ABOUT THE FINANCIAL REPORTING ON THE CAPITAL MARKETS IN THE EUROPEAN UNION: REQUIREMENTS OF USING THE IFRS AND THE EQUIVALENCE OF THIRD COUNTRY ACCOUNTING STANDARDS

Community Capital ◽

Single European Market

The need to build a single European market and to ensure the competitiveness of the community capital markets led to the involvement of European Union in the convergence process taking place on a global level in the realm of financial reporting. This paper is a study on financial reporting for the capital markets in the European Union by analyzing the accounting standards that need to be applied. Specifically, this paper highlights a number of issues concerning: the adoption of IAS / IFRS in the European Union and their compulsory aspect in preparing the consolidated financial statements for the companies listed on a regulated market; the requirement’s extension of using the IFRSs adopted in the European Union to the issuers of certain third countries involving a public offer of securities in European Union or performing transactions with securities on a community regulated market; the establish of a mechanism for the determination of equivalence of certain third country accounting standards with IFRSs in force at European level and, consequently, the possibility of using by some third country issuers, in preparing the consolidated financial statements submitted to the European markets, recognized national standards as equivalent to adopted IFRS.

The Impact of Accounting Harmonization on Financial Statements Quality in Serbia

Economic Analysis ◽

10.28934/ea.19.52.12.pp128-137 ◽

2019 ◽

Vol 52 (1) ◽

pp. 128-137 ◽

Cited By ~ 1

Author(s):

Andjelković Milivoj Danijela ◽

Danijela Zubac

Keyword(s):

European Union ◽

Financial Reporting ◽

Accounting Standards ◽

Financial Statements ◽

International Accounting ◽

The European Union ◽

The World ◽

The Republic ◽

The Impact

The general process of the world market globalization and the great influence of international financial organizations, especially the IMF and the World Bank, caused the need for standardization and harmonization of financial statements of the participants involved in international economics and trade. In this process, in the Republic of Serbia, the International Accounting Standards Board (IASB) and the IASB.S project for IAS/IFRS implementation have a crucial role. By adopting the International Financial Reporting Standards - IFRSs (including International Accounting Standards - IASs), financial statements prepared in Serbia may be comparable with financial statements in other countries. Starting from this, the main goal of the research is to indicate whether the financial statements in Serbia based on the IASB project can be comparable with financial statements in other countries, and on this basis can they satisfy the needs of external users of information (investors, creditors and others). In doing so, it points to the experience in the Republic of Serbia, the accounting practice and experiences of other countries, above all members of the European Union. The results of the research show that, in addition to the IAS/IFRS, the US generally accepted accounting principles (GAAPs) and the Directive 34 of the European Union represent the key segments of professional regulation contributing to greater accounting harmonization, and on this basis, the higher quality of financial reporting. Most countries that have national accounting regulations align the accounting rules in the most important issues with those regulations.

Handbook of Research on Social and Economic Development in the European Union - Advances in Finance, Accounting, and Economics ◽

Institutional Convergence in European Union Member States

10.4018/978-1-7998-1188-6.ch018 ◽

2020 ◽

pp. 288-308

Author(s):

Ayşenur Tarakcioğlu Altinay

Keyword(s):

European Union ◽

Financial Reporting ◽

Accounting Standards ◽

International Accounting ◽

The European Union ◽

Publicly Traded Companies ◽

Institutional Convergence

Economic globalization has affected accounting and auditing practices, as it has many other areas. Its impact on accounting has emerged in international accounting standards and independent auditing. There is pressure on the European Union countries to benefit from the New York segmentation of these standards. In parallel with these developments, IASB (International Accounting Standards Board) was established in 1973 to create a common accounting system for companies around the world, and internationally accepted accounting standards were established under the name of International Accounting Standards (IAS). To use these common accounting practices effectively, as of Jan. 1, 2005, publicly traded companies in the European Union have been obliged to apply the consolidated financial statements to the public in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union.

The Consequences of “Options” in the Directive 2013/34/Eu of the European Parliament and of the Council on the Financial Statements

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis ◽

10.11118/actaun201765041349 ◽

2017 ◽

Vol 65 (4) ◽

pp. 1349-1357

Author(s):

Eva Hýblová ◽

Alena Kolčavová

Keyword(s):

European Union ◽

Financial Reporting ◽

Financial Statements ◽

European Parliament ◽

The Other ◽

Financial Statement ◽

The European Union ◽

Other Hand ◽

The One

Directive 13/34/EC of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings is an instrument of the harmonisation of accounting in member states of the European Union. The Directive contains a number of various ways for recognition and measurement of financial statements, alternative forms of statements or simplifications for small and medium sized enterprises, worded as “permit or require”. On the one hand, these differing ways can facilitate application of the Directive in national legislations; on the other hand, they can significantly reduce the comparability of information published in financial statements. The aim of the paper is to verify the relation between the options to be chosen and the variability of the resulting values of the financial statement items. Based on the findings, the results are evaluated in relation to the informative function of financial reporting.

