A step forward in the debate on audit policy: On 11 March 2013, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted its opinions on the proposed Statutory Audit Directive, more..., and the proposed Statutory Audit Regulation for Public Interest Entities (PIEs). more... 

ECON suggests amendments to the proposed Directive and Regulation, covering amongst others the definition of PIEs, the appointment of statutory auditors and audit firms, the prohibition of non-audit services, the duration of the audit engagement and the role of ESMA.
 

The European Parliament’s Legal Affairs Committee (JURI) will vote on its draft report on 25 April 2013. Indicative plenary sitting date in the European Parliament is 19 November 2013.
 

Corporate Reporting
 

The European Council and the European Parliament together with the European Commission have engaged in a trilogue about the European Commission’s proposed Accounting Directive. In order to advance the debate, FEE plans to provide further comments on the main accounting and reporting issues to the parties involved in the trilogue.
 

Within the review of the regulation on the application of IFRS, the EU Commissioner for Internal Market and Services Michel Barnier has appointed Philippe Maystadt, former President of the European Investment Bank, as Special Adviser. His role will be to reinforce the EU's contribution to IFRS and to review the governance of the institutions developing these standards (EFRAG and ARC). more...

 

The European Commission’s report “Towards implementing harmonised public sector accounting standards in Member States” states that even if it seems clear that International Public Sector Accounting Standards (IPSAS) cannot easily be implemented in EU Member States as it stands currently, they represent a suitable framework for the future development of European Public Sector Accounting Standards (EPSAS).
 

Additionally, the report describes steps that will need to be taken in the development of EPSAS, including the establishment of EU governance that will clarify the conceptual framework and aim for common EU public sector accounting. FEE has been a long standing supporter of accrual-based accounting in the public sector and welcomes the report, which is an important step forward - a single set of high quality standards would greatly contribute to stability and sustainability of public finance. more... Detailed FEE comments will follow.
 

FEE CEO Olivier Boutellis-Taft is invited as a keynote speaker to the forthcoming European Commission’s Conference “Towards implementing European Public Sector Accounting Standards”, Brussels 29-30 May 2013. more...

 

The European Commission wants to simplify life for SMEs by easing the top 10 most burdensome EU laws. more... The results of a consultation indicate that SMEs see the biggest difficulties and costs amongst others in the rules on VAT and recognition of professional qualifications - areas where FEE is actively contributing to the debate.
 

Many SMEs can be reluctant to operate outside the borders of their own country, as they are afraid of encountering burdensome procedures when trying to claim payments for their products and services. The European Commission has kicked off a campaign to help SMEs recover debts across borders. more...

 

The Financial Action Task Force (FATF) Recommendations issued in 2012 reinforce a risk-based approach as a general and underlying principle of all AML systems, which is implemented in the European Commission’s proposed Fourth Anti-Money Laundering Directive (see also Recent FEE Publications). The FATF has now adopted a new guidance intended to assist in the conduct of risk assessment at national level. more... FEE is a recognised stakeholder in the fight against money-laundering and is invited to participate in the next FATF Private Sector Forum on 25-26 April 2013.
 

In the context of the European Commission’s Action Plan to Fight Tax Fraud and Tax Evasion, two consultations have been launched, one regarding a EU Taxpayer's Code, more..., and one on a EU Tax Identification Number. more... Deadline for contributions is 17 May 2013, FEE will provide input.
 

The European Commission’s proposal for a Council Directive implementing enhanced cooperation in the area of a Financial Transaction Tax (FTT), more..., is in the legislative procedure. The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has published its Draft Report, more..., suggesting some amendments, for example a definition of financial instruments, derivatives and structured instruments, an anti-avoidance provision and the establishment of an expert working group.

The European Commission published a study on the feasibility and impact of a common EU standard VAT return. more...
 

Regarding VAT on vouchers, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) has adopted its report, suggesting some minor amendments to the European Commission’s proposal. more...

 

Professional Affairs
 

The International Accounting Education Standards Board (IAESB) has issued the revised International Education Standard (IES) 5, Initial Professional Development-Practical Experience. more... FEE had contributed to the development of the standard. more...

 

 

The International Integrated Reporting Council (IIRC) has published a further 'background document' in the lead up to the expected issue of its consultation document on integrated reporting in mid-April. The background paper discusses the 'business model' concept, and follows earlier papers on the concepts of 'capitals' and 'materiality'. more... The Global Reporting Initiative (GRI) and the IIRC have announced an agreement that will see the two organisations deepen their cooperation to transform the future of corporate reporting. more...

 

The International Auditing and Assurance Standards Board (IAASB) has issued new requirements and guidance that address the auditor’s responsibilities if using internal auditors to provide direct assistance under the direction, supervision, and review of the external auditor for purposes of the audit. more...

 

The International Ethics Standards Board for Accountants (IESBA) has released strengthened provisions in its Code of Ethics for Professional Accountants to address conflicts of interest and a breach of a requirement of the Code. It also released amendments to the definition of the term “engagement team” in the Code. more...

 

The multi-part checklist contains sections on environmental management, financial tasks, strategic management tasks, and regulatory requirements, among other areas. The checklist is meant primarily for small- and medium-sized practices (SMPs), as a marketing or diagnostic tool to help them determine the advice a small business client may need, and also to help them in managing their own businesses. more...

 

The International Organization of Securities Commissions (IOSCO) has published a Consultation Report on Regulatory Issues Raised by Changes in Market Structure. It discusses a number of issues and sets out possible future recommendations designed to assist market authorities in relation to issues raised by market fragmentation. Deadline for comments: Friday 10 May 2013. more...

 

 

On 19 March 2013, the FEE Board assessed the outcome of the FEE Chairs’ Day and the SMP Forum, took stock of the progress of FEE Membership applications and discussed about Corporate Reporting and Audit Policy. It also approved several FEE publications which are featured in the section 'Recent FEE Publications'. 

 

FEE held its Members’ Assembly Strategy Meeting on 26 and 27 March 2013 in Dublin (Ireland), the capital of the current EU Presidency. The programme included discussions about the FEE overall strategy as well as debates on the future of Corporate Reporting and Auditing. Didier Millerot, Head of Unit Accounting and Financial Reporting, European Commission and Paul Druckman, Chief Executive Officer, International Integrated Reporting Council (IIRC), addressed the Members’ Assembly regarding Corporate Reporting. 
 

Considering EU matters and the related FEE activities with future business leaders, FEE hosted a group of MBA students from the IAE Paris, Sorbonne Graduate Business School.

The FEE Corporate Reporting Policy Group and the FEE Sustainability Group met in March, discussing future activities. The FEE Public Sector Committee had a conference call to exchange views about harmonised public sector accounting standards.