Article 1
Annex to Regulation (EC) No 1725/2003 is amended as follows:
1. International Financial Reporting Interpretations Committee’s (IFRIC) Interpretation 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies, is inserted as set out in the Annex to this Regulation;
2. International Accounting Standard (IAS) 21 is amended in accordance with the Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates — Net Investment in a Foreign Operation, as set out in the Annex to this Regulation.
Article 2
1
Each company shall apply IFRIC 7 as set out in the Annex to this Regulation as from the commencement date of its 2006 financial year at the latest, except for companies with a January or February commencement date shall apply IFRIC 7 as from the commencement date of its 2007 financial year at the latest.
2
Each company shall apply the Amendment to IAS 21 as set out in the Annex to this Regulation as from the commencement date of its 2006 financial year at the latest.
Article 3
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 8 May 2006.
For the Commission
Charlie Mc Creevy
Member of the Commission