EUROPE - Almost half of companies (47%) lack the experience to deal with the new pension expense accounting standard IAS19, a new survey by Mercer Human Resource Consulting has found.
European companies will be required to implement IAS19 as part of the new international financial reporting standards coming into effect on January 1.
Survey results revealed one fifth, or 20%, of companies saw data collation as the biggest barrier to implementation while 17% said they had insufficient resources.
The remaining respondents – 16% - said IAS19 was a low priority for the business.
Commenting on the findings, Phil Turner (pictured), European partner at Mercer, said: “IAS19 should be high on the agenda for all European listed companies as the deadline for implementation is looming.
“A handful of organisations have already disclosed the likely effect of the changes but shareholders in other companies could be in for a surprise. In many cases, balance sheets and profit and loss accounts will look radically different, so companies should prepare for the changes now.”
Under the new Europe-wide move to IFRS accounting, companies are obliged to include all unrecognised actuarial gains or losses in their financial statements.
The survey finding was based on the responses of 70 companies.
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