As companies move to the new International Financial Reporting Standards rules, the capital markets are experiencing transition blues. But compared to others in the European Union, affected by the rules, the capital markets have got off lightly. While investors and analysts struggle to comprehend the first round of IFRS numbers, they can console themselves with the thought that when it is all over they will eventually have more transparent and comparable accounts. But there is no such solace for those affected by agreements and regulations that depend on accounts, but that were designed for old accounting systems. IFRS is making them look inadequate or nonsensical and creating pressure for change.

Three dangers have been lurking in the wings since the decision to introduce international accounting rules across the EU, but they have only burst taken centre stage as the first round of reporting brings home the reality of IFRS.