Many smaller companies may be assuming that International Accounting Standards (IAS) will not affect them, but, according to the Institute of Chartered Accountants in England & Wales (ICAEW), they are wrong.
Although the government has decided to give unlisted companies the option of whether to use these standards in their annual and consolidated accounts from 2005, this does not mean smaller companies can afford to ignore IAS, the Institute has said. This is because the UK's Accounting Standards Board (ASB) intends to converge UK accounting standards with IAS, and this decision will affect all UK companies, whether large or small.
The Institute's survey of Chartered Accountants has revealed, however, that only 23% of those working in unlisted companies were aware of the ASB's aims and the impact this may have on them.
