MEPs cast doubt on compatibility of IFRS with EU law
A group of five MEPs call for a review of IFRS' compatibility with European company law
A group of five MEPs call for a review of IFRS' compatibility with European company law
A GROUP OF MEPs has cast doubt on the future of IFRS by calling for a review of its compatibility with European company law.
In a draft amendment to proposed regulation on the use of international accounting standards in the European Union, the MEP’s demanded that the primacy of a “true and fair” view in accounts is explicitly recognised and that tougher liability standards for directors and auditors are considered, the Financial Times reports.
The stance taken by the five MEPs is supported by a legal opinion that found IFRS to be “substantially flawed”. The opinion, commissioned by an investor group, identified inconsistencies between IFRS and existing company law and suggested that directors override the accounting standards in order to comply with competing legislation.
According to the George Bompas, the QC commissioned by the investor group, certain outcomes from the accounting standard that governs how banks provision against loan losses, are contrary to the true and fair view.
Syed Kamall, a UK Conservative MEP who backed the amendment, told the FT: “The fundamental question is, are we just pursuing standards for the sake of standards but losing some important concepts along the way, such as prudence and ‘true and fair’?”
The MEPs also put forward an amendment that would attach conditions to the €32m the European Commission is set to give the IASB’s parent body for the period between 2014 and 2020.
The numbers you crunch tell a story. Your expertis...
11yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleIFRS 16 is fully effective for accounting periods beginning on or after 1 January 2019 and brings about significant changes for lessee accounting - by...
View articleProfessor Richard Murphy argues that IFRS accounting is inappropriate in the era when we are tackling the climate crisis and must be replaced Read Mor...
View articleThe incoming IFRS 17 insurance accounting standard is an “opportunity” for accountants to highlight their value to their companies, according to Moody...
View articleMoody’s Analytics has added new accounting and reinsurance capabilities to their RiskIntegrity IFRS 17 solution. These new features are intended to he...
View articleJohn Kuett, vice president of European Lease Accounting at Lease Accelerator provides an essential update on IFRS 16 Read More...
View articleTrimble Real Estate & Workplace Solutions report on what has been learned so far on the road to FASB/IASB lease accounting compliance Read More...
View articleCraig Gillespie, business area director, Trimble Real Estate & Workplace Solutions, helps you navigate the latest changes Read More...
View articleCraig Gillespie, Business Area Director for Real Estate at Trimble details the implications of the new rules Read More...
View article