A Commentary on Issues Relating to the Enforcement of International Financial Reporting Standards in the EU

Posted: 16 Mar 2005

See all articles by Ann Tarca

Ann Tarca

University of Western Australia

Philip R. Brown

UWA Business School, M250; Financial Research Network (FIRN)


The adoption of International Financial Reporting Standards (IFRS) is supported in many countries because it may improve the quality and international comparability of financial reporting. However, these goals are less likely to be achieved without regulatory oversight that promotes rigorous and consistent use of IFRS. Consequently the European Union (EU) is requiring all member states to introduce enforcement bodies by 2005, the date of IFRS adoption in the consolidated financial statements of all EU listed companies. We review ongoing activities in France, Germany, the Netherlands and the United Kingdom in setting up and modifying enforcement bodies before 2005. We test current developments against the FEE (2002) recommendations and against the principles for effective enforcement proposed in CESR Standard No 1 on Financial Information. We present the views of people involved in financial reporting standard setting and enforcement from these countries, as well as the IASB, FEE and EFRAG, about the challenges of achieving effective uniform enforcement. Our paper will be of interest to people developing or participating in enforcement bodies, and to capital market participants who will be subject to the various regulatory regimes.

Keywords: Enforcement, Compliance, Regulatory oversight in the European Union (EU), Financial reporting regulation, International financial reporting standards, IFRS

JEL Classification: M41, M44, M47, G38

Suggested Citation

Tarca, Ann and Brown, Philip R., A Commentary on Issues Relating to the Enforcement of International Financial Reporting Standards in the EU. Available at SSRN: https://ssrn.com/abstract=677284

Ann Tarca

University of Western Australia ( email )

Business School
35 Stirling Highway
Crawley WA 6009
+61 8 6488 3868 (Phone)
+61 8 6488 1047 (Fax)

Philip R. Brown (Contact Author)

UWA Business School, M250 ( email )

Crawley, Western Australia 6009

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane

HOME PAGE: http://www.firn.org.au

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