home
login
contact
about
Finance Dublin
Finance Jobs
 
Friday, 12th April 2024
    Home             Archive             Publications             Our Services             Finance Jobs             Events             Surveys & Awards             
EU move to ‘fair value’ brings IAS closer for listed companies Back  
The Institute of Chartered Accountants in Ireland has welcomed the EU’s move towards the adoption of ‘fair value’ accounting rules saying it will bring International Accounting Standards for EU listed companies a step closer.

According to Brian Walsh, chief executive of the ICAI the new EU Directive will amend a number of existing directives to permit the inclusion of market-based valuations of financial instruments on company balance sheets - with gains and losses carried through to the profit and loss account from year to year.

The ICAI said the move will make it easier for European companies raising capital on international markets to comply with the financial reporting requirements and thus compete on equal terms with their non-European counterparts.

‘In an era of greater business globalisation, Irish plcs which are international players - should experience freer capital movement, and use one set of accounts to list on any of the world’ s major stock exchanges without reconciling accounts to national rules’ said Walsh.

The fair value Directive amends the EU’s Accounting Directives to take account of developments in markets, such as the use of derivatives, and busines and international accounting standards.

Internal Market Commissioner Frits Bolkestein, welcomed the adoption of the Directive. He said that it ‘will help European companies to prepare financial statements that are accepted and understood around the world. Aligning the provisions of the Accounting Directives with existing international standards on fair value accounting will help European companies compete in international capital markets on equal terms with their non-European competitors.’

Bolkestein added that ‘The rapid adoption of this Directive provides a very positive example of the EU institutions working efficiently together to adopt legislation quickly. It is an example that could and should be followed for other legislative proposals.’

The ‘fair value’ Directive is part of the Financial Services Action Plan.

Digg.com Del.icio.us Stumbleupon.com Reddit.com Yahoo.com

Home | About Us | Privacy Statement | Contact
©2024 Fintel Publications Ltd. All rights reserved.