The New Accounting Procedures in Europe: Combining Transnational Standard-setting and Supranational Rule-making
As discussed in the previous chapter, accounting harmonization in Europe proceeded in two stages. At the first stage, company law directives were used that had to be transposed into national laws. As the early European directives contained much scope for choice, the powers of national legislators were not overly curtailed. Consequently, effective harmonization was not achieved by these directives, and the project of the single financial European market fell short of expectations. Instead of undertaking a second round in harmonizing company law, the EU Commission applied an approach in which the national legislatures could be circumvented on the one hand, but the Commission would not play an overly imposing role on the other. This became possible with the emerging international framework in accounting and an increased emphasis on regulating accounting with a perspective to financial markets (and securities law) rather than to company law.
KeywordsMember State Accounting Standard International Financial Reporting Standard Procedural Safeguard Exposure Draft
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