FSA fires a shot over IFRS disclosure

The Financial Services Authority has turned up the heat on companies switching to international accounting standards, warning on accurate and timely disclosure, and threatening share trading suspensions.

Link: Former PwC auditor fined by FSA

In a letter sent out to chief executives, Gay Huey Evans, the director of the city watchdog’s markets division, said that any information on the impact of the switch to IFRS that could be considered price-sensitive must be disclosed immediately, rather than waiting until the 2004 results are published.

All other information, he said, should be disclosed as soon as it can be ‘quantified in a sufficiently reliable manner’.

He also said that any company’s inability to adopt IFRS in their interim accounts this year is ‘likely to result in the suspension of the issuer’s securities’.

Huey Evans encouraged those preparing IFRS accounts to ‘devote sufficient resource, not only to producing the relevant financial information in 2005, but also to fully embedding IFRS into their reporting systems’.

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