IAS 39 to cost UK plc £500m
The UK's listed companies will have to spend up to £500m in order to comply with the new accounting standards coming into force across Europe in 2005, according to a new survey.
JMH Treasury found that companies with market capitalisations of over £2bn will spend at least £1m each to ensure their treasury systems meet the requirements of the new rules on derivatives and other financial instruments listed in IAS 39.
The study also showed that very few are ready for the introduction of IAS 39 with 50 of the UK’s top 500 companies unable to answer the JMH’s questions on financial instruments, according to the Financial Times.