Procedure : 2016/0110(COD)
Document stages in plenary
Document selected : A8-0291/2016

Texts tabled :

A8-0291/2016

Debates :

Votes :

PV 27/04/2017 - 5.10

Texts adopted :


REPORT     ***I
PDF 621kWORD 62k
14 October 2016
PE 585.761v02-00 A8-0291/2016

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 258/2014 establishing a Union Programme to support specific activities in the field of financial reporting and auditing for the period of 2014-20

(COM(2016)0202 – C8-0145/2016 – 2016/0110(COD))

Committee on Economic and Monetary Affairs

Rapporteur: Theodor Dumitru Stolojan

AMENDMENTS
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 PROCEDURE – COMMITTEE RESPONSIBLE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 258/2014 establishing a Union Programme to support specific activities in the field of financial reporting and auditing for the period of 2014-2020

(COM(2016)0202 – C8-0145/2016 – 2016/0110(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0202),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0145/2016),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 25 May 2016(1)

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0291/2016),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment    1

AMENDMENTS BY THE EUROPEAN PARLIAMENT(2)*

to the Commission proposal

---------------------------------------------------------

2016/0110 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Regulation (EU) No 258/2014 establishing a Union Programme to support specific activities in the field of financial reporting and auditing for the period of 2014-2020

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee(3),

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)  On the basis of Regulation (EU) No 258/2014 of the European Parliament and of the Council(4), the International Financial Reporting Standards Foundation (the IFRS Foundation), which is the legal successor to the International Accounting Standards Committee Foundation (IASCF), and the Public Interest Oversight Board (PIOB) benefit from Union co-financing in the form of operating grants until 31 December 2020.

(2)  The European Financial Reporting Advisory Group (EFRAG), on the basis of Regulation (EU) No 258/2014, benefits from Union co-financing in the form of operating grants until 31 December 2016.

(3)  On 12 November 2013, the Commission published the report of Philippe Maystadt, special advisor to the Commissioner responsible for internal market and services (the ‘special advisor’s report’), in which he outlined potential reforms to EFRAG governance aimed at reinforcing the Union’s contribution to the development of international accounting standards.

(4)  The Commission closely monitored the implementation of the reform of EFRAG governance and informed duly the European Parliament and the Council of the progress in its implementation. ▌

(4a)  Account should be taken of the under-representation of public as opposed to private interests in the various EFRAG executive bodies, something that should be remedied under its new administration.

(4b)  Article 9(3) of Regulation (EU) No 258/2014 requires the Commission to prepare an annual report on the activity of the IFRS Foundation as regards the development of IFRS, of PIOB and of EFRAG. That annual report should also refer to the follow-up and implementation of the recommendations and demands made in the European Parliament's resolution of 7 June 2016 on International Accounting Standards (IAS) evaluation and the activities of the IFRS Foundation, EFRAG and PIOB, as well as recommendations and demands made in future resolutions of the European Parliament. As beneficiaries of funding awarded under the Union Programme, the IFRS Foundation, PIOB and EFRAG should report annually on the implementation of Union policies in the field of financial reporting and auditing, in particular by referring to the follow-up and implementation of the recommendations and demands made in past or future resolutions of the European Parliament. In addition, the IFRS Foundation, PIOB and EFRAG are encouraged to participate regularly, at least annually, in hearings organised by the European Parliament in order to provide a full account on the development of international financial reporting and auditing standards.

(4c)  The European Commission should provide the European Parliament and the Council with more regular information on the joint work of the IFRS Foundation, the EFRAG and the PIOB, given that those three agencies are funded by the Union and are working for the same purpose.

(5)  Regulation (EU) No 258/2014 should therefore be amended accordingly.

(5a)  EFRAG's field of activity is currently limited to that which is described in the special advisor's report and, considering the multiple additional tasks and responsibilities that have been attributed to EFRAG in the European Parliament's resolution of 7 June 2016, EFRAG should ensure that those additional tasks and responsibilities are actively monitored and reported upon.

(6)  Since the objective of this Regulation, namely increasing the budget of a Union programme for the period 2017 to 2020 in order to support the activities of EFRAG, which contribute to the achievement of the policy objectives of the Union in relation to financial reporting, cannot be sufficiently achieved by the Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation (EU) No 258/2014 is amended as follows:

(1) in Article 3(1)(a), point (i) is replaced by the following:

"(i) EFRAG;";

(2) Article 6 is amended as follows:

(a) paragraph 1 is replaced by the following:

"1. The financial envelope for the implementation of the Programme for the period 2014 to 2020 shall be EUR 57 007 000 in current prices.";

(b) in paragraph 3, point (a) is replaced by the following:

"(a) for EFRAG: EUR 23 134 000;".

(2a) Article 9 is amended as follows:

(a) the following paragraph is inserted:

"4a. With regard to the IFRS Foundation, the report referred to in paragraph 3 shall also assess whether further progress has been made as regards the governance of the IFRS Foundation and the IASB, in particular in terms of transparency, prevention of conflicts of interest and diversity of hired experts, and whether and what steps have been taken to ensure broad representation of interests (such as consumer representation agencies and finance ministries) and public accountability in order to guarantee high-quality accounting standards. In addition, it shall identify and assess the actions undertaken within IFRS in order to enhance democratic legitimacy, transparency, accountability and integrity which, inter alia, are related to public access to documents, open dialogue with diverse stakeholders, the establishment of mandatory transparency registers and rules on transparency of lobby meetings as well as internal rules, in particular the prevention of conflicts of interest."

