Has IASB improved financial reporting in the EU?

Level: Undergraduate | Grade: 2:1 | Approx. Word Count: 1,100

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Overview

The EU adoption of the IFRS standards developed by the IASB was aimed at removing the difficulties of comparison of financial statements presenet by of public corporations across member states. However, as this essay shows, key difficulties remained following this event

 

In 2001 the IASB, a US based non-profit organisation was formed to take over the responsibility for developing international financial reporting standards (IFRS) that would serve to increase transparency in financial reporting and eradicate the problems capital market investors were experiencing when endeavouring to make comparisons between corporations domiciled in nations that were operating different national accounting standards. However, in certain areas of the standards it has been indicated that such harmonisation has not been achieved