Agreement on the EU financing of IFRS Foundation, EFRAG, and PIOB
04 Dec, 2013
Trilogue agreement has been reached by the three parties involved (the European Parliament, the Council and the Commission) on the EU co-financing of the International Financial Reporting Standards (IFRS) Foundation, the European Financial Reporting Advisory Group (EFRAG), and the Public Interest Oversight Board (PIOB).
This agreement follows a recent vote of the Committee on Economic and Monetary Affairs (ECON) of the European Parliament on the Report on the proposal for a regulation of the European Parliament and of the Council on establishing a Union programme to support specific activities in the field of financial reporting and auditing for the period of 2014-2020. ECON had proposed that the programme should be used to ensure that money contributed is spent responding to European Union needs. Especially, ECON had recommended moving from giving six years of funding in one go to an annual assessment of whether certain criteria are fulfilled.
The proposed regulation now agreed on will form the legal basis for the continuation of financing the IFRS Foundation and PIOB for the period 2014-2020 and of EFRAG for the period 2014-2016. The agreement limits the financing period of EFRAG to three years in view of prospective reforms that might arise from the Maystadt Report.
In financial terms, the regulation proposes to contribute annually approximately the following sums:
- 4.3 million euro to the IFRS Foundation (17% of its budget),
- 3.4 million euro to EFRAG (43% of its budget), and
- 0.3 million euro to PIOB (22% of its budget).
Next step in the process will now be a Parliament first reading / single reading expected 13 January 2014.
Please click for additional information on the European Commission website:
