EU FINANCIAL REPORTING LATEST DEVELOPMENTS NOFA Francoise Flores
- Slides: 49
EU FINANCIAL REPORTING LATEST DEVELOPMENTS NOFA Francoise Flores, EFRAG TEG 31 Jan 2006 EFRAG Moscow 31 Jan 2006 1 © 2006 EFRAG
TOWER OF BABEL JAPAN US/FASB GERMANY SPAIN EFRAG Moscow 31 Jan 2006 CANADA IASB AUS UK FRANCE 2 © 2006 EFRAG
CONVERGENCE US/FASB CANADA JAPAN GERMANY SPAIN EFRAG Moscow 31 Jan 2006 AUS IASB FRANCE UK 3 © 2006 EFRAG
CONVERGENCE US/FASB CANADA JAPAN GERMANY SPAIN EFRAG Moscow 31 Jan 2006 AUS IASB FRANCE UK 4 © 2006 EFRAG
CONVERGENCE US GAAP IAS/IFRS GAAP CONVERGENCE GLOBAL GAAP JAPAN MORE DETAILED ! EFRAG Moscow 31 Jan 2006 5 © 2006 EFRAG
EUROPE AND IFRS EFRAG Moscow 31 Jan 2006 6 © 2006 EFRAG
CONVERGENCE EU POLICY: CONVERGENCE A SUCCESS CRITERION FOR THE EU COMMISSION EFRAG Moscow 31 Jan 2006 7 © 2006 EFRAG
CONVERGENCE MAY UNDERMINE EUROPEAN INFLUENCE • Europe does not sit at the table • Europe is split in its input • Many players try to influence the IASB • IASB is working closely with FASB EFRAG Moscow 31 Jan 2006 8 © 2006 EFRAG
EU REGULATION EFRAG Moscow 31 Jan 2006 9 © 2006 EFRAG
REGULATION • Financial Reporting Strategy of the Commission • Objectives: § Integrated financial market in Europe § Harmonisation of financial reporting § Reduce cost of capital § Increase transparency and comparability • Endorsement mechanism with two tiers technical level (EFRAG) and political level (ARC) Europe wishes to contribute to the development of IFRS from the earliest stage possible EFRAG Moscow 31 Jan 2006 10 © 2006 EFRAG
REGULATION Cornerstones • EU companies listed on a regulated market, including banks and insurance companies, to prepare consolidated accounts in accordance with IAS/IFRS • Option for Member States to extend to unlisted companies and to the preparation of individual accounts • SMEs not scoped in, but option provided to Member States IASB project for SMEs! EFRAG Moscow 31 Jan 2006 11 © 2006 EFRAG
REGULATION Cornerstones • Accounting Regulatory Committee (ARC) • political level chaired by the Commission • composed of representatives of Member States • decide on endorsement on the basis of Commission proposals • EFRAG • Accounting technical committee • Private-sector initiative (users, preparers, accountants, SS, …) • endorsement advice to the Commission • participate actively in the standard setting process Accompanied by the Modernisation of the 4 th and 7 th Accounting Directive EFRAG Moscow 31 Jan 2006 12 © 2006 EFRAG
REGULATION Need for proper enforcement of IFRS • high quality statutory audit • strengthened co-ordination among European securities regulators (CESR) • establish equivalent, high level enforcement of financial reporting throughout the EU EFRAG Moscow 31 Jan 2006 13 © 2006 EFRAG
REGULATION Endorsed IFRS Not endorsed To be used Not to be used? EFRAG Moscow 31 Jan 2006 14 © 2006 EFRAG
EU - STRUCTURE ACCOUNTING REGULATORY COMMITTEE -ARC EU Approval EU COMMISSION PARLIA MENT COUNCIL OF MINISTERS Advice EFRAG Moscow 31 Jan 2006 15 © 2006 EFRAG
REGULATION 2 m 1, 5 m IASB EFRAG approval advice 2 m EU bureaus + 1 m EU Comm + ARC endorses Translate EU review EU-Parliament + C o Ministers Endorsed EFRAG Moscow 31 Jan 2006 16 © 2006 EFRAG
EU ENDORSEMENT CRITERIA TRUE AND FAIR VIEW UNDERSTANDABLE, RELEVANT, RELIABLE AND COMPARABLE EUROPEAN PUBLIC GOOD EFRAG Moscow 31 Jan 2006 17 © 2006 EFRAG
EFRAG Moscow 31 Jan 2006 18 © 2006 EFRAG
EFRAG Objectives Has been assigned main objectives: • Proactive contribution to the work of IASB and IFRIC: Contribute to and influence IASB standard setting process BEFORE a standard is issued • Endorsement advice to the EU Commission: Technical assessment of IFRS and IFRIC interpretation AFTER they are issued • Advise on changes to the EU Accounting Directives • Forum to discuss and to coordinate with NSS EFRAG Moscow 31 Jan 2006 19 © 2006 EFRAG
