04 April 2007

CESR work in relation to the Commission’s measures on use of third countries’ GAAP in the EU

As EU listed groups prepare to publish their second set of IFRS financial statements, CESR stresses that its members remain watchful and note the continued need for companies to deliver, as true, fair and complete information as possible, for investors, under IFRS. The CESR statement is addressed to European companies having their securities admitted to trading on a regulated market and preparing consolidated financial statements under IFRS as adopted by the EU and more specifically to the users of the information published by these companies.

CESR reminds market participants that as 2006 is still a transitional period with practical experience in applying IFRS growing, retrospective adjustments to financial information already presented and covering 2004 and 2005 financial years could appear in these 2006 consolidated financial statements.

These retrospective adjustments may arise following different circumstances, namely:

A change in accounting policy made on a voluntary basis to achieve comparability;

A retrospective adjustment following the publication of an IFRIC rejection;

A correction of an error following an oversight by the issuer.

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