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France

Financial Reporting Framework in France

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.

France is an EU Member State. Consequently, French companies listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:

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.

In September 2011, the European Commission services published a report an update on the extent to which certain options included within the Accounting Directives have been incorporated into the law of the Member States and EEA countries. Please click for access to the report (PDF 816k, link to EC website).

Related news

  • European field-test on the IASB's expected credit losses model for financial instruments

  • Apr 12, 2013

  • On 7 March 2013, the International Accounting Standards Board (IASB) published its long-awaited proposal for a new accounting model for impairments of financial assets. Today, EFRAG and the National Standard Setters of France, Germany, Italy and the United Kingdom have launched a field-test designed to show whether the proposed new model addresses the weaknesses of the old model, whether the new model is operational and what costs and impacts will come with the new model.

  • New publication series on the IASB's Conceptual Framework project

  • Apr 11, 2013

  • EFRAG and the National Standard Setters of France, Germany, Italy and the United Kingdom have published the first three issues of a joint publication series on the IASB's Conceptual Framework project. They are dedicated to the concepts of prudence, the reliability of financial information, and uncertainty.

  • EFRAG and European National Standard Setters publish their strategy regarding the IFRS Conceptual Framework

  • Feb 06, 2013

  • The European Financial Reporting Advisory Group (EFRAG) has posted to its website a strategy document entitled 'Getting a Better Framework – Our Strategy' that was developed in cooperation with the French Autorité des Normes Comptables (ANC), the Accounting Standards Committee of Germany (ASCG), the Organismo Italiano di Contabilità (OIC) and the UK Financial Reporting Council (FRC). The aim of the document is to ensure ultimately that the IASB's Conceptual Framework for Financial Reporting reflects an underlying accounting model that European stakeholders believe is conducive to robust and effective financial reporting standards.

  • French and US regulators enter into cooperative agreement

  • Feb 04, 2013

  • The French High Council for Statutory Auditors (H3C) and the US Public Company Accounting Oversight Board (PCAOB) have announced a cooperative agreement on the oversight of audit firms subject to the regulatory jurisdictions of both regulators.

  • Report from recent IFASS meeting released

  • Jan 17, 2013

  • A report has been issued summarising the discussions at a meeting of the International Forum of Accounting Standard Setters (IFASS, formerly the NSS) held in Zurich on 22-23 October 2012. The meeting covered a broad range of topics, including the future relationships between the IASB and regional and national standard setters, topical issues in financial reporting, reports from regional groups and administrative matters.

  • Leading European national standard-setters submit joint comment letter on the proposed ASAF

  • Jan 09, 2013

  • The IFRS Foundation has posted to its website a joint letter received late last year from the national standard-setters of Germany (DRSC e.V), France (Autorité des normes comptables), the United Kingdom (Financial Reporting Council) and Italy (Organismo Italiano di Contabilitá) commenting on the proposed creation of an Accounting Standards Advisory Forum (ASAF). The standard-setters believe that the current suggested size and composition of the ASAF will require continued bilateral relationships between the IASB and national standard-setters.

  • 3rd ANC Symposium on Accounting Research

  • Nov 16, 2012

  • On 13 and 14 December 2012, the Autorité des Normes Comptables (ANC), the French standard setter, will host its 3rd Symposium on Accounting Research in Paris. The general theme will be "volatility and long-term".

  • Rio+20 'encourages' sustainability reporting

  • Jun 24, 2012

  • The outcome document from the United Nations Conference on Sustainable Development (Rio+20) held on 20-22 June 2012 has acknowledged the importance of sustainability reporting. Paragraph 47 of the document 'encourages' companies to integrate sustainability information into their reporting cycle. The development has been championed by the governments of Brazil, Denmark, France and South Africa, which are forming a group of ‘friends of paragraph 47’ to advance corporate sustainability reporting.

  • Report from recent IFASS meeting released

  • Jun 04, 2012

  • The International Forum of Accounting Standards Setters (IFASS) met in Kuala Lumpur on 29-30 March 2012. A detailed report of proceedings at the meeting has now been released, outlining discussions on numerous topics such as the relationship between standard setters and the IASB, the IASB's work programme and processes, and a report on the possible adoption of IFRS in the United States noting a possible "step back".

  • Accounting for emission rights an urgent topic for national standard setters

  • May 25, 2012

  • In November 2010, the IASB deferred its project on emission trading schemes in its movement to concentrate on the major projects of the MoU that were to be finalised by June 2011. With those projects still not finalised and with global sustainability moves resulting in new laws and regulations, national standard setters are beginning to move forward on their own.

  • FEE publishes survey on the accountancy profession in Europe

  • Mar 29, 2012

  • The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has released a survey which provides a collection of key features on structure and organisation of the accountancy profession across 30 European countries.

  • IASB translation update

  • Sep 26, 2011

  • The IFRS Foundation has announced the publication of the following translations:

  • Update on IASB outreach activities

  • Sep 15, 2010

  • As part of its outreach activities, the IASB regularly undertakes a number of discussion group forums in various locations around the globe.

  • New French national accounting standard setter

  • Jan 18, 2010

  • By government decree No. 2010-56 dated 15 January 2010, the Autorité des Normes Comptables (ANC) replaced the Conseil National de la Comptabilité (CNC) as the French national accounting standard setter.

  • Common professional qualifications

  • Nov 28, 2008

  • Nine of Europe's accountancy institutes have formed the Common Content Project to bring their professional qualifications closer together. One of the driving forces behind the project has been the globalisation of accounting and auditing regulation, so that a significant part of the relevant learning outcomes are IFRS/ISA based.

  • Statement on fair value from French regulators

  • Oct 28, 2008

  • Four French accounting and regulatory authorities have issued a joint recommendation to address the accounting treatment of certain financial instruments that can 'no longer be reliably priced on the market because of the ongoing turmoil'.

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