We hope that this publication serves as a useful resource for both existing users of IFRS and FDCG companies seeking to understand the potential impact of adopting IFRS.
Our survey discusses many of the key sector accounting issues and provides illustrations of how FDCG companies have sought to address them. We provide examples of sector-specific accounting disclosures, including in some cases detailed explanations of the business context in which accounting judgements have been made. For companies already applying IFRS, it gives some idea of the extent of consistency within the sector; for companies that haven’t yet adopted IFRS, it gives some idea of what your reporting future might be.
This survey covers 27 companies from 15 countries and includes over 100 disclosures made by selected companies to illustrate the accounting issues relevant for the sector.
George Pataraya, Partner, Head of Consumer Markets, KPMG in Russia and CIS, comments: “The level of competition the food, drink and consumer goods industry is comparatively high. The situation in general can be characterized as uncertain. Consumer preferences and behavior are in a constant state of flux owing to socio-economic, cultural and demographic shifts. The increasing cost of production, the development of new technologies, sustainability concerns, opportunities to select suppliers on a global scale and the changing requirements of legislation are the factors that require significant work from companies. The adoption of a new law on consolidated financial statements in Russia affects all the players in the industry – it is vital that all of them, whether they have already adopted IFRS or are only planning the transition, understand potential challenging issues ahead and how they can be resolved.”