IAS Accounting Standards (EN)
It is the first time that the European Parliament presents its strategic view on the issue of IFRS. These standards are the bedrock of all investment decisions in the global capital markets, and of the evaluation of company management on behalf of its shareholders.
For over a year, we have held many debates, seminars and hearings, with different stakeholders, standard setters, academics and experts. Let me focus on the main points of this report. We think that the concept of public good for the IFRS should be clarified, as well as the potential conflict between the private nature of the IASB, the standard setter, and the public good nature of the IFRS that are applied today in more than 110 countries and jurisdictions.
There are differences between how we in the European Union understand the concept of true and fair view, the principles of prudence and stewardship, which are the basis of accounting standards, and the accounting setters view on this concept and principle.
We insist on the need for an impact assessment for every new accounting standard or change of a current accounting standard. We think about the future of EFRAG, the private technical advisor of the European Commission in the process of IFRS endorsement in the European Union, and about the possibility on the long-term to transform EFRAG into a European agency.
We also ask for the strengthening of the role of the European Parliament, both in the process of setting accounting standards and in the endorsement process of IFRS in the European Union.