General Developments within the European Union

Abstract

Comparing financial reports from different countries reveals a number of differences. Accounting differences are the norm because the development of accounting, which is interwoven with double-entry bookkeeping, is always related to varying political, economic and social contexts. The European Commission launched a programme of accounting harmonisation in the 1960s and with the growing number of countries becoming members of the European Union, the ideas and the regulations of the 4^th and 7^th EU Directives were enacted in all member states. This development could be seen as the first major wave of accounting harmonisation in Europe and should be divided into two major phases:

• 1. The first phase concerns the concept and introduction of the EU Directives with a further development and adjustment of national standards in the period from the 1960s up to 1990.

• 2. The second phase covered the newly independent countries from Eastern Europe and the adoption of the EU accounting regulations in connection with the integration of these countries into the Western European economic system from 1990 until today.