The European Parliament has today approved continued funding for the International Financial Reporting Standards (IFRS) Foundation, the European Financial Reporting Advisory Group (EFRAG) and the Public Interest Oversight Board (PIOB) for the period of 2014-2020 (EFRAG for the period 2014-2016).
This is to assist with the development of high quality global standards ensuring comparability and transparency of listed company accounts that are needed to maintain the common financial reporting framework. That framework is essential for the internal market, for the effective functioning of the capital markets and for the realisation of the integrated market for financial services in the Union.
The funding programme was established after taking into account the the recommendations of Philippe Maystadt, Special Advisor to the Commissioner responsible for internal market and services, who discussed his findings for the first time at an ACCA event in Brussels in December 2013.
Richard Martin, Head of Corporate Reporting at ACCA, says: 'We welcome this vote as continued support for the development of IFRS, the EU endorsement of IFRS and for the oversight of auditing standards. Since 2002, when EU decided to introduce the IFRS, their uptake around the world has advanced and Europe has benefitted significantly from this global accounting language in fostering investment. Appropriate funding from the EU is essential for the continued development of the standards and to ensure European influence over that development.'
Richard Martin adds: 'IFRS are designed to provide investors with maximum transparency, equip them with relevant information and unbiased performance measurements. That enables them to make better decisions, both for short and the long term, which is crucial for the recovery in Europe.'
'The regulation in its final form allows for the independence of IASB, but with suitable scrutiny and evaluation of their activity in the six year period by EU institutions. EFRAG’s funding for only the next two years reflects its current re-organisation which is still ongoing, also with the benefit of the work of Philippe Maystadt. We are also hoping for a satisfactory outcome there which will give the EU an enhanced endorsement advisory system and foster European influence in the development of IFRS' concludes Richard Martin.