CFM20020 | Accounting for corporate finance: International Financial Reporting Standards (IFRS)

Mandatory use of IFRS

Publicly traded companies governed by the law of an EU member state must use IFRS to prepare their consolidated accounts with effect from accounting periods beginning on or after 1 January 2005

Voluntary use of IFRS

Chapter 4 Part 15 of the Companies Act 2006 gives almost all companies the choice of preparing their accounts, and any consolidated accounts in the case of unlisted companies, either under IFRS or under UK GAAP. (Companies that are charities are an exception - they are not permitted to use IFRS.) Chapter 4 also contains provisions to ensure consistency of financial reporting framework within groups (see CFM20040).