Presentation on theme: "European Perspective on the integration of accounting Federico Diomeda – EFAA CEO SKwP Conference The Role of Accounting in EU integration Warsaw 29 November."— Presentation transcript:
European Perspective on the integration of accounting Federico Diomeda – EFAA CEO SKwP Conference The Role of Accounting in EU integration Warsaw 29 November 2011 European Federation of Accountants & Auditors for SMEs
14 Members throughout Europe Members of the members: SMPs for SMEs Precise focus on SMPs/SME issues All inclusive and accessible structure made up of SMPs Represent SMPs for SMEs worldwide interests (legislators, standard-setters and stakeholders) Promote the SMP for SME profile as a tool for business development
Accounting in Europe Short historical background Update on recent accounting initiatives EFAA vision
From Genesis to Revolution and key questions Current legislative position in Europe Why accounting developments? Are developments too many to manage safely? Why is “simplification” a potential bias for good reforms?
Accounting in Europe after the IASB IFRS for SMEs publication Sceptical appreciation of IFRS for SMEs in many countries Call for the Directives still encompassing Member State limited options to improve harmonisation Discussion on fundamental principles for good accounting Effects of “simplification” still impacting on the reform process
The Commission’s ideas about a new Directive on accounting and the Micro Entities proposal Slight change in focus in the preambles Splitting the Companies by size and leaving the Micros under a special regime under autonomous definition Revised fundamental principles with introduction of materiality and “substance over form” Bottom up approach for disclosure (small – medium – large) Abridged accounts still allowed Limited Member State options to enable harmonisation Absence of a general framework
The EFAA vision and position New proposals and accompanying impact assessment still to be fully studied EFAA position statement May 2011 not conflicting EFAA stress importance of good accounting for stewardship EFAA calling for relevance of information delivered rather than “simplification” EFAA believing that the minimum content of the reports should include a cash flow statement EFAA considers that fair value accounting should be limited to instances where a current market exists
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