Moody’s Investors Service says issuers’ approaches in applying international financial reporting standards, such as disclosure of risks and types of financial instruments issued, could affect credit ratings.
According to reports in The Financial Times, less than 10% of European companies rated by Moody’s currently prepare their financial accounts under IFRS.
Of particular concern are two new rules on derivatives, IAS32 and IAS39, which require companies to account for financial instruments at fair value on the balance sheet. However, a compromise from the European Commission has left the door open for companies to initially leave derivatives off the balance sheet.
Moody’s offered an example of how the new rules will affect issuers. It revealed that Swiss agrochemicals company Syngenta’s reported liabilities of one issue of its bonds increased by almost 50% under IFRS from $677m to more than $1bn.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.