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Financial accounting developments in the European Union: past events and future prospects

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  • Axel Haller
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    Abstract

    The decision of the Commission of the European Union (EU) to oblige listed European companies, from 2005 onwards, to establish their consolidated financial statements according to IFRS (IAS) represents a preliminary peak in the internationalization process of financial accounting in Europe. The purpose of this paper is to highlight the landmarks of accounting developments in the EU since the Fourth and Seventh Directives and to reveal the obvious internationalization process of financial accounting in the EU, which has accelerated considerably during the last ten years. Owing to the considerable pressures exerted by market forces, a clear convergence of accounting practice as well as of the regulatory frameworks of the EU and its Member States with IFRS (IAS) is recognizable. The harmonization effects of the market forces on national regulators and companies appear to be much larger than those of the Fourth and Seventh Directives. In addition to the explanation and reasoning behind past developments, this paper also discusses some future prospects of financial reporting within the EU and identifies some of its major challenges.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal European Accounting Review.

    Volume (Year): 11 (2002)
    Issue (Month): 1 ()
    Pages: 153-190

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    Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:153-190

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    1. Jan Schoonderbeek, 1994. "Setting accounting standards in the Netherlands," European Accounting Review, Taylor & Francis Journals, vol. 3(1), pages 132-142.
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    Cited by:
    1. Mark Mcgovern & Nurcan Temel Candemir, 2006. "Agents, Institutions and Regions in Transition," ERSA conference papers ersa06p788, European Regional Science Association.
    2. Nadia Albu & Catalin Nicolae Albu, 2012. "Strategies For And Implications Of The Ifrs For Smes Implementation In Emerging Economies," Post-Print hal-00936564, HAL.
    3. Cuijpers,Rick & Maijoor,Steven & Buijink,Willem, 2002. "Voluntary adoption of non-local GAAP in the European Union: a study of determinants," Research Memorandum 069, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    4. Zimmermann, Jochen & Volmer, Philipp & Werner, Jörg, 2006. "New governance modes for Germany's financial reporting system," TranState Working Papers 34, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    5. Jong, A. de & DeJong, D.V. & Mertens, G.M.H. & Roosenboom, P.G.J., 2005. "Royal Ahold: A Failure of Corporate Governance and an Accounting Scandal," Discussion Paper 2005-57, Tilburg University, Center for Economic Research.
    6. Raluca Valeria RATIU, 2012. "Accounting Regulations for Goodwill at a National, European and International Level," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 60(4), pages 249-258, November.
    7. Clare Roberts & Yue Wang, 2009. "Accounting harmonization and the value-relevance of dirty surplus accounting flows," Review of Accounting and Finance, Emerald Group Publishing, vol. 8(4), pages 340-368, November.
    8. MEGAN Ovidiu, 2011. "Professional Judgment And Creative Accounting Under Ifrs In Ex-Communist Countries: Case Of Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 564-570, December.
    9. Ibrahim MERT & Huseyin MERT, 2014. "European Accounting Harmonization Before&After 1978," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 1(33), pages 49-66, March.
    10. Matthias Reeh Michael & Molina Roa Nelson Andrés, 2013. "La crisis del concepto prudencia a causa del tránsito de las normas nacionales austriacas de información financiera a las normas internacionales," Contaduría y Administración:Revista Internacional, Accounting and Management: International Journal, vol. 58(2), pages 91-112, abril-jun.
    11. Vieru, Markku & Schadewitz, Hannu, 2010. "Impact of IFRS transition on audit and non-audit fees: evidence from small and medium-sized listed companies in Finland," MPRA Paper 44664, University Library of Munich, Germany.

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