Financial Crime World

Belgium’s Financial Regulatory Bodies Converge with International Standards

Strengthening Financial Transparency and Stability

In a move aimed at strengthening financial transparency and stability, Belgium has aligned its financial reporting framework with international standards. The country’s national professional organizations, including the Institut des Experts Comptables and the Institut des Reviseurs d’Entreprises, have joined forces to adopt the International Financial Reporting Standards (IFRSs) for consolidated financial statements.

EU IAS Regulation

As part of the European Union’s IAS Regulation, Belgian companies listed on EU securities markets have been required to prepare their consolidated financial statements in accordance with IFRSs since 2005. The regulation gives EU countries options to either require or permit IFRS adoption for unlisted companies, parent company (unconsolidated) financial statements, and companies with debt securities.

Belgium’s Proactive Approach

Belgium has taken a proactive approach in implementing the IAS Regulation, requiring unlisted banks and credit institutions to adopt IFRSs since 2006. Unlisted companies can also voluntarily decide to prepare their consolidated financial statements in accordance with IFRSs, subject to board approval.

Specific Requirements for Certain Sectors

  • Real estate investment trusts (REITs) have been required to use IFRSs for both consolidated and individual financial statements since 2007.
  • Insurance companies must adopt IFRSs as adopted by the EU for accounting years starting on or after January 1, 2012.

European Commission Guidelines

The European Commission periodically publishes a table summarizing the use of options under the IAS Regulation by EU Member States. The commission has also issued guidelines for companies subject to the regulation, recommending that they state compliance with IFRSs as adopted by the EU in their notes and audit reports.

Enhancing Transparency and Investor Confidence

Belgium’s commitment to international financial reporting standards is seen as a key step towards enhancing transparency and investor confidence in the country’s financial markets. By adopting IFRSs, Belgium is demonstrating its dedication to maintaining a stable and transparent financial environment, which will benefit both domestic and international investors alike.