The adoption of International Financial Reporting Standards (IFRS) issupported in many countries because it may improve the quality and internationalcomparability of financial reporting. However, these goals are less likely to be achievedwithout regulatory oversight that promotes rigorous and consistent use of IFRS.Consequently the European Union (EU) is requiring all member states to introduceenforcement bodies by 2005, the date of IFRS adoption in the consolidated financialstatements of all EU listed companies. We review ongoing activities in France,Germany, the Netherlands and the UK in setting up and modifying enforcement bodiesbefore 2005. We test current developments against the Fe´de´ration des ExpertsComptables Europe´ens (FEE) (2002) recommendations and against the principles foreffective enforcement proposed in CESR Standard No. 1 on Financial Information. Wepresent the views of people involved in financial reporting standard setting andenforcement from these countries, as well as the IASB, FEE and EFRAG, about thechallenges of achieving effective uniform enforcement. Our paper will be of interest topeople developing or participating in enforcement bodies, and to capital marketparticipants who will be subject to the various regulatory regimes.
|Journal||European Accounting Review|
|Publication status||Published - 2005|