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Utilities 'not ready' for IASs: their lack of guidance has angered one industry expert.

Document Cited in Related
Vincent
AuthorHayward, Cathy
PositionAccounting Standards

The International Accounting Standards Board (IASB) has been criticised for failing to give sector-specific advice on the implementation of international accounting standards. With the 2005 deadline months away, Manfred Wiegand, global utilities leader at PricewaterhouseCoopers, argued that the body should have issued detailed information on the impact of the new regulations on particular industries.

"This is the biggest financial reporting shake-up for 25 years and, for industries such as oil, gas and utilities, time is running out," he told Financial Management. "I recognise that the IASB has limited resources and is working on many projects, but this information is crucial to ensure a smooth transition in 2005."

The dearth of detailed guidance has meant that the oil, gas and utilities industries are a long way behind in their preparations, he said. "Although the deadline is 2005, many companies will need comparative figures for 2004 and even 2003 in some cases. Most are simply not ready."

The IASB said that it wouldn't have time to formulate a response before Financial Management went to press, citing pressing commitments to meetings with other standard-setting bodies, as well as its regular board meeting.

For industries such as oil and gas the cost implications of international accounting standards (IASs) are immense. One PwC report estimates that their costs could run to...

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