The Economic and Monetary Affairs Committee (ECON) of the European Parliament is currently working on the initiative report on IAS evaluation and activities of International Financial Reporting Standards (IFRS) Foundation, European Financial Reporting Advisory Group (EFRAG) and Public Interest Oversight Board (PIOB).
Regulation 1606/2002 (IAS Regulation) defines the criteria for endorsement of IFRS in European law. More than ten years after the adoption of the IAS Regulation, the Commission has assessed whether the regulation managed to meet its initial objectives and whether the recommendations of Philippe Maystadt to reinforce the EU’s contribution in the international standard-setting process were implemented. With regard to the activities of IFRS Foundation, EFRAG and PIOB, the Commission has come to a positive result.
The initiative report of the European Parliament is a welcome occasion to hint to major problems and to make proposals for corrections. The draft report already includes valuable recommendations like involving the European Parliament at an early stage when developing financial reporting standards, clarifying the concept of “true and fair view” and “public good” as well as strengthening the impact analyses capacity of EFRAG and the International Accouting Standards Board (IASB) to assess the effects of accounting standards on financial stability.
Please find the draft report here:
We would be very happy if those of you who have suggestions for specific comments could send us their input by Friday, February 5, 2016.