ASCG comments on EC Green Paper on Building a Capital Markets Union

The Accounting Standards Committee of Germany (IFRS Committee) has finalised its comment letter on the Green Paper of the EU-Commission “Building a Capital Markets Union”. The Committee provided an answer on question 8 exclusively: “Is there value in developing a common EU level accounting standard for small and medium-sized companies listed on MTFs? Should such a standard become a feature of SME Growth Markets? If so, under which conditions?”

The IFRS Committee does not see the need for cross-border financing for SMEs to the extent that is presumed in the Green Paper. German SMEs tend to prefer debt financing through local banks. If a  common EU level accounting standard for SMEs will be considered necessary, its implementation must not limit the possibility to seek financing on the basis of financial statements according to national GAAP. Furthermore, the EU Commission should look into and consider the suitability of the existing IFRS for SMEs, at least as a basis.