Question

since 2005, publicly traded companies in the European Union have been required to use IFRS in preparing their consolidated financial statements. Required: a. Explain the EU’s objective in requiring the use of IFRS. b. Identify and describe two issues that might hamper the EU from achieving the objective underlying the use of IFRS.Include the summary of the topic.

Answer 1

Ans a.) use g. of IFRS > b.) several also non- by EU's objective in requiring the is to improue the quality of corporate firiancial reporting by 'inerissing their comparability and transparency to promote the development of single capital market in Europe. Several EU countries (Denmark and Estonia) have adopted a convergence strategy with respect to listed companies adopting a plan to concrage national This sto ategy could eventually substantive difference bfw IFRS a country's national "GAAP. countries like Germany, Netherlands, have no institutional ouersight of financial reporting further, Further, the enterprises that to apply IFRS in Europe are 4 juridiction, sizé, capital hetogeneous ownership structure i of accounting sophistication. degree Summary 1. several EU countries difference bfw IFRS & GAAP. on financial reporting of retrogenity GAAP result and with IFRS. in no some are expected in terms structure result in strategy which adopt convergence no substanture ouersight because 2. some countries have no nations. And You !! Please UPVOTED ... Thank