The adoption of IFRS by the EU was intended to result in the harmonisation of financial reporting standards across all its member states. However, as shown within this comparative essay, due to cultural, political and regulatory differences means that absolute harmonisation remains an issue that has not been completely resolved.
Although originally reluctant to adopt IFRS due to its
dominance in the USA, following failures to develop and pass
a credible alternative, the EU issued directives that
required all corporations in the member states to use IFRS
as the financial reporting standard for financial statements
from 2005. However, it is apparent from an analysis of the
accounting and financial reporting determinants that exists
in four diverse EU nations that this has yet to secure the
anticipated unanimity of financial reporting.