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Perspectives of the European Accountancy Profession
Olivier Boutellis-Taft FEE Chief Executive
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Contents
2 About FEE Policy update & challenges Auditing and assurance services Ethics and independence Financial reporting Beyond financial reporting and auditing Profession’s perspective on key debates
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About FEE
3 43 professional institutes of accountants 32 European countries, including all 27 EU
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Representing the profession
Combined membership of more than 500,000 professional accountants In public practice, business, government, and education All contributing to a more efficient, transparent, and sustainable European economy Recognising the public interest
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Adding value to members
Making representations to the EU Institutions and to international organisations Identifying, analysing and influencing relevant public policy developments Promoting co-operation among Members
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Financial Reporting Accounting Insurance
Advancing members’ activities
Auditing Ethics Company Law Corporate Governance Sustainability Qualification and Market Access SMEs-SMPs
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Banks Public Sector Taxation And more…
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FEE Reach out
Position papers, research, studies, comment letters, press releases Executive Communiqué Weekly e-update Newsletter Annual Review New initiative: Telebriefings More information, more timely, more regularly More interaction with all Member Bodies, esp. more distant and smaller ones More accessible (for SMPs) More time and cost efficient More carbon efficient and environmentally friendly
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Auditing (1)
Statutory Audit Directive (May 2006) to be implemented by EU Member States by July 2008, but on 31 July 2009: Commission has not yet checked national transpositions Many Member States are still executing the changes 6 have not yet fully implemented the Directive: Austria, Estonia, Ireland, Italy, Luxembourg and Spain • They hope to implement in 2009 • Commission plans to take them to the European Court of Justice
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Auditing (2)
More work to do on: International cooperation on public oversight Limiting auditors’ liability • EC Recommendation of 6 June 2008; Member States to report by 5 June 2010 Adoption of International Standards on Auditing (ISAs) in the EU • EC Consultation on Adoption of ISAs • Debate on proportionality in SME audits
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Other Assurance Services
Need to get clarity on assurance on non-financial information Assurance on corporate governance statements Assurance on sustainability reports FEE paper on alternative assurance engagements (i.e. other than the audit) Developments should be accelerated at international level (IAASB) and slowed down at national level to avoid further fragmentation
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Ethics & Independence
Principles in Articles 21 & 22 of the Directive EC 2002 Recommendation on independence still applicable Revised IFAC Code of Ethics (July 2009), effective 01/01/11, significantly strengthens the independence requirements for public interest entities (PIEs) audits, non-PIE audits and other assurance services
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Financial Reporting
Need to keep momentum on global standards Impact of the financial crisis, especially on financial instruments (IAS 39 – IRFS 7) Debate on convergence Reform of the 4th Directive on annual accounts Simplification debate: Member State option to exempt micro-entities Complete Overhaul of the Directives? Role of IFRS for SMEs?
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Beyond accounting and auditing
Internal Market Recognition of professional qualifications Taxation C 3 TB ECJ case law Sustainability
Trends in non financial reporting
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FEE Policy Statements
Financial Crisis Reflecting on the Crisis Matters of Specific Relevance for Statutory Auditors during the Financial Crisis Call for Action for European SMEs Dynamic Provisioning for Financial Instruments Shaping a Sustainable Economy Auditing and Assurance International Standards on Auditing Financial Reporting Future Approach to Setting Global Financial Reporting Standards Sustainability The Contribution of the Accountancy Profession Non-Financial Information Cost Internalisation Multiple-Stakeholders: The Essence of Multidisciplinary Teams Embedding Sustainability into Corporate Governance Carbon Emissions Information Towards a Sustainable Economy: the contribution of Assurance 14
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Role of National Professional Bodies
National Institutes/Chambers play a key role to Support their members and advise public authorities Strive for equally high standards in all Member States • Regulation and Oversight dot not replace professionalism and ethics Invest in education Ensure representativity and relevance of International Bodies such as IFAC or FEE that rely on strong local Institutes/Chambers
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Visit us @ www.fee.be
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