(b) paragraph 5 is replaced by the following:

"5. With regard to PIOB or its successor organisation, the report referred to in paragraph 3 shall cover developments in the diversification of funding and it shall assess the efforts undertaken to ensure integrity in the auditing profession. If funding by the IFAC in a given year reaches more than two-thirds of the total annual PIOB funding, the Commission shall propose to limit its annual contribution for that year to a maximum of EUR 300 000."

(c) in paragraph 6, the second subparagraph is replaced by the following:

"If appropriate, the Commission shall submit a legislative proposal to transform EFRAG into a public agency in the long term;"

(d) the following paragraph is inserted::

"6a.  With regard to EFRAG, the report referred to in paragraph 3 shall assess whether: (a) the 'expanded public good' criterion as defined in the special advisor’s report (i.e. that accounting standards should neither jeopardise financial stability in the Union nor hinder the economic development of the Union), has been fully respected during the endorsement process undertaken during the previous year;

(b) the European Parliament and the Council have been involved at an early stage when developing financial reporting standards in general and in the endorsement process in particular; and

(c) a more diversified and balanced financing structure, including on the basis of fees and public sources has been achieved and whether formal steps have been undertaken in order to encourage Member States that do not already have a National Funding Mechanism to establish one; and

In addition, it shall identify and assess the actions undertaken within EFRAG in order to enhance democratic legitimacy, transparency, accountability and integrity which, inter alia, concern public access to documents, open dialogue with diverse stakeholders, the establishment of mandatory transparency registers and rules on transparency of lobby meetings as well as internal rules, in particular prevention of conflict of interests."

(e) the following paragraph is added:

"9a. From 2017, the IFRS Foundation, PIOB and EFRAG shall prepare an annual report on the implementation of Union policies in the field of financial reporting and auditing and participate regularly, at least annually, in hearings organised by the European Parliament in order to give a full account of the development of international financial reporting and auditing standards.

The report shall cover:

(a) follow-up and implementation of the recommendations and demands made in past or future resolutions of the European Parliament;

(b) whether further progress has been made as regards governance, in particular in terms of transparency, and what steps have been taken to ensure broad representation of interests and public accountability; and

(c) the identification of actions undertaken in order to enhance democratic legitimacy, transparency, accountability and integrity which, inter alia, concern public access to documents, transparency of lobby meetings as well as the prevention of conflicts of interest."

Article 2

– Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2017.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament  For the Council

The President  The President

(1)

OJ C 303, 19.8.2016, p. 147

(2)

* Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.

(3)

  OJ C , , p. .

(4)

  Regulation (EU) No 258/2014 of the European Parliament and of the Council of 3 April 2014 establishing a Union Programme to support specific activities in the field of financial reporting and auditing for the period of 2014-20 and repealing Decision No 716/2009/EC (OJ L 105, 8.4.2014, p. 1).


PROCEDURE – COMMITTEE RESPONSIBLE

Title

Establishing a Union Programme to support specific activities in the field of financial reporting and auditing for the period of 2014-20

References

COM(2016)0202 – C8-0145/2016 – 2016/0110(COD)

Date submitted to Parliament

13.4.2016

 

 

 

Committee responsible

       Date announced in plenary

ECON

28.4.2016

 

 

 

Committees asked for opinions

       Date announced in plenary

BUDG

28.4.2016

CONT

28.4.2016

JURI

28.4.2016

 

Not delivering opinions

       Date of decision

BUDG

25.4.2016

CONT

21.6.2016

JURI

24.5.2016

 

Rapporteurs

       Date appointed

Theodor Dumitru Stolojan

12.5.2016

 

 

 

Discussed in committee

31.8.2016

10.10.2016

 

 

Date adopted

11.10.2016

 

 

 

Result of final vote

+:

–:

0:

49

2

7

Members present for the final vote

Gerolf Annemans, Pervenche Berès, Udo Bullmann, Esther de Lange, Fabio De Masi, Anneliese Dodds, Markus Ferber, Jonás Fernández, Sven Giegold, Neena Gill, Roberto Gualtieri, Brian Hayes, Gunnar Hökmark, Danuta Maria Hübner, Cătălin Sorin Ivan, Petr Ježek, Barbara Kappel, Georgios Kyrtsos, Alain Lamassoure, Philippe Lamberts, Werner Langen, Bernd Lucke, Olle Ludvigsson, Ivana Maletić, Fulvio Martusciello, Marisa Matias, Costas Mavrides, Bernard Monot, Luděk Niedermayer, Stanisław Ożóg, Dimitrios Papadimoulis, Sirpa Pietikäinen, Pirkko Ruohonen-Lerner, Alfred Sant, Molly Scott Cato, Pedro Silva Pereira, Theodor Dumitru Stolojan, Kay Swinburne, Michael Theurer, Ramon Tremosa i Balcells, Ernest Urtasun, Marco Valli, Tom Vandenkendelaere, Cora van Nieuwenhuizen, Miguel Viegas, Beatrix von Storch, Jakob von Weizsäcker, Pablo Zalba Bidegain, Sotirios Zarianopoulos

Substitutes present for the final vote

Alain Cadec, Ashley Fox, Sophia in ‘t Veld, Thomas Mann, Emmanuel Maurel, Siôn Simon, Joachim Starbatty, Tibor Szanyi, Romana Tomc

Date tabled

14.10.2016

Last updated: 21 April 2017Legal notice