Impact of IFRS

Listed companies in all European Union countries are required to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS), developed by the International Accounting Standards (IAS) Board. These standards are also being adopted in other nations around the world. The United States is considering convergence of US GAAP standards with IAS/IFRS requirements to stay in step with the trend toward international regulation.Under the IFRS, companies are required to provide financial statements that fairly disclose their financial position, performance, and cash flows. The goal is to increase financial transparency by setting more comprehensive reporting requirements. This will make it easier to analyze and compare financial performance around the world. IFRS will necessitate changes to existing accounting policies, including segment reporting and financial instruments