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IFRS - Are property companies saying no? |
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Property companies and property investment companies are one of the sectors to be hardest hit by the changes introduced by IFRS in terms of their statutory financial statements.
Recent press reports would suggest that the property sector is looking to develop its own standard reporting measures to deliver what the companies see as helpful information to investors. While an industry consensus may be helpful for analysts comparing companies, it is also likely that the analysts will look beyond headline numbers. Also, as people get used to the new numbers over time, there may be less need to give adjusted figures, particularly if IFRS is being followed by property companies across the world, such that adjustment will not needed for comparative purposes.
In the interim, it is possible that property companies will seek to use adjusted earnings and net asset figures in loan covenants.
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October 2005 |
