The International Accounting Standards Board (IASB) Chairman Hans Hoogervorst  described the Parliament's stance as "highly worrisome". 'If Europe is going to do this, other parts of the world might be encouraged to do so. It's a threat to our independence,' he said. Read the full article
 

As indicated in the September FEE Newsletter, FEE is seriously concerned as the European Parliament’s Economic and Monetary Affairs Committee’s (ECON) amendments make the financing of these organisations annual and conditional on the outcome of their work. This would severely compromise the independence of these bodies and ultimately undermine the benefits of global financial reporting standards for Europe. In the legislative process on this subject, the trilogue deliberations between European Commission, European Parliament and European Council have recently started. The plenary debate in the European Parliament is postponed to 14 January 2014.

 

FEE hosted its third 'Tax Day', a conference bringing together over 150 representatives from the policymakers, business, civil society and tax profession communities. Stakeholders had lively debates on the potential contradiction between economic globalisation and national tax law making and on cooperation and compliance in times of fiscal consolidation. Videos, speeches, presentations and a summary are available on the FEE website. 

In an interview with Europolitics FEE CEO Olivier Boutellis-Taft explained that Europe has to move away from the scapegoat approach. more...

 

FEE set up a peer discussion group Connect with European Professional Accountants; an online communication tool for direct use by practitioners all over Europe. Join us here! 

 

 

European Commission Work Programme for 2014: a year of delivery and implementation
 

With the adoption of its Work Programme for 2014, the European Commission puts a strong focus on results. more... '2014 will be a year of delivery and implementation', President Barroso said. 'It is only through decisive and relentless action that we can show the citizens and businesses of Europe that they can look to the future with confidence.' more...

 

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) released its Draft Opinion on the proposal for a directive of the European Parliament and of the Council amending Council Directives 78/660/EEC and 83/349/EEC as regards disclosure of non-financial and diversity information by certain large companies and groups. The indicative plenary sitting date for the first reading is scheduled for 3 February 2014. more...

 

In the Committee of Permanent Representatives (COREPER) meeting on 4 October 2013, the Lithuanian Presidency obtained the mandate to start the Trilogue. The Council of the EU and the European Parliament together with the European Commission will start the discussions to agree on a final legislative text for the Directive and Regulation on statutory audit. Some of the current proposals can significantly harm the internal market, increase administrative burdens as in many instances they will not be workable in practice. See press article The FEE Board will discuss its reaction in its meeting of 5 November 2013.

 

Paul Druckman, CEO of the International Integrated Reporting Council (IIRC), gave an interview about what integrated reporting is - and is not - providing insights into how it will develop. more...

 

The European Council on 24-25 October 2013 in Brussels focused on the digital economy, innovation and services. It looked at different economic and social policy areas, like the fight against youth unemployment and the financing of the economy, in particular of small and medium-sized enterprises, and agreed on additional measures. It discussed enhanced economic policy coordination, strengthening the social dimension of the Economic and Monetary Union and completing the Banking Union and looked ahead to the Eastern Partnership Summit which will be held in Vilnius on 28 and 29 November 2013. more...

 

The UK Competition Commission, an independent public body in the UK which carries out investigations into mergers, markets and the regulated industries, has published its final report on the supply of statutory audit services to large companies in the UK and finds they should put out their audit for tender at least every 10 years. more... Critical voices warn that it waters down the audit reform. Read the full article

 

The European Parliament’s Committee on Civil Liberties, Justice and Home Affairs (LIBE) was initially the sole committee responsible. Now the European Parliament referred the matter to both LIBE and the Committee on Economic and Monetary Affairs (ECON), who will issue a joint report. The European Parliament’s Committee on Development (DEVE) published its opinion and the European Parliament Committee on Legal Affairs (JURI) issued a series of amendments to its draft opinion. FEE will comment, for previous FEE comments see

 

The European Commission opened a consultation on the review of existing VAT legislation on public bodies and tax exemptions in the public interest. more... Deadline: 14 February 2014. FEE will contribute.
 

