Does France follow IFRS?

Does France Follow IFRS?

Yes, France follows International Financial Reporting Standards (IFRS) for certain companies, primarily due to its membership in the European Union. Since 2005, all French companies listed on regulated securities markets within the EU or European Economic Area (EEA) have been required to prepare their consolidated financial statements in accordance with IFRS.

This shift was part of a broader EU directive aimed at harmonizing accounting standards across member states, improving transparency, and facilitating cross-border investment. Before this change, French accounting was deeply rooted in a legal, tax-oriented framework—very different in style and structure from the principles-based IFRS. The transition marked a significant evolution in French financial reporting culture.

However, it’s important to note that IFRS adoption in France is not universal. While publicly traded companies must use IFRS, many private companies continue to apply the traditional French Generally Accepted Accounting Principles (GAAP), known as the Plan Comptable Général, which is maintained by the Commission des Normes Comptables. This dual system reflects France’s balanced approach—embracing global standards where needed while preserving local practices for domestic entities.

In practice, this means that financial professionals in France often navigate both systems, depending on the nature and size of the organization. Multinational subsidiaries based in France typically use IFRS for group reporting, while small and medium-sized enterprises (SMEs) usually stick to national standards.

So while IFRS has become the norm for listed companies in France since 2005, the country maintains a hybrid environment where international and national standards coexist, reflecting both European integration and national accounting tradition.