Since 2006, what are listed PLCs required to prepare for annual reporting?

• A. Annual financial statements under IAS/IFRS
• B. No specific framework
• C. UK GAAP only
• D. IFRS only for non-listed PLCs

Answer: (A)

The essential idea is that listed PLCs must prepare their annual financial statements using IFRS as adopted (often described as IAS/IFRS). Since around 2006, regulators in many markets required listed companies to report under IFRS to ensure consistency and comparability for investors who compare financial results across borders. IFRS provides a single, globally recognized framework for recognition, measurement, and disclosure, which helps users understand and compare the financial position and performance of listed companies internationally. Local GAAP or other frameworks are not the standard for listed entities, so the requirement is to present annual reports under IAS/IFRS.