Evaluation of the IAS Regulation
The European Commission is assessing the impact of IFRS within the EU against its original aims.
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
- The Commission has launched a consultation to review the current Macro-prudential arrangements, with the goal of delivering a more useable framework within the EU (Daily News 01/08/2016)
- 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.
- On 27 June 2016 the Accounting Regulatory Committee gave a positive opinion by consensus on a Commission Regulation endorsing a new international accounting standard, IFRS 9 Financial Instruments in the EU. The standard 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 draft Regulation will now be submitted to the European Parliament and the Council for a three month scrutiny period. In the absence of objections from co-legislators, the regulation will be adopted in October this year. 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.