The European IFRS Endorsement Process – in Search of a Single Voice

The Evolution of the European Public Good Assessment in the EU Endorsement Process of IFRS

“…The reform led to independence of EFRAG's supervisory board and the establishment of a planning and resource committee. Members of the supervisory board, the planning and resource committee, and of TEG committed now formally to act in the European public interest (EFRAG, 2008;Van Mourik & Walton, 2018). This new attentiveness can also be noticed in the annual reviews of EFRAG: Starting in 2008 the review now refers systematically and on many occasions to the (European) public interest of the organisation and its members whereas in the previous reportsthe first one was published for the year 2004such references do not occur.…”

“…The Commission also asked EFRAG systematically and in addition to the technical aid to carry out a cost-benefit analysis of the standard to be adopted. Indeed, it seemed from the beginning that an IFRS would not be conducive to the EPG if it did not pass a cost-benefit analysis or had negative macroeconomic consequences (Hennrichs & Schubert, 2007;Pöschke, 2009;Van Hulle, 2003;Van Hulle, 2004;Van Mourik & Walton, 2018). However, this analysis was unofficial and informed only the Commission's discussions with the ARC during the adoption process.…”

“…The SARG operated until 2011 and always found that EFRAG's work conformed to the above-mentioned expectations. One practical consequence of the establishment of the SARG was that EFRAG began adding Bases of Conclusion to its endorsement advice (EFRAG, 2006;Van Mourik & Walton, 2018), which are today Appendix 2 of EFRAG's endorsement advice. In the Basis of Conclusion EFRAG would now systematically refer to the cost-benefit analysis and state (if applicable) that the benefits of the new standards exceed their application cost.…”

The accounting reform in Spain. An analysis form the point of view of time and degree of knowledge of accountants

“…Those who apply IFRS in their daily work must be directly involved in these processes, as they are users of the standard and will benefit from the advantages of its adoption (Hoogendoorn, 2006). Accounting professionals are one of the most important stakeholders, both in the process of preparing IFRS and in the process of their adoption by the European Union, and their voice is listened to in the mechanisms established for this purpose (Mourik and Walton, 2018). Hence, it is their opinions that we gather through a questionnaire, specifically those on the huge change that the adaptation of our regulations to IFRS has meant in Spain as a consequence of this European harmonizing process.…”

“…Thus, in 2007, a new General Accounting Plan (GAP) was published (in fact, there were two, as there was also one adapted to SMEs), in which our accounting regulations are reformed and the requirements contained in IFRS are introduced for all our companies. This large regulatory change in Europe has been carried out through an adoption mechanism in which all the potential actors take part -one of them the professionals -and in which they play an important role (Mourik and Walton, 2018). In Spain, we are also involved in our own adoption process, for the type of business to which the successive reforms of our accounting system are directed, and which is carried out by our regulator, although it seems that the capacity of influence of professionals is more limited (Mora, 2017).…”