IAS 27 to hinder development of venture capital industries across Europe

The international accounting standard 27 could be applied to private equity firms in Europe, unlike funds in the US, which will be exempt from similar measures. The new standard rules that accounts must be reported on a consolidated basis, which means merging the profits and losses of whole funds, total portfolios and the management company in one set of figures. The EVCA believes that the combination of less profitable new investments with those more profitable investments that have been held in the portfolio longer and nearing exit, as well as the merging of sectors, of which each has its own cycle, will cause a 'misleading impression of individual funds and portfolios'. The EVCA states that this measure will 'not aid the continuing development' of venture capital industries across Europe.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland