• Register
Return to: Home > News > Standards > Improvements needed in IFRS effects analysis and education: EFRAG chairman

Improvements needed in IFRS effects analysis and education: EFRAG chairman

The adoption of IFRS has contributed to improving the quality of financial reporting in Europe in the past decade, however improvements in effects analysis and education are required, said European Financial Reporting Advisory Group (EFRAG) chairman Françoise Flores in a speech at an event held by ACCA earlier in the month.

As the use of IFRS across the EU moves to its second decade further improvements are needed, said Flores, especially in the area of effect analysis and field test, to ensure that potential new requirements can be implemented in practice at a reasonable cost and provide the intended outcome on a consistent basis.

"EFRAG has paved the way in the past three years and has established strong cooperation with National Standard Setters in the organisation of field tests. Going forward, we wish to integrate our efforts into those of the IASB [International Accounting Standards Board], in a process that is open and transparent," she said.

Secondly, Flores believes there needs to be more effort in education.
"IFRS rely on the assumption that users are reasonably knowledgeable; education should help in ensuring the appropriate level of knowledge. Issuers need to be supported as well, as the implementation of principle-based standards require skills which were less in demand before IFRS were adopted or even before the latest more principle-based standards were issued," she said.

"The IFRS Foundation is allocating resources to education efforts. We collectively have to ensure that these efforts reach their targets, are made more visible and intervene more timely."

As the European Commission undertakes the review of IFRS after 11 years since its adoption, Flores says this is a healthy process, "and I trust that the conclusions will be for the better and will capitalise on the existing strengths that the European Commission and EFRAG have built so far for Europe".

Related link
EFRAG

Top Content

    Addressing tax challenges and the digitisation of the economy

    As the economy becomes even more globalised through digital sources, the tax systems currently in place need to be scrutinised to examine whether they are still fit for current and emerging business models. Joe Pickard reports on the OECD’s approach to this issue.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.