FEE CEO Olivier Boutellis-Taft nominated for the second year in the list of 50 most influential people in accounting

The 'International Accounting Bulletin' and its sister title 'The Accountant' have issued the 2014 list of the 50 most powerful people in the profession, the only truly global ranking of the most influential people in the accounting profession. For the second year in a row, FEE CEO Olivier Boutellis-Taft has been selected by the profession and an expert judging panel from around the world.

%26quot;I feel deeply honoured by this reward but it first goes to the FEE team, the Board and all the volunteers of our Members working hard on our many projects. FEE strives to provide innovative and forward looking thinking and be at the forefront in developing the profession of the 21st century. I am glad that these efforts now get a fair recognition.

At a time where Europe still faces a very uncertain economic outlook, record-high unemployment and social unrest, shaky public finances and environmental challenges, I do believe the accountancy profession can really make a great contribution to the public interest.

All sections of the profession, whether in small or larger accountancy firms, in business or in the public sector, should also join forces across Europe to develop a shared vision of the long term collective interest of the profession. We can only gain from challenging everything we do and how we do it%26quot;, commented Olivier Boutellis-Taft.%26nbsp;

EU Audit Reform close to final

Further to the preliminary agreement of the European Commission, the European Parliament and EU Member States in the trilogue in December 2013 (see FEE press release)%26nbsp;the European Parliament%26rsquo;s Legal Affairs Committee (JURI) has in January 2014 endorsed the compromise texts of the proposed Statutory Audit Directive%26nbsp;and%26nbsp;Regulation.%26nbsp;%26nbsp;Next steps will be the vote in a plenary session of the European Parliament (maybe in April 2014) and the formal approval of the Council of the EU. Subsequently, these documents will become European legislation with their respective implementation process and period.%26nbsp;See press release%26nbsp;FEE will launch a number of projects in relation to this policy development to inform its Members further.

FRC seeks improvements in auditors%26rsquo; identification of and response to fraud risks

The Financial Reporting Council (FRC, UK) has published the report of its Audit Quality Thematic Review into auditors%26rsquo; identification of and response to fraud risks, and their consideration of compliance with laws and regulations by audited entities. The report highlights a number of areas where auditors should improve the quality and effectiveness of their audit procedures and provides an overview of areas of good practice identified at one or more audit firms. more...

Disclosure of non-financial and diversity information

The proposed Directive regarding disclosure of non-financial and diversity information by certain large companies and groups would oblige large companies (over 500 employees) to disclose information on their environmental, social and employee-related impact. The draft report adopted by the European Parliament%26rsquo;s Committee on Legal Affairs (JURI) introduces a number of amendments.%26nbsp;One of the amendments would oblige the European Commission (when reviewing the Directive in 2018) to consider introducing an obligation for large companies to disclose country-by-county information on profits, taxes and subsidies received where they operate.The committee gave rapporteur Raffaele Baldassarre a mandate to start negotiations with the Council. See press release%26nbsp;The vote in the European Parliament%26rsquo;s plenary session is foreseen for 15 April 2014.

Public consultation on the future governance of the IPSASB

The International Public Sector Accounting Standards Board (IPSASB) has developed a comprehensive suite of International Public Sector Accounting Standards (IPSAS). However, adoption of IPSASs by national governments remains low. Concerns about the governance and oversight of the IPSASB are some of the reasons cited by national authorities for not adopting IPSASs. The IPSASB Governance Review Group composed of World Bank, International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), Financial Stability Board (FSB), International Organisation of Securities Commissions (IOSCO) and International Organisation of Supreme Audit Institutions (INTOSAI) has issued a consultation on the future governance of the IPSASB. Deadline: 30 April 2014 more...%26nbsp;FEE will contribute.

Review of IFRS in the EU

The European Commission awarded a contract for a study to take stock of and to assess the effects of using International Financial Reporting Standards (IFRS) in the EU to Mazars in consortium with the Institute of Chartered Accountants in England and Wales (ICAEW). more...

OECD consults on transfer pricing documentation and country-by-country reporting

Action 13 of the OECD%26rsquo;s Action Plan on Base Erosion and Profit Shifting (BEPS) calls for a review of the existing transfer pricing documentation rules and the development of a template for country-by-country reporting of income, taxes and economic activity for tax administrations. The OECD has released an initial draft of revised guidance on these subjects for comment by 23 February 2014. An open discussion of the draft with all interested persons will take place at a future date to be determined in April or May. more...

Revision of Parent-Subsidiary Directive

The proposed revised Parent-Subsidiary Directive is in the legislative process. The European Parliament%26rsquo;s Committee on Economic and Monetary Affair (ECON) has published its draft report FEE is monitoring the process and will comment where appropriate.The vote in the ECON committee is scheduled on 18 March 2014. The indicative plenary sitting date in the European Parliament is 16 April 2014.

EC consults on VAT in the public sector - deadline extended%26nbsp;

The European Commission has extended the deadline regarding its public consultation on the review and possible revision of the VAT rules of the public sector including the special rules for public bodies and the tax exemptions in the public interest. New deadline: 25 April 2014. FEE will contribute. more...