EFRAG ADDITIONAL OBJECTIVES: • European coordination • Stimulate thought leadership • Challenge IASB • Advising on EU Accounting Directives Memorandum of Understanding with EU Commission EFRAG Moscow 31 Jan 2006 20 © 2006 EFRAG
EFRAG - STRUCTURE SUPERVISORY BOARD TECHNICAL EXPERT GROUP - TEG INSURANCE WG SME JWG REV REC WG FIWG CONCESSION WG VENTURE CAP WG EFRAG SECRETARIAT EFRAG Moscow 31 Jan 2006 21 © 2006 EFRAG
EFRAG Due process IASB comment period 3 months Max 2 months ED EFRAG draft letter EFRAG deadline EFRAG comment letter EFRAG working groups EFRAG Moscow 31 Jan 2006 22 © 2006 EFRAG
Founding Fathers EFRAG Moscow 31 Jan 2006 23 © 2006 EFRAG
Founding Fathers • Business community/preparers : UNICE • Accounting profession : FEE • Credit sector associations : FBE, ESBG and GEBC • Insurance : CEA • SMEs : UEAPME and EFAA • Stock exchanges : FESE • Financial analysts : EFFAS EFRAG Moscow 31 Jan 2006 24 © 2006 EFRAG
EFRAG - Organisation • Office in Brussels • Permanent staff – – – • • Full-time Chairman: Stig Enevoldsen Technical Director: Paul Ebling Assistant Technical Director: Reinhard Biebel 3 Project Managers Secretary Technical Experts Group (TEG) Working groups PAAin. E – Pro-active Partnership Accounting in Europe Advisory Forum EFRAG Moscow 31 Jan 2006 25 © 2006 EFRAG
EFRAG Organisation - TEG – Highly qualified people – Time commitment 30%-50% – Drawn from national standard setters, accountancy profession, preparers and users – Limited in size – Accountable to the Supervisory Board – Commission and CESR observer role – Consultative Forum of Standard Setters – Transparent work process – due process observed EFRAG Moscow 31 Jan 2006 26 © 2006 EFRAG
EFRAG Technical Expert Group (TEG) VOTING MEMBERS AT TEG MEETINGS • Stig Enevoldsen, Chairman Denmark • Françoise Flores France • Catherine Guttmann France • Hans Leeuwerik The Netherlands • Ugo Marinelli Italy • Thomas Naumann Germany • Friedrich Spandl Austria • Dominique Thouvenin France • Mike Ashley UK • Thomas Seeberg Germany • Mike Starkie UK Auditor Industry Insurance Advisor Industry Auditor / Academic Banker Financial Analyst Auditor, Member of the UK ASB Industry NON VOTING MEMBERS AT TEG MEETINGS Chairmen of large National Standard Setters: • • • Harald Wiedmann. GASB Antoine Bracchi CNC Ian Mackintosh ASB NON VOTING OBSERVERS INVITED AT TEG MEETINGS • European Commission • CESR EFRAG Moscow 31 Jan 2006 27 © 2006 EFRAG
Consultative Forum of Standard Setters • To bring European standard setters together to discuss technical issues • Standard setters directly related to IASB (France, Germany and UK) and all other European Standard Setters • Meetings on a quarterly basis EFRAG Moscow 31 Jan 2006 28 © 2006 EFRAG
EFRAG – Working Groups EFRAG has established working groups on: • • • SME Joint Working Group Service Concession Arrangements Revenue Recognition Venture Capital Investments Insurance Accounting Financial Instruments To come: • Reporting Performance EFRAG Moscow 31 Jan 2006 29 © 2006 EFRAG
EFRAG Moscow 31 Jan 2006 30 © 2006 EFRAG
EFRAG Moscow 31 Jan 2006 31 © 2006 EFRAG
EFRAG DRAFTS FOR COMMENT NOW: • Management Commentary • Measurement Objectives • ED 8 Operating Segments (soon) STRONGER INPUT FROM RUSSIA We want your comments! EFRAG Moscow 31 Jan 2006 32 © 2006 EFRAG
PAAin. E Proactive Accounting Activities in Europe EFRAG Moscow 31 Jan 2006 33 © 2006 EFRAG
PAAin. E Objectives: • High quality proactive input to IASB(+FASB) • Improve accounting in Europe • Create debates in Europe • More consistent messages to IASB • Involvement in the convergence work • Monitor work of IASB & FASB • Thought leadership EFRAG Moscow 31 Jan 2006 34 © 2006 EFRAG
PAAin. E Revenue Recognition Conceptual Framework Pensions Equity/Liability split Performance Reporting EFRAG Moscow 31 Jan 2006 35 © 2006 EFRAG
