On July 19, 2002, in order to enhance the comparability of financial statements prepared by a publicly traded company, the European Union adopted a regulation pursuant to which for each financial year starting on or after January 1, 2005, companies that are governed by the law of a Member State shall prepare their consolidated accounts in accordance with the International Accounting Standards adapted by the European Commission, if at the date of their balance sheet, their securities are admitted to have been traded on a regulated market of any Member State. IT services companies have already announced that the implementation of such regulation will require carrying out an important IT project that is similar to the project implied by Y2K and Euro issues. This article deals with the French legal grounds for a customer to make accounting software publishers liable to bear the cost of such projects. These legal grounds are the same as the ones regarding the Euro issue.
Important - The information in this article is provided subject to the disclaimer
. The law may have changed since first publication and the reader is cautioned accordingly.