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Perspectives of the European Accountancy Profession

Perspectives of the European Accountancy Profession. Olivier Boutellis-Taft FEE Chief Executive. Contents. About FEE Policy update & challenges Auditing and assurance services Ethics and independence Financial reporting Beyond financial reporting and auditing

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Perspectives of the European Accountancy Profession

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  1. Perspectives of the European Accountancy Profession Olivier Boutellis-Taft FEE Chief Executive

  2. Contents • 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

  3. About FEE • 43 professional institutes of accountants • 32 European countries, including all 27 EU

  4. 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

  5. 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

  6. Advancing members’ activities Auditing Sustainability Financial Reporting Qualification and Market Access Ethics Accounting Company Law Corporate Governance SMEs-SMPs Insurance Taxation Banks Public Sector And more…

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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?

  13. Beyond accounting and auditing Trends in non financial reporting • Internal Market • Recognition of professional qualifications • Taxation • C3TB • ECJ case law • Sustainability

  14. 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 Auditingand 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 FEE Policy Statements

  15. 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

  16. Standing for trust and integrity Visit us @ www.fee.be

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