ACCA (the Association of Chartered Certified Accountants) has become the first professional accountancy body in the UK to prepare its annual accounts under International Financial Reporting Standards (IFRS).
The 2002 Accounts will be presented to ACCA’s Annual General Meeting on 8 May. A full reconciliation to UK GAAP (Generally Accepted Accounting Principles) will also be available.
In another first, an Operating and Financial Review (OFR) accompanies ACCA’s accounts. The OFR is a narrative report which expands on the financial information in the accounts and is designed to give stakeholders more detail about ACCA’s operations, its financial position and its future business strategies, prospects and risks. ACCA decided to prepare the OFR in line with proposals contained in the Department of Trade and Industry's White Paper Modernising Company Law, which is currently out for consultation.
Douglas Kerr, ACCA’s Vice President and chairman of its Finance Committee, said: “ As a global organisation, ACCA is committed to the harmonisation of standards. That is why it has decided to take a lead in the preparation of accounts under IFRS – which will, in any event, be mandatory for listed companies in Europe from 2005.
“The inclusion of an OFR reflects the public interest dimension of ACCA’s activities and will provide additional information for our members. ACCA’s 2002 accounts will also provide them with a useful framework when they advise their own business and clients on the move to IFRS and the introduction of the statutory OFR,” said Douglas Kerr.