Preliminiary agreement in trilogue on the reform of the audit sector
The European Commission, the European Parliament and EU Member States have reached a preliminary agreement on 17 December 2013 on the reform of the audit sector. A formal approval in the Council and a plenary vote in the EP are expected shortly and will finalise the legislative process. more...

FEE commented on the announced agreement noting that a number of significant question marks remain outstanding. See press release FEE will analyse in detail the provisions once finally approved and available.
 

In an interview with the International Accounting Bulletin on 4 December 2013, FEE CEO Olivier Boutellis-Taft had expressed concerns that the three parties would rush into an agreement due to a 'negotiating fatigue' around the meeting table. more...

 

European audit oversight
In a move to improve audit quality in Europe through the co-operation of national regulators, the European Audit Inspection Group (EAIG) has launched a pan-European database compiling inspections reports on the 10 largest European networks of audit firms. Read the full article. Source: International Accounting Bulletin
 

The trilogue agreement to renew the financing programme of the IFRS Foundation, the EFRAG and the PIOB is a step towards ensuring that these organisations continue to play a role in the development of accounting and auditing standards and that the EU’s interests are properly taken into account in that process. more...
 

The agreement limits the financing period of EFRAG to three years in view of prospective reforms of this organisation following the recommendations presented on 12 November 2013 by Mr Philippe Maystadt acting as a special advisor to Commissioner Barnier (which were debated in the recent FEE-ACCA event). 
 

Global adoption of International Financial Reporting Standards (IFRS) in progress
With the completion of the third phase of its project to study jurisdictional adoption of International Financial Reporting Standards (IFRS), the IFRS Foundation has gathered evidence that IFRS has already become the de facto global language for financial reporting. more...

 

Progress in EU tax issues
In its meeting on 20 December 2013, the European Council took note of the report of the Economic and Financial Affairs Council (ECOFIN). The report shows the progress across a range of matters, such as the savings taxation, the Common Consolidated Corporate Tax Base (CCCTB), the revision of the energy taxation directive, the Financial Transaction Tax, VAT, mandatory automatic exchange of information and tax policy coordination. more...

 

Mandatory automatic exchange of information in the field of taxation on the way
The European Parliament has approved the proposed revised directive on mandatory automatic exchange of information in the field of taxation with some amendments. Once adopted by the European Council, the proposed revised directive would oblige EU countries by 2017 to collect and automatically share data on income from employment, directors' fees, life insurance, pensions and property. Tthe new rules would also require them to collect and share information on other income, including that from dividends, capital gains and bank account balances. more...

 

Taxation of the Digital Economy
The first meeting of the High Level Expert Group on Digital Taxation, which is supposed to identify the key problems with digital taxation from an EU perspective, and present possible solutions, took place on 12 December 2013. The expert group should report back to the Commission by summer 2014. more...

 

Free movement and taxation
The European Commission has set up a new page on cross-border issues related to direct taxation for individuals and has updated the page on inheritance tax. 

 

OECD calendar for stakeholders’ input regarding BEPS
The OECD Action Plan to tackle base erosion and profit shifting (BEPS) contains 15 actions to be undertaken. The OECD considers input from relevant stakeholders as essential and has published a calendar for planned stakeholders’ input. more...

 

Fourth AML Directive
The European Parliament Committee on Economic and Monetary Affairs (ECON) tabled two sets of amendments, amendments 94 - 413 and amendments 414 - 547, to its draft report of 11 November 2013. 
 

Greece's priorities for its upcoming presidency of the Council of the European Union
Greece will hold the Presidency of the European Union in the first half of 2014, before handing over reins to Italy on 1 July 2014. The following priorities have been announced by the Foreign Ministry: growth, jobs and cohesion; further integration of EU and Eurozone; migrations, borders and mobility and maritime policies. more...

 

Banking Union: Council agrees general approach on Single Resolution Mechanism
On 18 December 2013, the Council of the EU set out its position on the establishment of a single resolution board and a single fund for the resolution of banks. more... 

See also state of play of the Banking Union.
 

Horizon 2020: Research and innovation funding - also for SMEs
The Council of the European Union has adopted the "Horizon 2020" programme for research and innovation for the years 2014 to 2020. more... With a budget of just over €70 billion Horizon 2020 fosters investments and grants aimed at societal challenges, excellent science, and industrial leadership. more... At least 11% of the Horizon 2020 budget should go to small and medium sized enterprises (SMEs). more... FEE has recently submitted its comments to the European Commission regarding the auditor's involvement in Horizon 2020. more...

