Maijoor Holds Discussions on Adoption of IFRS in U.S and the Consistency of IFRS Globally

The ESMA has published a text format of the speech that was delivered by European Securities and Markets Authority Chair, Steven Maijoor during a symposium on Audit Quality, which was organized by the CPAB (Canadian Public Accountability Board).

In his speech, Maijoor expressed his disappointment on the fact that the United States has still not made a concrete decision with regard to the International Financial Reporting Standards. Maijoor also mentioned that there should be a consistency in applying International Financial Reporting Standards globally.

In line with some of his previous remarks, Maijoor pointed out that the United States has made absolutely no advancement in the direction of IFRS and nor is there any sign that they are willing to keep the adoption of standards high on their agenda. He also mentioned that it would be shameful of U.S. to miss such an opportunity, if they choose not to adopt IFRS.

While reflecting on the matter of applying IFRS consistently across the world, Maijoor pointed out that this was the main responsibility of all the issuers and that their regulators of security and auditors should consider intervening only when they notice that the IFRS have been violated in the statements published by them. Maijoor also threw light on the very recent initiative for outlining enforcement related priorities on a consistent basis, which was carried out Europe-wide.

He acknowledged the European Securities and Markets Authority’s efforts for improving connection with enforcement and regulatory bodies as well as also noted that there is a requirement for deepening co-operation further on an international basis.

Presenting the results of the enforcement related activities, Maijoor pointed out that there is a requirement for enhanced disclosure since it permits the issuers to offer investors with information of the highest quality within an environment that is based on principles. Maijoor also commented on the relevance of organizations that are making important disclosure, which is according to the disclosure needs that are based on objective.

He also mentioned that an environment that is based on principles would survive only when disclosures that are organization-specific and clear and are assessed again, towards the conclusion of every reporting cycle, provides information that is useful for investors.