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Greece Greece is included in the IFAD GAAP Convergence Studies National Professional Organisation Website: Soma Orkoton Elegkton Logiston Response to IFAC Member Body Survey on Standard Setting and Regulation Update for April 2002 Update for May 2001 Financial Reporting Framework in Greece Adoption of IFRSs in Europe Effective in 2005 In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to: Require or permit IFRSs for unlisted companies. Require or permit IFRSs in parent company (unconsolidated) financial statements. Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007. Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007. The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) – Iceland, Liechtenstein, and Norway. Greece is an EU Member State. Consequently, Greek companies companies listed in an EU/EEA securities market will follow IFRSs starting in 2005. In January 2005, the European Commission published the results of a survey of the 25 EU member states and the 3 EEA member states on their plans regarding the four options above. For information on each country's plans, click to download: Table on Use of IFRS Options in 25 Member and 3 EEA States (PDF 40k) The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'): "in accordance with International Financial Reporting Standards as adopted by the EU" or "in accordance with IFRSs as adopted by the EU". Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case. April 2002 Update The Greek Government recently passed legislation that adopted International Accounting Standards for financial reporting in Greece. This legislation applies to annual financial statements for periods beginning after December 31, 2002 (that is, adoption from 2003 onwards), and will be compulsory for all companies listed on the Athens Stock Exchange. The new legislation will apply to both individual and consolidated financial statements and may be optionally applied by any other entity which is audited by the Institute of Certified Accountants Auditors of Greece. A committee has been set up to consider the detailed implementation of this new legislation. The work of this committee is expected to be completed by June 2002, after which various ministerial decisions will be issued, describing how the adoption will take place. May 2001 Update In Greece, there is no official standard setting body, with changes to generally accepted accounting practices resulting from either changes in Company or Tax Law, or from Capital Markets Committee regulations (for quoted companies). The European Commission's proposal requiring all listed companies to prepared consolidated accounts in accordance with IAS by 2005 has aroused a lot of interest in Greece. The latest accounting development is a requirement by the Capital Markets Committee for all listed companies to produce a cash flow statement. The prescribed format for this is a hybrid of the direct and indirect method, as prescribed by IAS, tailored to meet the various accounts of the General Accounting Plan followed by all Greek companies.