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Preparing for implementation of International Financial Reporting Standards (IFRS).

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M2 PRESSWIRE-31 December 2003-UK Government: Preparing for implementation of International Financial Reporting Standards (IFRS)(C)1994-2003 M2 COMMUNICATIONS LTD

RDATE:12312003

CESR published today its recommendation for regulators on how listed companies can effectively manage the communication of the financial impact of transitioning to international accounting standards in 2005. CESR considers it essential that the transition must be carefully monitored by regulators to ensure that every company continues to meet its reporting requirements and that investors are able to understand the effect of the new reporting standards on the financial position of listed companies.

European companies whose securities are traded on a regulated market will be required by the European Regulation ndeg1606/2002 of July 2002 to use International Financial Reporting Standards (IAS/IFRS) to prepare their 2005 consolidated financial statements. CESR final advice to its members (Europe's securities regulators) following consultation during October and November 2003, attempts to blend the needs of listed companies and investors by proposing that listed companies implement a phased transition process. This will facilitate listed companies in their assessment of the financial consequences and enable appropriate planning for the application of the international accounting standards whilst also ensuring investors are provided with financial information which is easy to interpret.

CESR has identified four milestones in the transition process, as follows:...

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