A NEW rulebook is set to have a significant impact on accountancy in Guernsey. And a seminar aimed at bringing local accountants up to speed takes place this week.

‘From 2005 onwards, UK-listed companies are going to have to produce accounts under a new set of accounting rules called the International Financial Reporting Standards,’ said John Clacy, the head of the Guernsey Society of Chartered and Certified Accountants’ training committee. It means accountants will have to learn a completely new set of rules because most of them work under the UK standards.

‘As well as the introduction of the IFRS for the UK-listed companies, what’s likely to happen is a lot of other companies will voluntarily prepare their accounts under this,’ he added.

‘By hook or by crook, this new rulebook will have a significant impact on accounting from 2005 onwards.’

Mr Clacy said that because of this and the importance of accounting and finance in Guernsey, the local society decided to put on the seminar at the St Pierre Park Hotel.

It is also subsidising the cost of the event, which is being run by the Financial Training Committee.

One of the most experienced financial reporting lecturers in the UK, Charles Batchelor, will speak.

‘Also, on the last day from about 4pm to 5pm, there will be a panel of local luminaries from Guernsey accountancy firms so that the participants can ask questions specific to the local environment.’

The GSCCA is working with the finance sector, aiming to hold events highlighting the specific impacts of international accounting standards for each industry sector.

‘The main change is a move away from historical cost accounting to a measurement of fair value.’

In basic terms, if a company bought a share, the accountants would assess how much it was currently worth, not its purchase price.

‘The implications are that it has is to increase volatility of earnings and the financial position of companies and it increases accounting and systems complexities but arguably gives a clearer view of the value of a company.’

The event is aimed at accountants in industry and in practice but is nearly full. Another similar seminar may take place later in the year.

‘This two-day course is a good introduction and overview of the international accounting standard rulebook and some sessions are specifically tailored to the standards we think are most relevant for offshore financial centres.’

* The seminar is on Wednesday and Thursday. For information on this

or future events, email gscca@gscca.demon.co.uk