Guidance for reading from Nobes and Parker (2020) Chapter 14, also Chapter 5 Sections 5.3 and 5.4 and Chapter 11 Sections 11.5
In terms of accounting matters note the change of national influence after 1973.
Note the pressures for the creation of a ‘unified business environment’ of which financial reporting was one element.
Note the challenges to harmonisation due to difference in national accounting systems.
Sections 14.2.2 , 14.2.3 and 14.2.4 provide a detailed coverage of the aims and stages of development of the Fourth Directive (harmonisation of financial reporting for individual companies) and the Seventh Directive (harmonisation of financial reporting for groups). A detailed knowledge of this history is not necessary, but make brief notes on the main aims and be able to provide examples of significant influences.
Now move to Chapter 5 Sections 5.3 and 5.4 Adoption of IFRS by EU.
Sections 5.3.1, 5.3.2 and 5.3.3 discuss possible ways that IFRS standards can be incorporated into the accounting regulations of jurisdictions. Make notes on the distinction between adoption and convergence and note the approach adopted by the EU as compared to other major jurisdictions.
Section 5.4 outlines how, after 2000, the EU made use of IFRS standards to achieve harmonisation for European listed groups. Make notes on the EU endorsement process, and on the problems posed to companies because of (a) the ‘time lag’ problem and (b) potential situations when endorsed standards might depart from IFRS standards.
In the second paragraph on page 133, the EU is referred to as the IASB’s ‘best customer’. When you have come to the end this section go onto Chapter 11 to see the potential impact of ‘best customer’ status.
Chapter 11 Section 11.5 Political lobbying and the EU
The guided reading for Unit 1 suggested you turn to Chapter 11 on political lobbying for a coverage of the issues involved. It is particularly relevant to this Unit on the EU.
From Section 11.1 note the distinction between ‘lobbying’ and ‘political lobbying’
From Section 11.2 make notes on the motivation for political lobbying.
Now continue in Section 11.5.
Sections 11.5.3 and 11.5.5 outline EU institutions have used political lobbying to influence IFRS standards in Accounting for financial instruments. The first case was the threat of an EU endorsed Standard (IAS 39) cutting out a section (carve out) from the official IFRS standard. The second case put pressure on the IASB Board in late amendments of IAS 39 and IFRS 7 following the global financial crisis. Section 11.5.4 shows the EU Parliament unsuccessfully attempting to influence the endorsement process with regard to IFRS 8. Make notes on these examples of political lobbying.
Now continue with Chapter 14.
Section 14.3 deals with the accounting related challenges faced by Central and eastern European counties moving from command to market based economies. Use sections 14.3.1 to 14.3.3 as background information. Detailed note taking is not required.
From section 14.3.4, identify examples of the general accounting-related problems faced by economic systems in transition and the methods used to overcome them. From Sections 14.3.5 and 14.3.6 make short notes comparing the approaches in Poland and Russia to the adoption of IFRS.
Type of service: Academic paper Writing
Type of assignment: Team paper
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Academic level: Undergraduate
Paper Format: Harvard
Line spacing: Double
Language style: UK English