IFRS

New insights with IFRS

Since 2005, listed companies have been required to draw up their consolidated financial statements in line with the International Financial Reporting Standards (IFRS). Even if your construction firm is not listed on the stock exchange, drawing up your financial statements on the basis of IFRS could have benefits. PwC will be happy to help you implement IFRS in your organization.

Similar, better access to capital markets

Adopting IFRS will bring your commercial performance more into line with that of other businesses using IFRS, including businesses abroad. This could generate new insights for your organization in terms of your company’s financial performance. Partly due to the similarity, businesses that are using IFRS also have better access to the Dutch and international capital markets. Furthermore, these businesses hold greater appeal for foreign lenders, who are currently following developments in the Dutch construction and real estate sector with interest.

Consequences of new standards for construction sector

Companies that are already drawing up financial statements based on IFRS must take account of a large number of forthcoming changes. The IASB has issued various new standards that may come into effect in the near future, including:

IFRS 15 Revenue from contracts with customers: this standard supersedes the current IAS 11 Construction Contracts (and IAS 18 Revenue) standard and imposes new regulations on reporting turnover from projects. Implementing this standard in businesses in the construction sector requires a considerable implementation effort.
IFRS 16 Leases: this new standard stipulates that virtually all rental and lease contracts must be processed on-balance. This affects your company’s solvency ratios.
IFRS 9 Financial instruments: within the construction sector, this standard primarily impacts on the valuation of receivables and the use of hedge accounting.

We would advise businesses to identify the effects of these new standards on your financial statements together with an accountant or adviser in a timely fashion.

Advice, technical support and training

The IFRS specialists at PwC will be happy to advise you on introducing IFRS in your business and on the impact of the new IFRS standards. In addition, we offer technical support when it comes to the implementation, and can help you to further develop your staff’s knowledge of IFRS. For further information, please feel free to get in touch with us or take a look at PwC Inform.

Advice, technical support and training

"Partly due to the similarity, businesses that are using IFRS also have better access to the Dutch and international capital markets."

Bas Weber, Director Consulting