• Register
Return to: Home > News > Standards > EU delays could derail IFRS movement

EU delays could derail IFRS movement

Concerns are building that European uncertainty about IFRS 9 Financial Instruments could affect the push towards global accounting standards.

The International Accounting Standards Board (IASB) released the updated standard on financial instruments on 12 November, the first part in its urgent three-phase project to overhaul the controversial accounting rules.

On the day the IASB released IFRS 9, the European Financial Reporting Advisory Group (EFRAG) postponed its final endorsement advice on the standards saying it needed more time to “consider the output from the IASB project to improve accounting for financial instruments”.

Deloitte’s IAS Plus website, moderated by Paul Pacter, suggested EFRAG’s deferral meant IFRS 9 would not be available for use in Europe for 2009 year-ends.

Deloitte Ireland said there was still a significant battle to get the new standard endorsed by the EC, which is due to happen before the year end so European companies can use the new standard.

“The previous standard nearly brought the European IFRS project to a halt and was only saved by a specific European carve out. Any similar difficulties could put the global IFRS convergence project in doubt and be a major set-back in bringing the US onto IFRS,” Deloitte Ireland partner Glenn Gillard warned.

Earlier this month, the EC wrote to the IASB suggesting urgent changes needed to be made to IFRS 9 as the current draft did not strike the right balance between fair value accounting and amortised cost accounting.

Institute of Chartered Accountants of England and Wales financial reporting faculty head Nigel Sleigh-Johnson said Europe’s dithering on endorsement could prove to be a disadvantage for companies in the continent.

“Any delay in endorsement of the standard for use in the EU will create uncertainty in already uncertain times, and will represent a competitive disadvantage for companies that wish to use the improved accounting embodied in the new standard,” Sleigh-Johnson said.

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.