18 February 2015

FRC, IASB: Statements in response to the EC’s Green Paper on a Capital Markets Union

FRC

Commenting on the European Commission's Green Paper on Building a Capital Markets Union, Stephen Haddrill, CEO, Financial Reporting Council said:

“The FRC welcomes today’s publication of the EC’s Green Paper on Building a Capital Markets Union, which opens the discussion on how European Capital Markets can be made more competitive.
In order to remain competitive the EU needs consistent, responsible markets that attract investment internationally. The FRC is pleased to see a focus on long-termism that we currently promote through the UK Stewardship Code and we look forward to working with the Commission on their considerations of the role of investors."

"The Paper also opens the debate around accounting standards for smaller listed entities, and area of keen interest for the FRC.”

Press release

IFRS Foundation

A single set of financial reporting requirements can play a fundamental role in the creation of a CMU, providing comparable and transparent information that allows investors to make informed investment decisions without acting as an impediment to companies wishing to raise capital. 

Feedback to the EC’s recent consultation on the use of IFRS in the EU has shown high levels of satisfaction among investors and companies. IFRS has also resulted in the financial reports of European companies being understood worldwide. 

However, as business models, practice and markets change, the IASB works to ensure that financial reporting continues to meet the needs of market participants and has a number of continuing initiatives to improve the usefulness of financial statements produced by all companies, such as its Disclosure Initiative.

Press release

European Commission's green paper