FEE: Enforcement of Financial Reporting

26 April 2002

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This discussion paper addresses the enforcement of IFRS at European level. The European Federation of Accountants (FEE) supports the creation of a fully integrated European capital market and contributes to the work of CESR.

FEE supports the recent decision of the European Union requiring certain companies to use IFRS by 2005. However the enforcement issue still needs to be resolved if this positive step is to become a reality. The discussion paper examines how IFRS should be enforced in order to ensure the consistent and rigorous application of financial reporting standards throughout Europe by 2005.

The discussion paper calls for:

EU Member States to urgently review their arrangements for enforcement of accounting standards,

the creation of a European Enforcement Coordination,

a flexible enforcement model, to extend enforcement to all IFRS companies, including public interest companies, banks and insurance undertakings and also other companies which use IFRS in their financial information,

enforcement should not result in standard setting. This guidance would be referred to IASB or to IFRIC as well as to EFRAG.

Discussion paper: Enforcement of Financial Reporting

© FEE