Final answer:
The EU requires the use of IFRS to ensure uniformity in financial reporting, enhance transparency, and facilitate cross-border investments and trade within Europe, thereby supporting its economic goals and integration.
Step-by-step explanation:
The objective of the European Union (EU) in requiring the use of International Financial Reporting Standards (IFRS) is to ensure uniformity and transparency in financial reporting across its member states. By mandating the use of IFRS, the EU aims to facilitate cross-border investments and trade by providing a consistent basis for financial statements, making it easier for investors and regulators to compare the financial health of companies operating in different countries. This contributes to a more integrated and efficient European market, which supports the EU's goals of economic cooperation and stability. Moreover, the use of IFRS across the EU enhances the quality and comparability of financial information, which is critical for the functioning of a global economy and for maintaining a high standard of living. Compliance with these standards is one of the obligations of EU membership, aligning with the broader aim of the EU to eliminate barriers to the mobility of goods, labor, and capital across Europe, as per its foundational goals after World War II.