IOSCO and IFRS Foundation Sign Joint Protocols Agreement
The International Organization of Securities Commissions (IOSCO) and the IFRS Foundation, oversight body of the International Accounting Standards Board (IASB), have agreed on a set of protocols under which the two organisations will deepen their cooperation in support of their shared commitment to the highest standards of financial reporting globally.
IOSCO develops and promotes adherence to internationally recognised standards for securities regulation. Its membership includes more than 120 securities regulators overseeing 95% of the world’s securities markets. Capital markets authorities are responsible for setting the form and content of financial reporting within their respective capital markets, many of whom require or permit the use of International Financial Reporting Standards (IFRS).
The mission of the IFRS Foundation, through its standard-setting body the IAS), is to develop a single set of high quality global accounting standards.
The Statement of Protocols builds upon more than a decade of cooperation between the IOSCO and the IFRS Foundation in that it identifies four additional areas for mutually supportive work. Under the protocols the two organisations will deepen their cooperation in both, the development of IFRS and implementation of IFRS on a globally consistent basis.
Commenting on the agreement, Greg Medcraft, chairman of the IOSCO board said: “I welcome this important initiative which will support our ongoing efforts to implement accounting standards globally to achieve high quality. I look forward to building on our good and constructive co-operation to date”
Michel Prada, chairman of the IFRS Foundation Trustees said: “IOSCO and the IFRS Foundation have a common interest that global accounting standards be well developed and consistently applied in practice across varying national settings. Indeed, it was decisions taken by IOSCO back in 2000 that led to the creation of the IASB with the objective of global accounting standards.
“Today’s agreement with IOSCO is consistent with the conclusions of the IFRS Foundation 2011 Strategy Review and represents a big step forward to achieving that vision.”