International accounting standards adopted within the European Union

 

SUMMARY OF:

Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002

WHAT IS THE AIM OF THE REGULATION?

• It sets out the international accounting standards (IAS) which the EU has adopted. Under a parallel regulation (Regulation (EC) No 1606/2002 — International accounting standards), all EU listed companies*, including banks and insurance companies, must prepare their consolidated accounts according to these requirements.
• It replaces and repeals Regulation (EC) No 1725/2003 which had previously adopted certain international accounting standards.

KEY POINTS

The regulation and successive amendments include:

• 27 IAS ranging from presentation of financial statements to borrowing costs and intangible assets;
• 16 international financial reporting standards on subjects such as business combinations and insurance contracts;
• 19 interpretations from the International Financial Reporting Interpretations Committee covering, among others, rights to interests from decommissioning, restoration and environmental rehabilitation funds;
• 8 interpretations by the Standard Interpretations Committee, including the introduction of the euro and government assistance.

The European Commission:

• decides on the applicability of international accounting standards within the European Union after consulting the Accounting Regulatory Committee;
• publishes an amending regulation whenever the EU endorses a new standard issued by the International Accounting Standards Board.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 2 December 2008.

BACKGROUND

• Listed companies must prepare their consolidated financial statements according to a single set of international financial reporting standards.
• The standards aim to ensure the transparency and comparability of company accounts. This information contributes to the efficient and cost-effective functioning of the EU capital market.
• For more information, see:
  • Financial reporting (European Commission).

KEY TERMS

MAIN DOCUMENT

Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 320, 29.11.2008, pp. 1-481)

Successive amendments to Regulation (EC) No 1126/2008 have been incorporated into the original version. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (OJ L 243, 11.9.2002, pp. 1-4)

See consolidated version.

Commission Regulation (EC) No 1725/2003 of 29 September 2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 261, 13.10.2003, pp. 1-420)

See consolidated version.

last update 02.05.2019