This is a major consequence of the Maystadt report on how to reinforce the EU’s contribution to the IFRS Standards and improve the governance of the European institutions developing these standards. 2 Since January 2015, the ECB has an observer status in both the new Board of the European Financial Reporting Advisory Group (EFRAG) and the related Technical Expert Group (TEG).
Under such new relationships, both firms and banks are expected to take advantage of opportunities. For example, banks should closely monitor the condition of a firm’s business, and promptly revise the conditions attached to credit when the firm’s situation changes substantially.