Achieving Consistent application of the IFRS in EU - comment letter

KPMG IFRG Limited Tel +44 (0) 20 7694 8089 1-2 Dorset Rise Fax +44 (0) 20 7694 8429 London EC4Y 8EN mark.vaessen@kpmgifrg.com United Kingdom Mr. Tidström Chairman of the Supervisory Board EFRAG Our ref MV/288 13-14 Avenue des Arts 1210 Brussels Contact Mark Vaessen Belgium +44 (20) 7694 8089 th6 October 2005 Dear Mr. Tidström ACHIEVING CONSISTENT APPLICATION OF IFRS IN THE EU: A DISCUSSION PAPER We appreciate the opportunity to comment on Achieving consistent application of IFRS in the EU: A discussion paper dated 27 July 2005. This letter expresses the views of the international network of KPMG member firms. We support initiating a debate in Europe on the important topic of ensuring that IFRSs are applied in a faithful manner consistent with a principles-based body of standards. Consistency Before providing specific feedback on a number of issues discussed in the Discussion Paper we wish to comment on the concept of consistency, which is the theme of the paper. We believe that it is important to have a debate about the concept of consistency so that preparers, auditors, users and regulators all have a consistent understanding of the term ‘consistency’. The paper sets out the background for discussion about issues surrounding consistent application of IFRS by providing its definition of ‘consistent application of IFRS’. The paper states that under IFRSs there is an “acceptance ...