Just as the industry finally settles into the Financial Services Reform Act (FSRA), the Federal Government has firmly implanted another acronym into the industry’s brain. And it seems the International Financial Reporting Standards (IFRS) have sent the industry into a spin.

Analysts say the January 2005 start-date for the standards, which have been introduced in a bid to add further transparency and international consistency to Australia’s accounting practices, has lulled the industry into a false sense of complacency.

They say many companies have delayed complying with the new standards when, in fact, they should have been preparing since January.

Axa Asia Pacific CEO Les Owen told The Age newspaper last week that companies are confused by continual amendments to the legislation and the fact that international companies will have to produce separate sets of accounts for overseas branches.

Mr Owen says Axa, which has operations in France, the US and Australia, is particularly concerned at the cost of duplicating accounts for companies operating in several markets.

“Apart from the cost and confusion, if we were to receive any real benefits for international comparability it might be worth it,” he said. “But there are doubts we are going to get those benefits.

“The problem is we’re all going to be in a hurry trying to introduce the standards, many of which do not yet exist. For insurance companies, there will be a two-phase approach, with products being classified as insurance or investment.”

More companies are expected to express opposition to the standards as the January deadline draws closer.

Insurance Australia Group CEO Michael Hawker said recently he was fed up with paying out millions of dollars a year just to comply with red tape.