 

EU-US trade talks - third round
A third round of EU-US trade talks started on 16 December 2013 in Washington D.C which aim at paving the way for a future Transatlantic Trade and Investment Partnership (TTIP). more...

 

The International Auditing and Assurance Standards Board (IAASB) has released for public comment its ‘Proposed Strategy for 2015-2019 and Proposed Work Program for 2015-2016’ which is open for comments by 4 April 2014. more...

 

The IAASB has released an updated and enhanced International Standard on Assurance Engagements (ISAE), titled ‘ISAE 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information’, which covers a wide variety of engagements, ranging from assurance on statements about the effectiveness of internal control, for example, to assurance on sustainability reports and possible future engagements addressing integrated reporting. more...

 

The release of the International Integrated Reporting Framework marks an important milestone in the market-led evolution of corporate reporting. The Framework will be used to accelerate the adoption of integrated reporting across the world, where it is currently being trialled in over 25 countries, 16 of which are members of the G20, the group of nations focused on strengthening the global economy. more...

 

The Global Reporting Initiative’s (GRI) has published its Annual Activity Review 2012/2013 ‘From Information to Transformation’. Sustainability reporting is no longer about business transparency for transparency’s sake alone; it is about business transformation and innovation. more...

 

Developed in conjunction with CPA Canada, this guide aims to help professional accountants in practice, especially those operating in small- and medium-sized practices (SMPs), in conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised), ‘Engagements to Review Historical Financial Statements’. more...

 

The Public Company Accounting Oversight Board (PCAOB) has released a report that provides information about registered audit firms' implementation and compliance with Auditing Standard No. 7, 'Engagement Quality Review'. more...

 

The International Ethics Standards Board for Accountants (IESBA) has released for public consultation its Proposed Strategy and Work Plan, 2014-2018. more... Deadline for comments 28 February 2014. FEE will contribute.
 

The International Accounting Education Standards Board has released for public exposure a proposed revision of International Education Standard (IES) 8, ‘Professional Competence for Engagement Partners Responsible for Audits of Financial Statements’. more... The exposure draft is open for comments by 17 April 2014. As usual, FEE will contribute (see FEE comments on the previous exposure draft). FEE also commented on the 2014-2016 IAESB Strategy and Work Plan. See comments 

 

 

FEE Board members met on 17 December 2013 to exchange views and information on the current audit policy debate and corporate reporting debate. Furthermore members discussed FEE’s next steps regarding the transposition of the 4th and 7th Accounting Directives. The Accounting Directive must be transposed by 20 July 2015 as adopted by the Council on 20 June 2013. The Transparency Directive has been adopted by the Council on 17 October 2013 and must be transposed by 27 November 2015. A series of comment letters were approved, which are featured under FEE Publications.
 

On 18 December 2013, FEE held its Statutory Members’ Assembly in Brussels. The European Policy Centre Chief Executive Fabian Zuleeg gave a thought-provoking speech on the economic and political future of the European Union.
 

FEE Members elected a new FEE Board and welcomed three new Members, a full Member, TÜRMOB (Union of Chambers of Certified Public Accountants in Turkey) and two associate Members, ISRCG (Institute of Certified Accountants of Montenegro) and SRRS (Serbian Association of Accountants and Auditors). For further information please see press release. 
 

FEE Members also had a lively debate on ‘The future of professional organisations’, partly based on input from young professionals and trainees about their expectations surveyed by FEE.

 

 

FEE President André Kilesse spoke at the annual conference of the Forum of the Future on 5 December 2013 in Brussels. He briefed participants about major changes to expect in the light of the new Accounting Directive of 23 June 2013, which should be implemented before July 2015.
 

FEE President André Kilesse and FEE CEO Olivier Boutellis-Taft addressed the annual conference under the theme ‘EU Audit Reform’ of the Compagnie Nationale des Commissaires aux Comptes (CNCC) held on 5 December 2013 in Paris.
 

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

• Corporate Reporting Policy Group: Update session with Philippe Danjou, International Accounting Standards Board (IASB)

• Professional Ethics and Competences Working Party: Strategy and work plan

• Public Sector Committee: IPSASB Exposure Drafts 48 - 53