Skip to main content
SpringerLink
Log in

History of the European Accounting Directives Review: Analysis of the Public Consultation Results

  • Conference paper
  • First Online:
Eurasian Business Perspectives

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 10/1))

  • 548 Accesses

Abstract

Approval of the new European Accounting Directive followed a long standard-setting process, characterized by a public consultation held in 2009 through a Questionnaire submitted by the European Commission as part of the project to simplify EU accounting rules. This paper analyses the comment letters received by the European Commission with a twofold aim: first, to evaluate whether there are significant differences among Country groups and respondent categories, and second to verify the acceptance level of the constituents’ opinions in the subsequent European Commission’s review proposal and in the European Parliament and Council’s final decisions. Confirming our hypotheses, results show a significant diversity among respondents. In particular, only German-speaking Countries favor eliminating significant disclosure and publication requirements. Anglo-Nordic Countries agree on increasing simplification options and information freedom, whilst Latin Countries are more oriented towards a rule-based approach. Concerning respondent categories, preparers show more appreciation for a significant reduction of mandatory disclosure with respect to users and public authorities. In any case, the proposal for a new Accounting Directive presented by the European Commission, as well as the final Directive, though apparently supporting the ‘user primacy’ principle, seems not to consider adequately all the needs emerging from the public consultation.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Alexander, D. (2015). Directive 2013/34/EU, Article 6 – an analysis and some implications. A research note. Financial Reporting, 1, 5–22.

    Article  Google Scholar 

  • Beattie, V., Goodacre, A., & Thomson, S. J. (2006). International lease-accounting reform and economic consequences: The views of U.K. users and preparers. The International Journal of Accounting, 41(1), 75–103.

    Article  Google Scholar 

  • Blake, J., Amat, O., Gowthorpe, C., & Pilkington, C. (1998). International accounting harmonization – a comparison of Spain, Sweden and Austria. European Business Review, 98(3), 144–150.

    Article  Google Scholar 

  • Collis, J., Jarvis, R., & Skerratt, L. (2017). The role and current status of IFRS in the completion of national accounting rules – evidence from the UK. Accounting in Europe, 14(1–2), 235–247.

    Article  Google Scholar 

  • Council of the European Union. (2013, April 12). Proposal for a Directive of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings (Accounting Directive) (First reading) – approval of the final compromise text [online]. Accessed December 30, 2016, from http://data.consilium.europa.eu/doc/document/ST-8328-2013-INIT/en/pdf

  • D’Arcy, A. (2001). Accounting classification and the international harmonisation debate – an empirical investigation. Accounting, Organizations and Society, 26(4), 327–349.

    Article  Google Scholar 

  • Di Pietra, R. (2017). The role and current status of IFRS in the completion of national accounting rules – evidence from Italy. Accounting in Europe, 14(1–2), 121–130.

    Article  Google Scholar 

  • Di Pietra, R., Evans, L., Chevy, J., Cisi, M., Eierle, B., Jarvis, R., & On Behalf Of The European Accounting Association’s Financial Reporting Standards Committee. (2008). Comment on the IASB’s exposure draft ‘IFRS for Small and Medium-Sized Entities’. Accounting in Europe, 5(1), 27–47.

    Article  Google Scholar 

  • Doupnik, T. S., & Salter, S. B. (1993). An empirical test of a judgemental international classification of financial reporting practices. Journal of International Business Studies, 24(1), 41–60.

    Article  Google Scholar 

  • Doupnik, T. S., & Salter, S. B. (1995). External environment, culture, and accounting practice: A preliminary test of a general model of international accounting development. The International Journal of Accounting, 30(3), 189–207.

    Google Scholar 

  • Emenyonu, E. N., & Gray, S. J. (1996). International accounting harmonization and the major developed stock market countries: An empirical study. The International Journal of Accounting, 31(3), 269–279.

