The impact of new corporate governance standards on board directors, senior executives and their advisers was considerable in 2004. Corporate leaders can draw little comfort from the thought that 2005 is likely to be even more challenging.

In the UK, companies have begun to comply with a revised code of best practice, while a new reporting regime requiring the publication of an operating and financial review is set to be introduced in 2005. Across Europe, listed groups have been working towards the introduction of international accounting standards in January 2005, while US companies and those with a US listing have been getting to grips with critical provisions of the Sarbanes-Oxley Act.