By Steffen Müller
The European Commission (EC) has launched a public consultation on its International Accounting Standards (IAS) Regulation 1606/2002 which states that IFRS must be applied to the consolidated financial statements of EU companies whose securities are traded on a regulated EU market.
The consultation, Effects of using International Financial Reporting Standards (IFRS) in the EU, is aimed to examine whether the adoption of IFRS improved the efficiency of EU capital markets by increasing the transparency and comparability of financial statements.
The EC seeks views from all citizens and organisations but especially capital market participants and companies preparing financial statements or using them for investment purposes.
Respondents are asked to complete a questionnaire giving their views on aspects such as the cost and benefits of the IAS regulation, the quality of IFRS financial statements, and enforcement of IFRS.
The consultation will close on 31 October 2014. It is part of a broader EC evaluation on the relevance of the initial objectives of the IAS Regulation and possible improvements, required to be completed by 31 December 2014 by Article 9.2 of Regulation 258/2014.