    Article  Google Scholar 

  • European Commission. (2009a). Responses received to the Working Document of the Commission Services (DG Internal Market). Consultation paper on review of the Accounting Directives [online]. Accessed December 30, 2016, from https://circabc.europa.eu/faces/jsp/extension/wai/navigation/container.jsp

  • European Commission. (2009b). Summary report of the responses received to the Working Document of the Commission Services (DG Internal Market). Consultation paper on review of the Accounting Directives [online]. Accessed December 30, 2016, from http://ec.europa.eu/internal_market/accounting/docs/200910_accounting_review_consultation_report_en.pdf

  • European Commission. (2011a). Proposal for a Directive of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings. [COM/2011/0684 final – 2011/0308 (COD)] [online]. Accessed December 30, 2016, from http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52011PC0684&from=en

  • European Commission. (2011b). Executive summary of the impact assessment (Part I), accompanying the documents: Proposal for a Directive of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings. Commission Staff Working Paper [online]. Accessed December 30, 2016, from http://ec.europa.eu/internal_market/accounting/docs/sme_accounting/review_directives/SEC_2011_1290_1_en.pdf

  • European Commission. (2011c). Impact assessment (Part I), accompanying the documents: Proposal for a Directive of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings. Commission Staff Working Paper [online]. Accessed December 30, 2016, from http://ec.europa.eu/internal_market/accounting/docs/sme_accounting/review_directives/SEC_2011_1289_1_en.pdf

  • European Parliament. (2010, March 8). Debates: CRE 08/03/2010 – 19. Annual accounts of certain types of companies as regards micro-entities, Strasbourg [online]. Accessed December 30, 2016, from http://www.europarl.europa.eu/sides/getDoc.do?type=CRE&reference=20100308&secondRef=ITEM-19&language=EN&ring=A7-2010-0011

  • European Parliament and Council. (2012, March 21). Directive 2012/6/EU of the European Parliament and of the Council of 14 March 2012 amending Council Directive 78/660/EEC on the annual accounts of certain types of companies as regards micro-entities. Official Journal of The European Union, L 81 [online]. Accessed December 30, 2016, form http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32012L0006&from=EN

  • European Parliament and Council. (2013, June 29). Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the Annual Financial Statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC. Official Journal of The European Union, L 182 [online]. Accessed December 30, 2016, from http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0034&from=EN

  • Fontes, A., Rodrigues, L. L., & Craig, R. (2016). A theoretical model of stakeholder perceptions of a new financial reporting system. Accounting Forum, 40(4), 300–315.

    Article  Google Scholar 

  • Fülbier, R. U., Pelger, C., Kuntner, E., & Bravidor, M. (2017). The role and current status of IFRS in the completion of national accounting rules – evidence from Austria and Germany. Accounting in Europe, 14(1–2), 13–28.

    Article  Google Scholar 

  • Gaa, J. C. (1986). User primacy in corporate financial reporting: A social contract approach. The Accounting Review, 61(3), 435–454.

    Google Scholar 

  • Gallup Organization. (2007). Observatory of European SMEs Fieldwork: November 2006–January 2007. Flash Eurobarometer N° 196 [online]. Accessed December 30, 2016, from http://ec.europa.eu/commfrontoffice/publicopinion/flash/fl196_en.pdf

  • Georgiou, G. (2010). The IASB standard-setting process: Participation and perceptions of financial statement users. The British Accounting Review, 42(2), 103–118.

    Article  Google Scholar 

  • Gray, S. J. (1980). The impact of international accounting differences from a security-analysis perspective: Some European evidence. Journal of Accounting Research, 18(1), 64–76.

    Article  Google Scholar 

  • Gray, S. J. (1988). Towards a theory of cultural influence on the development of accounting systems internationally. Abacus, 24(1), 1–15.

    Article  Google Scholar 

  • Haller, A. (2002). Financial accounting developments in the European Union: Past events and future prospects. The European Accounting Review, 11(1), 153–190.

    Article  Google Scholar 

  • Jarrar, N. S., Smith, M., & Dolley, C. (2007). Perceptions of preparers and users to accounting change: A case study in an Australian university. Managerial Auditing Journal, 22(1), 80–94.

    Article  Google Scholar 

  • Joos, P., & Lang, M. (1994). The effects of accounting diversity: Evidence from the European Union. Journal of Accounting Research, 32(Suppl), 141–168.

    Article  Google Scholar 

  • Kvaal, E., & Nobes, C. W. (2010). International differences in IFRS policy choice: A research note. Accounting and Business Research, 40(2), 173–187.

