Austria
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Accounting Standards are required for domestic public companies | All domestic companies whose securities trade in a regulated market are required to use IFRS Standards as adopted by the EU in their consolidated financial statements. | |
| IFRS Accounting Standards are permitted but not required for domestic public companies | ||
| IFRS Accounting Standards are required or permitted for listings by foreign companies | IFRS Standards as adopted by the EU are required in their consolidated financial statements except that a foreign company whose home jurisdiction’s standards are deemed by the EU to be equivalent to IFRS Standards may use its home standards. | |
| The IFRS for SMEs Accounting Standard is required or permitted | No. | |
| The IFRS for SMEs Accounting Standard is under consideration | No. |
Profile last updated: 16 June 2016
Austria
RELEVANT JURISDICTIONAL AUTHORITY
Organisation
Austrian Financial Reporting and Auditing Committee (AFRAC)
Role of the organisation
AFRAC is a privately organised standard-setting body for financial reporting and auditing standards in Austria. Its principal responsibility is the continuing development of national and international financial reporting standards. The AFRAC is an advisory body because authority to set accounting standards in Austria rests with the government.
Website
Email contact
COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Accounting Standards as that single set of high quality global accounting standards?
What is the jurisdiction’s status of adoption?
Austria has already adopted IFRS for all or some companies.
Additional comments provided on the adoption status?
As a member state of the European Union, Austria is subject to the https://ec.europa.eu/info/publications/regulation-application-international-accounting-standards-ias_en EU 1606/2002 Regulation on the application of international accounting standards (IAS)
The EU IAS Regulation requires application of IFRS Standards as adopted by the EU for the consolidated financial statements of European companies whose securities trade in a regulated securities market starting in 2005. The EU IAS Regulation gives member states the option to require or permit IFRS Standards as adopted by the EU in separate company financial statements (statutory accounts) and/or in the financial statements of companies whose securities do not trade on a regulated securities market. See the Profile for the European Union for more detailed information about the EU IAS Regulation. In Austria, the following are regulated markets:
- Wiener Boerse AG Amtlicher Handel
- Wiener Boerse AG Geregelter Freiverkehr Austria used the option under the IAS Regulation to permit optional application of IFRS
Standards as adopted by the EU for the consolidated financial statements of companies that do not trade in a regulated market.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Accounting Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Accounting Standards in the jurisdiction.
Not applicable.
EXTENT OF IFRS APPLICATION
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Accounting Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Accounting Standards REQUIRED or PERMITTED?
In accordance with the EU Accounting Regulation, IFRS Standards as adopted by the EU are required for the consolidated financial statements of all European companies whose debt or equity securities trade in a regulated market in Austria.
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
All companies whose securities trade in a public market that falls within the definition of a regulated market in the EU Accounting Regulation (ie traded on the Vienna Stock Exchange in the Equity Securities Market or in the regulated Bond Market).
Are IFRS Accounting Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes.
For instance, are IFRS Accounting Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
No. Austrian Generally Accepted Accounting Standards as stipulated in the Commercial Code are required for all statutory separate company financial statements of all companies, publicly traded and private.
For instance, are IFRS Accounting Standards required or permitted for companies whose securities do not trade in a public market?
Permitted only in the consolidated financial statements of all companies whose securities do not trade in a public market.
If the jurisdiction currently does NOT require or permit the use of IFRS Accounting Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Accounting Standards for such companies in the future?
Not applicable.
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Accounting Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Accounting Standards REQUIRED or PERMITTED in such cases?
Required for some and permitted for others. Foreign companies whose securities trade in a regulated market in Austria (and generally in the EU) are required to report under IFRS Standards as adopted by the EU for their consolidated financial statements unless the European Commission has deemed their local accounting standards to be equivalent to IFRS Standards, in which case they may use their local standards.
This is laid out on the 'Financial Reporting' page of the European Commission's website.
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
All.
IFRS ENDORSEMENT
Which IFRS Accounting Standards are required or permitted for domestic companies?
IFRS Standards as adopted by the European Union, which are IFRS Standards as issued by the Board with some limited modifications such as the temporary 'carve-out' from IAS 39. However, the resulting financial statements of the majority of companies can still be in full compliance with IFRS Standards.
The auditor’s report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
IFRS Standards as adopted by the European Union.
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Accounting Standards and the jurisdiction’s GAAP)?
Yes.
Are IFRS Accounting Standards incorporated into law or regulations?
Yes.
If yes, how does that process work?
The process is described in the IFRS jurisdiction profile of the European Union. In addition, the use of IFRS Standards as adopted by the EU is included in the Austrian Commercial Code. Section 245a of the Code has a reference to IFRS.
If no, how do IFRS Accounting Standards become a requirement in the jurisdiction?
Not applicable.
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Accounting Standards (including Interpretations) in place?
The EU has a formal process for endorsement and adoption. There is no separate endorsement and/or adoption in Austria.
If yes, what is the process?
The EU's process is described in the IFRS jurisdiction profile of the European Union. As soon as a new or amended IFRS Standard has been adopted at the EU level it automatically becomes a legal requirement in Austria insofar consolidated financial statements under Section 245a of the Austrian Commercial Code are presented.
If no, how do new or amended IFRS Accounting Standards become a requirement in the jurisdiction?
Not applicable.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Accounting Standards and/or made any modifications to any IFRS Accounting Standards?
Yes.
If yes, what are the changes?
Details are described in the IFRS jurisdiction profile of the European Union.
Other comments regarding the use of IFRS Accounting Standards in the jurisdiction?
Consolidated financial statements prepared using IFRS Standards in Austria must include disclosures required by Section 245a of the Austrian Commercial Code.
TRANSLATION OF IFRS ACCOUNTING STANDARDS
Are IFRS Accounting Standards translated into the local language?
Yes.
The European Union has 24 official and working languages. They are: Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish. Before they are published in the Official Journal of the European Union, and therefore become binding under EU law, individual IFRS Standards must be translated into all of those languages (other than English and Irish).
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Accounting Standards?
Pursuant to a copyright waiver agreement with the Directorate-General for Translation of the European Commission, the Commission takes care of the translation into the official languages according to their own translation process. The translation only covers the contents of IFRS Standards as adopted by the EU (the standard and mandatory guidance) – which is what is then published in the Official Journal of the European Union. In addition, some countries (usually the standard setter or institute) have a translation contract with the IFRS Foundation to produce an ‘official translation’ for publication of a bound volume of IFRS Standards (usually the ‘Red Book’) and publication, in some cases, of individual standards and exposure drafts.
APPLICATION OF THE IFRS FOR SMEs ACCOUNTING STANDARD
Has the jurisdiction adopted the IFRS for SMEs Accounting Standard for at least some SMEs?
No.
If no, is the adoption of the IFRS for SMEs Accounting Standard under consideration?
No.
Did the jurisdiction make any modifications to the IFRS for SMEs Accounting Standard?
Not applicable.
If the jurisdiction has made any modifications, what are those modifications?
Not applicable.
Which SMEs use the IFRS for SMEs Accounting Standard in the jurisdiction, and are they required or permitted to do so?
Not applicable.
For those SMEs that are not required to use the IFRS for SMEs Accounting Standard, what other accounting framework do they use?
In their separate company financial statements, SMEs must use Generally Accepted Accounting Policies as stipulated in the Austrian Commercial Code. In their consolidated financial statements, SMEs may use those Policies or they may choose full IFRS Standards as adopted by the EU.
Other comments regarding use of the IFRS for SMEs Accounting Standard?
Austria supports an option for jurisdictions in the EU to decide on the use of the IFRS for SMEs Standard in each member state.
