Capital markets authorities are responsible for regulating the form and content of financial reporting for those markets.

The two boards have set out three key objectives to improve collaboration on IFRS, including discussions of broad financial reporting issues, closer working on the development of IFRS with sharing of information and active contribution from IOSCO to the standard-setting process, and information sharing on the implementation of IFRS on a globally consistent basis.

As part of the agreement, the IFRS Foundation and IOSCO will meet regularly to discuss progress on the new objectives, and to ensure that standards affecting capital markets are relevant and implemented as envisaged. IOSCO will also be invited to join IFRS consultative groups, committees and taskforces to provide feedback and comment.

Timely communication between securities regulators and the Board and its staff can lead to the early detection of implementation issues and the opportunity to prevent or limit the development of diversity in practice.

The move builds on an earlier statement of intent issued in 2013.

Ashley Alder, chair of the IOSCO board, said: ‘This new protocol between IOSCO and the IFRS Foundation will further enhance the way in which the two organisations work together to ensure that global capital markets are founded on sound and transparent financial disclosure.’

Michel Prada, chair of the IFRS Foundation Trustees, said: ‘IOSCO has long supported the work of the IFRS Foundation, and the input of IOSCO and its members has helped shape the development and implementation of IFRS. This initiative will provide an important framework for future cooperation as we work toward the shared goal of high quality standards for the global capital markets.’

The IOSCO / IFRS Foundation statement of protocols for cooperation on IFRS is available here