Finance and Accountancy Briefing
Easing the move to component accounting
The deadline for IFRS compliance may still be several years ahead for Housing Associations, but there is a clear requirement to meet the demands of SoRP 2010. Yet organisations are only now facing up to the enormity of the challenge, from the implications of component accounting on depreciation to the new data and reporting processes required.
From scoping the project to creating and reconciling data, a manual approach to component accounting could take years for the larger Housing Associations - always assuming the resources are available. In contrast, a streamlined approach that combines depreciation modelling with data migration and automated reconciliation based on industry best practice can transform the speed and cost of SoRP 2010 and IFRS compliance.
This article provides advice on easing the move to component accounting, including depreciation, new data and reporting processes.
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