Multi-nationals handed standards reprieve
Ed Balls will today announce an agreement with the European Commission to give London-listed companies a two-year opportunity to apply EU accounting standards
Ed Balls has struck a deal with
the European Commission to hold
off the 2007 deadline by which companies from outside Europe with London
listings must convert to EU accounting rules
This follows growing concern that several companies listed on the
London Stock
Exchange might have to delist because they could not convert to European
accounting standards in time for the January 2007 deadline, The
Times reported.
Balls is to share the announcement with a group of investors in Japan today,
in a move that will further secure London’s position as listings destination of
choice.
The City secured 26% of the market for initial public offereings this year,
sharply contrasting with New York’s 6.5%.
Further reading:
E&Y report shows difficulties in
applying IFRS
Fund managers buck trend by liking IFRS
IFRS update summer 2006 – run the risk