The Role and Current Status of IFRS in the Completion of National Accounting Rules: Evidence on Cyprus

Accounting in Europe, 2017

14 Pages Posted: 6 Nov 2017

See all articles by Irene Karamanou

Irene Karamanou

University of Cyprus - Department of Public and Business Administration

Anastasia Kopita

University of Warwick - Warwick Business School; University of Essex

Lina Lemessiou

University of Cyprus

Date Written: January 30, 2017

Abstract

The case of Cyprus with respect to the adoption of IFRS is unique given the country’s strong reliance on international business and accounting-related services. As such, Cyprus has required the use of IFRS since 1981 not only for publicly-listed firms but also for private companies regardless of their size. Cyprus’ reluctance to fully transpose Directive 2013/34/EU into national law can’t be unrelated to its long-standing requirement of financial statements that are not only prepared under IFRS but are also audited for all types of corporations registered in the Republic. We conclude that transposing the new Accounting Directive in its entirety into national law could have adverse effects on the Government tax revenue, the GDP of the services sector and the credibility of Cyprus as an international business and financial services center.

Keywords: IFRS; Cyprus; European Union, Accounting Directive 2013/34/EU

Suggested Citation

Karamanou, Irene and Kopita, Anastasia and Lemessiou, Lina, The Role and Current Status of IFRS in the Completion of National Accounting Rules: Evidence on Cyprus (January 30, 2017). Accounting in Europe, 2017. Available at SSRN: https://ssrn.com/abstract=3064947

Irene Karamanou

University of Cyprus - Department of Public and Business Administration ( email )

75 Kallipoleos Street
P.O. Box 20537
Nicosia CY-1678
CYPRUS
+357 2 892471 (Phone)
+357 2 892460 (Fax)

Anastasia Kopita (Contact Author)

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Lina Lemessiou

University of Cyprus ( email )

75 Kallipoleos Street
Nicosia CY 1678, Nicosia P.O. Box 2
Cyprus

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