Procedure : 2008/2634(RSP)
Document stages in plenary
Document selected : B6-0450/2008

Texts tabled :

B6-0450/2008

Debates :

PV 24/09/2008 - 20
CRE 24/09/2008 - 20

Votes :

PV 25/09/2008 - 7.8
CRE 25/09/2008 - 7.8
PV 09/10/2008 - 7.7
CRE 09/10/2008 - 7.7
Explanations of votes

Texts adopted :

P6_TA(2008)0469

MOTION FOR A RESOLUTION
PDF 97kWORD 46k
22.9.2008
PE413.307
 
B6‑0450/2008
further to Questions for Oral Answer B6‑0463/2008 and B6-0086/2008
pursuant to Rule 108(5) of the Rules of Procedure
by Pervenche Berès
on behalf of the Committee on Economic and Monetary Affairs
on 'IASCF: Review of the constitution – Public Accountability and the Composition of the IASB Proposals for Change'

European Parliament resolution on 'IASCF: Review of the constitution – Public Accountability and the Composition of the IASB Proposals for Change' 
B6‑0450/2008

The European Parliament,

–  having regard to the ECOFIN conclusions on governance of the IASB(1),

–  having regard to Regulation 1606/2002 of the European Parliament and of the Council,

–  having regard to the draft Commission regulation amending Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Financial Reporting Standard (IFRS) 8 concerning disclosure of operating segments,

–  having regard to Article 8 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission(2),

–  having regard to Council Decision 2006/512/EC of 17 July 2006 amending Decision 1999/468/EC(3),

–  having regard to the European Parliament resolution(4) on the accounting standards used by third-country issuers and their equivalence to IFRS, setting out the conditions under which the EU has accepted the convergence and equivalence process between IFRS as adopted by the EU and US GAAP,

–  having regard to the European Parliament resolution(5) on International Financial Reporting Standards (IFRS) and the governance of the International Accounting Standards Board (IASB),

–  having regard to the European Parliament resolution on the draft Commission regulation amending Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Financial Reporting Standard (IFRS) 8 concerning disclosure of operating segments,

–  having regard to the 'Review of the constitution - Public Accountability and the Composition of the IASB Proposals for Change' published by the IASCF on 21 July 2008,

–  having regard to Rule 108(5) of its Rules of Procedure,

A.  whereas the European Union requires issuers to apply international accounting standards for their consolidated financial statements,

1.  Notes that the IASCF has proposed to set up a Monitoring Group; is of the opinion that this Monitoring Group should be entitled to recommend candidates as Trustees and be responsible for approving the selection of Trustees after an agreed nomination process;

2.  Calls for the Monitoring Group to be involved in setting the agenda for the IASB so as to ensure transparency and accountability; recognises that the subsequent accounting standard setting process should remain free of undue interference and should be done in full consultation with all stakeholders, including investors;

3.  Expresses doubts as regards the desirability of setting up the Monitoring Group at this stage, before the second phase of the consultation process of the review of the governance of the IASB is launched and without a clear overview of the relationship to be established between the MG and the IASCF in the constitution of the latter;

4.  Considers that the Monitoring Group should reflect the balance of the world's most significant currency areas, cultural diversity, and the interests of both developed and emerging economies and of international institutions which have accountability requirements before public authorities, and should play an active role in promoting the transparency of financial reporting and the development and effective functioning of capital markets, as well as avoiding pro-cyclicality and ensuring financial market stability and preventing systemic risk; notes with approval the proposal that the Monitoring Group at the outset should comprise:

   (a)the responsible member of the European Commission,
   (b)the managing director of the International Monetary Fund,
   (c)the chair of the IOSCO Emerging Markets Committee,
   (d)the chair of the IOSCO Technical Committee (or vice-chair or designated securities commission chair in cases where the chair of an EU securities regulator, the commissioner of the Japan Financial Services Agency or the chair of the US Securities and Exchange Commission is also the chair of the IOSCO Technical Committee),
   (e)the commissioner of the Japan Financial Services Agency,
   (f)the chair of the US Securities and Exchange Commission, and
   (g)the president of the World Bank;

5.  Does not approve the proposal by the Commission for the establishment of an International Accounting Advisory Group, since it has not been discussed with Parliament or the Council and would add opacity and complexity to the whole scheme; believes that the Monitoring Group should be composed so as to include those institutions that the Commission is proposing to be part of the above International Accounting Advisory Group;

6.  Considers that EU financial market regulators should also be represented in the Monitoring Group; stresses that no organisation should be represented in the Monitoring Group by more than one delegate;

7.  Stresses the complex institutional set-up of the Monitoring Group; emphasises the need for it to have effective cooperation mechanisms in place so as to ensure its operability and fulfil its principal responsibilities; insists, in this context, that the members of the Monitoring Group must have sufficient competences to ensure that they can be held politically accountable;

8.  Is concerned that some of the proposed members of the Monitoring Group do not require domestic issuers to apply IFRS; is of the opinion that membership of this Group should only become effective after committing to introducing IFRS as the domestic standard; emphasises that no country should be represented in the Monitoring Group by more than one delegate;

9.  Notes that the IASCF proposal foresees expansion of the IASB from 14 to 16 members; finds an expansion to 16 acceptable as it may lead to a more balanced IASB, especially if the IASCF proposal is amended to ensure parallel treatment of the most significant global currency areas;

10.  Calls for a Memorandum of Understanding to be concluded between the three institutions so as to define the conditions of association of the legislators with the work of the Monitoring Group if it is to be established at this stage;

11.  Instructs its President to forward this resolution to the Council, the Commission, the European Central Bank, and the Committee of European Securities Regulators.

(1) Adopted on 8 July 2008.
(2) OJ L 184, 17.7.1999, p. 23.
(3) OJ L 200, 22.7.2006, p. 11.
(4) European Parliament resolution on the accounting standards used by third-country issuers and their equivalence to IFRS as mentioned in the draft implementing measures of the Prospectus Directive and the Transparency Directive (draft Commission regulation amending Regulation (EC) No 809/2004 as regards the accounting standards in accordance with which historical information contained in prospectuses is drawn up, and draft Commission decision on the use by third-country issuers of securities of information prepared under internationally accepted accounting standards) - P6_TA-PROV(2006)0436.
(5) P6_TA(2008)0183.

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