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33RDRD FCM CONFERENCE - BUCHAREST FCM CONFERENCE - BUCHAREST
HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
THE GREEK EXPERIENCETHE GREEK EXPERIENCE
GEORGE SAMOTHRAKIS
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF GREECE
(SOEL)
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33RDRD FCM CONFERENCE - BUCHAREST FCM CONFERENCE - BUCHAREST
HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
THE GREEK EXPERIENCETHE GREEK EXPERIENCE
CONTENTS OF PRESENTATION
Introduction
The Greek Institute of Certified Public Accountants
Harmonisation - General
Benefits of Convergence & Harmonisation
Questions & Options
Making the Change to IFRS
The Greek Experience*
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33RDRD FCM CONFERENCE - BUCHAREST FCM CONFERENCE - BUCHAREST
HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
THE GREEK EXPERIENCETHE GREEK EXPERIENCE
GEORGE SAMOTHRAKIS
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF GREECE
(SOEL)
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF GREECE (SOEL
⇒ Established in 1955, reformed in 1993
⇒ Greek Auditing Qualification
⇒ Supervision of Audit Profession (up to May 2003)*
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33RDRD FCM CONFERENCE - BUCHAREST FCM CONFERENCE - BUCHAREST
HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
THE GREEK EXPERIENCETHE GREEK EXPERIENCE
GEORGE SAMOTHRAKIS
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF GREECE (SOEL)
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF GREECE (SOEL)
S O E L
SUPERVISORY COUNCIL
TECHNICAL COMMITTEE DISCIPLINARY COUNCIL
TRAINING & PROFESSIONAL EXAMS
(The SOEL Educational Institute)*
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S O E LS O E L
⇒ 2000 MEMBERS & STUDENTS
⇒ 500 CERTIFIED AUDITORS
⇒ 22 AUDIT FIRMS
⇒ 10.000 AUDITS PER YEAR
⇒ ΙSA’s AS FROM 1 JANUARY 2003*
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HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
GENERAL
CAPITAL & FINANCIAL MARKETS MUST BE BUILT ON:
⇒ GOOD CORPORATE GOVERNANCEGOOD CORPORATE GOVERNANCE
⇒ GOOD FINANCIAL REPORTINGGOOD FINANCIAL REPORTING
⇒ GOOD AUDITINGGOOD AUDITING**
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FINANCIAL REPORTING ENVIRONMENT IS RAPIDLY CHANGING BOTH AT GLOBAL & EUROPEAN LEVEL
COMPANIES OPERATE ON A GLOBAL LEVEL
FINANCIAL REPORTING BASED ON GLOBAL ACCOUNTING STANDARDS*
HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
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COMPARABILITY OF FINANCIAL REPORTS
BETTER QUALITY INFORMATION
REDUCED FINANCIAL ANALYSIS COSTS
BENEFITS OF CONVERGENCE & HARMONISATIONBENEFITS OF CONVERGENCE & HARMONISATION
INCREASED UNDERSTANDING BY FOREIGN INVESTORS
REDUCED FINANCIAL REPORTING COSTS
COMMON / GLOBAL FINANCIAL REPORTIG LANGUAGE*
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ALLOWS COMPANIES TO:
A. BENCHMARK THEMSELVES AGAINST THEIR PEERS WORLDWIDE
BENEFITS OF CONVERGENCE & HARMONISATIONBENEFITS OF CONVERGENCE & HARMONISATION
B. COMPARE PERFORMANCE WITH COMPETITORS WORLDWIDE*
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EUROPEAN OR GLOBAL STANDARDS ?
CONSOLIDATED OR INDIVIDUAL FINANCIAL STATEMENTS ?
BENEFITS OF CONVERGENCE & HARMONISATIONBENEFITS OF CONVERGENCE & HARMONISATION
US GAAP ?
LISTED COMPANIES OR ALL COMPANIES ?
VOLUNTARY OR REQUIREMENT TO USE IFRS ?*
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IT IS NOT ONLY AN ACCOUNTING EXCERCISEIT IS NOT ONLY AN ACCOUNTING EXCERCISE
IT IS NOT ONLY A CHANGE IN ACCOUNTING RULESIT IS NOT ONLY A CHANGE IN ACCOUNTING RULES
MAKING THE CHANGE TO IFRSMAKING THE CHANGE TO IFRS
IMPACT ON COMPANY’SIMPACT ON COMPANY’S
• SYSTEMSSYSTEMS
• REPORTINGREPORTING
• COMMUNICATIONCOMMUNICATION**
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HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
THE GREEK EXPERIENCETHE GREEK EXPERIENCE
⇒ THE GREEK FINANCIAL STATEMENTS ARE :
IN COMPLIANCE WITH EU ACCOUNTING DIRECTIVES
TAX ORIENTED*
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HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
THE GREEK EXPERIENCETHE GREEK EXPERIENCE
⇒ UNIFORM CHART OF ACOUNTS IS MANDATORY
⇒ IT INCLUDES CERTAIN ACCOUNTING PRINCIPLES*
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GREEK UNIFORM CHART OF ACCOUNTSGREEK UNIFORM CHART OF ACCOUNTS
ASSETS LIABILITIES
GROUP 1 – FIXED ASSETS
LAND
Account Code: 10.00.000
GROUP 2 – INVENTORIES
RAW MATERIALS
Account Code: 24.00.000
GROUP 3 – RECEIVABLES & CASH & BANKS
CASH ON HAND
Account Code: 38.00.000
GROUP 4 – SHAREHOLDERS EQUITY
SHARE CAPITAL
Account Code: 40.00.000
GROUP 5 – SHORT TERM LIABILITIES
DOMESTIC SUPPLIERS
Account Code: 50.00.000*
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THE GREEK EXPERIENCETHE GREEK EXPERIENCE
THE PROBLEMS
⇒ BARRIERS TO INTERNATIONAL CAPITAL FLOWS
⇒ NEED TO ADJUST FINANCIAL STATEMENTS TO IFRS OR US GAAPS
⇒ ATTRACT NEW INVESTORS ? *
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THE GREEK EXPERIENCETHE GREEK EXPERIENCE
THE SOLUTIONS
CORPORATE GOVERNANCE NEW LEGISLATION
FINANCIAL REPORTING APPLICATION OF IFRS AS FROM 2004 !!
AUDITING NEW LEGISLATION AND ISA’s*
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APPLICATION OF IFRSAPPLICATION OF IFRS
TRANSLATED INTO GREEK BY SOEL
MANDATORY FOR COMPANIES QUOTED ON THE ATHENS STOCK EXCHANGE INCLUDING THE PARENTS
ALLOWED FOR OTHER COMPANIES*
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HARMONISATION OF ACCOUNTING STANDARDSHARMONISATION OF ACCOUNTING STANDARDS
IN SUMMARY
WE SHOULD WORK TOGETHER WE SHOULD WORK TOGETHER GLOBALLYGLOBALLY OR AT EUROPEAN LEVEL TO OR AT EUROPEAN LEVEL TO
ACHIEVE THE HARMONISATIONACHIEVE THE HARMONISATION**
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