WRITTEN QUESTION P-3697/01

by Jean-Maurice Dehousse (PSE) to the Commission

(9 January 2002)

Subject: Accounting technical committee provided for in the proposal for a Regulation on the application of international accounting standards

The proposal for a Regulation on the application of international accounting standards(1), which is currently under discussion, is aimed at ensuring that European companies listed on regulated markets establish their accounts in accordance with international accounting standards by 2005. Recital 8 of the proposal stipulates that an accounting technical committee will provide support and expertise to the Commission in the assessment of international accounting standards. It would appear that the Commission has already given private economic operators responsibility for setting up and managing this committee. The membership fees established by this European Financial Reporting Advisory Group (EFRAG) are such that they are deterring organisations representing some economic sectors from applying for EFRAG membership.

How does the Commission view the introduction of such discrimination on a financial basis?

Will the Commission take action to ensure that admission conditions are no longer discriminatory?

What guarantees can the Commission provide concerning the transparency of EFRAG's work?

(1) OJ C 154 E, 29.5.2001, p. 285.

Answer given by Mr Bolkestein On behalf of the Commission

(1 February 2002)

The European Financial Reporting Advisory Group (EFRAG) is a private, independent organisation, set up in April 2001 on the initiative of the European federations representing the main parties concerned with financial reporting in the Union, in response to the invitation by the Commission in its Communication on the Financial Reporting Strategy(1).

The Commission has observer status on EFRAG's Supervisory Board and Technical Accounting Committee, which is referred to in Recital 8 of the proposal for a Regulation on the application of international accounting standards. The Committee consists of a group of independent experts and can be consulted by all parties concerned, including EFRAG founding federations and national accounting standardisation bodies.

When EFRAG was set up, the founding members the European Federation of Accountants (FEE), the Union of Industrial and Employers' Confederations of Europe (UNICE), the European Banking Federation (EBF), the European Savings Banking Group (ESBG), the European Cooperative Bankers' Group (GEBC), the European Insurance Committee (CEA), the European Federation of Accountants and Auditors for Small and Medium-sized Enterprises (EFAA), the European Association of Craft and Small and Medium-sized Enterprises (UEAPME), the Federation of European Stock Exchanges (FESE) and the European Federation of Financial Analysts' Societies (EFFAS) agreed that EFRAG would be financed independently by annual subscriptions. Independent organisations are commonly financed by members' subscriptions. This method of financing is not looked upon as financial discrimination.

At the meeting of the Supervisory Board on 20 September 2001, EFRAG's chairman stated that he intended to review the question of participation by organisations interested in EFRAG during 2002.

While acknowledging the independence of EFRAG, the Commission intends to ensure that it will be possible for all parties concerned with financial reporting to express valid views on matters within their purview. To that end, EFRAG has undertaken to publish agendas, minutes of meetings of the technical accounting committee, its proposals and its calls for comments in order that any interested party can express its opinions and views. EFRAG intends to establish a website in the coming months in order to maximise access to this information. In the meantime, the information is available on the website of the European Federation of Accountants (FEE) at www.fee.be.

(1) COM(2000) 359 final.