AIM-listers’ interims delayed by IFRS problems

Interim announcements by AIM-listed companies are likely to be delayed due to
the first-time implementation of IFRS, KPMG says.

The firm said the delays would likely lead to a glut of announcements in the
last week of September before the 30 September deadline for companies with
December year-ends.

Only about 40% of companies – with December year ends and a market
capitalisation of £10m or more – have stated their interims, while about 50% had
done so by the same time last year.

KPMG’s head of AIM, Ginny Stevens said there was no doubt that IFRS
implementation is proving a challenge for AIM-listers, resulting in delays.

‘As long as they are communicating this clearly with investors and analysts a
short delay is not necessarily a problem in itself, but they will certainly want
to minimise any delays to the release of their full year-end results at the
beginning of next year,’ said Stevens.

‘There are signs that some AIM companies are still not investing the
necessary time and resources in IFRS implementation, and this is something that
those companies will need to address quite urgently. Accounting for acquisitions
and for deferred tax are the areas presenting the greatest IFRS challenge to
AIM-listed firms.’

Companies with December year ends have until three months after their half
year point to release their interim results, or in a worst case scenario, risk
the suspension of their shares – that is the 30 September.

Further reading:

R&D complexities could mean AIM interim delays

AIM has work cut out to make IFRS deadline

Related reading

Fiona Westwood of Smith and Williamson.