Activities of Saïd EL KHADRAOUI related to 2012/0364(COD)
Plenary speeches (1)
Union programme in the field of financial reporting and auditing 2014-2020 (debate)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on establishing a Union programme to support specific activities in the field of financial reporting and auditing for the period of 2014-2020 PDF (264 KB) DOC (381 KB)
Amendments (19)
Amendment 19 #
Proposal for a regulation
Recital 3
Recital 3
(3) In a global economy, there is a nea global accounting language is a legitimate aim. The G20 has repeatedly called for a global accounting languagstandards and convergence. International Financial Reporting Standards (IFRS) developed by the International Accounting Standards Board (IASB) are adopted and used in manya number of jurisdictions around the world. S, often with qualifications or limitations, but are not used by the United States or Japan. In any event, such international accounting standards need to be developed under a transparent and democratically accountable process. To ensure that the interests of the Union are respected and that global standards are of high quality and compatible with Union law, it is essential that the interests of the Union are adequately taken into account in that international standard-setting process.
Amendment 24 #
Proposal for a regulation
Recital 6
Recital 6
(6) The European Financial Reporting Advisory Group (EFRAG) was founded in 2001 by European organisations representing issuers, investors and the accountancy profession involved in the financial reporting process. In accordance with Regulation (EC) No 1606/2002, EFRAG provides the Commission with opinions on whether an accounting standard issued by the IASB or an interpretation issued by the IFRS Interpretations Committee, which is to be endorsed, complies with the endorsement criteria set out in that Regulation. EFRAG is also taking up the role of the ‘single European accounting voice’ in the global arena. In that capacity, EFRAG provides input to the IASB's standard-setting process.
Amendment 26 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) The role of single European accounting voice can only be given to EFRAG, provided all interactions with the IASB are made fully transparent and any decisions taken by EFRAG should be made in full consultation with national standard-setters.
Amendment 27 #
Proposal for a regulation
Recital 7
Recital 7
(7) Taking into account EFRAG's keysingle role in supporting internal marketensuring that IFRS are compliant with the requirements of Union company law and policy, and in representing European interests in the standard-setting process at international level, it is necessary for the Union to ensure EFRAG's stable financs laid out in the IAS Regulation 2002, it is necessary for the Union to ensure EFRAG's stable financing and thus contribute to its funding provided its board structure and working rules are reformed and its mission is clarified. Such financing arrangements should be further reassessed in the light of any decision taken to give EFRAG more responsibilities in terms of influencing the IASB in addition to fulfilling the basic task required by the IAS Regulation 2002. The European Commission is invited to come forward at the latest by beginning 2014 with a legislative proposal taking into account the conclusions of Philippe Maystadt, whose mission will focus on a review of the governance of EU bodies in the field of financial reporting and thus accountribute to its funding. ing (the European Financial Reporting Advisory Group (EFRAG) and the Accounting Regulatory Committee).
Amendment 34 #
Proposal for a regulation
Recital 11
Recital 11
(11) Experience has shown that Union co- financing ensures that beneficiaries benefit from clear, stable, diversified, sound and adequate funding and it contributes to enabling the beneficiaries to accomplish their public interest mission in an independent and efficient manner. Therefore, sufficient funding should continue to be provided by means of a Union contribution towards the functioning of international accounting and auditing standard-setting, and in particular to the IFRS Foundation, EFRAG and the PIOB provided the necessary structural reforms are undertaken.
Amendment 39 #
Proposal for a regulation
Recital 12
Recital 12
(12) In addition to changing their funding patterns, the IFRS Foundation and EFRAG have undergone governance reforms to ensure that through their structure and processes they accomplish their public interest mission in an independent, efficient, transparent and democratically accountable manner. In relation to the IFRS Foundation, the Monitoring Board was created in 2009 to ensure public accountability and oversight, the effectiveness of the Standards Advisory Council has been enhanced, transparency has been improved and the role of impact assessments has been formalised as part of the due process of the IASB. The same kind of structural governance reforms have to be undertaken on the EFRAG level.
Amendment 41 #
Proposal for a regulation
Recital 15
Recital 15
(15) The co-financing programme to be established by this Regulation is expected to contribute to the objectives of ensuring comparability and transparency of company accounts throughout the EU, to making the needs of Europe heard in the global harmonization of financial reporting standards by. Speaking with one European voice would help promotinge the international acceptance of IFRS and to promoting convergence and high quality international standards for auditing in all Member States. This programme also contributes to the Europe 2020 strategy by reinforcing the single market of financial services and capital, and contributes to the strategy's external dimension as well.
