A crucial factor is time. There are various ways to modernise the Directives. FEE published today a Discussion Paper on the Modernisation of the Directives. The paper discusses both the strategic and technical issues that are at stake and gives the advantages and disadvantages of the various approaches for modernisation. Application of IAS should not be hampered by the Accounting Directives.
Time is of the essence.
The easiest way would be to transfer listed companies to a separate capital market regime. Notes to Editors 1. In considering the merits of these alternative approaches on the grounds of effectiveness in eliminating incompatibilities between Directives and IAS likelihood of being able to be in place by 2003 for listed companies costs to European business maintaining comparability of financial information on EU companies. FEE continues to hold the view that the preferred solution would be to exempt listed and other companies applying IAS from the Accounting Directives and to transfer them to a separate capital market regime. FEE would not be in favour at this stage of a fundamental review of the Accounting Directives, although this might be needed in the longer term, but not as a substitute for the other steps.