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13.4.2012 Official
Journal
of
the
European
Union L
103/49
DECISIONS
COMMISSION IMPLEMENTING DECISION
of 11 April 2012
amending Decision 2008/961/EC on the use by third countries’ issuers of securities of certain third
country’s national accounting standards and International Financial Reporting Standards to prepare
their consolidated financial statements
(notified under document C(2012) 2256)
(Text with EEA relevance)
(2012/194/EU)
THE EUROPEAN COMMISSION,
accounts from 1 January 2009 in accordance with IFRS.
According to that Decision prior to financial years
starting on or after 1 January 2012, third country
Having regard to the Treaty on the Functioning of the European
issuers are permitted to prepare their annual and half-
Union,
yearly consolidated financial statements in accordance
with the GAAP of the People’s Republic of China,
Canada, the Republic of Korea or the Republic of India.
Having regard to Directive 2004/109/EC of the European
Parliament and of the Council of 15 December 2004 on the
harmonisation of transparency requirements in relation to
information about issuers whose securities are admitted to
trading on a regulated market and amending Directive
(4) In
June
2010,
the
Commission
requested
the
then
2001/34/EC ( 1 ), and in particular the third subparagraph of
Committee of European Securities Regulators (CESR),
Article 23(4) thereof,
replaced by the European Securities and Markets
Authority (ESMA) by Regulation (EU) No 1095/2010
of the European Parliament and of the Council of
24 November 2010 establishing a European Supervisory
Whereas:
Authority (European Securities and Markets Authority),
amending Decision No 716/2009/EC and repealing
Commission Decision 2009/77/EC ( 4 ), to provide a
(1) Pursuant
to
Article
23
of
Directive
2004/109/EC,
third
technical assessment and an update on developments
country issuers may be exempted from the requirement
towards IFRS in China, Canada, South Korea and India.
of preparing consolidated accounts according to Inter
The Commission has taken full account of the report
national Financial Reporting Standards (IFRS) adopted
provided by CESR in November 2010 and the updates
in the Union if the Generally Accepted Accounting Prin
on China and India, received from ESMA in May 2011
ciples (GAAP) of the third country in question lay down
following an on-the-spot investigation which it
equivalent requirements. In order to assess the equiv
undertook in January 2011.
alence of that third country’s GAAP with adopted IFRS,
Commission Regulation (EC) No 1569/2007 ( 2 ) provides
for the definition of equivalence and establishes a
mechanism for the determination of equivalence of the
GAAP of a third country.
(5)
In April 2010 the Ministry of Finance of China issued a
‘Roadmap for Continuing Convergence of the
Accounting Standards for Business Enterprises (ASBE)
(2)
It is important to assess the efforts of those countries
with IFRS’ which reiterated China’s commitment to
which have taken steps to converge their accounting
continue the process of convergence to IFRS. As of
standards to or adopt IFRS. Therefore, Regulation (EC)
October 2010 all current standards and interpretations
No 1569/2007 has been amended to extend the period
issued by International Accounting Standards Board
of temporary equivalence until 31 December 2014.
(IASB) have been implemented in the ASBE. The level
of convergence has been reported by ESMA as being
satisfactory and reconciliation for the Union issuers
(3) Commission
Decision
2008/961/EC
(
which prepare their financial statements in accordance

3 ) provided that
third country issuers may also prepare their consolidated
with IFRS is not required. Therefore, it is appropriate
to consider the Chinese ASBE equivalent to adopted
IFRS as of 1 January 2012.
( 1 ) OJ L 390, 31.12.2004, p. 38.
( 2 ) OJ L 340, 22.12.2007, p. 66.
( 3 ) OJ L 340, 19.12.2008, p. 112.
( 4 ) OJ L 331, 15.12.2010, p. 84.

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L 103/50
EN
Official Journal of the European Union
13.4.2012
(6) The
Accounting
Standards
Board
of
Canada
made
a (12) The measures provided for in this Decision are in
public commitment in January 2006 to adopt IFRS by
accordance with the opinion of the European Securities
31 December 2011. It has approved the incorporation of
Committee,
IFRS into the Canadian Institute of Chartered
Accountants Handbook as Canadian GAAP for all
publicly accountable profit-oriented enterprises starting
HAS ADOPTED THIS DECISION:
in 2011. Therefore, it is appropriate to consider the
Canadian GAAP equivalent to adopted IFRS as of
Article 1
1 January 2012.
Article 1 of Decision 2008/961/EC is amended as follows:
(7) The
Korean
Financial
Supervisory
Commission
and
the 1. the second paragraph is replaced by the following:
Korean Accounting Institute made a public commitment
in March 2007 to adopt IFRS by 31 December 2011.
The Korean Accounting Standards Board has adopted
‘From 1 January 2012, with regard to annual consolidated
IFRS as Korean IFRS (K-IFRS). K-IFRS are identical to
financial statements and half-yearly consolidated financial
IFRS as issued by the IASB and are required for all
statements, the following standards shall be considered as
listed companies in South Korea since 2011. Unlisted
equivalent to IFRS adopted pursuant to Regulation (EC) No
financial institutions and state-owned companies are
1606/2002:
also required to apply K-IFRS. Other unlisted
companies may choose to do so. Therefore, it is appro
(a) Generally Accepted Accounting Principles of the People’s
priate to consider the South-Korean GAAP equivalent to
Republic of China;
adopted IFRS as of 1 January 2012.
(b) Generally Accepted Accounting Principles of Canada;
(8) The Indian Government and the Indian Institute of
Chartered Accountants made a public commitment in
(c) Generally Accepted Accounting Principles of the
July 2007 to adopt IFRS by 31 December 2011 with
Republic of Korea.’;
the aim that Indian GAAP would be fully IFRS
compliant by the end of the programme. Following an
on-the-spot investigation in January 2011, ESMA
2. the following third paragraph is added:
observed that the Indian Accounting Standards appear
to have a number of differences from IFRS. Uncertainties
‘Third country issuers shall be permitted to prepare their
remain about the timetable for the implementation of an
annual consolidated financial statements and half-yearly
IFRS-compliant reporting system.
consolidated financial statements in accordance with the
Generally Accepted Accounting Principles of the Republic
of India for financial years starting before 1 January 2015.’.
(9) Accordingly,
it
is
appropriate
to
extend
the
transitional
period for no more than three years, until 31 December
2014, in order to allow third country issuers to prepare
Article 2
their annual and half-yearly financial statements in
accordance with the GAAPs of India in the Union.
This Decision is addressed to the Member States.

This Decision shall apply from 1 January 2012.
(10) Since the transitional period for which Decision
2008/961/EC granted equivalence to Chinese, Canadian,
South-Korean and Indian GAAPs ended on 31 December
2011, for the sake of legal certainty, this Decision should
Done at Brussels, 11 April 2012.
apply from 1 January 2012.
For the Commission
(11) Decision
2008/961/EC should therefore be amended
Michel BARNIER
accordingly.
Member of the Commission

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Document Outline

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