    Article  Google Scholar 

  • Le Manh, A. (2017). The role and current status of IFRS in the completion of national accounting rules – evidence from France. Accounting in Europe, 14(1–2), 94–101.

    Article  Google Scholar 

  • Nobes, C. W. (1983). A judgmental international classification of financial reporting practices. Journal of Business Finance and Accounting, 10(1), 1–19.

    Article  Google Scholar 

  • Nobes, C. W. (1998). Towards a general model of the reasons for international differences in financial reporting. Abacus, 34(2), 162–187.

    Article  Google Scholar 

  • Nobes, C. W. (2006). The survival of international differences under IFRS: Towards a research agenda. Accounting and Business Research, 36(3), 233–245.

    Article  Google Scholar 

  • Nobes, C. W. (2011). IFRS practices and the persistence of accounting system classification. Abacus, 47(3), 267–283.

    Article  Google Scholar 

  • Ousama, A. A., Fatima, A. H., & Hafiz Majdi, A. R. (2011). Usefulness of intellectual capital information: Preparers’ and users’ views. Journal of Intellectual Capital, 12(3), 430–445.

    Article  Google Scholar 

  • Paoloni, P. (2006). Il bilancio delle piccole imprese nella prospettiva internazionale [Small undertakings’ financial statements: An international perspective]. Turin: Giappichelli.

    Google Scholar 

  • Quagli, A., & Paoloni, P. (2012). How is the IFRS for SME accepted in the European context? An analysis of the homogeneity among European Countries, users and preparers in the European commission questionnaire. Advances in Accounting, 28(1), 147–156.

    Article  Google Scholar 

  • Quagli, A., Ramassa, P., & D’Alauro, G. (2015). The new European Directive and the balance between users and preparers. European Journal of Economics, Finance and Administrative Sciences, 72(February), 55–75.

    Google Scholar 

  • Roberts, A. (1995). The very idea of classification in international accounting. Accounting, Organizations and Society, 20(7–8), 639–664.

    Article  Google Scholar 

  • Schiebel, A. (2008). Is there a solid empirical foundation for the IASB’s draft IFRS for SMEs? [online]. Accessed December 30, 2016, from http://ssrn.com/abstract=994684

  • Sinnett, W., & De Mesa Graziano, C. (2006). What do users of private company financial statements want? New Jersey: Financial Executives Research Foundation.

    Google Scholar 

  • Van Hulle, K. (1992). Harmonization of accounting standards. A view from the European Community. The European Accounting Review, 1(1), 161–172.

    Article  Google Scholar 

  • Van Hulle, K. (1993). Harmonization of accounting standards in the EC. The European Accounting Review, 2(2), 387–396.

    Article  Google Scholar 

  • Venuti, M. (2012). The proposal for updating the EU Accounting Directives: The adequacy of the proposal versus the legislative targets. Financial Reporting, 4, 65–85.

    Google Scholar 

  • Walton, P. (1997). The true and fair view and the drafting of the Fourth Directive. The European Accounting Review, 6(4), 721–730.

    Article  Google Scholar 

  • Walton, P. (2015). IFRS in Europe – an observer’s perspective of the next 10 years. Accounting in Europe, 12(2), 135–151.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics and Business Studies, University of Genoa, Genoa, Italy

    Gabriele D’Alauro

Authors
  1. Gabriele D’Alauro
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Gabriele D’Alauro .

Editor information

Editors and Affiliations

  1. Faculty of Political Sciences, Istanbul Medeniyet University, Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank, San Francisco, CA, USA

    Hakan Danis

  3. Faculty of Tourism, Istanbul Medeniyet University, Istanbul, Turkey

    Ender Demir

  4. Eurasia Business & Economic Society, Fatih, Istanbul, Turkey

    Ugur Can

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

D’Alauro, G. (2019). History of the European Accounting Directives Review: Analysis of the Public Consultation Results. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Eurasian Business Perspectives. Eurasian Studies in Business and Economics, vol 10/1. Springer, Cham. https://doi.org/10.1007/978-3-030-11872-3_8

Download citation

Publish with us

Policies and ethics

Search

Navigation