Is the Harmonization of the Accounting Law in the EU Feasable?
15 Pages Posted: 27 Dec 2016
Date Written: March 21, 2016
European Directives, from the Fourth Directive to Directive 2013/34/EU, tried to tear the Accounting’s Tower of Babel down more than once. The present essay, after considering the gradual evolution of EU regulation towards harmonization in the field, will explain: (i) the significant effects of fair value and valuation methods which are alternative to the historical cost one, and (ii) the problems arising from the interaction between fair value accounting and creditors’ protection. Then, it will address the options available in order to concretely abolish accounting borders, as reducing the variations amongst companies located in different Member States and amongst companies preparing financial statements in accordance with the IAS/IFRS principles or national rules.
Keywords: IAS/IFRS, EU Accounting Directive, CCTB, Harmonization
JEL Classification: K22, M41
Suggested Citation: Suggested Citation