Friday, May 30, 2008
Excerpt from SEC Chairman Cox's speech on "International Financial Reporting Standards: The Promise of Transparency and Comparability for the Benefit of Investors Around the Globe," the Annual Conference of the International Organization of Securities Commissions, Paris, France, May 28, 2008:
The first key success factor for IFRS is that the standards be crafted in the interest of investors. That has to be their overarching purpose.
The second is that the standard setting process be transparent. That is essential not only to maintain investor confidence, but to ensure the integrity and quality of the standards.
The third is that the standard setter must be independent. That means independent from special pleaders, from the political process, from favored industries or industry players, and from national or regional biases.
Fourth, the standard setter must be accountable. This means ensuring that IFRS actually meet the needs of investors and other stakeholders, and that they are updated in a timely way.
And fifth and finally, it is vitally important that all of the stakeholders themselves participate in the standard setting process in order to ensure the continued success of IFRS.