WRITTEN QUESTION P-0729/01 by Antonio Di Pietro (ELDR) to the Commission. Euro real property value.
Date: 2001-03-06
Institutions: European Parliament, Provisional data
Subjects: accounting, balance sheet, capital depreciation, economic value, euro, real property

21.8.2001

EN

Official Journal of the European Communities

C 235 E/243

whether Finland applies the Directive in full was examined in detail by Commission officials who visited
the Finnish administration.

The Commission intends to continue its examination of whether Finnish regulations and practice are
compatible with Community law.

(2001/C 235 E/286)

WRITTEN QUESTION P-0729/01

by Antonio Di Pietro (ELDR) to the Commission

(6 March 2001)

Subject: Euro real property value

The 1978 Fourth EEC Directive defined when, where and how long-term losses in fixed assets were to be
entered in accounts. Transposition of the Directive by the Member States made it possible to compare the
accounts of businesses in the different countries.

However, a thorough analysis of the situation in Italy would seem to indicate that the criterion relating to
homogeneity in the determination of real property values entered in accounts is not respected.

Given that, inside an area using a single currency, the criterion and methodology for determining the value
of marketable goods should be standardised, the merging of the various national currencies into a single
currency should also have been preceded by a process of harmonisation of values.

With specific reference to land and building property, one of the major elements in balance sheets:

(cid:129) What criterion and methodology have been adopted and are applied for the purpose of harmonised

evaluation in countries belonging to the monetary union?

(cid:129) When were these defined, adopted and implemented in the individual countries?

(cid:129) When were corrections made to any budget values where this proved necessary following the

recalculation of values?

Answer given by Mr Bolkestein on behalf of the Commission

(23 April 2001)

In accordance with the Fourth Council Directive 78/660/EEC of 25 July 1978 on the annual accounts of
certain types of companies (1), land and buildings are recorded in the balance sheet at their historical cost.
Member States may however allow a revaluation of these assets under certain conditions stated in the
Directive.

Where land and buildings have been revalued, the historical cost amount must be shown in the notes on
the accounts. This allows for a comparison between those companies which adhere to the historical cost
accounting principle and those companies which have applied a revaluation.

The Fourth Directive states that value adjustments must be made in respect of land and buildings so that
they are valued at the lower figure to be attributed to them at the balance sheet if it is expected that the
reduction in their value is permanent. The Fourth Directive does however not impose a specific method on
how to calculate these value adjustments.

In accordance with the Fourth Directive, the valuation rules applied in the annual accounts must be
specified in the notes on the accounts. The same applies for the value adjustments if they have not been
shown separately in the profit and loss account.

The introduction of the euro has no specific consequences for the valuation of land and buildings.

(1) OJ L 222, 14.8.1978.