Commission supports the work of IASB

News release

23 October 2008

Commission supports the work of the International Accounting Standards Board

The New Zealand Securities Commission reaffirms its commitment to the development and enforcement of high quality financial reporting standards. Such standards are important to the proper functioning of the capital markets.

High quality standards are most likely to be developed when standard setters are able to exercise independent judgment, relying on their skills, experience and due process. Developing and maintaining high quality standards that provide transparency of financial information is dependent on the independence of accounting standard setters.

In this context, the Commission strongly supports the work of the International Accounting Standards Board (IASB) in seeking to set a single set of high quality, global international financial reporting standards (IFRS). The Commission also commends the efforts of the International Accounting Standards Committee Foundation (IASCF) Trustees to enhance their, and the IASB’s, accountability, legitimacy and independence.

The Commission supports the proposition that global markets require a coordinated approach, particularly in the context of a crisis. The Commission affirms its support for the coordinated implementation and cooperative enforcement of the standards issued by standard setters.

The Securities Commission’s statement coincides with a similar statement issued this week by the community of authorities of the Technical Committee of the International Organization of Securities Regulators (IOSCO).

The important role of financial reporting standards has been much discussed in the context of the current financial crisis. Financial reporting standards for public companies must ensure that clear, accurate and useful information is provided to investors to allow them to make informed investment decisions. Furtherance of the goal of having a single set of high quality, global financial reporting standards promotes investor confidence in financial statements and capital markets.

ENDS

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