The European Commission proposed a Directive to amend the VAT Directive as regards a standard VAT return. The standard return would replace national VAT returns, requiring businesses to provide the same basic information with the same deadlines regardless of their location within the European Union. The standard VAT return would have only five compulsory boxes for taxpayers to fill in. more... FEE has already in 2011 highlighted that non-harmonised formats of VAT returns across Member States and different languages create significant administrative burden, an issue that could partially be solved with a “multi-country” return form with harmonised content. more...

 

The European Commission will set up an Expert Group on Taxation of the Digital Economy, bringing together specialists on the operation of the digital economy, on international tax issues and on the economic consequences of international tax policy. It shall assist the Commission in developing a comprehensive EU position on tax issues in the digital economy Deadline for submitting applications is 8 November 2013. more...

 

The European Commission’s Platform for Tax Good Governance met on 16 October 2013, discussing the work plan until 2016, arbitration to avoid double taxation and tax havens. FEE was represented by FEE Direct Tax Working Party Chair Friedrich Rödler. The next meeting on 6 February 2014 will focus on aggressive tax planning. more...

 

A number of amendments to the draft report of George Sabin Cutaș on mandatory automatic exchange of information in the field of taxation have been tabled in the European Parliament’s Committee on Economic and Monetary Affairs (ECON). The vote in ECON is scheduled for 5 November 2013.
 

The European Commission released its annual report on 'Tax Reforms in EU Member States  - Tax policy challenges for economic growth and fiscal sustainability', providing a detailed overview of recent tax reforms carried out in Member States in 2012 and the first half of 2013. more...

 

In the frame of the Action Plan on Base Erosion and Profit Shifting (BEPS), the OECD Committee on Fiscal Affairs invites interested parties to send a short description of strategies that might be considered to result in the artificial avoidance of the Permanent Establishment status in relation to base erosion and profit shifting. Deadline: 15 November 2013. more... 

 

The European Commission has published two communications titled 'Regulatory Fitness and Performance (REFIT): Results and Next Steps' and 'Strengthening the foundations of Smart Regulation - improving evaluation'. Further detailed information regarding the "REFIT - Fit for growth" andsmart Regulation is available here. FEE has always actively contributed to smart regulation initiatives in the past years. more...

 

The Council has addressed the competitiveness of SMEs as a driver for European growth on 24 - 25 October 2013 and explored ways to reduce and simplify the regulatory burden for SMEs. The Competitiveness Council (26-27 September) and the Economic and Financial Affairs Council (ECOFIN) of 15 October 2013 (see page 7) have already laid the foundations for these debates by emphasizing the importance of improving SME growth and defining ways to improve their access to finance.
 

On 28 October 2013 the European Commission’s Expert Group on Transfer of Business met in Brussels, discussing the present situation for business transfers across the European Union and how this could be improved. FEE was represented by Hervé Puteaux, who is a member of the FEE SMP Forum. more...

 

The European Commission has launched a series of events - the 'EU Access to Finance Days' - to explain how COSME's (Competitiveness of Enterprises and SMEs) new financial instruments will work and to encourage reputable financial market operators to become COSME intermediaries. 'EU Access to Finance Days' will be organised in all EU capitals from autumn 2013 to the end of 2014. The next event will take place in Vilnius, Lithuania on 5 November 2013. more...

 

Further to the agreement reached in the Trilogue, the European Parliament voted in favour of the European Commission’s proposed Professional Qualifications Directive. more... 

Next steps: The formal adoption by the Council is foreseen in the coming weeks. Following publication of the Directive in the Official Journal of the EU, the Directive will enter into force and Member States shall have two years to transpose the Directive into national law. 
 

Professional organisations and associations at national and EU level are invited to express an interest in the introduction of the European Professional Card for their respective professions. The card should simplify the administrative procedure for recognition, make it more transparent for citizens and increase trust among the competent authorities of EU Member States. more...

 

The European Commission has adopted a communication announcing the start of an evaluation of national regulations on access to professions. As a first step, each Member State will have to report the list of professions it regulates and the Commission will then publish the list in the form of a European map of regulated professions. more... A report on the findings of the peer review on legal form and shareholding requirements conducted under the Services Directive was also published. more...

