This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Europe may establish an IFRS interpretations 'forum'

  • mccreevycharlie.jpg Image

17 Jun 2005

In an (PDF 100k), European Commissioner for Internal Market and Services Charlie McCreevy indicated that the EC is considering a proposal for a 'European Forum' to identify and analyse IFRS implementation issues, to allow IFRIC to focus on key issues.

While Mr McCreevy did not provide details about the forum, in several recent speeches members of EFRAG have said that EFRAG would seek to be such a forum. An excerpt from Commissioner McCreevy's comments:

The main question in the medium term will be how to ensure consistent application of IFRS within Europe. This is crucial, to have a uniform set of standards and not effectively 25 national standards in place. It is also crucial to the objective of removal of the US GAAP reconciliation. A number of proposals are being considered, including one for a 'European Forum' consisting of interested parties, regulators, standard setters, preparers, and auditors in their peer groups. The forum would be tasked with promoting consistent application.

But we do not want to add layers of interpreting bodies. International Accounting Standards are principles-based and should remain so. I see the chief advantage of a possible European Forum in identifying and analysing issues, acting as a filter and thus allowing the International Financial Reporting Interpretation Committee to concentrate on the key issues requiring their attention.

Commissioner McCreevy also spoke about EU-US mutual recognition of each other's GAAP:

The European Commission has always been a strong advocate of global standards – not just for accounting but also for auditing. While IFRS is the basis for a true global standard we must recognise the role US GAAP plays in the largest capital market in the world, i.e. the US. We do not necessarily need to apply exactly the same accounting standards, but differences should be narrowed down to such an extent that we can at least recognise each other's standards as equivalent. The world is moving towards IFRS – so this convergence issue is a key nut to crack.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.