13 Amendments of Sharon BOWLES related to 2012/0364(COD)
Amendment 13 #
Proposal for a regulation
Recital 2
Recital 2
(2) The crisis in the financial markets which has unfolded since 2008 has put the issue of financial reporting and auditing at the centre of the Union's political agenda. A well-functioning common financial reporting framework is essential for the internal market, for the effective functioning of the capital markets and for the realization of the integrated market for financial services in the EU. In light of the preliminary findings from the UK Competition Commission of the Statutory Audit market for FTSE 350 companies on 22 February 2013, auditors, in particular, must ensure they are strictly independent from issuers in order to facilitate the effective functioning of EU capital markets and work on behalf of the shareholder, not issuer management.
Amendment 18 #
Proposal for a regulation
Recital 3
Recital 3
(3) In a global economy, there is a need for a global accounting language. International Financial Reporting Standards (IFRS) developed by the International Accounting Standards Board (IASB) are adopted and used in many jurisdictions around the world. 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. These interests include the maintenance of the 'true and fair view' principle, working towards a standardised definition, and usage, of the 'going concern' of a company for both preparers of accounts and auditors and, in light of the European Council conclusions on 22 May 2013, country-by-country reporting for all large companies.
Amendment 21 #
Proposal for a regulation
Recital 4
Recital 4
(4) According to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, IFRS should only be incorporated into Union law to be applied by companies with securities listed on a regulated market in the Union, provided that the IFRS meet the criteria set out in that regulation and the requirements of the fourth Council Directive 78/660/EEC of 25 July 1978 and the seventh Council Directive 83-3497EEC of 13 June 1983. IFRS therefore play a major role in the functioning of the internal market and thus the Union has a direct interest in ensuring that the process through which IFRS are developed and approved delivers standards that are consistent with the requirements of the legal framework of the internal market. It should be noted that the IAS Regulation 2002 uses the conceptual framework from 2001 which has now been changed in several significant manners, particularly around the word 'prudence', which includes not booking unrealised profits, and stewardship, which includes the capital maintenance function of accounts.
Amendment 33 #
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. Any body receiving Union funds should ensure the economical use of public money at all times.
Amendment 38 #
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. Given that the convergence project with the US has stalled, it would be appropriate for the IASB to reassess the role and presence of representatives of the Financial Accounting Standards Board (FASB) on the IASB.
Amendment 42 #
Proposal for a regulation
Recital 16
Recital 16
(16) This Regulation should provide for the possibility of co-financing activities of certain bodies pursuing an objective forming part of and supporting the Union policy in the field of designing standards, endorsing standards or supervising standard-setting processes related to financial reporting and auditing. This financing should only be given to the bodies in question if it is clear that European accounting concepts, in particular around prudence and the requirement for a true and fair view, are embedded at the core of their conceptual frameworks or structures.
Amendment 46 #
Proposal for a regulation
Recital 20 a (new)
Recital 20 a (new)
(20a) A review must be carried out within six months of the adoption of this Regulation to identify whether or not existing IFRSs and in particular the IASB's conceptual framework fulfil the requirements of Union company law. In this review, the Commission should explore the possibility of introducing tougher liability standards for directors and auditors and also to introduce a legally binding true and fair override, that if the accounts prepared in accordance with IFRS do not give a true and fair view, the accounts cannot be signed off. The review must also ensure existing governance arrangements in EFRAG and IASB are overhauled to ensure all private sector interests and commitments are made fully public.
Amendment 51 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The Programme covers the activities of developing or providing input to the development of standards, applying, assessing or monitoring standards or overseeing standard-setting processes in support of the implementation of Union policies in the field of financial reporting and auditing. Priority shall be given to 'true and fair view', to country-by-country reporting and a standardised definition, and usage, of 'going concern'.
Amendment 52 #
Proposal for a regulation
Article 1 – paragraph 2 a (new)
Article 1 – paragraph 2 a (new)
2a. Bodies working in the field of accounting and auditing which receive Union funding through this Programme shall have a duty of care in ensuring their independence and the economical use of public money, irrespective of the diverse funding streams they may receive.
Amendment 54 #
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, the ability for regulators to enforce prudential regulation and to strengthen corporate governance by supporting transparent and independent development of international financial reporting and auditing standards.
Amendment 57 #
Proposal for a regulation
Article 2 – paragraph 2
Article 2 – paragraph 2
2. This objective will be measured in particular through the number of countries using International Financial Reporting Standards (IFRS) and, International Standards on Auditing (ISA) and the level of divergence from Union policy.
Amendment 58 #
Proposal for a regulation
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. EFRAG shall play a primary role as a standard setter for the EU and supplement, modify or replace IFRS standards in line with priority Union policies.
Amendment 71 #
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
Travel and related expenses shall also be published. Reimbursement using Union funds shall only permit business class air travel for journeys over four hours.