Evaluation of the IAS Regulation
The European Commission assessed the impact of IFRS within the EU against its original aims. Read more
Corporate tax transparency by multinational enterprises (all sectors)
On 12 April 2016, the Commission adopted a proposal for a Directive which imposes on EU and non-EU multinational groups the publication of a yearly report on the profit and tax paid and other information. This report will enable citizens to assess the tax strategies and the contribution to welfare by multinationals. Read more
- Commission Regulation (EU) No 2016/2067 of 22 November 2016 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Financial Reporting Standards 9 (Text with EEA relevance).
After a positive opinion by the Accounting Regulatory Committee on 27 June 2016 and after a 3 months scrutiny period by the European Parliament and the Council that ended on 7 October 2016, the Commission has completed the endorsement process of IFRS 9 by the adoption of Commission Regulation (EU) No 1606/2016 of 22 November 2016. IFRS 9 aims to improve the financial reporting of financial instruments by addressing concerns that arose in this area during the financial crisis. In particular, IFRS 9 responds to the G20’s call to move to a more forward-looking model for the recognition of expected losses on financial assets. The new standard will come into effect on 1 January 2018 (with early application permitted) and will replace the currently applicable IAS 39 Financial Instruments: Recognition and Measurement. To address the issue of the misalignment of the application dates of IFRS 9 and the forthcoming insurance contracts standard, IFRS 17, the Commission supports an optional deferral of IFRS 9 for the insurance industry for a limited period of time. On 12 September 2016, the IASB issued amendments to the existing insurance contracts standard, IFRS 4, which will permit pure insurance companies to defer the application date of IFRS 9 from 2018 until 2021. The Commission welcomes the IASB work in this area. It has recently launched the endorsement process for this amendment to IFRS 4 with a request for advice sent out to EFRAG on 13 October 2016. As part of the endorsement process, the Commission will consider whether the IASB solution is satisfactory for the EU, in particular whether there is a need to extend the scope of the IASB's deferral to bancassurers.
- Canada: the Commission adopted a decision on the equivalence of the reporting requirements on payments to governments in the extractive industries (country-by-country reporting) (Decision 2016/1910/EU)
- The EU has endorsed IFRS 15 Revenue from Contracts with Customers (Regulation 2016/1905/EU). The objective of the new standard is to provide companies with clearer principles on how and when they should recognise revenue. The standard’s effective date is 1 January 2018.
- A Regulatory Technical Standard on access to regulated information at Union level has been adopted and published: Regulation 2016/1437/EU
- On 30 June 2016, the Commission nominated Jean-Paul Gauzès, former Member of the European Parliament, as President of the Board of the European Financial Reporting Advisory Group (EFRAG). The nomination of Mr Gauzès was previously endorsed by the European Parliament and the Council. The following day, the General Assembly of EFRAG formally appointed Mr Gauzès for a three-year term.
EFRAG was established in 2001 to provide technical expertise and advice to the European Commission on accounting matters. The appointment of the President of the Board is a major step under the governance reform of EFRAG following recommendations of the Maystadt report with a view to strengthening the European Union's influence in international accounting standard-setting.