2.4 IFRS in the EU

Question 1

Who has to comply for IFRS in EU?

What can EU member states decide?

Answer 1

• all listed companies in the EU (for their consolidated FSs)
• EU member states can decide whether to extend the use of IFRS to unlisted companies & to unconsolidated statements, by making this compulsory or optional

Question 2

What are some differences of IFRS practices among the consolidated FS of listed companies in the EU despite the adoption?

1.
2.
3.
4.

Answer 2

• differing IFRS implementation dates
• IFRS offers options with regard to various accounting treatments
• subjectivity in measurment estimations
• imperfect enforcement of IFRS (how well is the verification?)

Question 4

Many differences in existing IFRS practice are because of…..
Over time certain differences will be…
However, some differences will…

Answer 4

• inertia and or different national incentives / traditions (e.g. tax)
• removed as IFRS options are removed and interpretations become stricter and gaps are filled
• continue to exist