The Committee of European Securities Regulators (CESR) has published a report on its review of the implementation and the enforcement of the IFRS in the EU. The aim of this report is to:
- Give an overview of the status of the implementation of enforcement activities in relation to 2005 IFRS financial statements within individual Member States.
- Present findings and some tentative conclusions coming out of these activities relating to IFRS and to the enforcement activities themselves.
- Provide some more general observations about the implementation of IFRS and its impact on EU markets.
Some of the key findings of the report are:
- The results of CESR's survey suggest that 20 out of 27 Member States had introduced an enforcement mechanism by 2006 that met, at least in part, the requirements laid down by CESR standards on enforcement.
- When the report was published a competent authority had been designated in accordance with the requirement of the Transparency Directive (Article 24.1), in 24 out of 27 Member States.
- U enforcers agree that the implementation of IFRS in the consolidated accounts of over 7,000 EU issuers has presented a very significant challenge to preparers, auditors and regulators.
- Generally EU enforcers also believe that the move to IFRS has improved the quality of financial reporting in their jurisdiction, mainly due to increased transparency of disclosures and greater comparability between issuers.