(1) 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").

(2) The group accounts of other companies may be prepared -

(a) in accordance with section 404 ("Companies Act group accounts"), or

(b) in accordance with UK adopted international accounting standards ("IAS group accounts").

This is subject to the following provisions of this section.

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

(4) 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 UK adopted international accounting standards unless there is a relevant change of circumstance.

This is subject to subsection (5A).