
Prior to 2012, when the time period was relaxed to three years, public companies from the US and Japan moving operations to the UK were required to switch accounting principles during the first year and a half. The government believed this led to ?substantial costs? for large and complex companies.
In tandem with announcing the planned change, the government has published a review of the 2012 rules, evaluating the effectiveness of the measures. It concluded that a transition period should be ?permanently offered? to companies listed on US or Japanese stock exchanges. Business minister Baroness Neville-Rolfe said: ?These rules make it simpler and more cost effective for companies to bring business and jobs to the UK, without undermining the value we place on consistency and transparency in company accounts.? Read more about accounting principles:- Recent major accounting scandals have caused financial decision makers to question their data
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