Standing for trust and integrity

Perspectives of the European Accountancy

Profession

Olivier Boutellis-TaftFEE Chief Executive

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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

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About FEE

43 professional institutes of accountants 32 European countries, including all 27 EU

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Representing the profession

Combined membership of more than 500,000 professional accountantsIn public practice, business,

government, and educationAll contributing to a more efficient,

transparent, and sustainable European economy

Recognising the public interest

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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

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Advancing members’ activities

Company Law Corporate

Governance

Ethics

Auditing

Accounting

Insurance

Banks

Financial Reporting

Sustainability

Qualification and Market

Access

SMEs-SMPs

Public Sector Taxation And more…

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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

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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

transpositionsMany 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

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Auditing (2)

More work to do on:International cooperation on public

oversightLimiting 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

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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

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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

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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?

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Beyond accounting and auditing

Internal Market

Recognition of professional qualifications

Taxation

C3TB

ECJ case law

SustainabilityTrends in non financial reporting

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FEE Policy Statements 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

Auditing and 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

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Role of National Professional Bodies

National Institutes/Chambers play a key role to Support their members and advise public

authoritiesStrive for equally high standards in all

Member States • Regulation and Oversight dot not replace

professionalism and ethics

Invest in educationEnsure representativity and relevance of

International Bodies such as IFAC or FEE that rely on strong local Institutes/Chambers

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