Provisional agreement between Parliament and Council on final act
Role | Committee | Rapporteur | Shadows |
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Opinion | BUDG | ||
Opinion | CONT | ||
Lead | ECON | STOLOJAN Theodor Dumitru (EPP) | BERÈS Pervenche (S&D), KAMALL Syed (ECR), VAN NIEUWENHUIZEN Cora (ALDE), VIEGAS Miguel (GUE/NGL), GIEGOLD Sven (Verts/ALE), VON STORCH Beatrix (EFD), KAPPEL Barbara (ENF) |
Opinion | JURI |
Legal Basis TFEU 114
Activites
- 2017/04/27 Decision by Parliament, 1st reading/single reading
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2017/03/22
Approval in committee of the text agreed at 1st reading interinstitutional negotiations
- PE602.849
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2016/10/14
Committee report tabled for plenary, 1st reading/single reading
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A8-0291/2016
summary
The Committee on Economic and Monetary Affairs adopted the report by Theodor Dumitru STOLOJAN (EPP, RO) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 258/2014 establishing a Union Programme to support specific activities in the field of financial reporting and auditing for the period of 2014-2020. The committee recommended that the European Parliament’s position adopted at first reading following the ordinary legislative procedure should amend the Commission proposal as follows: Evaluation: the European Commission should provide the European Parliament and the Council with more regular information on the joint work of the International Financial Reporting Standards Foundation (IFRS Foundation), the European Financial Reporting Advisory Group (EFRAG) and the Public Interest Oversight Board (PIOB), given that those three agencies are funded by the Union and are working for the same purpose. Regulation (EU) No 258/2014 requires the Commission to prepare an annual report on the activity of the IFRS Foundation as regards the development of IFRS, of PIOB and of EFRAG. With regard the IFRS Foundation: Members stated that the report shall: assess whether further progress has been made as regards the governance of the IFRS Foundation and the IASB, in particular in terms of transparency, prevention of conflicts of interest and diversity of hired experts, and whether and what steps have been taken to ensure broad representation of interests (such as consumer representation agencies and finance ministries) and public accountability in order to guarantee high-quality accounting standards. With regard to EFRAG, the report shall assess whether: the 'expanded public good' criterion as defined in the special advisor’s report (i.e. that accounting standards should neither jeopardise financial stability in the Union nor hinder the economic development of the Union), has been fully respected during the endorsement process undertaken during the previous year; the European Parliament and the Council have been involved at an early stage when developing financial reporting standards in general and in the endorsement process in particular; and a more diversified and balanced financing structure. In addition, it shall identify and assess the actions undertaken within EFRAG in order to enhance democratic legitimacy, transparency, accountability and integrity which, inter alia, concern public access to documents, open dialogue with diverse stakeholders, the establishment of mandatory transparency registers and rules on transparency of lobby meetings as well as internal rules, in particular prevention of conflict of interests. Annual report: from 2017, the IFRS Foundation, PIOB and EFRAG shall prepare an annual report on the implementation of Union policies in the field of financial reporting and auditing and participate regularly, at least annually, in hearings organised by the European Parliament in order to give a full account of the development of international financial reporting and auditing standards. The report also shall cover the follow-up and implementation of the recommendations and demands made in past or future resolutions of the European Parliament. If appropriate, the Commission shall submit a legislative proposal to transform EFRAG into a public agency in the long term.
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A8-0291/2016
summary
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2016/10/11
Committee decision to open interinstitutional negotiations with report adopted in committee
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2016/10/11
Vote in committee, 1st reading/single reading
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2016/04/28
Committee referral announced in Parliament, 1st reading/single reading
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2016/04/13
Legislative proposal published
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COM(2016)0202
summary
PURPOSE: to propose the continuation of the financing of the European Financial Reporting Advisory Group (EFRAG) for the period 2017-2020. