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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**