The European Union

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History: The European Union is a group of democratic countries, which was founded in 1957, with 6 countries signing the Treaty of Rome. (Roberts, 2008). It was to increase economic prosperity and contribute to an ever closer union among the peoples of Europe and committed to working together e.g. shared currency, financial management, legislative, judicial and executive bodies, regulatory and planning bodies. The main objectives of the EU was to create a unified business environment, the harmonization of company laws and taxation and the freedom of the movement of capital which is closely related to bringing company law of member states into closer agreement. Moreover, The EU set directives for the countries to follow in an attempt to harmonize accounting practices. The two main directives are the fourth directive and the seventh directive, which we will discuss below. IASC was founded in 1973 to form a uniform standard of accounting and financial report to help reduce cost from handling different accounting practices and coordinating them. IASC was restructured to IASB in 2001 to increase the quality of accounting standards and to promote the use and rigorous application of those standards. (IASB, 2015). The objective of IASB is to adjust to the changing environment of international business. (IFRS, 2015).It can help set the accounting standards which are understandable and which are of high quality and is easier to implement. It helps the users to make economic
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