(1) These Regulations apply to the preparation of annual accounts in the case of a company or undertaking the financial year of which commences on or after 1 January 2005.

(2) In the case of a company or undertaking that prepares its first annual accounts for a period ending after 1 January 2005, it may prepare IFRS accounts (within the meaning of section 2 the Principal Act) even though its date of incorporation or formation, as the case may be, is before 1 January 2005.