PR(07)39: Iceland fails to incorporate legislation on accounting standards and financial reporting standards


The EFTA Surveillance Authority has decided to send reasoned opinions to Iceland for failure to incorporate into its internal legal order twelve Commission Regulations amending Commission Regulation (EC) No  1725/2003 adopting certain international accounting standards.[1]

International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) are developed by the International Accounting Standards Board (IASB). Those standards are adopted and used in the EEA with a view to harmonising the financial information presented by publicly traded companies. The aim of such harmonisation is to ensure a high degree of transparency and comparability of financial statements and hence an efficient functioning of the EEA capital market and of the Internal Market.

Commission Regulation (EC) No 1725/2003 adopts the international accounting standards set out in its Annex and makes them part of the Community law. The twelve Commission Regulations that Iceland has failed to incorporate into its internal legal order concern certain revised or recently published international accounting and financial reporting standards.

Issuing a reasoned opinion is the second stage in infringement proceedings. The EFTA Surveillance Authority could bring the matter before the EFTA Court if Iceland fails to produce a satisfactory reply within two months of receiving the reasoned opinions.

[1] Commission Regulation (EC) No 1725/2003 of 29 September 2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council.

For further information, please contact:

Mr. Hallgrímur Ásgeirsson
Director, Internal Market Affairs Directorate
Tel. (+32)(0)2 286 18 60; or

Ms. Eeva Kolehmainen
Senior Officer, Internal Market Affairs Directorate
Tel. (+32)(0)2 286 18 32

20 September 2007


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