Non-listed companies face global standards

Over the past two years pressure has been growing on the IASB from European commissioners, member states and countries hoping to join the EU to take up the challenge for small company accounting, too.

Until now the IASB has said the issue of non-listed companies using IASs would not feature on its agenda until after the 2005 EU deadline for all listed companies in Europe to report under IASs. It appears the IASB has had a rethink and moved the issue up its agenda.

IASB research director Wayne Upton said: ‘A typical small business is lucky if it has a good bookkeeper, much less a skilled accountant. And the problem is the same if you are located off Fleet Street or in the Upper Volta.’

Karel van Hulle, head of financial reporting and company law at the European Commission, has said ‘unless IASB deals with this as soon as possible we will have 15 different [accounting] regimes. We will help and make sure the issue remains a priority’.

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