1. 1 3 RD FCM CONFERENCE - BUCHAREST HARMONISATION OF ACCOUNTING STANDARDS THE GREEK EXPERIENCE GEORGE SAMOTHRAKIS INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF GREECE (SOEL)

2. 2 3 RD FCM CONFERENCE - BUCHAREST HARMONISATION OF ACCOUNTING STANDARDS THE 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 *

3. 3 3 RD FCM CONFERENCE - BUCHAREST HARMONISATION OF ACCOUNTING STANDARDS THE 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) *

4. 4 3 RD FCM CONFERENCE - BUCHAREST HARMONISATION OF ACCOUNTING STANDARDS THE GREEK EXPERIENCE GEORGE SAMOTHRAKIS INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF GREECE (SOEL) S O E L SUPERVISORY COUNCIL TECHNICAL COMMITTEEDISCIPLINARY COUNCIL TRAINING & PROFESSIONAL EXAMS (The SOEL Educational Institute) *

5. 5 S O E L ⇒ 2000 MEMBERS & STUDENTS ⇒ 500 CERTIFIED AUDITORS ⇒ 22 AUDIT FIRMS ⇒ 10.000 AUDITS PER YEAR ⇒ ΙSA’s AS FROM 1 JANUARY 2003 *

6. 6 HARMONISATION OF ACCOUNTING STANDARDS GENERAL CAPITAL & FINANCIAL MARKETS MUST BE BUILT ON: ⇒ GOOD CORPORATE GOVERNANCE ⇒ GOOD FINANCIAL REPORTING ⇒ GOOD AUDITING *

7. 7  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 STANDARDS

8. 8  COMPARABILITY OF FINANCIAL REPORTS  BETTER QUALITY INFORMATION  REDUCED FINANCIAL ANALYSIS COSTS BENEFITS OF CONVERGENCE & HARMONISATION  INCREASED UNDERSTANDING BY FOREIGN INVESTORS  REDUCED FINANCIAL REPORTING COSTS  COMMON / GLOBAL FINANCIAL REPORTIG LANGUAGE *

9. 9 ALLOWS COMPANIES TO: A.BENCHMARK THEMSELVES AGAINST THEIR PEERS WORLDWIDE BENEFITS OF CONVERGENCE & HARMONISATION B.COMPARE PERFORMANCE WITH COMPETITORS WORLDWIDE *

10. 10  EUROPEAN OR GLOBAL STANDARDS ?  CONSOLIDATED OR INDIVIDUAL FINANCIAL STATEMENTS ? BENEFITS OF CONVERGENCE & HARMONISATION  US GAAP ?  LISTED COMPANIES OR ALL COMPANIES ?  VOLUNTARY OR REQUIREMENT TO USE IFRS ? *

11. 11  IT IS NOT ONLY AN ACCOUNTING EXCERCISE  IT IS NOT ONLY A CHANGE IN ACCOUNTING RULES MAKING THE CHANGE TO IFRS  IMPACT ON COMPANY’S SYSTEMSSYSTEMS REPORTINGREPORTING COMMUNICATION *COMMUNICATION *

12. 12 HARMONISATION OF ACCOUNTING STANDARDS THE GREEK EXPERIENCE ⇒ THE GREEK FINANCIAL STATEMENTS ARE :  IN COMPLIANCE WITH EU ACCOUNTING DIRECTIVES  TAX ORIENTED *

13. 13 HARMONISATION OF ACCOUNTING STANDARDS THE GREEK EXPERIENCE ⇒ UNIFORM CHART OF ACOUNTS IS MANDATORY ⇒ IT INCLUDES CERTAIN ACCOUNTING PRINCIPLES *

14. 14 GREEK UNIFORM CHART OF ACCOUNTS ASSETSLIABILITIES 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 *

15. 15 THE GREEK EXPERIENCE THE PROBLEMS ⇒ BARRIERS TO INTERNATIONAL CAPITAL FLOWS ⇒ NEED TO ADJUST FINANCIAL STATEMENTS TO IFRS OR US GAAPS ⇒ ATTRACT NEW INVESTORS ? *

16. 16 THE GREEK EXPERIENCE THE SOLUTIONS ÞCORPORATE GOVERNANCEÞNEW LEGISLATION ÞFINANCIAL REPORTINGÞAPPLICATION OF IFRS AS FROM 2004 !! ÞAUDITINGÞNEW LEGISLATION AND ISA’s *

17. 17 APPLICATION OF IFRS  TRANSLATED INTO GREEK BY SOEL  MANDATORY FOR COMPANIES QUOTED ON THE ATHENS STOCK EXCHANGE INCLUDING THE PARENTS  ALLOWED FOR OTHER COMPANIES*

18. 18 HARMONISATION OF ACCOUNTING STANDARDS IN SUMMARY WE SHOULD WORK TOGETHER GLOBALLY OR AT EUROPEAN LEVEL TO ACHIEVE THE HARMONISATION *