CEBS annual report cites benefits of IFRSs

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14 Jun 2006

The Committee of European Banking Supervisors (CEBS) has published its (PDF 1,386k).

The report discusses a number of implementation and regulatory issues relating to the adoption of IFRSs by European banks, including the following:

  • IFRS "provides CEBS with a unique opportunity to promote greater consistency in supervisory approaches across the EU"
  • "On 16 December 2005, CEBS published final guidelines establishing a standardised framework for consolidated financial reporting for credit institutions (FINREP). The framework has been designed for banks that use IFRS for their published consolidated financial statements and that have to provide similar information in the periodic reports... The introduction of IAS/IFRS has been a source of concern to supervisory authorities, notably because of concerns that these standards could jeopardise the criteria that regulatory own funds have to fulfil. CEBS subsequently undertook an analysis of a sample of institutions' financial data... The analysis of the aggregate sample data confirmed that the Guidelines neutralise the negative impact on credit institutions' regulatory own funds that IAS/IFRS were observed to have at transition."
  • "CEBS has now published most of the guidelines related to the implementation of the CRD and IFRS. When all of these guidelines have been finalised, CEBS will compile a compendium or Guidebook of standards, guidelines, advice, and other CEBS work. This Guidebook will be aimed at both supervisors and market participants, with the principal objective of promoting consistent implementation of EU legislation and convergence of supervisory practices."

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