UK/EU - Companies need to educate investors about the impact international accounting standards will have on their profits and liabilities, a survey shows.
KPMG and Goldman Sachs claim that the financial statements of 7000 listed companies in the EU could alter “significantly “when the international accounting standards come into force in 2005.
The standard, they say, could cut profits and inject volatility into balance sheets.
This volatility will cause investors to ditch shares unless they understand the reasons for the sudden changes in financial statements.
Head of KPMG’s international accounting team, Mark Vaessen, said: “International accounting standards will change the complexion and quality of financial information in ways not seen before. It is vital companies understand the impact and ensure stakeholders do too.
The accounting changes will be profound and businesses need to ensure these are not misunderstood by the market.”
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.