Financial Reporting Remarks.pdf

Roger W. Ferguson, Jr. addressed the FSF-IASB-IFAC Roundtable on Financial Reporting and Auditing, appreciating the partnership with IASB, IFAC, and the World Bank. He noted that 2005 was a significant year for implementing international standards, and the roundtable's topics reflected the interconnectedness of accounting, auditing, and regulation. The focus on international financial reporting and auditing has gained attention from regulatory communities, including the Financial Stability Forum, IOSCO, IAIS, and the Basel Committee. Recent accounting and auditing scandals have led to efforts to reinforce standards-setting processes and improve practices, resulting in legislative reforms such as the Sarbanes-Oxley Act. Independent international standards-setting frameworks, like IASB and IFAC, have been established and enhanced over time. Regulators and supervisors recognize the importance of sound accounting policies, public disclosure, and market discipline in promoting stable financial markets. The Basel II framework includes a market-discipline component, emphasizing the importance of sound accounting and disclosure. Supervisors and regulators also recognize the need for stronger audit and control standards, affecting the quality of management information, supervisory and financial reporting, and regulators' ability to identify institutions in distress.