Finance for Telecoms

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Finance for Telecoms

In early May 2004, a major European telecoms operator gave the markets a shock. In announcing that it had gained almost 350,000 new customers in the first quarter of the year, it not only beat the 300,000 it had added in the corresponding quarter of 2003, but also trounced analysts' expectations, which had averaged around 270,000.

ILX Telecoms Clients Alcatel Network Systems AT&T Bell Canada Belgacom British Telecom Motorola Nokia Motorola

A nice surprise, yes. But if there is one thing the investment markets do not like, it is surprises. So the bare figures were initially received with suspicion and confusion by industry analysts, until the company explained the basis for them and put their minds at rest.

This episode was a microcosm of what could happen across the telecoms sectors when International Financial Reporting Standards (IFRS) regulation comes fully into force for European companies from 1 January 2005.

Currently within the telecoms industry, different accounting methods are often applied to similar transactions. Introducing a common set of accounting standards across the EU should bring greater comparability of accounting and greater transparency in the treatment of many industry-specific issues, including the measurement and recognition of revenue, the capitalisation and/or deferral of costs and impairment.

Key Advantages to Telecoms Managers Understanding IFRS

• Demonstrate an awareness of what will be involved in the transition to IFRS
• Prepare information for IFRS financial statements
• Understand how IFRS will be applied in a real business context
• Communicate in the global language of financial reporting
• Describe the concepts and the main standards of IFRS
• Discuss forthcoming developments and in particular the route to European-wide harmonization
• Explain the main differences between UK GAAP and IFRS

Recommended Intellexis Courses

International Financial Reporting Standards

P2P IFRS from principle to practice

Companies across the world are making the change to International Financial Reporting Standards - the global corporate reporting language. The European Commission has said it will require listed companies in the European Union to use IFRS for their consolidated accounts in 2005. For many companies this change raises some challenging issues - not the least of which is how staff across the organisation can become IFRS literate in time. P2P IFRS - from principle to practice has been developed to provide a solution to this problem.

Converting to International Financial Reporting Standards (IFRS)

This course will provide an overview of the main differences between UK GAAP and IAS and the issues that preparers and users will face in the run up to and following implementation.