Eumedion calls for establishment of an International Non-Financial Reporting Standards Board
Eumedion calls on all stakeholders to comment on its Green paper ‘Towards a global standard setter for non-financial reporting’. The today's published Green paper contains the preliminary views of Eumedion on this matter; most notably that there is a need for a global standard setter for non-financial reporting, and that the IFRS Foundation is the most suitable organisation to establish such standard setter.
The enduring lack of an authoritative standard setter for non-financial reporting resulted in the emergence of hundreds of frameworks over the past decade. This poses a major challenge for companies that want to report non-financial information. It also poses a major challenge for investors that want to understand how the company creates long term value and how the company lives up to the valid needs of society where non-financial performance matters.
The Green paper asserts that the IFRS Foundation should establish the envisaged standard setter as a second separate board next to the International Accounting Standards Board for financial reporting. The IFRS Foundation has a very strong and proven governance structure and it is widely considered to be authoritative and independent.
The feedback on this paper will complement the feedback received during Eumedion’s upcoming annual conference ‘Listed entities and their reporting: the road towards a completer picture’ on 5 November. Eumedion will issue a final position paper in April 2020.