European Union and Reporting Standards

European Union and Reporting Standards 1
EUROPEAN UNION AND REPORTING STANDARDS
By Students Name
Course Name
Professor’s name
Institution
Date

European Union and Reporting Standards 2
European Union and International Reporting Standards
Introduction
Supranational body is an international union or group in which the influence or power of a
member country transcend national borders. World Trade Organization (WTO) and the European
Union are both Supranational bodies. In a bid to increase transparency and increase the level of
accountability, most supranational institutions come up with ways to report and audit financial
information. International audit standards (IAS) and International Financial Reporting Standards
are the two standards recognized internationally for auditing and financial reporting respectively
(Gilbert, 2011). The information symmetry ensures that states can compare performance and the
entire economy can have a consolidated report for all its states. This assignment involves
evaluating the role that European Union plays as a supranational body in the process of
international accounting convergence regarding the prescribed procedures and establishments it
has in place.
European Union
The EU is a supranational body that controls 28 States in Europe created in 1993 through the
Maastricht Treaty. The EU has made a lot of progress through integration including the
introduction of a common currency for a member state (Brown, 2011). The result is a strong
economy and economic cooperation between the various states has resulted in a stable economy.
European Union’s Institutions and International Accounting Standards
The European Union is characterized by three main financial institutions which include: the
European Central Bank (ECB), European Investment Bank (EIB) and the European Investment
Fund (Duguleana, 2016). The institutions are responsible for the policy making as well as the
control of the economy in the region. For the creation of an internal market, harmonization of