PracticeAuditNon-listed companies face standards challenge

Non-listed companies face standards challenge

The government has today launched a consultation asking business if a requirement for listed companies to report under a single set of accounting rules should also be extended to unlisted companies.

Link: Companies face global rules wake-up call

From 1 January 2005 all listed companies in Europe will report under International Accounting Standards (IASs) after the European Council of Ministers gave its final approval to the regulation in June this year. The UK, like other member states, now has the option to extend the ruling on a compulsory or voluntary basis to unlisted companies.

Melanie Johnson, competition minister, said: ‘The regulation is an important development in financial reporting. In a global economy, moving to high quality globally agreed accounting standards will bring benefits for UK companies that operate on the international stage and for all users of their financial statements, including shareholders and analysts.’

‘It is vital that companies covered by the regulation and their accountants and auditors should be planning ahead for the change,’ added Johnson.

Mary Keegan, chairwoman of the Accounting Standards Board, welcomed the consultation and urged all interest parties to respond.

Keegan said: ‘The issues are complex and the consultation has far-reaching implications for all those – companies and other entities – which today use UK accounting standards. It is vital that all who have an interest in financial reporting engage in the debate.’

Related Articles

KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1w Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2w Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

3w Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

3w Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

2m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

2m Alia Shoaib, Reporter
Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

Audit Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

2m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

2m Alia Shoaib, Reporter