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

Listed companies: companies whose securities are traded on a regulated market.

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.