European Parliament votes to back financing of IFRS Foundation, EFRAG, and PIOB

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13 Mar 2014

The European Parliament has voted in its plenary session in Strasbourg today to back 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).

The vote follows a trilogue agreement of the European Parliament, the Council and the Commission reached in early December 2013.

The regulation passed by the Parliament today 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).

Internal Market and Services Commissioner Michel Barnier welcomed the vote in a press release:

The support of the European Parliament to renew the financing programme of the IFRS Foundation, EFRAG and the PIOB is an important step towards ensuring that these organisations continue to play a key role in the development of accounting and auditing standards and that the EU’s interests are properly taken into account in that process.

As far as EFRAG is concerned, I am particularly keen that, following last year's recommendation by Philippe Maystadt, its governance reforms are implemented adequately and without delay. I will also make sure that Parliament is properly informed on the progress achieved by EFRAG in this respect.

Please click for access to the full press release on the European Commission website. The full text adopted by the Parliament today is available on the Parliament's website (please refer to Part 2, pp 146-177).

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