The Iasc Comparability Project and Current Financial Reporting Reality: An Empirical Study of Reporting in Europe

Abstract

The IASC recently introduced a variety of proposals beginning with E32, which together can be referred to as the Comparability Project. These proposals, which have resulted in the amendment of ten standards, have the effect of substantially narrowing the choice of available financial reporting practices. Using data from practising auditors, this study examines how closely the IASC's revised standards match existing EU financial reporting practices, including those dictated by the Fourth and Seventh Directives. It finds that while EU financial reporting practices mirror many of the IASC recommendations, there are still considerable differences, both within the EU and between the EU countries as a whole and the IASC.

JEL Classification: M41, M44, G33