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Enforcers of IFRS from 33 countries, representatives from the International Accountings Standards Board and auditors met for the first time at CESR offices in Paris on 3 and 4 December 2009 to discuss enforcement of International Financial Reporting Standards (IFRS) and enforcement decisions taken around the world. Participants included staff from the European Economic Area (EEA), and representatives of ten IFRS enforcers from other countries, such as Brazil, China, Egypt, India, Japan, Mexico, South Africa, Turkey, Switzerland and the USA.
The decision by CESR to organise the meeting reflects CESR’s strong commitment to strengthen dialogue with third-country enforcers with a view to enhance the consistent application of IFRS around the globe.
Fernando Restoy, Vice-Chair of the Spanish Comisión Nacional del Mercado de Valores (CNMV) and Chair of CESR-Fin, CESR’s standing expert group on accounting and enforcement issues, ring the meeting, said:
"CESR, representing enforcers of the largest block of capital markets worldwide, considers a global dialogue important for investor protection. Strong enforcement of IFRS underpins both investor’s confidence and understanding of the impact that the financial crisis could possibly have had on the financial performance of a company. We believe a global dialogue helps to enhance this."
Some participants commented:
Julie Erhardt, a Deputy Chief Accountant at the US Securities and Exchange Commission, said:
"A number of non-US companies listed in the US are applying IFRS. It is important to share experiences on how enforcement systems are set up around the world and to discuss the accounting issues we encounter and the most appropriate resolutions."
Parag Basu, General Manager of SEBI, the Securities and Exchange Board of India, stated on the margins of the CESR seminar:
"Global co-operation is extremely important for regulators of emerging markets to see how other jurisdictions dealt with the implementation of IFRS. In India, there are about 7,000 listed companies that will eventually have to apply IFRS. "
When IFRS was introduced in the European Union, CESR established a forum where EEA enforcers could meet on a regular basis. The meetings amongst CESR and EU enforcers are conducted on a confidential basis, but CESR has received many requests from non-EEA countries since its inception, to share its experiences 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, accepting or adopting IFRS, CESR organised its seminar which focused on the challenges supervisors face in enforcing IFRS worldwide.
CESR also aims to facilitate communication among enforcers around the world, thus contributing to the consistent application of IFRS. Strong enforcement of IFRS is also important in understanding the possible impact of the financial crisis on the financial performance of companies.
