Assignment re International Corporate Reporting The Transform Group is an ambitious large privately owned UK company that is seeking a listing on the UK Stock Exchange to further its expansion plans. It currently has four subsidiaries two of which have

Requirements
Write a memorandum to the Board of Transform to cover the following areas:
a) The benefits of adopting IFRS for reporting purposes compared to the use of “local” GAAP and the processes (and their timing) the company will need to implement to its accounting systems to enable the transition.
b) The general principles of the process of transition to IFRS as required by IFRS 1.
c) Going forward, describe three areas of accounting where the company will find significant differences between the treatment that was required under UK rules and those that will now be required under IFRS rules and the comparative effect that this will have on the financial statements.
Please Note:
 Reference to the academic literature must be made in your answer
 All parts carry equal marks
Max 2,500 words
Post Graduate assessments grading guide:
70% + Distinction
60% – 69% Merit
50%-59% Pass

Notes for guidance

The marks will be allocated equally to each section

Part a) requires a discussion of the perceived benefit of the adoption of IFRS together with the practical issues relating to an entity’s accounting systems that need to be considered before implementation.

Part b) considers the major requirements of asset and liability recognition / derecognition and measurement principles together with the details financial statements that should be presented on the adoption of IFRS 1.

Part c) requires students to describe three areas of accounting, related to transactions or events that Transform is likely to encounter, where their treatment under IFRS rules will have a significant difference on the financial statements than it would have done had UK rules continued to apply

Well researched answer will contain references to professional journal articles and technical IFRS literature.

Recommended Readings

Melville, A (2009) International Financial Reporting (e-book), (2nd Edition), Harlow New York, Financial Times Prentice Hall.
Roberts, C. Weetman, P. Gordon, P. (2008) International Corporate Reporting, (4th Edition), Harlow New York Times Prentice Hall
Nobes, C. parker, R. (2009) Comparative International Accounting, Harlow New York Times Prentice Hall
Mirza, A. Holt, G. (2010) Practical Implementation Guide and Workbook for IFRS, (3rd Edition), Chichester, Wiley.
Alfredson, K. (2009) Applying International Financial Reporting Standards (2nd Edition) Chichester, Wiley.
KPMG article Managing the transition to IFRS
Useful websites include

www.iasplus.com
www.pwcglobal.com
www.iasb.org.uk
www.accaglobal.com

Marking Criteria

Students will be assessed using the following criteria:

1. Introduction quality
2. Articulation of reporting writing
3. Development of the scenario / argument
Paragraphs should be consistently well developed, and provide examples that develop points.
4. Use of examples
5. Transitions
There should be strong and consistent transition between points in essay; strong flow
6. Coherence
Paragraphs should work to support the essay and be linked.
7. Conclusion
Conclusion should be beyond a summary of what was written in the body of the essay.

Important Notes

Harvard Ref Guide is published as a separate document in Moodle