FSA warns companies on accounting standards

The Financial Services Authority in UK yesterday warned that British companies have been too slow in adopting new international accounting standards.

The City watchdog said it had written to all companies listed in London to warn them to prepare for the new rules, which the European Union has pledged to adopt by January 2005.

Ken Rushton, the director of listing at the FSA, said in the letter: “Failure to submit preliminary or interim results within the required timescale is likely to result in the suspension of the issuer's securities”.

Some of the reforms may make major changes to the way profits are reported by banks and insurance companies. The plan has drawn heavy fire from some companies and business groups.

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