Draghi tells EU to ‘progress swiftly’ in adopting IFRS 9

EUROPEAN POLICYMAKERS must “progress swiftly” in the adoption of IFRS 9, the president of the European Central Bank has said.

Speaking at the inaugural Tommaso Padoa-Schioppa Memorial Lecture during the IFRS Foundation Trustees’ meeting in London, Mario Draghi called upon politicians keep up the momentum in adopting global accounting standards.

In particular, Draghi said, policymakers must move quickly and adopt IFRS, the accounting standard for financial instruments.

A final version of IFRS 9, which will replace IAS 39, the accounting standard heavily criticised in the wake of the financial crisis, is expected to be completed later this month.

Efforts between the global standard setter the IASB, and US counterpart FASB, to create a converged financial instruments standard ended earlier this year after the reality about the lack of a single asset impairment model emerged during a 23 January IASB meeting

Speaking at the meeting, Hans Hoogervorst, chairman of the IASB, said the two boards would meet later this year “once the two models are completely clear”. Regulators, he explained, have the option of imposing “additional disclosures” in order to bridge the gap.

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