EFRAG reports on consistency of 'modernised' Directives and IAS

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14 Jan 2002

Responding to a request from the European Commission, the EFRAG Technical Expert Group has concluded, in a Report to the Commission (PDF 74k), that there are "no actual inconsistencies between IAS 1 to 41 (and related SIC) and the ['modernised'] 4th and 7th Directives".

However, EFRAG has recommended clarification of the Directives with respect to treatment of fundamental errors and accounting policy changes under IAS 8, the corridor approach under IAS 19, and reverse acquisitions under IAS 22. EFRAG also noted that "a number of standards are in the process of being changed and these could result in conflicts with the Directives".

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