Surveys on extended use of IFRSs in European Union
01 May 2004
The European Union Accounting Regulation requires that European companies listed in a European securities market must use IFRSs to prepare their consolidated financial statements starting in 2005. EU countries have the option to: .
The European Union Accounting Regulation requires that European companies listed in a European securities market must use IFRSs to prepare their consolidated financial statements starting in 2005. 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.
EC Survey on Member States' Use of Options in Accounting Regulation 18 Current EU and EEA Members: Virtually all of the 18 current EU and EEA members are going to permit, though not require, IFRSs for the consolidated statements of unlisted companies. Only 4 will permit IFRS for the parent company separate statements, 11 will not permit, and 3 are undecided. Regarding the 2007 deferral for debt-only listed companies, 6 have decided to delay, 5 probably will delay, and 7 will not delay. Two countries will permit companies to delay IFRSs to 2007 if their current primary GAAP is a non-EU GAAP, and several other countries probably will do so. 10 New EU Members: Two of the 10 new EU members, Cyprus and Malta, already require IFRSs for all companies. Of the 8 other new members, 6 will either require or permit at least some unlisted companies to use IFRSs, and 5 will require or permit IFRSs in the parent company separate statements. |