IOSCO published a report on the use of Special Purpose Entities which examines the current accounting as well as non-financial statement disclosure requirements and guidance that apply to the use of unconsolidated SPEs in different jurisdictions along with the level of audit assurance required for this information.
Several IOSCO members have implemented regulatory and legislative changes that are expected to address the concerns raised by the recent financial frauds.
The results of the survey and limited review of filings indicate that IOSCO members have only recently taken different approaches in this area and have not yet had an opportunity to evaluate the effectiveness of their initiatives. As a result, the Technical Committee has concluded that it would be premature at this time to determine a global approach for addressing the reporting of information to investors regarding unconsolidated SPEs.
However, IOSCO will continue to monitor developments with respect to off-balance sheet financings, including unconsolidated SPEs, and may consider at a later date whether guidance from IOSCO on unconsolidated SPEs would be useful.
Also, IOSCO will work closely with the IASB on issues that may affect the financial reporting and disclosure related to the use of SPEs.
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