IASB responds to EU Green Paper and states that the Capital Market Union would benefit from IFRSs
18 Feb, 2015
The European Commission has launched a project to boost growth in the EU with the creation of a single market for capital. The 'Capital Markets Union' aims to break down the barriers that are blocking cross-border investments in the EU and preventing businesses from getting access to finance.
The Green Paper launched on 18 February 2015 states:
International Financial Reporting Standards (IFRS) have played a key role for promoting a single accounting language in the EU, making it easier for large listed EU companies to have access to global capital markets. Imposing full IFRS on smaller companies, in particular those wanting to access dedicated trading venues, would, however, be a source of additional cost.
The IASB has responded to this statement:
A single set of financial reporting requirements can play a fundamental role in the creation of a CMU. [...] As business models, practice and markets change, the IASB works to ensure that financial reporting continues to meet the needs of market participants and has a number of continuing initiatives to improve the usefulness of financial statements produced by all companies.
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