Ed Balls has struck a deal with the European Commission to hold off the 2007 deadline by which companies from outside Europe with London listings must convert to EU accounting rules

This follows growing concern that several companies listed on the London Stock Exchange might have to delist because they could not convert to European accounting standards in time for the January 2007 deadline, The Times reported.

Balls is to share the announcement with a group of investors in Japan today, in a move that will further secure London's position as listings destination of choice.

The City secured 26% of the market for initial public offereings this year, sharply contrasting with New York's 6.5%.

Further reading:

E&Y report shows difficulties in applying IFRS

Fund managers buck trend by liking IFRS

IFRS update summer 2006 - run the risk