Brussels, 12/11/2013 (Agence Europe) - On Tuesday 12 November, former Belgian Finance Minister Philippe Maystadt will unveil recommendations for the European Commission on how to boost the EU's role in the drawing up of international accounting standards, the International Financial Reporting Standards (IFRS).
In a press relase, Maystadt said: “I found that the aim of a single international accounting framework, i.e. the IFRS, was largely confirmed. However, the European Union's influence in international accounting standard-setting is reduced because it is diffuse. I recommend setting up a structure that is able to carry out a strategic analysis of the economic impact of the standards and better coordinate the European positions on this matter”.
Maystadt, who was formerly president of the European Investment Bank, suggests maintaining a “standard-by-standard” adoption procedure, including the possibility of accepting or refusing a standard issued by the IASB (International Accounting Standards Board). He says that any move to introduce greater flexibility (such as amending or adapting a standard) should be strictly regulated (precise criteria and conditions) in order not to impede the aim of applying global standards. The introduction of international standards in the EU must not damage financial stability or economic development.
Maystadt proposes reorganising the current EFRAG (the European Financial Reporting Advisory Group) to increase its legitimacy and representativeness. He does not recommend transferring the tasks handled by EFRAG to the European Securities and Markets Authority (ESMA) or setting up a special European agency because of the time this would take to implement.
Finally, he proposes that the Accounting Regulatory Committee, ARC, further develop its dialogue with EFRAG at an earlier stage in the process, in order to be more effective in bringing influence to bear on the activities of EFRAG and the IASB.
“This work will allow the EU to better organise itself to ensure that the needs of its markets are fully taken into account in the international accounting debate, excessively focussed these last few years on the objective of convergence with the US accounting standards (the US GAAP)”, commented EU Internal Market Commissioner Michel Barnier. The Ecofin Council will discuss the Maystadt report on Friday 15 November. (MB/transl.fl)