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.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements