The chairman of the European
Financial Reporting Advisory Group (EFRAG) has said it is important
to understand IFRS 9 has not been declined by Europe and urged calm
from stakeholders who have warned of negative repercussions from
postponed EC endorsement.
EFRAG published draft endorsement advice on
IFRS 9 Financial Instruments on 2 November, which supported
endorsement. This was based on a near final draft of the standard.
It noted at the time that the positive advice could change if the
draft standard changed or following feedback from stakeholders.
However, on 12 November, the day that IFRS 9
was released, EFRAG said endorsement advice had been postponed.
The advisory group can only issue endorsement
advice to the European Commission when it is requested.
EFRAG chairman Stig Enevoldsen conceded that
the EC Economic and Financial Affairs Council asked for the new
standards to be issued quickly but added that if those asking for a
new standard were not fully happy with it, they had the right to
evaluate it carefully.
“I can understand if the International
Accounting Standards Board is irritated but I can also understand
if other people need to have more time to evaluate the outcome and
see what the implications are for the future,” Enevoldsen said.
Some organisations have said the postponed
endorsement from the EC could place some companies at a competitive
disadvantage and exerts undue political or commercial influence on
the standard setting process.
Enevoldsen said these statements are as
political as any others and also premature.
“The more people talk about uncertainty, the
more uncertainty they create,” he said. “I would advise to just be
calm and relaxed and then move forward. Usually we have found
solutions, so let us work on this.”