Borrowers and lenders will already be very well aware that the application of international accounting standards by all EU listed companies may have a significant effect on the numbers reported in a group’s or an entity’s financial statements. If not already planned or completed companies will need to communicate sufficiently with their lenders and the credit rating agencies so that the implications of IFRS are properly understood. If need be this can form the basis of any negotiation over waivers or variations in financial covenants.
