slide 1 road to europe – program of accounting reporting and institutional strengthening how can...
TRANSCRIPT
Slide 1
ROAD TO EUROPE – PROGRAM OF ACCOUNTING REPORTING AND
INSTITUTIONAL STRENGTHENING
How can the European Federation of Accountants (FEE) Assist ?
Henri Olivier
Secretary General
Slide 2
Content
1. Background information on FEE History Working methods Work programme
2. Action plan on Eastern and Central Europe (1992-2002)
3. Role towards new countries
Slide 3
FEE Background Information
1. 1951 – Creation of UEC (Union Européenne des Experts Comptables Economiques et Financiers
2. 1961 – Creation of the Groupe d’Etudes des Experts Comptables des Communautés Européennes
3. 1976 – Creation of IFAC
4. 1987 – Merger of UEC and the Groupe d’Etudes
Slide 4
FEE Background Information
Objective of the merger:
To enhance FEE role towards EU Institutions
To organise a central location of activities in Brussels
To avoid duplication of work with other standard setters (IFAC – IASB)
Slide 5
FEE Background Information
Condition to be a member
Accountancy body
Originated from a European country
Adequate professional standards for the members
Recognised by law or general consensus as being good standing
Not a governmental body
Slide 6
FEE Background Information
General Assembly: meets every two years
Council
Determines FEE policies and work programme
Meets quarterly
Decides on governance issues
Executive
Prepares and implements Council’s decisions
Approves most comment letters to standard setters
Meets monthly
Slide 7
FEE Background Information
Work programme – priorities
Follow up EU regulatory work: present views of the accountancy profession
Comment from an EU perspective to global standard setters (participation in CAG – comment on exposure drafts)
Develop FEE position on specific topics of importance (ex. Internal control, education of auditors, corporate governance, taxation)
Slide 8
FEE Background Information
Areas of work: Ethics Qualification/Free movement Financial reporting Auditing Company law and corporate governance/capital
markets SME Taxation Sustainability Public sector
Slide 9
FEE Background Information
Financial Reporting FEE role in the establishment of EFRAG Commenting on exposure drafts to EFRAG/IASB Financial reporting of banks Financial reporting of insurance companies and
pension funds IAS for SMEs
Slide 10
Action Plan Central and Eastern Europe (1992-2004)
Objectives Support transition to a market economy Help developing a highly competent accountancy
profession Consider admission to FEE membership
Dates 1992: FEE constitutional arrangements 1994: Conclusion of the first cooperation
agreements 1998: First admissions as correspondent members 2004: All EU Member States and candidates are
represented in FEE
Slide 11
Action Plan Central and Eastern Europe
Constitutional issues
Relationship between the profession and the governments
Level of qualifications
Scope of the profession
Establishment of a procedure for examining applications
Slide 12
Action Plan Central and Eastern Europe
Instruments
Cooperation with the European Commission
Coordinating Member Bodies
Seminars in Brussels
Opening access to FEE documents
Slide 13
Action Plan Central and Eastern Europe
Conclusion:
Exchange of experiences very positive for economies in transition
New countries were mainly interested in FEE work because this is part of their internal regulatory process
Enlargement of FEE was the final result
Slide 14
How Can FEE Assist ?
Two aspects:
Development of the profession in a global environment
EU regulatory activity and its indirect effects on countries where the EU regulatory framework can serve as a model
Slide 15
Development of the Profession
FEE is not a standard setter
FEE is not directly involved in education programmes
FEE promotes global standards in financial reporting and auditing, making its best efforts to ensure that EU interests are properly considered
FEE emphasises the importance of smaller businesses and smaller accounting firms which are especially relevant to our countries
Slide 16
Development of the Profession
FEE promotes new ideas and makes its research papers available to third parties without charges. Examples: Concept of assurance Threat and safeguard approach to the
independence of the auditor Research papers on sustainability reporting
FEE represents Europe in the Consultative Advisory Group of the IFAC Ethics Committee, Education Committee and IAASB
Slide 17
EU Regulatory Activities
The main responsibility of FEE is to monitor, through its specialised Working Parties, the regulatory initiatives of the European Commission and other EU regulatory bodies and to present the views of the profession on all issues relevant to our professional activities
Most of FEE work is devoted to EU regulatory developments, in particular in the areas of financial reporting, auditing, capital markets, company law and corporate governance, recognition of qualifications
Slide 18
EU Regulatory Activities
FEE is a long-time defender of global standards in Europe but wants to improve the influence of Europe in the global standard setting process.
The EU is reshaping its auditing framework. A new Directive on Statutory Audit will soon be approved. The accountancy profession has a role to play. FEE is the right body to do it.
Slide 19
EU Regulatory Activities
FEE decided to host an annual event to inform Institutes in smaller EU Member States and other interested countries on current EU regulatory developments
FEE can act as a facilitator in the identification of experts and speakers able to take part in developments projects or education programmes
Slide 20
Conclusions
The purpose of FEE is to deal with regulatory activities within the EU
FEE also represents the EU accountancy profession internationally
FEE has a role to play in informing accountancy bodies within and outside the EU on regulatory developments
FEE is ready to consider any request for support and will help identifying the best solution with its Member Bodies