IFRS Endorsement Criteria in Relation to IFRS 9

15-10-2015

IAS Regulation 1606/2002 introduces three criteria for the endorsement of an international accounting standard, a ‘true and fair view’ criterion, qualitative criteria, and a ‘European public good’ criterion. In this study, these criteria are described against the background of European accounting law and academic accounting research. Then, the paper evaluates whether the new IFRS 9 standard on accounting for financial instruments meets these criteria. We conclude that the standard cannot reasonably be rejected on grounds of the IAS Regulation. This study was prepared by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

IAS Regulation 1606/2002 introduces three criteria for the endorsement of an international accounting standard, a ‘true and fair view’ criterion, qualitative criteria, and a ‘European public good’ criterion. In this study, these criteria are described against the background of European accounting law and academic accounting research. Then, the paper evaluates whether the new IFRS 9 standard on accounting for financial instruments meets these criteria. We conclude that the standard cannot reasonably be rejected on grounds of the IAS Regulation. This study was prepared by Policy Department A at the request of the Committee on Economic and Monetary Affairs.