The European Parliament, the Council and the Commission have reached agreement on the EU's co-financing of the three key accounting standards bodies which will now be based on an annual assessment of whether certain criteria are being met, as part of a move to increase EU oversight of the standards-setting process.
The total finance package for the three standard setters is €8m (£6.7m).
Under the deal, which is due to go before the European parliament in January 2014, the IFRS Foundation is in line to receive €4.3m (£3.6m) annually (17% of its budget); €3.4m (£2.8m) annually goes to EFRAG (43%); and €300,000 (£249,000) to PIOB (22%).
The split has been proposed following trilogue agreement on funding for the International Financial Reporting Standards (IFRS) Foundation, the European Financial Reporting Advisory Group (EFRAG) and the Public Interest Oversight Board (PIOB).
The agreement has been approved by the Committee on Economic and Monetary Affairs (ECON) at the European parliament, which signed off the continued funding of financial reporting and auditing for 2014-2020.
ECON had suggested that the programme should be used to ensure that money contributed is spent responding to EU needs. In particular, it recommended moving from the current six-year funding cycle to an annual approach.
The new agreement forms the legal basis for the continuation of financing the IFRS Foundation and PIOB for the period 2014-2020 and of EFRAG for the period 2014-2016. The three-year limit on the financing period for EFRAG is because the standards setter may be subject to reform following the recommendations of the recent Maystadt Report.
Michel Barnier, commissioner for internal market and services, said: 'This agreement to renew the financing programme of the IFRS Foundation, the EFRAG and the PIOB is a very important step towards ensuring that these organisations continue to play an important role in the development of accounting and auditing standards and that the EU's interests are properly taken into account in that process.'
