26 June 2015 — News
FOR IMMEDIATE RELEASE
Riga, 25 June 2015
FEE president Petr Kriz spoke at a major international conference on 10 years of International Financial Reporting Standards (IFRS) in the EU. The Latvian EU presidency hosted this conference to discuss the European Commission evaluation report on the International Accounting Standards (IAS) Regulation, which adopted IFRS in the EU legal framework back in 2005.
The FEE president welcomed the outcome of Commission’s evaluation as it shows broad support for the use of IFRS, based on the views of EU companies, investors and other stakeholders after 10 years of experience.
He commented: “IFRS provide the high quality financial reporting that Europe needs to enhance access to global markets and attract foreign investment for stimulating growth and jobs. The benefits of comparable, reliable and transparent financial information brought about by IFRS are crucial for Europe, now and in the future. 10 years ago Europe was unable to agree on accounting standards. Europe’s inability to agree was further evidenced by the many options included in the recently adopted Accounting Directive. Therefore, entrusting the International Accounting Standards Board (IASB) to set reporting standards for listed entities was the right way forward for Europe.
To keep up the good work, FEE also concurs with the Commission’s report in finding room for improvement. Europe needs to remain at the forefront of developing IFRS, by providing input to the IASB as early as possible. To this end, FEE has proactively contributed to the reform of the European Financial Reporting Advisory Group (EFRAG). We are happy to see that stakeholders recognise that the renewed EFRAG is achieving its objective of providing a stronger EU voice in the international standard-setting process.
Reducing complexity of IFRS is another area of work in progress. Simplifying disclosures will facilitate the practical and proportional application of the international standards. This is especially critical in view of integrating European capital markets to further the Commission’s Capital Markets Union (CMU) initiative. If Europe wishes to achieve the objectives of the CMU, IFRS remain the only realistic option for European listed corporations”.
FEE (Federation of European Accountants) is an international non-profit organisation based in Brussels that represents 47 institutes of professional accountants and auditors from 36 European countries, including all of the 28 EU member states. FEE has a combined membership of more than 800,000 professional accountants, working in different capacities in public practice, small and large accountancy firms, businesses of all sizes, government and education – all of whom contribute to a more efficient, transparent and sustainable European economy.
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