FEE: Enforcement of IFRS

13 January 2003

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The European Federation of Accountants (FEE) has responded to the CESR consultation on Principles of Enforcement of Accounting Standards in Europe. Effective enforcement for IFRS needs to be in place at latest by 2005. Among others, FEE states that CESR should recognise the need of parallel initiatives to cover other than listed companies applying IFRS. CESR should also support the coordination between different enforcement bodies in the various countries, irrespective of whether they are regulators or review panels.

Furthermore, FEE also believes that it is crucial that enforcement should not result in standard setting. Enforcement bodies should be cautious in issuing interpretations and limit themselves to application guidance in individual cases. However, further debate is needed as to how to fill the gap between standard setting and enforcement in the light of consistent interpretations. Inconsistencies in interpretations should be avoided.

FEE response

© FEE