Association of German Banks Supports IASB
The Association of banks of Germany, (the representative of more than two hundred commercial private German banks) has presented its views regarding the debate about International Financial Reporting Standards in Europe and also has raised voice in favor of IASB’s existing system.
A recently published booklet ‘The Future of IFRS in Europe’ indicates, without directly responding to the EC’s survey regarding the effect IFRS in EU, that not all of the Europe raises concerns regarding complete IFRS in Europe. The booklet gives a comprehensive understanding regarding the development and implementation of an accounting standard in Europe. It admits that the procedure for development of an accounting standard is not like the orthodox legislation system that we are aware of in Europe and standards development process has witnessed improvement over the past decade to ensure more participation and transparency.
The private banks of Germany presented views in relation to current incidents (the backing off FASB, in United States, from converging efforts and political interference in Europe). They stated that IASB should continue to do its duty as autonomous global accounting standards developer. There should no political influence on IASB which is the only way to maintain the body’s repute in the long run make sure that quality standards are developed. Further, national interests have to be given secondary priority to develop a globally accepted accounting framework.
They added that any effort to introduce European accounting regulations must be avoided as it will damage comparability of information among companies and also the efforts to develop universally accepted standards.
The German banks further stated that they are confident that the endorsement procedure of IFRS-9, currently facing delay, shall be completed soon.
The banks stated that ESMA (European Securities and Markets Authority) and its activities are supported by them, provided that ESMA maintains a clear separation from the process of development and implementation of standards, as they presume it the IASB’s and IFRS bodies’ responsibility rather than ESMAs.
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