How Should The EU Respond To The Financial Crisis – by ACCA
Feb. 17, 2009
On Feb. 5, 2009, the Association of Chartered Certified Accountants (ACCA), a global organization of professional accountants, issued a briefing paper entitled, “How should the EU respond to the financial crisis?”
Aimed at European policy makers, ACCA’s paper asserts that:
· Europe’s focus should be on ensuring the International Financial Reporting Standards continue to be a high-quality, principles-based accounting language;
· The European Union authorities need to engage with the standard-setting process, as more countries adopt IFRS;
· Those with IFRS experience should share their views and knowledge with the EU;
· The EU needs to ensure it is transparent and accountable in order to increase the legitimacy of its decision-making processes; and
· The EU is still well placed to play an active role in designing new global structures.
Clive Booth, director of public affairs and media relations at ACCA, adds, “In response to political criticisms that fair value accounting rules caused some of the market volatility, the International Accounting Standards Broad revised its rules on fair value accounting.” He adds, “Some countries now want the EU to seek exemptions from the international standards. This would be a serious step backwards.”
Read more in the ACCA’s briefing paper.