Hundreds of businesses are unprepared for the launch of new regulations designed to improve standards in company accounts.

A poll of 200 small firms carried out by Bradford-based financial advisers Grant Thornton and the CBI revealed that 60 per cent had not prepared for the launch of International Accounting Standards (IAS).

Although IAS does not come into force until 2005, preparation needs to be complete by December 2003, and many firms are unaware of the impact on their results and assets.

Andrew Moore, Grant Thornton's Assurance Partner in the Bradford office, warned organisations to start preparing now.

He said it was vital firms made early preparations to ensure their balance sheets would be in shape for the start of IAS.

"The principal intended benefit of IAS is that greater transparency of published financial information should improve investor confidence and provide access to additional funds at lower cost," he said. "It is also possible that merger and acquisition activity will increase."

The survey revealed 97 per cent of respondents had not discussed the adoption of IAS and its possible impact with their shareholders.

John Cridland, deputy director general of the CBI said: "It is important that companies are fully aware of the changes IAS will require. The CBI is liasing with government to ensure business has sufficient time to prepare for the new standards and implement appropriate reporting systems".