FEE 'cannot envisage' any alternative to IFRSs

  • FEE (Federation of European Accountants - Fédération des Experts-comptables Européens) (lt green) Image
  • European Union Image

10 Oct, 2014

The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has responded to the European Commission's questionnaire seeking respondents' views on the impact of International Financial Reporting Standards (IFRS) in the European Union. FEE believes the use of IFRSs offers crucial benefits for the EU in remaining competitive, attracting foreign investment and restoring confidence in European financial markets. FEE even states that the scope of the IAS Regulation should be expanded.

In the response to the questionnaire, FEE states that the adoption of IFRSs has made companies' financial statements in the EU "significantly more transparent" due to increased disclosure, reduced divergence and increased comparability. As a consequence of increased transparency, comparability and reliability, FEE also sees significantly increased investor protection.

Given all these benefits, FEE believes that the scope of the IAS Regulation should be expanded by making IFRS compulsory for the individual accounts of listed companies on regulated markets and by allowing any company to opt for reporting under IFRS.

FEE also warns that the endorsement criteria for the EU adoption of IFRSs should remain as they are and that moving towards flexible endorsement of IFRSs would in fact be detrimental to Europe: "FEE fundamentally disagrees with 'opening a door' towards more flexibility for the EU in endorsing IFRSs as this would not bring flexibility, but would defeat the very purpose of having global standards."

FEE also warns that any implementation guidance on IFRSs should only come from the IASB and not from the EU or the national level.

Please click to download the full response (link to FEE website).

Note: On 30 October 2014, FEE supplemented its response to the questionnaire with a comment letter stressing once more and elaborating on FEE's views in relation to the endorsement and the enforcement of IFRSs in the EU. The comment letter can be accessed on the FEE website.

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