ESMA Regulation - White Paper - Activity Report on IFRS Enforcement in the European Economic Area in 2011 - June 28, 2012
This report provides an overview of the monitoring of compliance of financial information with International Financial Reporting Standards (IFRS) and the taking of appropriate enforcement action in the European Economic Area (EEA) in 2011.
This report also explains the objectives of the European financial reporting enforcement system, explaining that “the European Enforcers Coordination Sessions (EECS) aims to promote a high level of consistency amongst enforcers in the decisions they take in respect of their reviews of financial statements.” EECS also aims to contribute to the harmonization of the application of International Financial Reporting Standards (IFRS) in the European Economic Area (EEA) by identifying areas which are not covered by financial reporting standards or which may be open to widely diverging interpretations for referral to the International Accounting Standards Board (IASB) or the International Financial Reporting Standards Interpretation Committee (IFRS IC), as appropriate. EECS is a forum in which European enforcers exchange views and discuss experiences relating to the enforcement of financial reporting standards. The convergence of enforcement in Europe is necessary in order to contribute to the creation of an efficient single capital market.