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: in 2009, the European Parliament and the Council established a Community Programme to support specific activities in the field of financial services, financial reporting and auditing. This programme was extended with the Regulation (EU) No 258/2014 of the European Parliament and the Council ("Financing Regulation"). The beneficiaries of the extended programme are the International Financial Reporting Standards Foundation (IFRS Foundation), the European Financial Reporting Advisory Group (EFRAG) and the Public Interest Oversight Board (PIOB). EFRAG was established in 2001 as a private organisation to provide the Commission with technical expertise in financial reporting matters. On the basis of Regulation (EU) No 258/2014, the IFRS Foundation and the PIOB benefit from Union co-financing in the form of operating grants until 31 December 2020. In view of the uncertainties related to a major governance reform the organisation was undergoing in 2014, the co-legislators decided to limit its financing period until the end of 2016 and called on the Commission to submit a legislative proposal, if appropriate, to continue financing of EFRAG after 31 December 2016. On 12 November 2013, the Commission published the report of Philippe Maystadt, special advisor to the Commissioner responsible for internal market and services, in which he outlined potential reforms to EFRAG governance aimed at reinforcing the Union's contribution to the development of international accounting standards. The Commission closely monitored the implementation of the reform of EFRAG governance and found that it successfully implemented the conclusions of the special advisor’s report, by implementing a new governance structure which has increased the legitimacy and representativeness of EFRAG. As a result, EFRAG is now well equipped to strengthen the legitimacy of its positions and significantly contribute to the objective of Europe speaking with one voice. Therefore, it is appropriate to propose to continue financing of EFRAG for the period 2017-2020 in order to meet the long-term objectives of the Union programme to support specific activities in the field of financial reporting and auditing. CONTENT: this proposal seeks to amend Regulation (EU) No 258/2014 in order to increase the budget of the Union Programme to support specific activities in the field of financial reporting and auditing for the period of 2014-2020 and to support the activities of EFRAG, which contribute to the achievement of the policy objectives of the Union in relation to financial reporting. In line with the Financing Regulation, EFRAG was allocated an amount of EUR 9 303 000 for the period 2014-2016. The current regulation proposes to allocate to EFRAG an additional amount of EUR 13 831 000 for the period 2017-2020. BUDGETARY IMPLICATIONS: the proposed regulation prolongation of the financing of EFRAG for the period 2017-2020 will increase the total budget of the programme to support specific activities in the field of financial reporting and auditing from EUR 43.176 million to approximately EUR 57 million.
- DG {'url': 'http://ec.europa.eu/info/departments/economic-and-financial-affairs_en', 'title': 'Economic and Financial Affairs'}, MOSCOVICI Pierre
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COM(2016)0202
summary
Documents
- Legislative proposal published: COM(2016)0202
- Committee report tabled for plenary, 1st reading/single reading: A8-0291/2016
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE602.849
- Decision by Parliament, 1st reading/single reading: T8-0141/2017
Amendments | Dossier |
22 |
2016/0110(COD)
2016/09/09
ECON
22 amendments...
Amendment 10 #
Proposal for a regulation Recital 4 b (new) (4a) The activities and performance of EFRAG do not appear to have been disadvantaged by it being granted funding over a shorter timeframe than that of PIOB and the IFRS Foundation. It is recognised that there is a need to balance the objectives of EFRAG accountability with organisational continuity and planning.
Amendment 11 #
Proposal for a regulation Recital 4 c (new) (4c) The European Commission should provide the European Parliament and the Council with more regular information on the joint work of the IFRS Foundation, the EFRAG and the PIOB, given that these three agencies are funded by the EU and are working for the same purpose.
Amendment 12 #
Proposal for a regulation Recital 5 a (new) (5a) EFRAG's field of activity is currently limited to that which is described in the special advisor's report and, considering that multiple additional tasks and responsibilities that have been attributed to EFRAG in the European Parliament's resolution of 7 June 2016, EFRAG should ensure that those additional tasks and responsibilities are to be actively monitored and reported upon.
Amendment 13 #
Proposal for a regulation Recital 6 Amendment 14 #
Proposal for a regulation Recital 6 Amendment 15 #
Proposal for a regulation Article 1 – paragraph 1 – point 1 Regulation (EU) No 258/2014 Article 3 – paragraph 1 – point a – point i Amendment 16 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 – point a Regulation (EU) No 258/2014 Article 6 – paragraph 1 Amendment 17 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 – point b Regulation (EU) No 258/2014 Article 6 – paragraph 3 – point a Amendment 18 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 a – point a (new) Regulation (EU) No 258/2014 Article 9 – paragraph 4 a (new) (2a) Article 9 is amended as follows: (a) the following paragraph is inserted: '4a. With regard to the IFRS Foundation, the report referred to in paragraph 3 shall also assess: (a) whether further progress has been made as regards the governance of the IFRS Foundation and the IASB, in particular in terms of transparency, prevention of conflicts of interest and diversity of hired experts, and whether and what steps have been taken to ensure broad representation of interests (such as consumer representation agencies and finance ministries) and public accountability in order to guarantee high- quality accounting standards; (b) and identify the actions undertaken within IFRS in order to enhance democratic legitimacy, transparency, accountability and integrity which, inter alia, are related to public access to documents, open dialogue with diverse stakeholders, the establishment of mandatory transparency registers and rules on transparency of lobby meetings as well as internal rules, in particular the prevention of conflicts of interest.'
