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29 September 2010

Commission’s report on the funding of the International Financial Reporting Standards Foundation


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The Commission examines the latest developments concerning governance, without prejudging the debate about the need for further and more comprehensive reforms of the IFRS Foundation’s governance.


In 2009, the European Union reviewed the IFRS Foundation funding arrangements and decided to encourage the move towards non-voluntary, stable and transparent funding arrangements with a broad geographic basis. In light of this objective, it agreed a legal basis that would allow the European Commission to provide a financial contribution towards the IFRS Foundation budget, subject to satisfactory progress being made to enhance the IFRS Foundation governance.
The present report on the governance reforms of the IFRS Foundation provides the Commission’s submission to the European Parliament and to the Council pursuant to Article 9, paragraph 3, of this Decision.
The Commission examines in this report the latest developments concerning governance, without prejudging the debate about the need for further, more comprehensive reforms of the IFRS Foundation’s governance, which are currently being reviewed through the IFRS Foundation’s Monitoring Board. Until the latter formulates its recommendations and until they are implemented, it is essential that the International Accounting Standards Board (IASB) continues to have sufficient resources to deliver a number of urgent projects, notably those related to the financial crisis as well as key priorities for the EU, such as insurance accounting.
 


© European Commission


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