| Author (Corporate) | European Commission: Press and Communication Service |
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| Series Title | Press Release |
| Series Details | IP/00/606 (14.6.00) |
| Publication Date | 14/06/2000 |
| Content Type | News |
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The European Commission has outlined a strategy for future financial reporting in Europe in a Communication it has just adopted. The strategy is designed to help eliminate remaining barriers to cross-border trading in securities, in particular by recommending that there be one set of accounting standards so that company accounts throughout the European Union are more transparent and can be more easily compared. A single set of standards should make it easier to compare corporate performance, to raise capital and to enhance investor protection. The strategy is a key element in the creation of an integrated market in financial services that is the aim of the Financial Services Action Plan adopted in May 1999. The Lisbon Summit also explicitly insisted on the importance of the comparability of financial reporting to the creation of an efficient, deep and liquid securities market in Europe. The Commission believes that the adoption of International Accounting Standards (IAS) are the way forward. The Communication announces that the Commission will come forward with proposals before the end of 2000 which would require all EU companies listed on a regulated market to prepare consolidated accounts in accordance with International Accounting Standards. This requirement would enter into force at the latest from 2005 onwards. Member States would be allowed to extend this requirement to unlisted companies and for preparing individual accounts. Since transparency and comparability are of particular importance for financial institutions, this policy will also cover listed banks and insurance companies. |
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| Source Link | Link to Main Source http://europa.eu/rapid/pressReleasesAction.do?reference=IP/00/606&format=HTML&rapid=0&language=EN&guiLanguage=en |
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| Subject Categories | Internal Markets, Law |
| Countries / Regions | Europe |
