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In line with the European Commission Regulation No. 1606/2002, listed companies in the Netherlands are required to use International Financial Reporting Standards (IFRSs) in their consolidated accounts. In 2006, the European Commission published a report on the implementation of IFRSs in European Union (EU) member states, in which it points out that the Netherlands permits IFRSs in the annual accounts for listed companies and annual and consolidated accounts for all other companies. Dutch law allows the option to use either IFRSs or Dutch Generally Accepted Accounting Principles (GAAPs). The Dutch GAAP refer largely to the Dutch Civil Code and the Guidelines on Annual Reporting issued by the Dutch Accounting Standards Board (DASB). According to a 2006 KPMG publication, between 1998 and 2003, Dutch GAAPs were rapidly converging with IFRSs. However, with the implementation of the EU regulation on IFRSs, the focus of the DASB has shifted to establishing requirements for unlisted companies and ensuring consistency with Dutch law and regulations. The KPMG report observes that, as a consequence, the differences between IFRSs and Dutch GAAPs have been growing over the last few years, and they are likely to increase in the future.

According to the 2004/2005 Annual Report of the Netherlands Institute of Registered Accountants (NIVRA), the national auditing standards are known as the Dutch Standards on Auditing (RACs). Most International Standards on Auditing (ISAs) have been translated and incorporated in the RACs, with adaptations to reflect the local legal environment. The NIVRA 2006 self-assessment confirmed that the Netherlands adopts International Auditing and Assurance and Standards Board (IAASB) pronouncements as national standards, again with changes in accordance with the Dutch legal and regulatory environment. On May 17, 2006, Directive 2006/43/EC of the European Parliament and the Council came into force. This requires all statutory audits of annual and consolidated accounts to be carried out on the basis of ISAs as adopted by the European Commission. European Union member states shall adopt and publish the provisions necessary to comply with this Directive before June 29, 2008. Member states may impose additional requirements relating to the statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010.