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EBA
Overall, the EBA supports the focus of the IASB’s consultation paper Request for Views: Trustees’ Review of Structure and Effectiveness: Issues for the Review (RfV) in the particular areas of enhancing the governance and standard-setting process of the IFRS Foundation and strengthening consistency of application and relevance of IFRS. This should allow the IASB to address on a timelier basis those issues which are of more urgency.
The EBA believes that the main focus of the IASB should remain on developing standards for the private sector for-profit entities. The focus of the IASB since its establishment has been to develop standards for the private sector and in order to achieve that, the IASB developed its current governance structure and the necessary expertise. Expanding to other types of entities (public sector or for entities in private, not-for-profit sectors) and other purposes (corporate reporting) would absorb the already constrained resources which could otherwise be allocated to meet the current primary scope of the activities of the IASB particularly in the aftermath of the financial crisis. Thus, at this stage the EBA would urge the timely completion of the current projects of the IASB rather than expanding the activities of the IASB to other types of entities or purposes.
In addition, the EBA supports the strategic goals for enhancing consistency of IFRS application and implementation and would welcome increasing the focus of the IASB activities on addressing application and implementation issues on a timely basis.
FEE
FEE continues to support international standards as they enhance Europe’s access to global markets, something which necessitates comparability, reliability, relevance, understandability and transparency in financial reporting. IFRSs are a robust, complete and broadly accepted set of financial reporting standards that can effectively serve this role of global standards.
It is the view of the FEE that the IASB is the global standard setter and thus standards issued under its due process should be globally applicable as a general rule. Given that the goal should be a set of high quality global standards, gradual convergence or regional alterations may impair the quality of IFRS.
The current scope of IASB’s work focusing on for-profit entities is appropriate. Instead of further widening its scope, FEE would recommend the IASB to further focus on improving the quality of standards at the point of issuing, and to take a more proactive role in the broader corporate reporting agenda.
FEE feels that the current level of accountability and transparency with regard to the due process, meetings, discussions and decision-making procedures provides for a robust and open institutional framework that is accountable not only to the stakeholders concerned, but the general public as well.
It is important to ensure that the standards issued by the IASB are of high quality and enable their consistent application. FEE believes that the IASB should continue to progress in this respect, and to allocate additional efforts into ensuring that high quality standards are issued. This will reduce the need for amending standards before even being effective for the first time. To this end, FEE would welcome a more active role by the IFRS Foundation as this would ensure a more robust due process in the final stages of finalising a new standard.
FEE wishes for the Foundation and the IASB to take a more proactive role in the broader corporate reporting agenda, including both financial and non-financial reporting. Whilst FEE welcomes the current levels of engagement, for instance participating in the <IIRC> and in its Corporate Reporting Dialogue, FEE would encourage the IFRS Foundation and the IASB to take a prominent part in driving the corporate reporting agenda.