The London Stock Exchange ("LSE") has announced an intention to mandate International Financial Reporting Standards ("IFRS") for the accounts of AIM Companies incorporated in the European Economic Area ("EEA"). The precise terms of the new rules have yet to be released, however AIM Notice 15 provides the following guide as to what they will contain.
For financial years commencing on or after 1 January 2007, an EEA Company which is a parent must prepare its consolidated financial information applying International Accounting Standards ("IAS") while a non-parent may elect whether to apply IAS or the standards which its country of incorporation deems to be equivalent. In order to harmonise accounting requirements, the LSE also proposes that, in preparing their accounts, non-EEA companies should use one of IAS, US GAAP, Canadian GAAP, Japanese GAAP or Australian IFRS.
See the following link for the latest AIM press releases: http://www.londonstockexchange.com/en-gb/products/companyservices/ourmarkets/aim/aimnotices.htm