International Accounting Standards (IASs)
UK listed companies
EU regulations require that the consolidated financial statements of companies publicly quoted within the EU are prepared in accordance with IASs for accounting periods beginning on or after 1 January 2005. IASs (and indeed US GAAP) are already permitted by the London Stock Exchange, but for most if not all smaller companies, the regulations mean a switch from UK GAAP to IASs.
AIM companies
In August 2006, AIM confirmed the mandating of IASs for accounting periods commencing on or after 1 January 2007, for AIM companies that are incorporated in an EEA member state and that prepare consolidated financial statements.
In addition, AIM confirmed that alternative acceptable accounting standards include:
- US GAAP
- Canadian GAAP
- Australian GAAP
Other UK companies and LLPs
The DTI has announced that other UK companies (and LLPs) may voluntarily adopt IASs in accordance with the same timetable as their listed counterparts.
Voluntary, adoption may suit (or be pressed upon):
- A UK company whose parent company is using IASs
- A UK parent company that has to produce group accounts, most of whose subsidiaries are (or will be) using IASs
- A UK company with key financiers that request IAS accounts
- A UK company planning to float
Use the navigation at the left of the page to find out more about International Accounting Standards and first time adoption of International Financial Reporting Standards (IFRS1).
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