Speaking in Frankfurt, Prada discussed three points that he believes are important when discussing international financial reporting.
First, that the gains of IFRS in Europe must be protected. Processes can be improved and endorsement systems can be streamlined, but the fundamental premise of Europe’s commitment to IFRS as global standards has to remain intact and undiluted.
Second, it is a sad fact of life that the work of the IASB will always be controversial. Global accounting standards are a form of economic globalisation, and globalisation in many parts of the world, included in some circles in my own country, is not universally supported. More precisely, governance structure, which is necessary to protect the independence of the standard-setting process, will continue to seem unfamiliar to many people, including some politicians, particularly in Europe.
Third, that the IFRS Foundation and with it the IASB, are continuing to evolve, and with that evolution they work even more closely with others to support the development of the standards but also their consistent application and implementation.
The Trustees fully support the work of Philippe Maystadt in looking for improvements in the way Europe interfaces with the IASB. At the same time, the gains that European investors and companies have enjoyed from the full adoption of IFRS must be protected and the relevance and soundness of financial information should not be hindered for the sake of other concerns however well founded they may be.
Mr Prada also believes that globalisation in accounting standard-setting will continue to be as complex and difficult as any other form of globalisation.
Mr Prada concluded: "As an old timer of international cooperation in the financial field I truly believe that the innovations to our institutional structure, the improvements to the inclusiveness of our processes and the broader interest that we are taking in the full lifecycle of financial reporting have already delivered material improvements in the quality of financial reporting. All of this will add to the integrity and efficiency of global financial markets."
Full speech
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