MFSA newsletter - Joint statement on latest developments in accounting
The Committee of European Banking Supervisors (CEBS), the Committee of European Securities Regulators (CESR) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) have published a joint statement, with their input...
The Committee of European Banking Supervisors (CEBS), the Committee of European Securities Regulators (CESR) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) have published a joint statement, with their input regarding the latest developments in accounting.
The three committees acknowledge that the competence of setting, formally interpreting standards and issuing general interpretation of existing standards lies with the IASB and IFRIC, respectively. The European Commission has the competence for adopting these standards and their interpretations as envisaged under Article 3 of the IAS Regulation.
The three committees also stress the importance of appropriate and consistent application of measurement and disclosure requirements. Recent market events imply that relevant and comprehensive financial information is needed to strengthen market confidence.
All three committees have recently published their reports on fair value accounting as a response to the request set out by Ecofin in its roadmap from October last year. Since then the financial crisis has deepened and EU leaders and finance ministers through the ECOFIN Council have reacted quickly in order to restore confidence and ensure the proper functioning of the financial system.
The Ecofin Council of October 7 underlined the necessity of avoiding any distortion of treatment between US and European banks due to differences in accounting rules. Ecofin considered that the issue of asset reclassification must be resolved quickly.
The three committees welcome the urgent action taken by the IASB to address the abovementioned issues and hope that the revision of the requirements on reclassification and additional disclosures in IFRS will contribute to ensure that confidence is restored and transparency enhanced in financial markets.
The three committees also welcome the new regulation from the European Commission which promptly implements that change in order to enable European preparers to have a level playing field on this area both cross-sectorally and with preparers from other jurisdictions.
The three committees acknowledge that the competence of setting, formally interpreting standards and issuing general interpretation of existing standards lies with the IASB and IFRIC, respectively. The European Commission has the competence for adopting these standards and their interpretations as envisaged under Article 3 of the IAS Regulation.
The three committees also stress the importance of appropriate and consistent application of measurement and disclosure requirements. Recent market events imply that relevant and comprehensive financial information is needed to strengthen market confidence.
All three committees have recently published their reports on fair value accounting as a response to the request set out by Ecofin in its roadmap from October last year. Since then the financial crisis has deepened and EU leaders and finance ministers through the ECOFIN Council have reacted quickly in order to restore confidence and ensure the proper functioning of the financial system.
The Ecofin Council of October 7 underlined the necessity of avoiding any distortion of treatment between US and European banks due to differences in accounting rules. Ecofin considered that the issue of asset reclassification must be resolved quickly.
The three committees welcome the urgent action taken by the IASB to address the abovementioned issues and hope that the revision of the requirements on reclassification and additional disclosures in IFRS will contribute to ensure that confidence is restored and transparency enhanced in financial markets.
The three committees also welcome the new regulation from the European Commission which promptly implements that change in order to enable European preparers to have a level playing field on this area both cross-sectorally and with preparers from other jurisdictions.