Amendment 43 #
Proposal for a regulation
Recital 17
Recital 17
(17) Union funding is proposed for a well- defined and limited number of the most important bodies in the field of financial reporting and auditing. Within the current institutional framework, the funding arrangements should ensure stable, diversified, sound and adequate funding to enable the relevant bodies to carry out their Union-related or public interest mission in an independent and efficient manner. The bodies can only benefit from European funding provided they report annually to the European Commission and the European Parliament in a fully transparent way about other funding sources.
Amendment 44 #
Proposal for a regulation
Recital 19
Recital 19
Amendment 48 #
Draft legislative resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Points out that the financial envelope specified in the legislative proposal constitutes only an indication to the legislative authority and cannot be fixed until agreement is reached on the proposal for a regulation laying down the multiannual financial framework for the years 2014-2020; stresses the need, therefore, to create close linkage between the financing programme and the objectives of the reform of the recipient bodies, in the interests of the Union;
Amendment 49 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The actual Programme covers the activities of devethe follopwing or providing input to the development of standards, applying, assessing or monitoring standards or overseeing standard-setting processes in supporganizations: - IASCF, which develops high quality accounting standards, - EFRAG, which assesses whether or not an IFRS is compliant with EU accounting directives as part of the implementation of Union policies in the field of financial reporting and auditing, and - PIOB, which assesses whether or not an ISA and ethical standards for auditors are compliant with the public interest of the implementation of Union policies in the field of financial reporting and auditing.
Amendment 55 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. The objective of the Programme is to improve the conditions for the functioning of the internal market and to strengthen corporate governance by supporting transparent and independent development of international financial reporting and auditing standards.
Amendment 62 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
Amendment 65 #
Proposal for a regulation
Article 3 – paragraph 3
Article 3 – paragraph 3
Amendment 66 #
Proposal for a regulation
Article 3 – paragraph 3
Article 3 – paragraph 3
3. Any new beneficiary shall be a non- profit making legal person pursuing an objective forming part of and supporting the Union policy in the field of financial reporting and auditing and shall be a direct successor of one of the beneficiaries listed in paragraph 1The Commission shall come forward with a legislative proposal if it wants to select a new beneficiary for the Programme.
Amendment 67 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Financing under the Programme shall be provided in the form of operating grants. Financing shall be awarded on an annual basis, and its renewal shall be conditional on compliance with criteria relating to the objectives and content of the standards, and with criteria concerning developments in European governance and the IFRS Foundation. The criteria relating to the objectives and content of the standards shall be based on the following principles: - the requirement that IFRS standards must take account of European needs; - the requirement to comply with the European interest and true and fair view criteria referred to in Regulation (EC) No 1606/2002, and not only to scrutinise the quality of the standards on the basis of the IASB’s own criteria; - the requirement that IFRS standards must take account of their impact on the economy and financial stability, on the basis of an impact assessment; - the requirement that IFRS standards should call into question all bias towards the short term, whether it arises from (a) the emphasis placed on ‘fair value’, i.e. the market value and its relevance from the viewpoint of an investor; or (b) more generally, the ‘balance sheet approach’, which gives more weight to accounting for assets and liabilities on the basis of sui generis concepts, which users have identified as sources of complexity; - the requirement to reincorporate, without limitations, into the conceptual framework now being amended, the principles of prudence and reliability, combined with changes to the standards to reflect the revisions to the conceptual framework. The criteria relating to developments in European governance shall be based on the following principles: - the requirement to take account, on duly substantiated grounds, of the European interest, on the basis of European needs; - the requirement to base new European governance on the expertise and resources of national standard-setting bodies in the accounting sphere; - the requirement to take account of the diversity of views in Europe, which reflects the diversity of European accounting traditions. The criteria relating to the IFRS Foundation shall be based on the following principles: - while exchanges with countries which do not apply the IFRS are clearly useful, their role in the non-advisory bodies of the IASB must be reviewed in the light of the fact that they do not use the standards; - the granting of funding cannot be enough to compensate for not applying the standards nationally whilst persons from the country in question occupy key positions in the organisation; - the co-financing programme must highlight spending aimed at encouraging the adoption of and promoting IFRS standards in third countries.
Amendment 69 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Financing under the Programme shall be provided in the form of operating grants, renewed annually after the Commission have conducted an assessment approved by the European Parliament whether the beneficiaries have achieved the goals laid out in the Programme.
Amendment 70 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
Any beneficiary of funding awarded under the Programme shall indicate in a prominent place, such as a website, a publication or an annual report, that it has received funding from the budget of the European Union as well as a detailed overview of the other funding from alternative sources.
Amendment 75 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. In order to implement the programme, the Commission shall adopt annual work programmes, to be approved by the European Parliament. They shall set out the objectives pursued, the expected results, the method of implementation and their total amount. They shall also contain a description of the actions to be financed, an indication of the amount allocated to each action and an indicative implementation timetable. They shall include for grants the priorities, the essential evaluation criteria and the maximum rate of co-financing.