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Further collaboration planned between ESMA and IFRS Foundation

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Jul 15, 2014

The European Securities and Markets Authority (ESMA) and the IFRS Foundation announced that the two organizations will deepen their cooperation in the consistent application of IFRSs.

The IFRS Foundation and ESMA statement of protocols for cooperation on International Financial Reporting Standards published today reiterates the current relationship between the two organizations, and identifies three new areas for mutually supportive work.

In the area of standard development, ESMA currently supports the IASB through participation in working groups, submitting comment letters and coordinating the fatal-flaw review by European enforcers, when appropriate. Regarding the consistent application of IFRSs, ESMA makes submissions to the Interpretations Committee, coordinates the response from European enforcers to outreach requests from Interpretations Committee staff, and submits comment letters to the Interpretations Committee on draft interpretations and tentative agenda decisions whilst the IASB reaches out to ESMA when planning post-implementation reviews and selecting parties for input to help the IASB determine the focus of the review. The IASB also meets with the European Enforcers Coordination Sessions (EECS) regularly, while ESMA invites IASB members and staff to attend and contribute to seminars and workshops ESMA offers and consults with the IASB before issuing publications that relate to IFRS application in the EU.

The new areas of cooperation identified in the statement of protocols are the following:

  • IASB staff will interact with ESMA as part of ESMA's assessment of the IFRS Taxonomy in the context of its mission of drafting regulatory technical standards for use in electronic filings by EU listed entities.
  • IASB staff will explain what pressure points they anticipate are most likely to arise in the implementation of its new or significantly amended standards.
  • ESMA will bring to the IASB's attention emerging financial reporting issues arising from financial innovation and other new developments.

The Statement of Protocols is available on the IASB's Web site.

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