Aspect

Summary

Financial Reporting

European countries have made progress in adopting accrual accounting, improving transparency and comparability.

Accrual accounting provides a comprehensive view of financial performance in the public sector.

Disclosure Requirements

Variations exist in disclosure requirements, with some countries including non-financial information in reporting.

Some countries primarily focus on financial reporting and have not yet incorporated non-financial disclosures.

Measurement Standards

Measurement standards vary based on national preferences, with differences in fair value and historical cost approaches.

Some countries emphasize fair value measurement for transparency, while others prioritize historical cost measurement.

Consolidation Principles

Consolidation principles differ, with variations in the scope of entities and activities included in the consolidation.

Some countries adopt a broader scope, while others apply more restrictive criteria for consolidation.

Harmonization Efforts

Harmonization efforts by the EU promote convergence, comparability, and transparency of financial information.

Harmonization simplifies reporting for entities operating in multiple countries.