Companies must educate investors on IASs
A new survey on the impact of International Accounting Standards on listed European companies has highlighted the need for investors to be educated about these standards.
According to KPMG and Goldman Sachs, IASs would have the greatest impact on companies in France, Germany, the Netherlands and the UK, potentially resulting in a cut in profits and volatile balance sheets.
This could lead investors to ditch shares unless they are educated about this sudden impact on financial statements.
Mark Vaessen, head of IAS Advisory Services at KPMG, said: ‘International Accounting Standards will change the complexion and quality of financial information in ways not seen before, and so it is vital that companies understand the extent of the impacts and ensure stakeholders understand it too.’
More than 7,000 companies across the EU will have to comply with new international accounting standards which will come into place in 2005.