Australia: AIM Listing And Compliance Now More Cost Effective

Admission to the Alternative Investment Market (AIM) for Australian companies, and on-going compliance for existing AIM companies, will now be somewhat easier and more cost effective following amendments to the AIM rules announced by the London Stock Exchange.

The London Stock Exchange recently confirmed that it will now accept Australian International Financial Reporting Standards (AIFRS) as a permissible accounting standard when a company is required to present its financial information on admission to AIM. This means that companies seeking admission will no longer have to reconcile their financial information against IAS, UK or US GAAP.

Australian companies already listed on AIM will also benefit from these changes on an on-going basis when preparing half-yearly and annual reports.

The new rules came into effect last month and apply to accounting periods commencing on or after 1 January 2007. Existing AIM companies with accounting periods starting before 1 January 2007 are permitted to comply with the previous rules.
By Iris Dielmann & Nicholas Sedgwick

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