EP Committee adopted IAS Regulation (1st reading)

25 February 2002

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The committee adopted the report by Lord Inglewood, subject to a number of amendments. The committee does not agree with the Commission's proposal that companies preparing to be listed on regulated markets should also be required to prepare consolidated accounts in accordance with IAS, as it fears that this might lead to disproportionate financial reporting requirements for small businesses.

MEPs believed it should be left to Member States to choose whether to require non-traded companies to publish financial statements in accordance with the same set of standards as those for publicly-traded companies.

In another amendment the committee said that Member States should be allowed to exempt certain companies temporarily from the requirement to apply IAS. These would be companies publicly traded both in the EU and on a regulated third country market which are already applying another set of internationally accepted standards, as well as companies which only have publicly-traded debt securities. However, this exemption would only be allowed until 2007.

See full report

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