Advances in Finance, Accounting, and Economics - Economics and Political Implications of International Financial Reporting Standards ◽

IFRS Adoption in the EU and the Challenge of Nomenclature Evidence from the UK, France, and Germany

10.4018/978-1-4666-9876-5.ch007 ◽

2016 ◽

pp. 134-143

Author(s):

Matthias Nnadi ◽

Sailesh Tanna

Keyword(s):

Financial Reporting ◽

Balance Sheet ◽

Financial Statements ◽

Stock Exchanges ◽

The European Union ◽

Ifrs Adoption ◽

The Uk ◽

The Eu

Since the adoption of International Financial Reporting Standards (IFRS) and the subsequent directive by the European Union (EU), all companies operating in the EU are required to report their consolidated financial statements in line with the IFRS. This study examines the consolidated financial statements of the top 170 listed companies in three major EU stock exchanges (UK, France and Germany) and uncovered a disparity in the use of common nomenclatures. The findings reveal that the inconsistencies in the application of terminologies such as statement of financial position instead of balance sheet and sequence of arrangement of assets in order of liquidity constitute the main differences for entities operating in the three countries. Such differences pose an imminent challenge in the comparability and interpretation of financial results.

Implementation of foreign practice of regulation and accounting and reporting in Russia

Courier of the Kutafin Moscow State Law University ◽

10.17803/2311-5998.2020.73.9.215-222 ◽

2020 ◽

pp. 215-222

Author(s):

N. Yu. Orlova

Keyword(s):

Comparative Analysis ◽

Financial Reporting ◽

Accounting Standards ◽

Financial Statements ◽

National Standards ◽

International Financial Reporting Standards ◽

Reporting Standards ◽

Tax Reporting ◽

International Comparability

The reform of accounting and reporting in Russia began in the 1990s. The benchmark was taken on International Financial Reporting Standards, as many countries use these standards. IFRS have a number of advantages, such as simplicity, objectivity, international comparability. The author of the article gives the main problems, as a result of which, for almost thirty years, national standards have come very slightly closer to international ones. The author of the article gives the main problems, as a result of which, for almost thirty years, national standards have come very slightly closer to international ones. In the comparative analysis of accounting and the preparation of accounting and tax reporting according to Russian Accounting Standards (RAS) with International Financial Reporting Standards (IFRS), fundamental differences were revealed in the reflection of accounting objects in financial statements.

Compatibility of the IFRS for Small and Medium-sized Entities and the new EU-Accounting Directive

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis ◽

10.11118/actaun201563061945 ◽

2015 ◽

Vol 63 (6) ◽

pp. 1945-1951 ◽

Cited By ~ 1

Author(s):

Gerrit Kaufhold

Keyword(s):

European Union ◽

Financial Reporting ◽

Accounting Standards ◽

The European Union ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Member States ◽

Accounting Principles

The new EU-Accounting Directive of 26 June 2013 (DIRECTIVE 2013/34/EU) has the intention to harmonize the accounting and financial reporting of enterprises in the European Union. “Think small first” is the central principle in the new EU-Accounting Directive and the new regulations have to be adopted in the laws of European member states by 20 July 2015. The International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) was published in 2009 by the International Accounting Standards Board (IASB). The IASB intended to create simplified international financial reporting standards for the special needs of smaller and medium-sized enterprise. The IASB completed in May 2015 a comprehensive review of the IFRS for SMEs and made amendments to the Standard. The revised version of the IFRS for SMEs will be issued in the last quarter of 2015. The aim of the paper is to analyze the compatibility of the IFRS for SMEs and the new EU- Accounting Directive and the problems in connection with the harmonization of the European accounting legislation especially in Germany. Based on the results of the research most of the former incompatibilities could be removed, but the remaining complexity of the IFRS for SMEs and the lack of an option for the member states to adopt the IFRS for SMEs as an accounting and reporting standard besides or instead their local accounting principles will prevent the wide use of the IFRS for SMEs in Germany and in other member states of the European Union.

Measuring goodwill and noncontrolling interest under the new consolidation accounting standards

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-05-2015-0055 ◽

2017 ◽

Vol 15 (2) ◽

pp. 198-207

Author(s):

James G.S. Yang ◽

Frank J. Aquilino

Keyword(s):

Financial Reporting ◽

Design Methodology ◽

Accounting Standards ◽

Financial Statements ◽

Accounting Standard ◽

Content Type ◽

Net Assets ◽

Practical Implications

Purpose The accounting standards for consolidated financial statements have been updated recently. The change involves the measurement of goodwill and noncontrolling interest. Under the new accounting standards, goodwill consists of not only the parent company’s portion but also the noncontrolling interest’s share. The noncontrolling interest comprises both the subsidiary’s identifiable net assets and goodwill. In addition, it further changes the treatment of noncontrolling interest from liability to equity. The change indeed has far-reaching consequences on financial statements. This paper formulates an equation to measure goodwill and noncontrolling interest. It also provides some examples for illustrative purposes. The purpose of this paper is to update the financial reporting to the current standards. Design/methodology/approach New accounting standards under FASB #141R and 160. Findings New accounting standards in measuring goodwill and noncontrolling interest in financial reporting. Research limitations/implications The knowledge is useful for accountants and financial analysts. Practical implications Improve the quality of financial statements. Social implications Investors will be better informed. Originality/value This new accounting standard was not explored before.

