Austria’s Financial Reporting Regulations Come Under EU Scrutiny

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Austria has recently aligned its national financial reporting regulations with those of the European Union (EU), promoting transparency and consistency in financial reporting for listed companies.

Mandatory Adoption of International Financial Reporting Standards (IFRS)

As of 2005, Austrian listed companies are required to prepare their consolidated financial statements according to IFRSs. This move aims to ensure that financial reports from Austria comply with EU standards, making it easier for investors and stakeholders to compare and analyze financial data.

EU’s IAS Regulation

The EU’s International Accounting Standards (IAS) Regulation requires companies listed on an EU securities market to adopt IFRSs. As a member state, Austria has opted to apply this regulation to its own listed companies, effective from 2005.

Options for Unlisted Companies and Parent Company Financial Statements

Austria did not take up any of the options available under the EU’s IAS Regulation regarding the adoption of IFRSs for unlisted companies, parent company financial statements, and companies listed on exchanges outside of the EU. This means that Austrian companies will adopt a uniform approach to financial reporting.

Vienna Stock Exchange (Wiener Borse) Alignment

The Wiener Borse, which operates three markets - Official Market, Second Regulated Market, and Third Market - has also aligned its regulations with those of the EU. Companies listed on the Official Market and Second Regulated Market must prepare their financial statements in accordance with IFRSs, while companies listed on the Third Market are exempt.

European Commission (EC) Documentation

The EC periodically issues a document summarizing the use of options under the IAS Regulation by EU member states. For more information on Austria’s plans and implementation of the regulation, please click [insert link].

Compliance Statement

Companies listed on Austrian stock exchanges may state compliance with IFRSs as adopted by the International Accounting Standards Board (IASB) in a footnote to their financial statements.

Additional Resources

Deloitte Germany offers a German translation of IAS Plus, which provides news and background material on financial reporting regulations in Germany, Austria, Switzerland, and Liechtenstein.
The website also features an overview of all German-language publications available online.