The Prospectus and Transparency Directives allow the issuers to use, under certain circumstances, accounting standards other than the EU-endorsed IFRS in their prospectuses and periodic reporting. Regulation EC/1289/2008 and Decision 2008/961/EC provide for the recognition of certain of those accounting standards (those of the US and Japan) as “equivalent” (with interim provisions regarding Canada, China, India and Korea), A conceptually similar process has been initiated in the US where the SEC has proposed to accept IFRS in regulatory filings by non-US issuers.

The Statutory Audit Directive creates the mechanism for introduction of EEA-wide auditing standards and the framework for regulation and supervision of all aspects of the activities of auditors and audit firms. ICMA (and its predecessor IPMA) has been involved in negotiating the directive with the aim of ensuring that the wider interests of the international capital markets are taken into account.

Two issues arising under the Directive continue to be topical: the treatment of non-EEA audit firms and the possible introduction of a limitation of the audit firms' liability for statutory audits.

Related documents:

12 March 2008
ICMA response re UK implementation of the Statutory Audit Directive

25 February 2008
ICMA SIFMA comments on CESR equivalence consultation

25 September 2007
ICMA comments re File Number S7 13 07

21 August 2007
ICMA SIFMA comments on draft equivalence mechanism regulation

30 May 2007
ICMA Response re UK implementation of Statutory Audit Directive

8 May 2007
Final ICMA Response to CESR Equivalence CP

15 March 2007
ICMA Response to EC CP re Auditors Liability

1 March 2007
ICMA response to consultation on non-EEA auditors