Slide 1 ROAD TO EUROPE – PROGRAM OF ACCOUNTING REPORTING AND INSTITUTIONAL STRENGTHENING How can the European Federation of Accountants (FEE) Assist ? Henri Olivier Secretary General

Slide 2 Content 1.Background information on FEE  History  Working methods  Work programme 2.Action plan on Eastern and Central Europe ( ) 3.Role towards new countries

Slide 3 FEE Background Information – Creation of UEC (Union Européenne des Experts Comptables Economiques et Financiers – Creation of the Groupe d’Etudes des Experts Comptables des Communautés Européennes – Creation of IFAC – Merger of UEC and the Groupe d’Etudes

Slide 4 FEE Background Information  Objective of the merger:  To enhance FEE role towards EU Institutions  To organise a central location of activities in Brussels  To avoid duplication of work with other standard setters (IFAC – IASB)

Slide 5 FEE Background Information  Condition to be a member  Accountancy body  Originated from a European country  Adequate professional standards for the members  Recognised by law or general consensus as being good standing  Not a governmental body

Slide 6 FEE Background Information  General Assembly: meets every two years  Council  Determines FEE policies and work programme  Meets quarterly  Decides on governance issues  Executive  Prepares and implements Council’s decisions  Approves most comment letters to standard setters  Meets monthly

Slide 7 FEE Background Information  Work programme – priorities  Follow up EU regulatory work: present views of the accountancy profession  Comment from an EU perspective to global standard setters (participation in CAG – comment on exposure drafts)  Develop FEE position on specific topics of importance (ex. Internal control, education of auditors, corporate governance, taxation)

Slide 8 FEE Background Information  Areas of work:  Ethics  Qualification/Free movement  Financial reporting  Auditing  Company law and corporate governance/capital markets  SME  Taxation  Sustainability  Public sector

Slide 9 FEE Background Information  Financial Reporting  FEE role in the establishment of EFRAG  Commenting on exposure drafts to EFRAG/IASB  Financial reporting of banks  Financial reporting of insurance companies and pension funds  IAS for SMEs

Slide 10 Action Plan Central and Eastern Europe ( )  Objectives  Support transition to a market economy  Help developing a highly competent accountancy profession  Consider admission to FEE membership  Dates  1992: FEE constitutional arrangements  1994: Conclusion of the first cooperation agreements  1998: First admissions as correspondent members  2004: All EU Member States and candidates are represented in FEE

Slide 11 Action Plan Central and Eastern Europe  Constitutional issues  Relationship between the profession and the governments  Level of qualifications  Scope of the profession  Establishment of a procedure for examining applications

Slide 12 Action Plan Central and Eastern Europe  Instruments  Cooperation with the European Commission  Coordinating Member Bodies  Seminars in Brussels  Opening access to FEE documents

Slide 13 Action Plan Central and Eastern Europe  Conclusion:  Exchange of experiences very positive for economies in transition  New countries were mainly interested in FEE work because this is part of their internal regulatory process  Enlargement of FEE was the final result

Slide 14 How Can FEE Assist ?  Two aspects:  Development of the profession in a global environment  EU regulatory activity and its indirect effects on countries where the EU regulatory framework can serve as a model

Slide 15 Development of the Profession  FEE is not a standard setter  FEE is not directly involved in education programmes  FEE promotes global standards in financial reporting and auditing, making its best efforts to ensure that EU interests are properly considered  FEE emphasises the importance of smaller businesses and smaller accounting firms which are especially relevant to our countries

Slide 16 Development of the Profession  FEE promotes new ideas and makes its research papers available to third parties without charges. Examples:  Concept of assurance  Threat and safeguard approach to the independence of the auditor  Research papers on sustainability reporting  FEE represents Europe in the Consultative Advisory Group of the IFAC Ethics Committee, Education Committee and IAASB

Slide 17 EU Regulatory Activities  The main responsibility of FEE is to monitor, through its specialised Working Parties, the regulatory initiatives of the European Commission and other EU regulatory bodies and to present the views of the profession on all issues relevant to our professional activities  Most of FEE work is devoted to EU regulatory developments, in particular in the areas of financial reporting, auditing, capital markets, company law and corporate governance, recognition of qualifications

Slide 18 EU Regulatory Activities  FEE is a long-time defender of global standards in Europe but wants to improve the influence of Europe in the global standard setting process.  The EU is reshaping its auditing framework. A new Directive on Statutory Audit will soon be approved. The accountancy profession has a role to play. FEE is the right body to do it.

Slide 19 EU Regulatory Activities  FEE decided to host an annual event to inform Institutes in smaller EU Member States and other interested countries on current EU regulatory developments  FEE can act as a facilitator in the identification of experts and speakers able to take part in developments projects or education programmes

Slide 20 Conclusions  The purpose of FEE is to deal with regulatory activities within the EU  FEE also represents the EU accountancy profession internationally  FEE has a role to play in informing accountancy bodies within and outside the EU on regulatory developments  FEE is ready to consider any request for support and will help identifying the best solution with its Member Bodies