The coordination between the international accounting rules and the European capital maintenance rules - a case for amendments?

In this article, we start by analyzing the relevant provisions of the European Directive that deals with the capital maintenance requirements. After identifying the concept of net assets as a key concept of such rules, we will then focus our analysis on the international accounting rules that allow us to distinguish liabilities from net assets. Moving on to describe some situations where the lack of articulation between the European rules on capital maintenance and the accounting rules produces undesirable results, we will finish our paper with a proposal to amend the relevant International Accounting Standard.