PAAin. E EFRAG SWEDEN GERMANY Influence! SPAIN EFRAG Moscow 31 Jan 2006 POLAND HOLLAND FRANCE UK 36 © 2006 EFRAG
Consistent application Big issue in Europe EFRAG Moscow 31 Jan 2006 37 © 2006 EFRAG
CONSISTENT APPLICATION EC US SEC ROADMAP Reconciliation Reconcilation Work programme Work prog IASB FASB EFRAG Moscow 31 Jan 2006 38 © 2006 EFRAG
Roadmap CONSISTENT APPLICATION l. Accounting standards Agree work programme l. Implementation / application l. Use of implicit options l. Interpretations l. Enforcement EFRAG Moscow 31 Jan 2006 39 © 2006 EFRAG
Interpretations EFRAG Moscow 31 Jan 2006 40 © 2006 EFRAG
INTERPRETATIONS PERCEIVED NEED IN EUROPE • IS THERE REALLY A NEED? HOW DO WE SOLVE IT, IF THERE IS A NEED? EFRAG Moscow 31 Jan 2006 41 © 2006 EFRAG
INTERPRETATIONS PRINCIPLES RULE BASED NOT HIGH LEVEL FLEXIBILITY ? ? APPLICABLE STANDARDS DETAILED NOT CONSISTENT STANDARDS APPLICABLE ? ? INTERPRETATIONS? EFRAG Moscow 31 Jan 2006 42 © 2006 EFRAG
Interpretation Support Mechanism Should a mechanism be established for Europe? A Forum? A Roundtable? EFRAG Moscow 31 Jan 2006 43 © 2006 EFRAG
Forum-Roundtable Discussion: • Is there a need? • Should a structure be established? • Should it just be a discussion Forum? • Should it be lead by – NSS? – EC? – CESR? • Resources needed? EU Commission proposal. . . EFRAG Moscow 31 Jan 2006 44 © 2006 EFRAG
INTERPRETATION SUPPORT IFRIC CESR EU COORDINATOR ”FORUM” NIC UK NIC EFRAG Moscow 31 Jan 2006 NIC DK NIC F 45 © 2006 EFRAG
IASB WORK PROGRAM MANY PROJECTS MANY CHANGES IASB has addressed a number of issues also in the European interest: • IFRS 1 First time adoption • Improvements project • Fair Value Option • IFRIC 2 • Convergence • … A lot has been achieved and EFRAG wants to continue good cooperation with IASB! EFRAG Moscow 31 Jan 2006 46 © 2006 EFRAG
ENDORSEMENT Europe has endorsed all existing and new IFRSs Except for: • IAS 39 carve outs (one carve-out still remaining) • IFRIC 3 Emission Rights (withdrawn by the IASB) EFRAG recommends endorsement on pure technical grounds • Fully independent from particular interest • EU Commission takes EFRAG views into consideration EFRAG Moscow 31 Jan 2006 47 © 2006 EFRAG
WWW. EFRAG Moscow 31 Jan 2006 EFRAG. ORG 48 © 2006 EFRAG
THANK YOU EFRAG Moscow 31 Jan 2006 49 © 2006 EFRAG
- Françoise flores
- Femme de jean piat
- Françoise smets
- Françoise brunelle ph
- Françoise-antoinette pancrazzi
- Francoise genova
- Eddy mitchell fumeur
- Pelogos
- Reported speech be going to
- Sgrrits dehradun
- Sspc-pa 2 latest edition
- Fire fighting access lobby
- Latest trands
- Nbc
- Ms word latest version
- Prayer points for philippines
- Wco data model
- New irpwm 2021
- Ggbs is code 16714
- Citect scada latest version
- Andrew heywood comparative politics
- Latest subject integrity
- This organizational structure is existing in the pnp
- Rabbit heart lyrics
- Revised sbm assessment tool 2020
- Relocation policy trends
- Latest electronics and information technology in odisha
- Not formal letter
- Upstu
- Dd form 577 latest version
- Oracle apex latest version features
- Conceptual framework of iasb and fasb
- Cbd financial reporting framework
- Financial statement purpose
- Corporate financial reporting and analysis
- Limitations of financial reporting
- American accounting standards
- Ias 34 interim financial reporting
- Hyperion financial reporting studio
- Conceptual framework underlying financial accounting
- What is financial reporting studio?
- Frx designer
- Project management financial reporting
- Chapter 2 conceptual framework
- Hyperion foundation services
- Fge financial management
- Aabe directives
- Limitations of annual reports
- International financial reporting standards 9
- American grassfed association standards