The IFRS Foundation, which is responsible for the governance and oversight of the International Accounting Standards Board (IASB), supports the goal of the proposed Capital Markets Union (CMU) to increase the role that capital markets play in financing the European economy.
A single set of financial reporting requirements can play a fundamental role in the creation of a CMU, providing comparable and transparent information that allows investors to make informed investment decisions without acting as an impediment to companies wishing to raise capital.
Feedback to the European Commission’s recent consultation on the use of International Financial Reporting Standards (IFRS) in the European Union has shown high levels of satisfaction among investors and companies. IFRS has also resulted in the financial reports of European companies being understood worldwide.
However, as business models, practice and markets change, the IASB works to ensure that financial reporting continues to meet the needs of market participants and has a number of continuing initiatives to improve the usefulness of financial statements produced by all companies, such as its Disclosure Initiative.
We will co-operate closely with the European Commission on this important project and will share our views on the Green Paper.
Kirstina Reitan, Head of Communications, IFRS Foundation
+44 (0)20 7246 6960