Luxembourg in hot water over accounting standards

Luxembourg is being taken to the European Court of Justice (ECJ) by the
European Commission for flouting a 2002 directive linked to international
accounting standards (IAS).

Brussels claims the European Union (EU) mini-state and financial centre has
not implemented directive 2003/51/EC on accounting rules, which eliminates major
inconsistencies between EU national accounting rules and IAS for countries that
do not use the international standard for all domestic companies.

The directive ‘brought EU accounting requirements into line with modern
accounting theory and practice’, said a Commission note. Under the EU’s 2002 IAS
regulation, the global standard had to be used for all listed company accounts
from 2005 onwards.

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Fiona Westwood of Smith and Williamson.