Regulation 1606/2002 requires that, for each financial year starting on or after January 1, 2005, companies governed by the law of a member state prepare their consolidated accounts in conformity with IAS/IFRS if, on their balance sheet date, their securities are admitted to trading on a regulated market of any member state. The Regulator has also provided an option for member states to permit or require the application of international accounting standards in the preparation of annual accounts and to permit or require their application by unlisted companies.