Indeed, improved comparability of disclosed information would facilitate cross-border investment and further market integration. Thus, in 2002 the European Parliament and Council adopted a Regulation requiring listed companies to prepare consolidated financial statements in accordance with IAS from 1st January 2005. A specific endorsement process is in place to ensure legal certainty and consistency with EU public policy concerns.
This process already allowed to endorse all IAS with the exception of the two standards concerning recognition, measurement and disclosure of financial instruments. Recently, in order to deal with the remaining controversial issues, the Commission took the initiative to establish a high-level dialogue between all the constituencies interested in high quality accounting principles.