Abstract
Since 2005, companies listed in the European stock exchange have to present their financial statements in accordance with the International Accounting Standards (IAS), rather than comply with their national reporting standards. According to the European Parliament, the creation of such standards ‘facilitate the movement of capital; remove barriers to cross-border trading; permit comparison of company results; and assist the evaluation of managerial and corporate performance.' (Stittle J, (2004) page 1)
Indeed, the adoption of IAS was supposed to bring a large number of benefits, but the experience has proven so far that listed companies have also faced confusion and challenges.
The comparison of financial statements between various countries before 2005 was not an easy task for investors, due to many differences in individual national reporting standards.
