The debate on audit policy makes slow progress on EU level. The vote on the draft report in the European Parliament’s Legal Affairs Committee (JURI) is foreseen for 18 March 2013, but it might be postponed - so was the vote on the opinion of the European Parliament’s Economic and Monetary Affairs Committee (ECON).
 

On national level, the UK Competition Commission has investigated the supply of statutory audit services to large companies in the UK. Their provisional findings indicate an adverse effect on competition (higher prices, lower quality and less innovation and differentiation as well as unmet shareholders’ and investors’ demand). They will consider the implementation of remedial measures, like for example mandatory tendering or mandatory rotation, and announced to take into account the proposals for the audit market currently being discussed by the EU. more...
 

Regarding the auditors’ reporting, the IAASB gathered input from stakeholders, analysed the comments and plans to issue an Exposure Draft on ISA 700 in June 2013.

Corporate reporting

 

The debate in the European Parliament about the European Commission’s proposed Accounting Directive is foreseen for 16 April 2013, but might also be postponed. In order to advance corporate reporting for the future, FEE plans to develop a discussion paper.
 

The European Parliament adopted on 5 February 2013 a non-binding resolution improving the access to finance for SMEs. It calls on the Commission to support partnerships between banks and accountancy professionals, business or SME associations or chambers of commerce. They believe that the financial envelope for the debt and equity finance instruments under the COSME Programme and under Horizon 2020 should be substantially increased. more... However, the new Multiannual Financial Framework for the period 2014-2020 agreed in the European summit on 8 February 2013 with its cut of the overall budget may not necessarily be conducive to these goals. more... 
 

In 2011 and 2012 FEE has organised a series of four Roundtables on Access to Finance for SMEs comprising high quality discussions between expert financiers, regulators, accountants, European Institutions and SMEs. more...

 

 

On 5 February 2013, the European Commission proposed the Fourth Anti-Money Laundering Directive, more..., introducing considerable improvements that will help to address a broader range of threats and criminal activities. The debate in the European Parliament will begin within the forthcoming weeks following the appointment of MEP Judith Sargentini as the rapporteur of the Civil Liberties, Justice and Home Affairs Committee (LIBE). FEE is analysing the proposal and will provide comments soon. more...

 

 

The European Parliament’s Internal Market and Consumer Protection Committee (IMCO) report on the proposed Professional Qualifications Directive suggests a number of amendments. more... It reflects FEE comments related to cost-efficiency of a professional card, mobility of trainees and partial access. more... The indicative plenary sitting date in the European Parliament is 11 June 2013.
 

 

The European Commission proposed on 14 February 2013 a Directive implementing enhanced cooperation for a harmonised Financial Transaction Tax (FTT). more... Commissioner Šemeta called on the 11 Member States that participate in the enhanced cooperation procedure to push ahead with ambition - to drive, decide and deliver on the world's first regional FTT. more...
 

The European Parliament approved on 7 February 2013 the proposed amendment of the VAT Directive for a Quick Reaction Mechanism against VAT fraud. more... The debate in the Economic and Financial Affairs Council is scheduled for 5 March 2013, but prospects for an agreement might be limited. FEE had expressed its views on the proposal. more...

Further to the European Commission’s activities, the European Parliament’s Economic and Monetary Affairs (ECON) Committee has published a draft report on "The fight against Tax Fraud, Tax Evasion and Tax Havens", more..., MEP Mojca Kleva Kekus, the rapporteur of the draft report, calls on the European Commission to urgently develop a “comprehensive strategy” to halve by 2020 the member states’ “tax gap” of 1 trillion Euro a year. The vote in ECON is foreseen for 24 April 2013. The Committee on Development (DEVE) has issued a draft opinion with some suggestions related to anti-money laundering, double taxation agreements and financial reporting. more...
 

An OECD study commissioned by the G-20 on “Addressing Base Erosion and Profit Shifting (BEPS)” found that some multinationals use strategies that allow them to pay as little as 5% in corporate taxes when smaller businesses are paying up to 30%. more...

 

 

 

 

The International Federation of Accountants (IFAC) opened the nominations period for the 2013 IFAC International Gold Service Award. Candidates may or may not be members of the accountancy profession. Nominations from IFAC member bodies must be submitted to the IFAC CEO by 1 April 2013 more...

 

 

The International Accounting Standards Board (IASB) and International Integrated Reporting Council (IIRC) announced an agreement that will see the two organisations deepen their cooperation on the IIRC’s work to develop an integrated corporate reporting framework. more...

 

 

The International Ethics Standards Board for Accountants (IESBA) is conducting a strategic review to develop a new strategy and work plan for the period 2014-2016. more... The survey will close on March 15, 2013. FEE will contribute.
 

 

The International Accounting Education Standards Board (IAESB) has released the revised version of International Education Standard (IES) 1, Entry Requirements to Professional Accounting Education Programs. It is effective from 1 July 2014. more... FEE had provided  input. more...

 

 

 

In February 2013, the FEE Board decided on the agenda for the FEE Members’ Assembly in March in Dublin and on a sponsorship for the WCOA World Congress of Accountants in Rome in November 2014. It also discussed audit policy matters, agreed on next steps regarding corporate reporting and approved several FEE publications which are featured in the section “Recent FEE Publications”.

 

 

In February, FEE continued actively meeting stakeholders in particular in the European Institutions and other European professional associations. CEO Olivier Boutellis-Taft met the new IFAC CEO, Fayez Choudhury, the IIRC CEO, Paul Druckman, the EPC CEO, Hans Martens. From 25 February to 1 March 2013, he participated in the IFAC 2013 Chief Executives’ Strategy Forum and IFAC Board meetings in New York.
 

The kick off meeting of the new FEE SMP Forum took place on 20 February 2013. Practitioners from 14 countries analysed the interests of SMPs on EU and national level, brainstormed how to promote the SMP perspective across all FEE activities and provided ideas to develop an efficient network.
 

For the Anti-Money Laundering Working Party, the FEE Board appointed Claus Kütting, IDW, Germany, as Deputy Chair. The Working Party is analysing the proposed Fourth Anti-Money Laundering Directive and will develop FEE positions in this regard.
 

The Tax Working Parties met on 13 and 14 February 2013 and proceeded with preparations for the FEE Tax Day in October 2013.