Status: Draft -- Not PublishedWill be live at 07/23/2018 00:00
IIF response to European Commission Fitness Check on the EU Framework
The IIF has submitted a response letter to the European Commission Fitness Check on the European Union framework for public reporting by companies.
In the letter, the IIF reemphasizes the importance of high-quality and globally consistent accounting standards as they are key to ensure a global level playing field as well as to promote financial stability. In that context, the IIF agrees with the European Commission (EC) that sound and effective financial public disclosures are crucial in that they contribute to helping companies raise capital on public markets. That said, the IIF expresses concerns about the international implications of the Consultation. The IIF specifically shares its view with the EC on Question 19 of the Consultation, which asks whether it is still appropriate that the IAS Regulation prevents the EC from modifying the content of the IFRS Standards.
The IIF strongly believes that the introduction of a mechanism that would allow the EC to change the contents of IFRS might turn out to undermine global consistency of accounting standards. Therefore, the IIF strongly urges the EC to pursue its well-established engagement in the international standard setting process and continue to give preference to approaches consistent with international accounting.