Accounting Standards – IFRS/Dutch GAAP

Financial statements are prepared in compliance with the accounting policies that are proclaimed in a nation’s governing accounting standards. In the Netherlands, the legal boundaries of the Dutch General Accepted Accounting Principles (GAAP) are enclosed within book two of the Dutch Civil Code, part nine. On the continental shelf of Europe, the use of International Financial Reporting Standards (IFRS) is mandatory for listed firms following the promulgation of EU IAS Regulation (2002/1606) and voluntary for small- and medium sized entities (SMEs). Around the world, IFRS as issued by the IASB, is progressively being permitted or required as the high-quality standard for financial reporting. The primary advantage of IFRS is the increased decision usefulness of information it provides to investors as well as other users of financial reports. Despite joint convergence efforts of the FASB and IASB, U.S. listed firms are still required to prepare their financial reports in accordance with U.S. GAAP, yet it is permitted for foreign private issuers to report under IFRS as issued by the IASB.

“A man acquainted with history may, in some respect, be said to have lived from the beginning of the world, and to have been making continual additions to his stock of knowledge in every century.”

David Hume (07/05/1711 – 25/08/1776), Scottish philosopher, historian, economist, and essayist

Van Clamsfield International Ltd. provides practical guidelines, information and advice on several IFRS issues, such as:

1. Implications of conversion to IFRS;
2. Accounting treatment of acquisitions (Business combinations)(IFRS 3);
3. Accounting treatment of Goodwill from a business combination (IFRS 3 and revised IAS 36);
4. Classification and valuation guidance of assets and liabilities;
5. Clarification of revenue recognition criteria and revised accounting policies (new exposure draft);
6. Diverging accounting treatments for lease accounting (lessees vs. lessors) (new exposure draft);
7. Financial derivatives under IFRS and hedge accounting (IAS 39);
8. Pension accounting methods (IAS 19);
9. IAS 38 & IFRS 3 on intangible assets;
10. IAS 39 - loans, losses and provisions (financial institutions).

Van Clamsfield International Ltd. also renders meaningful information and advice concerning the specific financial reporting requirements following from the whole body of authoritarian accounting law, jurisprudence, the Dutch Civil Code and the Dutch Accounting Standards (DASs) as published by the Dutch Accounting Standards Board (DASB).