Over a quarter of UK finance departments are unsure if they are GAAP compliant
Over a quarter of UK accountants are unsure if they are GAAP compliant
Our recent study of 500 finance departments highlighted a disturbing lack of preparation across UK organisations for the new International Financial Reporting Standards (IFRS) 101 and 102 standards, with less than a third of companies currently compliant.
Even more worrying perhaps were the 27.6 per cent of accountants that were unsure whether or not they were compliant!
43.8 per cent believing the bureaucracy of compliance is the single biggest issue
The finance departments we spoke to also claimed unwieldy regulations are stunting UK business growth, with 43.8 per cent believing the bureaucracy of compliance is the single biggest issue facing financial departments today. In fact, almost two thirds say they face significant issues with remaining compliant and 37 per cent believe compliance slows everything down.
We know some may have put the UK GAAP issue on the back burner to focus on servicing clients’ needs; however, those who have yet to comply need to remedy this swiftly to ensure business growth is not affected.
Although the repercussions of non compliance can vary, failure to comply with the current financial reporting standards would be problematic for both the organisation and any accountancy firms acting on their behalf.
IRIS can help
In order to make the transition easier, accountants can utilise software which provides full UK compliance for the new standards and satisfy their clients’ compliance requirements.
The latest release of our IRIS Accountancy Suite v11.6 enables users to remain compliant despite continued legislative changes, including the major overhaul of GAAP, whilst delivering a number of productivity and efficiency gains.