EUROPEAN REQUIREMENTS REGARDING THE AUDIT REPORTING

STUDIES AND SCIENTIFIC RESEARCHES ECONOMICS EDITION ◽

10.29358/sceco.v0i25.384 ◽

2017 ◽

Author(s):

Daniel Botez

Keyword(s):

European Union ◽

Public Interest ◽

Audit Committee ◽

Financial Statements ◽

The European Union ◽

The Public ◽

Supervisory Authority ◽

Additional Information ◽

Reporting Requirements

In recent years, reporting requirements on the statutory audit have been revised and amended to increase the audit report’s communication value. In addition to the stipulations of the International Auditing Standards Package on reporting, revised and enforceable on 15 December 2016, the European Union issued the Directive 2014/56 / EU amending Directive 2006/43 / EC on statutory audits of annual financial statements and consolidated financial statements and EU Regulation no. 537/2014 on specific requirements for the statutory audit of public interest entities, both of which were published on the same date, June 17, 2014 and with the same application deadline, June 17, 2016. These normative acts foresee increased requirements for the reporting procedure in the statutory audit. Thus, the Directive provides for additional content requirements for the audit report, and the regulation requires additional information in the report but also the issuance and provision of other reports by the auditor: report to the audit committee of the public interest entity; In some cases, a report to the public-interest entity's supervisory authority or to the auditor's supervisory authority, and a transparency report published annually on the auditor's website. Our article details this information with direct reference to the content of these European official documents.

The Changes of Polish Accounting Regulations after the 1989 Political Transformation Incorporation of Global Solutions

Journal of Accounting and Auditing Research & Practice ◽

10.5171/2021.404252 ◽

2021 ◽

pp. 1-11

Author(s):

Ewa W. BABUSKA

Keyword(s):

European Union ◽

Financial Reporting ◽

Accounting Standards ◽

Global Solutions ◽

Political Transformation ◽

Reporting Standards ◽

The European Union ◽

Systemic Transformation

The aim of the article is to present the changes in Polish accounting regulations in the last thirty years of the ongoing systemic transformation from socialism to capitalism, which began in Poland in 1989. The changes consisted in adjusting Polish regulations to the Directives of the European Union and to the International Accounting Standards and International Financial Reporting Standards.

ACCOUNTING LAW IN THE REPUBLIC OF BULGARIA - SITUATION, PROBLEMS AND DECISIONS

Knowledge International Journal ◽

10.35120/kij34010031p ◽

2019 ◽

Vol 34 (1) ◽

pp. 31-35

Author(s):

Stanislava Pancheva

Keyword(s):

European Union ◽

Financial Reporting ◽

Accounting Information ◽

Scientific Work ◽

Financial Statements ◽

The European Union ◽

Current Accounting ◽

External Data ◽

The Republic ◽

Legislative Changes

The scientific research examines the productions included in the new Accounting Law adopted in 2015 and their impact on reporting in the Republic of Bulgaria. To this end, the requirements for current accounting and accounting systems in enterprises, for accounting documents and accounting information, for inventory of assets and liabilities have been studied; to the storage of accounting information; to the application of the financial reporting base; to the content and preparation of the financial statements, the activity reports and the payment reports to the governments of the enterprises and groups of enterprises; to conducting the independent financial audit and the publicity of the financial statements, the activity reports and the payment reports to the governments of the enterprises and groups of enterprises, as well as to the heads of the different types of enterprises. In addition, the scope of the entities applying the requirements of the Accounting Act and the principles according to which they evaluate and recognize the positions presented in the financial statements have been analyzed. The positive aspects of the new Accountancy Act and its weaknesses are also outlined. On this basis, concrete solutions to the identified problems were proposed, signaling to the legislator the need for adequate timely legislative changes in the following more significant directions:First. To eliminate the identified gaps and to resolve the discussion issues in the texts of the Accounting Act in force, as well as in the whole accounting legislation in order to achieve a high degree of synchronization with the requirements of the applicable accounting standards and the European Union, as well as high quality accounting information created for management and external data users.Second. To regulate through appropriate legal texts the activity and its accounting treatment in micro, small and medium-sized enterprises, which are the majority of the enterprises in the Republic of Bulgaria.Third. To carry out in-depth research in the field of accounting practices and standardization of accounting in other countries of the European Union and beyond, in order to select and apply in Bulgaria the best practices and experiences.Without claiming comprehensiveness and comprehensiveness, the present scientific work aims to draw attention to the outstanding issues in the current Accounting Act with a view to their faster effective resolution.