EC finds another route to influence IFRS

The European Commission and its advisory group on international accounting
standards have formulated a strategy that should see both parties have greater
influence over the development and application of IFRS in Europe.

The formailsed working relationship will expand the role of the European
Financial Reporting Advisory Group beyond recommendations over whether the EC
should endorse specific international standards or not.

The body will now, in close liaison with the EC, proactively participate in
the International Accounting Standards Board’s due process, participate in the
early phases of debate on standard setting and, when requested by the EC, will
attend IASB working groups and work with national standard setters in Europe.

EFRAG Chairman Göran Tidström said that the agreement ‘proves the commitment
of the private sector to participate fully in the development of transparent
financial reporting in Europe. By working together EFRAG and the European
Commission can provide stronger input to the standard setting process.’

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Fiona Westwood of Smith and Williamson.