New legislation shores up IAS gaps
A reformed European accounting directive will ensure that, where International Accounting Standards do not apply, financial reporting will be of the same quality and transparency.
A reformed European accounting directive will ensure that, where International Accounting Standards do not apply, financial reporting will be of the same quality and transparency.
Link: Firms ill-equipped for start of IFRS
The directive was agreed to by European Union ministers allowing member countries, which do not apply IASs to all companies, to bring in matching financial reporting, so preparing the way for like-for-like financial comparisons throughout the EU.
The European Commission said the amendments, agreed to yesterday, provided for appropriate accounting for special purpose vehicles, improved the disclosure of risks and uncertainties and increased the consistency of audit reports Europe-wide.
Essentially the legislation tidies up the situation following adoption of the IAS regulation in June 2002, which required all companies listed on a regulated market to use IAS from 2005 onwards. The Commission says that any inconsistencies had now been eliminated and EU accounting requirements had been brought into line with modern accounting theory and practice.
Brussels said the new modernising directive would make it harder for companies to ‘hide’ liabilities by setting up artificial structures which they controlled in substance but which were nominally owned by different shareholders. This was important for the proper treatment of off-balance-sheet financing, it said.
The amendments also specify that the analysis of risks and uncertainties ‘should not be restricted to financial matters’, thus encouraging disclosure of key social and environmental factors.
The numbers you crunch tell a story. Your expertis...
21yEmbracing 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 articleThe Bank of England has appointed Ernst and Young LLP (EY) as its external auditor from the financial year ending 28 February 2025. Read More...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articlePwC's decision to delay promotions in its graduate scheme, affecting around 100 graduates, is a response to reduced client demand and the aftermath of...
View articleTraditionally, audit schedules have been prepared manually, consuming significant time and resources. However, with the advancements in Artificial Int...
View articleThe FRC is promoting initiatives to foster a more competitive market, following recent high-profile accounting scandals. Read More...
View articleOn January 27, it was reported EY had quit as auditor to Asda amid one of its senior partners starting a romantic relationship with billionaire chief ...
View articleDespite the increased interest in AI and ML, only 12% of respondents indicate their organisations have adopted AI and ML within their audit functions....
View articleAs the government's independent investigation progresses, it is hoped that a clearer picture will emerge, leading to meaningful reforms within the aud...
View article