Proposal for a uniform EU VAT return on the way

The European Commission%26rsquo;s proposal for a standard VAT return is in the legislative process. The standard VAT return would replace national VAT returns, requiring businesses to provide the same basic information with the same deadlines regardless of their location within the European Union. The European Parliament%26rsquo;s Committee on Economic and Monetary Affair (ECON) has proposed some amendments. The vote in the plenary session is scheduled on 25 February 2014. FEE is analysing the proposal and will comment.

EU VAT Forum: Cross border VAT Rulings test case extended

Within the framework of the EU VAT Forum, of which FEE is a member, 13 EU Member States had agreed to participate in a test case for private VAT ruling requests relating to cross-border situations. This pilot project has now been extended for another year and opened to other Member States than the ones already participating. A mid-term review of the experiment will be made in June 2014. If the results are positive, the Commission may recommend to further develop this practice. more...

EC to tackle tax discrimination against mobile EU citizens

The right to live and work anywhere in the EU is both a fundamental right for European citizens and a key instrument for developing a Europe-wide job market. Throughout 2014, the European Commission will carry out a thorough assessment of Member States' tax regimes to determine whether they create disadvantages for mobile EU citizens. more...%26nbsp;

Professional Qualifications Directive published

The modernised Professional Qualifications Directive adopted in November 2013 has been published and will need to be transposed into national law by 18 January 2016. The main features of the directive include the creation of a European professional card, partial access to certain professions and the recognition of traineeships.%26nbsp;FEE had contributed to the whole process. more...

Global Accounting Standards-From Vision to Reality: An article by Paul Pacter

Former International Accounting Standards Board (IASB) member Paul Pacter reports in the January 2014 issue of the US CPA Journal that a detailed study of the adoption of IFRS%26nbsp;in 122 jurisdictions provides solid evidence that IFRS has already become the de facto global language for financial reporting. Read the full article

IFRS Foundation invites for nominations for the SME Implementation Group

The Trustees of the IFRS Foundation invite nominations of suitable candidates for membership of the SME Implementation Group (SMEIG). The mission of the SMEIG is to support the international adoption of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) and to monitor its implementation. Nominations and applications are welcomed by 28 February 2014. more...

2015 Nominations for the IFAC Board and Committees and for IFAC Independent Standard-Setting Boards

IFAC calls for nominations for the IFAC Board and Committees in 2015. more...In addition, IFAC calls for nominations for the Independent Standard-Setting Boards in 2015 with the opportunity for membership on the International Auditing and Assurance Standards Board (IAASB), International Accounting Education Standards Board (IAESB), International Ethics Standards Board for Accountants (IESBA) and International Public Sector Accounting Standards Board (IPSASB). more... Nominations can be submitted online from 15 January to 15 March 2014.

IFAC issues revised International Education Standards (IESs) 2, 3 and 4

IFAC has issued three revised International Education Standards (IESs): IES 2, %26lsquo;Initial Professional Development-Technical Competence%26rsquo;, IES 3, %26lsquo;Initial Professional Development-Professional Skills%26rsquo; and IES 4, %26lsquo;Initial Professional Development-Professional Values, Ethics, and Attitudes%26rsquo;. All three standards will become effective from 1 July 2015.%26nbsp;FEE had contributed to all of them. more...

Understanding the new Integrated Reporting Framework

In December of 2013, the International Integrated Reporting Council (IIRC) met in London to finalise a new Integrated Reporting Framework, which will guide the way companies satisfy the growing demands of investors for information about performance beyond the bottom line. (Source: INTHEBLACK) Read the full article

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The new FEE Board met on 21 January 2014 to discuss the next steps in developing a FEE strategy for the future. They exchanged views on the corporate reporting policy debate including the EFRAG review and continued to debate the way forward in audit policy matters. A number of comment letters have been approved which are featured under FEE Publications.

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On 20 January 2014, FEE organised the annual FEE Working Party Chairs%26rsquo; Day, featuring a debate on the future of priority areas (corporate reporting, audit, tax, public sector) and facilitating discussions on the future of other areas.

FEE CEO Olivier Boutellis-Taft actively participated in several meetings on the future of EFRAG.%26nbsp;

FEE President Andr%26eacute; Kilesse spoke at the CSOEC (Conseil sup%26eacute;rieur de l'Ordre des experts-comptables) on 29 January 2014 in Paris. He briefed attendees on the current situation of the accountancy profession in Europe.

The following FEE Working Parties held meetings or conference calls in January to proceed with their projects, their major agenda items debated are highlighted below:

• Corporate Reporting Policy Group: EFRAG and ARC Governance Review by Philippe Maystad, ECB Comprehensive Assessment of large EU banks

• Task Force on the EFRAG Review: Way forward of the Maystadt recommendations

• Task Force on the Corporate Reporting of the Future: Discussion Paper on the Future of Corporate Reporting

• Professional Ethics and Competences: Proposed IESBA Strategy and Work Plan 2014-2018

• Public Sector: International Public Sector Accounting Standards (IPSAS) Exposure Drafts

• SMP Forum: Access to finance for SMEs, transfer of business, IFRS for SMEs, VAT, sustainability services

• Tax: Tax good governance, in particular country-by-country-reporting, general anti abuse rule, tax havens

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