§ Mr. BurnettTo ask the Secretary of State for Trade and Industry what her policy is on accounting standards and compliance where a multi-national holding company is registered in a low compliance country and its shares are quoted on the London Stock Exchange; and if she will make a statement. [68251]
§ Ruth KellyI have been asked to reply.
Accountancy standards requirements for foreign-registered companies whose shares are listed on the London Stock Exchange's main market are governed by the Listings Rules administered by the UK Listings Authority.
These rules require compliance with UK GAAP (Generally Accepted Accounting Practice), US GAAP or the accountancy standards of the state where the company 1091W is incorporated. However, the UKLA can require International Accounting Standards to be applied if it is not content that the home state accountancy standards in place are sufficient to protect investors' interests.
Slightly different rules apply to non-listed securities.
§ Dr. CableTo ask the Secretary of State for Trade and Industry what plans she has for UK accounting standards when international harmonisation occurs. [65608]
§ Miss Melanie Johnson[holding answer 1 July 2002]: On 7 June 2002 The Council of Ministers gave final approval to a Regulation that will require all UK companies listed on a regulated market in the EU to prepare their consolidated accounts, from 2005, on the basis of the accounting standards issued by the International Accounting Standards Board (IASB). The Regulation will apply directly to companies and does not need to be implemented by national legislation.
The Department will be publishing a consultation document in the next few months.