Listed companies based in one of the European Member States are to apply the IFRS as approved by the European Commission in their consolidated annual accounts. These accounting standards - the EU IFRS - form part of the European legal structure and are directly binding on such companies. But can they also be deemed to constitute accounting law? This may be questioned when testing the drafting process of the EU IFRS against the constitutional framework. Furthermore, there is a fragmented picture regarding the supervision and enforcement of compliance with the EU IFRS. There is room for improvement on both points.
European Company Law