For IFRS implementation a measured approach is recommended!

Author:Interview with Mrs. Anne MOLINEAUX, World Bank Consultant

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Keywords:EU Directive, european experience, quality audit, Public Oversight, implementing

Abstract:
Recently Mrs Anne Molyneux, World Bank consultant, visited our country in order to discuss with the Romanian authorities issues related to the IFRS implementation and the implementation of the proposed EU Eighth Directive.\r\n\r\nWith this opportunity, Mrs. Anne Molyneux agreed with an interview, exclusively for the “Financial Audit” Magazine.\r\n\r\nWhat are the objectives of your activity in Romania?\r\nThere are two main aspects for my ativity in Romania – implementation of the proposed EU Eighth Directive and IFRS implementation in Romania for the public interest entities. Both actions, if well implemented, will improve the financial reporting in Romania.\r\n\r\nBased on your experience, what do you consider as being decisive for a good quality audit?\r\nThe application of the International Standards on Auditing issued by the International Federation of Accountants helps to ensure a good quality audit. They are principles based standards and require auditors to exercise their professional judgment..\r\n\r\nWhat would you recommend as far as concerns IFRS implementation?\r\nInternational Financial Reporting Standards are used in many jurisdictions. Still, we have to remember that the IFSR were meant to be used by the large entities, not by the small ones. Implementing IFRS it is not an easy task. In the United Kingdom the decision made was to take a measured approach. First of all, listed companies must apply IFRS Other countries adopted IFRS as national accounting standards applicable for all reporting entities, including public sector, not for profit organizations. This has proved difficult because IFRS were not written for these kinds of entities. The measured approach is a good approach and Romania seems to adopt a measured approach, too.\r\n\r\nMany changes to financial reporting converge in one direction – to increase the trust in the financial reporting. At the end of the day, the corporate collapses have reduced trust in audit and in financial reporting. Public Oversight will restore the trust in the work of auditors.\r\n

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