The European Accounting Regulators
The Accounting Regulators are part of the European Accounting Regulatory Committee, which is chaired by the European Commission and is made up of representatives from member nations across the continent. The European Accounting Regulatory Committee or ARC is comprised of a vast number of countries within the European Union, as well as a few countries that are not. The countries that are not part of the European Union but choose to follow respective objectives of the committee. The European Commission established the Accounting Regulatory Committee (ARC) in 2002.
The foremost purpose of The Committee is to act in a regulatory or oversight manner, which actively provides opinions and comments to the European Commission on future regulations from the International Accounting Standards Board (IASB). Furthermore, the European commissions main goal is to “Draw up and manage rules designed to ensure that the financial information prepared and disclosed by EU companies is comparable and high-quality (Banking and Finance, Accounting- Financial Reporting, 2015). Additionally, the committee aims to make sure that information on the environmental impact of EU companies and their social and human rights record is more widely available” (Banking and Finance, Accounting- Financial Reporting, 2015). In other words, the Accounting Regulatory Commission, among its member states elects whether or not they should adopt both proposed and regulatory standards from the International Accounting Standards Board (IASB).
The practice of providing opinions and eventually reaching a conclusion on International Accounting Standards Board proposals starts when International Financial Reporting Standards are issued. Initially, the European Financial Reporting Advisory Board solicits opinions from its member nations, and subsequently provides feedback