IFRS Foundation issues comments on the Maystadt Report

 05 December 2013

The IFRS Foundation notes the final report by Philippe Maystadt, Special Adviser to Commissioner Barnier, on his mission to reinforce the European Union´s contribution to international accounting standards. The IFRS Foundation understands that the European Council of Finance Ministers (ECOFIN) and the European Commission have been discussing the implementation of the report.

Throughout the course of Mr Maystadt´s mission, the IFRS Foundation has been in continuous contact with relevant counterparts at the European Parliament, EU Council and EU Commission, as well as with Mr Maystadt himself.  The IFRS Foundation is today making public its comments on Mr Maystadt´s final report.  Those comments are set out below.

The IFRS Foundation:

• fully acknowledges and respects the fact that it is for the European authorities to determine how the EU´s contribution is organised and operated, but highlights concerns that the selected option of "Transforming EFRAG" might result in the further lengthening of what are already very lengthy procedures;
• welcomes the fact that Mr Maystadt´s report emphasises the support for the maintenance of a "standard-by-standard" adoption procedure and warns of the risks of Europe introducing an endorsement mechanism that has the potential to introduce changes to European accounting standards that deviate from international norms; and
• emphasises the IFRS Foundation´s support for the goals of financial stability and economic growth and belief that IFRSs make a contribution to both by providing transparency to the capital markets.

Michel Prada, Chairman of the IFRS Foundation Trustees, said:

"We welcome many of the conclusions of Mr Maystadt´s report, in particular his clear commitment to global accounting standards and his desire to ensure that Europe remains a full and committed member of the IFRS family.  At the same time, our previous feedback has noted various strategic and operational concerns that have the potential to undermine this commitment.  We look forward to working in close co-operation with European institutions in the implementation of these recommendations".

Hans Hoogervorst, Chairman of the IASB, said:

 "Europe is an important constituent for the IASB.  We sincerely hope that the proposals in the report are implemented in a way that will enable Europe to participate in an effective and timely fashion throughout the standard-setting process as well as in the endorsement of IFRSs".

Read the IFRS Foundation´s full response to the Maystadt report.


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