The EU's likely endorsement of a wave of standards for 2014 means that IFRS reporters will have to early adopt the standards in 2013 if they need to claim compliance with IFRS and EU IFRS.
The EU is likely to endorse IFRS 10, 11, 12 and IAS 27 and 28 (the standards) for financial years starting on or after January 1, 2014, one year later than the mandatory adoption date required by the standards.
The Accounting Regulatory Committee voted on June 1, 2012 to recommend endorsement of the standards for adoption in 2014. This recommendation is likely to be accepted by the EU; in which case, companies applying IFRS, as endorsed by the EU (EU IFRS), will have to apply these standards, from financial years starting on or after January 1, 2014 at the latest. The EU endorsement is expected to occur by the end of 2012, with early adoption permitted. EU IFRS reporters will be able to early adopt the standards in 2013 if they need to claim compliance with IFRS and EU IFRS.
Am I affected?
All entities that report under EU IFRS will be affected. However, because the application of standards is retrospective, there will not be significant differences carried forward.
What do I need to do?
EU IFRS reporters should consider the impact of these standards and whether it will be beneficial to early adopt. Entities that need to comply with both IFRS and EU IFRS may find it beneficial to early adopt these standards when they are endorsed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
