British Energy skips estimates standard

British Energy has become the latest company to exploit an IFRS loophole as
it presented its interim results, by ignoring a standard that places a burden on
estimated numbers.

In an announcement to the stock exchange, the energy giant said this week, it
was not complying with IAS 34. The rule means any estimates released in interims
have to be justified if they change substantially at year end.

Ken Wild, Deloitte’s technical partner, said: ‘A lot of companies are doing
this, but I think it’s a pretty good strategy. IAS 34 is optional until on or
after 20 January 2007 when EU member states have to meet a new transparency
directive. They may not be complying with it but are still trying to meet it in
the long run.’

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