2.14 Overview of the main financial reporting landmarks

– US financial crash (1929)

– Securities Act (1933) and Securities Exchange Act (1934)

– Start of movement towards national detailed accounting standards, not part of general legislation but developed by a dedicated body (first in the US, after WWII in the UK, followed by others)

– Establishment of the Financial Accounting Standards Board (1973)

– Establishment of the International Accounting Standards Committee (1973)

– The International Accounting Standards (developed in 1973, issued between 1973 & 2001 by International Accounting Standards Committee)

– EU financial reporting harmonization - Fourth Accounting Directive (1978) and Seventh Accounting Directive (1983)

– Transition from the International Accounting Standards Committee to the International Accounting Standards Board (2001)

– Reg. (EC) No. 1616/2002 directly requiring EU listed companies to apply IFRS (fully in practice by 2005)

– Sarbanes-Oxley Act (2002)

– Convergence of IFRS and US-GAAP (2002-2008); from rules to principles based reporting frameworks (growing complexity and need for information)

– SEC allows foreign companies to use IFRS without reconciliation with US-GAAP (2007)

– Financial Crisis (2008)

– G20 leaders support International Accounting Standards Board’s work and call for rapid move towards global accounting standards (2009)

– Organization of the standard setter (Governance model): independence and accountability