French market regulator call for IFRS clarity

The regulator of the French stock market is thinking about reminding
companies to present clear figures when presenting financial statements under

Speaking to the Financial Times, Phillippe Danjou, director of
accounting at Autorité des Marchés Financiers, the French stock market watchdog,
said the AMF may have to reissue a warning about alternative profit measures.

In 2003 French regulators told companies that non-standard profit indicators
had to be defined clearly and have an ‘audit track’.

‘We might have to go back to reaffirm these principles, which are still
applicable in an IFRS world,’ Danjou was quoted as saying.

Analysts and regulators in France and the UK have noted that companies are
highlighting alternative profit figures in IFRS results in order to present a
clearer indication of underlying performance.

Groups are stripping out factors such as financial instrument revaluations,
pension charges and stock option expenses, but commentators are concerned that
the alternative profit indicators differ from company to company, which could
hinder comparisons.

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