Lloyd's syndicates must start gearing up to change to one-year accounting, technology firm Xayce warned this week.
Under the Chairman's Strategy Group (CSG) proposals, companies need to change from the traditional three-year accounting process to one-year accounting, requiring updates to their systems.
Xayce's financial services client partner Dr Kesh Sharma said: "Companies should not underestimate the time or effort required to do a historical reconciliation, as they move from a three-year to a one-year accounting basis."
Companies will have had to make the change by the end of 2004.
Sharma said that companies seemed to be thinking about more immediate aspects of the CSG proposals. But changing to one-year accounting could take around 12 months, so they should start preparing now, he said.
But not all companies need to worry. Lloyd's listed vehicles already account on a one-year basis.
They are likely to need to tweak only their processes, rather than implementing anew system.