The objectives of the workshop were to assist the REPARIS countries in:
- aligning their accounting laws and related requirements with the acquis communautaire with a focus on the Fourth Company Law Directive;
- choosing appropriate financial reporting requirements for different forms and sizes of entities within the framework of the acquis;
- understanding the principles on the preparation and presentation of financial statements using IFRS and;
- and ensuring the availability of IFRS in their local languages.
After Pascal Frèrejacque and David Cairns presented the objectives and agenda for the workshop, Michael Wells, the IFRS Foundation's director of IFRS Education, kicked-off the workshop by presenting a framework-based approach to using International Financial Reporting Standards (IFRS). Mr Wells showed how this framework helped in preparing financial statements. He also emphasized how the International Accounting Standards Board's IFRS Interpretation Committee used the framework in making its rulings.
Mr Cairns stressed the importance of the hierarchy set out in IAS 8 for accounting policies. He also emphasized the use of judgment in applying IFRS and presented several case studies which illustrated the central role of professional judgment in applying IFRS under the IAS Regulation 1606/2002.
Richard Martin of the Association of Chartered Certified Accountants (ACCA) showcased how the UK had used the policy options allowed by the EU Directives to establish a simpler financial reporting framework for small and medium-sized entities. Mr Martin also described how there were many common elements between accounting standards and tax rules in the UK.
Ken Creighton, director of IFRS content services, presented on the principles, best practices and issues of IFRS translation based on prior experience in other regions.
Together with Juri Sekiguchi from the CFRR's knowledge management team, the participants discussed how much progress had been made in achieving a single IFRS Foundation-approved translation in each of their official languages. Workshop participants discussed how far countries have already co-operated with each other in preparing these translations and assessed where further synergies could still be achieved.
Pascal Frèrejacque presented the key features of the Fourth Company Law Directive and some tools for facilitating its transposition to the legal framework in each REPARIS country. Using this as a framework, participants started to draw up action plans for their countries to further implement the EU acquis.
The members of the community of practice drafted country strategies for implementing the Fourth and Seventh Company Law Directives and the IAS regulation. They learned how the UK had adopted options in the Directives for simplified reportingstandards for SMEs based on the IFRS for SMEs and about the use of the IFRS framework and professional judgement in applying IFRS. They also became familiar with tools to ease the process of transposing the Fourth Company Law Directive into their own legislation.