The European Securities and Markets Authority (ESMA) and the IFRS Foundation have updated their set of protocols under which the two organisations will deepen their cooperation on the development of IFRS Standards and support for their consistent application across the European Union.
The mission of the IFRS Foundation, through its standard-setting body the International Accounting Standards Board, is to develop a single set of global accounting standards, bringing transparency, accountability and efficiency to capital markets around the world. IFRS Standards are now required by more than 120 countries.
ESMA is an independent EU authority that contributes to enhancing the protection of investors and promoting stable and well-functioning financial markets in the EU. One of ESMA’s responsibilities is to promote the effective and consistent application of financial reporting standards.
The Statement of Protocols builds on many years of cooperation between the two organisations. It updates an agreement from 2014 and outlines how the two organisations will continue working together in the development of IFRS Standards and in supporting the consistent implementation and application of the standards.
Steven Maijoor (pictured), chair of ESMA, says: “I am pleased that ESMA and the IFRS Foundation have committed to further strengthening their cooperation together. Ensuring the consistency of financial information and improving the quality of the information provided to investors is fundamental in allowing capital markets to flourish. I look forward to continuing to work with the IFRS Foundation towards achieving this common goal.”
Michel Prada, chairman of the IFRS Foundation Trustees, says: “ESMA and the IFRS Foundation have a shared interest in promoting the reporting of financial information that is useful to investors. We will work together to share information that is relevant for the board’s standard-setting and support the regulator in its role to promote consistent application of IFRS Standards.”
