRS 15 Revenue from Contracts with Customers
• IFRS 16 Leases
• IFRS 17 Insurance Contracts

 

IAS 1 will be replaced by IFRS 18 which has been endorsed and applies to an annual reporting period beginning on or after 1 January 2027. IFRS 18 will change the requirements for the presentation and disclosure of information in financial statements to help ensure they provide relevant information that faithfully represents an entity’s assets, liabilities, equity, income and expenses.  This will lead to detailed changes in the format of the income statement and bring new requirements for explanatory disclosures on non-IFRS measures used by management in analysing and discussing performance (“Management Performance Measures” or MPMs) whether used in the annual report or in other publications.

The Financial Reporting Council (FRC) monitors disclosures by companies on these new standards, including the impact in the year of adoption. The UK FRC’s Corporate Reporting Review team issues annual guidance for companies to improve their corporate reporting.

• Corporate Reporting Thematic Reviews
• Annual Review of Corporate Reporting

 

Model IFRS statements

These are illustrative IFRS financial statements of a listed company, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). They are not UK Company specific, and do not incorporate UK Companies Act disclosure requirements.

• Interim IFRS Illustrative Financial Statements (June 2024)
• Interim IFRS Illustrative Financial Statements (March 2024)
• IFRS Illustrative Financial Statements (December 2023)
• IFRS Illustrative Financial Statements (December 2022)

 

These illustrative IFRS financial statements are intended to be used as a source of general technical reference, as they show suggested disclosures together with their sources. They are not intended to address the particular circumstances of any particular entity.

 

IFRS At A Glance

• This publication provides a high-level overview of all IFRSs in issue at 30 June 2024.
• This publication provides a high-level overview of all IFRSs in issue at 31 December 2023.

 

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