Accounting enforcers from around 30 countries met on 1 and 2 December 2011 in Paris, follow-ing an invitation by ESMA to discuss International Financial Reporting Standards (IFRS), en-forcement systems and enforcement decisions. In addition to representatives from national enforcers, representatives of the International Accounting Standards Board (IASB), Interna-tional Auditing and Assurance Standards Board (IAASB), the European Commission and the International Organization of Securities Commission Organizations (IOSCO) participated in the meeting.
Effective enforcement of IFRS is an important factor contributing to investors’ understanding of the possible impact of the financial crisis on the financial position and performance of listed companies. ESMA aims to facilitate communication among enforcers around the world, thus contributing to the consistent application of IFRS.
ESMA’s decision to organise this seminar reflects ESMA’s strong commitment to strengthen the dialogue with third-country IFRS enforcers with a view to enhance cooperation and the consis-tent application of IFRS around the globe.
Steven Maijoor, ESMA chair, concluded the morning panel by stating:
“IFRSs are global standards of which the ultimate success depends on their worldwide consistent appli-cation. Our experience in Europe has shown that this can only be achieved by bringing national enforc-ers together. There is a clear need to extend that cooperation on a global level, and ESMA is actively contributing to this.”
When IFRSs were introduced in the European Union, ESMA’s predecessor body, the Committee of European Securities Regulators (CESR), established a forum where IFRS enforcers of the European Economic Area (EEA) meet on a regular basis. With the transition from CESR to ESMA, the tools to achieve consistent enforcement within the EEA have improved substantially. The meetings between ESMA and European enforcers are conducted on a confidential basis, but ESMA has received many requests from non-EEA countries since its inception, to share its ex-perience with its global counterparts. As such, in order to respond to such requests from non-EEA countries that have, or are in the process of, converging or adopting IFRS, ESMA organised its second seminar which focused on the challenges supervisors face in enforcing IFRS world-wide and how to enhance the co-operation between enforcers.