AIM status change offers respite from IFRS.
The AIM is consulting about changing its status to "exchange regulated", which would take the market beyond the reach of several European directives on financial regulation. Its main motivation is to reduce compliance overheads that would result from the European prospectus directive and the market abuse directive.
Accountancy firm Solomon Hare noted that the planned shift in AIM's status from 12 October will also extend to the European IAS Regulation, which will make IFRS mandatory for listed companies from 1 January 2005.
If the AIM's proposals are adopted, the use of IFRS will become optional for AIM-listed companies from 1 January 2005 and then become mandatory in 2006, according to Solomon Hare's technical director, Paul Gee.
With the implementation of the EC's financial services action plan over the next two years, the AIM said it was seeking the change in status to preserve the flexible structure that had been fundamental to the market's success to date. www.accountingweb.co.uk/item/129350
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|Title Annotation:||Regulations Update; Alternative Investment Market, international financial reporting standards|
|Publication:||Financial Management (UK)|
|Article Type:||Brief Article|
|Date:||Sep 1, 2004|
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