 

The European Parliament Committee on International Trade hosted a Public Hearing on Trade and Economic Relations with the United States on 14 October 2013. more... The second round of trade negotiations between the US and the EU initially foreseen for 7 - 11 October 2013 has been postponed by the US government. more...

 

 

 

The International Accounting Standards Board (IASB) has published for public comment an Exposure Draft of proposed amendments to the IFRS for SMEs, which it developed based on its initial comprehensive review of the IFRS for SMEs. The proposals are open for comment until 3 March 2014. FEE will contribute. more...

 

The International Public Sector Accounting Standards Board (IPSASB) has published five exposure drafts (ED 48 -53, which will replace current requirements in three IPSAS 6, 7 and 8). more... - deadline for comments 28 February 2014 - and an Exposure Draft (ED 53) on First-Time Adoption of Accrual Basis IPSAS - deadline for comments 15 February 2014. FEE will contribute. 
 

To underline the importance of high-quality organisational reporting of broad-based information, IFAC has released a policy position paper. more...

 

IFAC published a discussion paper on 'The Role and Expectations of a CFO: A Global Debate on Preparing Accountants for Finance Leadership', highlighting the changing expectations, scope, and mandate of the CFO and finance leadership roles and recommends what action professional accountancy organisations and employers can take to prepare professional accountants for career progression to finance leadership. more...

 

The importance of the role of professional accountants in business in ensuring the quality of financial reporting cannot be overly emphasized. An article published by the Chinese Institute of CPAs. more...

 

As part of the continuing effort to strengthen the accountancy professional globally, IFAC has released the ‘Professional Accountancy Organization Global Development Report’. more...

 

The US Public Company Accounting Oversight Board (PCAOB) issued a Staff Audit Practice Alert in light of a significant number of audit deficiencies observed in the past three years related to audits of internal control over financial reporting. more...

 

 

FEE Board members met on 1 October 2013 and exchanged information and views about the current audit policy and corporate reporting debate and decided on next steps to be taken by

FEE. Furthermore, Board members discussed governance matters and the preparation of the statutory FEE Members’ Assembly meeting in December 2013.

The FEE Members’ Assembly held its meeting on 9 October 2013. Guest speaker Jörgen Holmquist, Chair of the International Ethics Standards Board for Accountants (IESBA), informed participants about the current work, role and structures of the IESBA. Members received a presentation and had a strategic debate on the role of the profession and FEE in public sector and tax policy.

 

 

FEE President André Kilesse attended the annual conference of the Polish FEE Member Body, the KIBR, in Jachranka, Poland on 18 October 2013 where he specifically addressed audit policy and the recent evolutions in Europe. 

FEE Deputy President, Petr Kriz spoke at the VIII Congress of Accountants and Auditors of Montenegro in Podgorica, Montenegro on 18 October 2013. He presented the European perspective in Accounting.

FEE CEO Olivier Boutellis-Taft addressed the Praxity Global conference on 30 October 2013 in Old Windsor, UK and spoke about the future of the profession. 

FEE Deputy CEO Hilde Blomme spoke at the AMA Congress on 18 October 2013 in Palma de Mallorca and updated participants on EU developments.

FEE CEO Olivier Boutellis-Taft updated participants on European Public Sector Accounting Standards at CIPFA’s annual meeting, hosted by FEE on 31 October 2013. The Chartered Institute of Public Finance and Accountancy (CIPFA) is one of the 45 Member Bodies which FEE federates.

FEE hosted a group of professionals from small and medium-sized practices of its member, The Malta Institute of Accountants (MIA), on 17 October 2013 to exchange views on EU developments in the field of Auditing, Corporate Reporting, Small and Medium Practices (SMPs) and Tax Good Governance.

Meta Duhovnik from SiZR and FEE Senior Manager Petra Weymüller visited the Serbian Association of Accountants and Auditors in Belgrade, which has applied for Associate FEE Membership.

The following FEE Working Parties held meetings or conference calls in October to proceed with their projects, their major agenda items are highlighted below:

 - Direct and Indirect Tax Working Parties: Tax Good Governance

 - Public Sector Working Party: European Public Sector Accounting

 - Accounting Working Party: IASB Conceptual Framework