The group accounts of a parent company whose securities are, on its balance sheet date, admitted to trading on a UK regulated market must be prepared in accordance with UK-adopted international accounting standards (“IAS group accounts”).

The group accounts of a parent company that is a charity must be Companies Act group accounts.

After the first financial year in which the directors of a parent company prepare IAS group accounts (“the first IAS year”), all subsequent group accounts of the company must be prepared in accordance with F3UK-adopted international accounting standards unless there is a relevant change of circumstance. F4This is subject to subsection (5A).

After a financial year in which the directors of a parent company prepare IAS group accounts for the company, the directors may change to preparing Companies Act group accounts for a reason other than a relevant change of circumstance provided they have not changed to Companies Act group accounts in the period of five years preceding the first day of that financial year.

In calculating the five year period for the purpose of subsection (5A), no account should be taken of a change due to a relevant change of circumstance.

If, having changed to preparing Companies Act group accounts F8. . . , the directors again prepare IAS group accounts for the company, subsections (4) and (5) apply again as if the first financial year for which such accounts are again prepared were the first IAS year.