Amendment 19 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 a – point b (new) Regulation (EU) No 258/2014 Article 9 – paragraph 5 (2a) Article 9 is amended as follows: (b) paragraph 5 is replaced by the following: '5. With regard to PIOB or its
Amendment 2 #
Proposal for a regulation Recital 1 (1) On the basis of Regulation (EU) No 258/2014 of the European Parliament and of the Council8, the International Financial Reporting Standards Foundation (the IFRS Foundation), which is the legal successor to the International Accounting Standards Committee Foundation (IASCF), and the Public Interest Oversight Board (PIOB) benefit from Union co-financing in the form of operating grants until 31 December 2020, in order to achieve financial stability through the International Financial Reporting Standards and International Accounting Standards.
Amendment 20 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 – a point a (new) Regulation (EU) No 258/2014 Article 9 – paragraph 6 – subparagraph 2 (2a) Article 9 is amended as follows: (a) in paragraph 6, the second subparagraph is replaced by the following: 'If appropriate, the Commission shall submit a legislative proposal to
Amendment 21 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 a – point c (new) Regulation (EU) No 258/2014 Article 9 – paragraph 6 a (new) (2a) Article 9 is amended as follows: (c) the following paragraph is inserted:: '6a. With regard to EFRAG, the report referred to in paragraph 3 shall assess: (a) whether the 'expanded public good' criterion as defined in the special advisor’s report (i.e. that accounting standards should neither jeopardise financial stability in the Union nor hinder the economic development of the Union), has been fully respected during the endorsement process undertaken during the previous year; (b) whether the European Parliament and the Council have been involved at an early stage when developing financial reporting standards in general and in the endorsement process in particular; (c) whether a more diversified and balanced financing structure, including on the basis of fees and public sources has been achieved and whether formal steps have been undertaken in order to encourage Member States that do not already have a National Funding Mechanism to establish one; and (d) identify the actions undertaken within EFRAG in order to enhance democratic legitimacy, transparency, accountability and integrity which, inter alia, concern public access to documents, open dialogue with diverse stakeholders, the establishment of mandatory transparency registers and rules on transparency of lobby meetings as well as internal rules, in particular prevention of conflict of interests.'
Amendment 22 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 a – point b (new) Regulation (EU) No 258/2014 Article 9 – paragraph 7 (2a) Article 9 is amended as follows: (b) paragraph 7 is replaced by the following: '7. The Commission shall transmit, for approval, the report referred to in paragraph 3 to the European Parliament and to the Council no later than 30 June each year.'
Amendment 23 #
Proposal for a regulation Article 1 – paragraph 1 – point 2 a – point d (new) Regulation (EU) 258/2014 Article 9 – paragraph 9 a (new) Amendment 3 #
Proposal for a regulation Recital 2 (2) The European Financial Reporting Advisory Group (EFRAG), on the basis of Regulation (EU) No 258/2014, benefits
Amendment 4 #
Proposal for a regulation Recital 3 (3) On 12 November 2013, the Commission published the report of Philippe Maystadt, special advisor to the Commissioner responsible for internal market and services (the ‘special advisor’s report’), in which he outlined potential reforms to EFRAG governance aimed at reinforcing the Union’s contribution to the development of international accounting standards, in a bid to improve the international comparability and transparency of financial reporting on the situation of economic entities.
Amendment 5 #
Proposal for a regulation Recital 4 (4) The Commission closely monitored the implementation of the reform of EFRAG governance and informed duly the European Parliament and the Council of the progress in its implementation.
Amendment 6 #
Proposal for a regulation Recital 4 (4) The Commission closely monitored the implementation of the reform of EFRAG governance and informed duly the European Parliament and the Council of the progress in its implementation.
Amendment 7 #
Proposal for a regulation Recital 4 a (new) (4a) Account should be taken of the under-representation of public as opposed to private interests in the various EFRAG executive bodies, something that should be remedied under its new administration.
Amendment 8 #
Proposal for a regulation Recital 4 a (new) (4a) Article 9(3) of Regulation (EU) No 258/2014 requires the Commission to prepare an annual report on the activity of the IFRS Foundation as regards the development of IFRS, of PIOB and of EFRAG. Such annual report should also refer to the follow-up and implementation of the recommendations and demands made in the European Parliament's resolution of 7 June 2016 on International Accounting Standards (IAS) evaluation and the activities of the IFRS Foundation, EFRAG and PIOB, as well as recommendations and demands made in future resolutions of the European Parliament. As beneficiaries of funding awarded under the Union Programme, the IFRS Foundation, PIOB and EFRAG shall report annually on the implementation of Union policies in the field of financial reporting and auditing, in particular by referring to the follow-up and implementation of the recommendations and demands made in past or future resolutions of the European Parliament. In addition, the IFRS Foundation, PIOB and EFRAG are encouraged to participate regularly, at least annually, in hearings organised by the European Parliament in order to provide a full account on the development of international financial reporting and auditing standards.
Amendment 9 #
Proposal for a regulation Recital 4 b (new) (4b) The European Commission should submit a proposal to convert the EFRAG into a public agency, as called for by the European Parliament.
source: 589.120
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