FRC defends new accounting rules

Investors worried by new accounting and auditing standards have been assured by the Financial Reporting Council that that UK's financial reporting and auditing framework has not been weakened by the new regulations.

The new rules on accounting kicked in at the start of 2005, when EU listed companies were required to use international accounting standards (IAS-IFRS) to compile their financial statements. At the same time, UK auditors have had to follow the new International Standards on Auditing (ISAs), which came into force in December, when checking financial statements.

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