Muscat - There are many International Accounting Standards (IAS), which were revised last year that need to be complied with in preparing financial statements for the year ending December 2005. These revisions were made as part of an improvement projects with an intention to eliminate the options previously available to the preparer of financial statements in dealing with specific accounting matters. The intention was also to seek convergence with the US GAAP.
KPMG, which is one of the big four accounting firms providing audit, tax and advisory services to clients across the world, and which recently completed 30 years of operations in Oman, held a workshop recently on the recent developments in International Financial Reporting Standards (IFRS). It was attended by nearly 50 auditors employed by KPMG in Oman.
Ashok Hariharan, Partner responsible for training in Oman, mentioned that the Oman Practice felt it is critical that it's auditors are fully conversant with the recent developments in IFRS, which are applicable to the 2005 financial statements audits, work for which has commenced for many of KPMG's clients.
The workshop was lead by Philippe Longerstaey, who previously worked with KPMG Brussels as the Professional Practice Partner. Philip has gained extensive knowledge on IFRS as well as the US GAAP. Philip mentioned that more than 15 standards were revised and are applicable to financial statements for the year ending December 31, 2005.
These include standards on presentation of financial statements, inventories, property plant and equipment, leases, accounting policies, changes in accounting estimates and errors and consolidated financial statements. Ashok mentioned that IAS 24 dealing with related party disclosures has also undergone significant changes.
The related party definition has now been expanded to include parties with joint control over the entity as well as close family members of individuals with direct, joint or indirect control or significant influence and also close family members of key management personnel of the entity or it's parent.
KPMG's workshop dealt extensively with the improvements project. There was also a detailed analysis and discussion on IFRS 3 -- Business Combinations, IAS 38 -- Intangible Assets, IAS 36 -- Impairment of Assets and IAS 32 and 39 -- Accounting for Financial Instruments.
KPMG has set up an International Financial Reporting Group (IFRG) which advises member firms across the world on issues relating to application and interpretation of IFRS. KPMG has also recently published a practical guide to IFRS titled 'Insights into IFRS'.
© Oman Daily Observer 2005
