Europe’s accountants call for IFRS supervision body
The goal of integrating Europe’s capital markets is moving nearer with the approaching adoption of the IFRS standards but will require the creation of a European Enforcement Coordination Body, warns the European Federation of Accountants (FEE).
The FEE is showing concern that the effects of enforcement of IFRS standards in 2004, which includes the controversial IAS 39 measure on fair value reporting, will be diluted unless there is consistent monitoring of the standards throughout Europe: the European Enforcement Coordination Body, according to the FEE, is the solution.
The body would act as supervisor to the numerous national enforcement bodies in Europe and would, in theory, ensure that IFRS standards are enacted with equal veracity across Europe.
David Devlin, FEE president, commented: “Clearly enforcement must take place at national level. Likewise it is clear that achievement of a fully integrated European capital market requires consistency in enforcement of processes used and decisions reached across Europe. Therefore, FEE supports the creation of a European enforcement coordination body with a key role for CESR, the Committee of European Securities Regulators.”