Our Financial Reporting Expert Group contributed to our response to the European Commission's public consultation regarding its fitness check on the EU framework for public reporting by companies.
We commented that, overall, the current EU framework for public reporting by companies is fit for purpose. We noted that users of public reports – particularly investors – will favour a framework which is consistent and comparable across all their investee companies. We added that, as the IASB already has an existing accounting standards consultation process in place, there is no demand for any further endorsement processes.
In light of this, we emphasised that there should be no “pan-EU GAAP” as this would create an extra level of burden and regulation which would harm small and mid-size quoted companies.
Furthermore, we commented that the European Commission should not be enabled to modify the content of IFRS as this would lead to unnecessary fragmentation of IFRS adoption.
At the same time, we encouraged the European Union to endorse the IASB Conceptual Framework for Financial Reporting as soon as possible.