IOSCO releases statement in support of the IASB
On February 10 2005, the Technical Committee of the International Organization of Securities Regulators (IOSCO) issued a "Statement on the Development and Use of International Financial Reporting Standards [IFRS] in 2005".
The statement acknowledges the efforts of the International Accounting Standards Committee (IASC) and its International Accounting Standards Board (IASB), by noting that the IOSCO Technical Committee:
supports the International Accounting Standards Committee (IASC) Trustees' ongoing review of their Constitution and their work in developing the International Accounting Standards Board (IASB) as a globally accepted strong, competent and independent standard setter.
has developed a close and constructive relationship with the IASB, and
commends the IASB on the completion of the stable platform of International Financial Reporting Standards (IFRS) for large scale adoption in the European Union and in a number of other countries in 2005.
More broadly, the statement makes the following conclusions and recommendations with respect to global convergence: The IOSCO Technical Committee:
reaffirms its support for the development and use of IFRS as a set of high quality international standards in cross-border offerings and listings.
recommends that its members [member regulators] allow multinational issuers to use IFRS in cross-border offerings and listings, as supplemented by reconciliation, disclosure and interpretation where necessary to address outstanding substantive issues at a national or regional level, and
further encourages its members [member regulators] to continually evaluate such supplemental treatments as the implementation of IFRS continues and as the global financial reporting infrastructure is enhanced to encourage the consistent application and enforcement of IFRS.