IFRS: reticent companies risk stock devaluation.

PositionNews Round-Up - International financial reporting standards - Brief Article

A leading audit firm has warned that companies must increase their efforts to assess and communicate the impact of the new international financial reporting standards (IFRS) on their annual results--or risk damaging their share prices.

A recent survey conducted by KPMG revealed that more than half (53 per cent) of the 100 buy- and sell-side investment analysts it interviewed thought that the introduction of the new standards would have an impact on the valuations of company shares, but that the markets had yet to factor this into pricing. Just over half those questioned also said that there would be some market turmoil as a result of the change in reporting requirements. More than a third (35 per cent) said that they would mark down the shares of a firm that showed unexplained volatility in earnings.

Information on what impact the changes will have on companies is still scarce...

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