Directive 2003/51/EC of the European Parliament and of the Council of 18 June 2003 amending Directives 78/660/EEC, 83/349/EEC, 86/635/EEC and 91/674/EEC on the annual and consolidated accounts of certain types of companies, banks and other financial institutions and insurance undertakings (Text with EEA relevance)
Date: 2003-06-18
Institutions: Council of the European Union, European Parliament
Subjects: balance sheet, bank, consolidated account, financial institution, insurance company, publication of accounts

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DIRECTIVE 2003/51/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 18 June 2003

amending Directives 78/660/EEC, 83/349/EEC, 86/635/EEC and 91/674/EEC on the annual and
consolidated accounts of certain types of companies, banks and other financial institutions and
insurance undertakings

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

(4)

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 44(1) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Economic and
Social Committee (2),

Acting in accordance with the procedure laid down in Article
251 of the Treaty (3),

Whereas:

(1)

(2)

(3)

The Lisbon European Council of 23-24 March 2000
emphasised the need to accelerate completion of the
internal market for financial services, set the deadline of
2005 for implementation of the Commission's Financial
Services Action Plan and urged that steps be taken to
enhance
statements
prepared by Community companies whose securities are
admitted to trading on a regulated market (hereinafter:
listed companies).

comparability of

financial

the

entitled

On 13 June 2000,
the Commission published its
‘EU Financial Reporting
Communication
Strategy: The Way Forward’ in which it was proposed
that all
listed companies prepare their consolidated
accounts in accordance with one single set of accounting
standards, namely International Accounting Standards
(IAS), at the latest by 2005.

introduced the requirement

Regulation (EC) No 1606/2002 of the European Parlia-
ment and of the Council of 19 July 2002 on the applica-
tion of international accounting standards (4) (hereinafter:
the IAS Regulation)
that,
from 2005 onwards, all listed companies prepare their
consolidated accounts in accordance with IAS adopted
for application within the Community. It also provided
an option for Member States to permit or require the
application of adopted IAS in the preparation of annual
accounts and to permit or require the application of
adopted IAS by unlisted companies.

it

is necessary that

The IAS Regulation provides that, to adopt an interna-
tional accounting standard for its application in the
Community,
it meets the basic
requirement of the Fourth Council Directive 78/660/EEC
of 25 July 1978 on the annual accounts of certain types
of companies (5) and of the Seventh Council Directive
83/349/EEC of 13 June 1983 on consolidated
accounts (6), that is to say that its application results in a
true and fair view of the financial position and perfor-
mance of an enterprise — this principle being consid-
ered in the light of the said Directives without implying
a strict conformity with each and every provision of
those Directives.

(5)

(6)

(7)

(8)

As the annual and consolidated accounts of undertakings
covered by Directives 78/660/EEC and 83/349/EEC
which are not prepared in accordance with the IAS
Regulation will continue to have those Directives as the
primary source of their Community accounting require-
ments,
it is important that a level playing field exists
between Community companies which apply IAS and
those which do not.

For the purposes both of the adoption of IAS and the
application of Directives 78/660/EEC and 83/349/EEC, it
is desirable that those Directives reflect developments in
international accounting. In this respect, the Communi-
cation of the Commission entitled ‘Accounting Harmoni-
sation: A New Strategy vis-à-vis International Harmoni-
sation’ called for the European Union to work to main-
tain consistency between Community Accounting Direc-
tives and developments in international accounting stan-
dard setting,
in particular within the International
Accounting Standards Committee (IASC).

Member States should be able to modify the presentation
in
of the profit and loss account and balance sheet
accordance with
as
international
expressed through standards issued by the International
Accounting Standards Board (IASB).

developments,

Member States should be able to permit or require the
application of revaluations and of fair value in accor-
dance with international developments, as expressed
through standards issued by the IASB.

(1) OJ C 227 E, 24.9.2002, p. 336.
(2) OJ C 85, 8.4.2003, p. 140.
(3) Opinion of the European Parliament of 14 January 2003 (not yet
published in the Official Journal), and Council Decision of 6 May
2003.

(4) OJ L 243, 11.9.2002, p. 1.

(5) OJ L 222, 14.8.1978, p. 11. Directive as last amended by Directive
2001/65/EC of the European Parliament and of the Council (OJ L
283, 27.10.2001, p. 28).

(6) OJ L 193, 18.7.1983, p. 1. Directive as last amended by Directive

2001/65/EC.

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(9)

The annual report and the consolidated annual report
are important elements of financial reporting. Enhance-
ment, in line with current best practice, of the existing
requirement for these to present a fair review of the
development of the business and of its position,
in a
manner consistent with the size and complexity of the
business,
is necessary to promote greater consistency
and give additional guidance concerning the information
a ‘fair review’
is expected to contain. The information
should not be restricted to the financial aspects of the
company's business. It is expected that, where appro-
priate, this should lead to an analysis of environmental
and social aspects necessary for an understanding of the
company's development, performance or position. This
is consistent also with Commission Recommendation
2001/453/EC of 30 May 2001 on the recognition,
measurement and disclosure of environmental issues in
the annual accounts and annual reports of companies (1).
However, taking into account the evolving nature of this
financial reporting and having regard to the
area of
potential burden placed on undertakings below certain
sizes, Member States may choose to waive the obligation
to provide non-financial information in the case of the
annual report of such undertakings.

this vital aspect of

(10) Differences in the preparation and presentation of the
audit report reduce comparability and detract from the
financial
user's understanding of
reporting. Increased consistency should be achieved by
amendments, consistent with current international best
practice,
to the specific requirements concerning the
format and content of an audit report. The fundamental
requirement that an audit opinion states whether the
annual or consolidated accounts give a true and fair view
in accordance with the relevant
reporting
framework does not represent a restriction of the scope
of that opinion but clarifies the context in which it is
expressed.

financial

(15)

amendments will

inconsistencies
These
between Directives 78/660/EEC, 83/349/EEC, 86/635/
EEC and 91/674/EEC on the one hand and IAS in exis-
tence at 1 May 2002, on the other,

remove

all

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Directive 78/660/EEC is hereby amended as follows:

1.

in Article 2(1) the following subparagraph shall be added:

‘Member States may permit or require the inclusion of
other statements in the annual accounts in addition to the
documents referred to in the first subparagraph.’;

2.

in Article 4, the following paragraph shall be added:

‘6. Member States may permit or require the presenta-
tion of amounts within items in the profit and loss account
and balance sheet to have regard to the substance of the
reported transaction or arrangement. Such permission or
requirement may be restricted to certain classes of
company and/or to consolidated accounts as defined in the
Seventh Council Directive 83/349/EEC of 13 June 1983
on consolidated accounts (*).

(*) OJ L 193, 18.7.1983, p. 1. Directive as last amended
by Directive 2001/65/EC of the European Parliament
and of the Council (OJ L 283, 27.10.2001, p. 28).’;

(11) Directives 78/660/EEC and 83/349/EEC should accord-
ingly be amended. Furthermore, it is also necessary to
amend Council Directive 86/635/EEC of 8 December
1986 on the annual accounts and consolidated accounts
of banks and other financial institutions (2).

3.

in Article 8 the following paragraph shall be added:

‘Member States may permit or require companies to adopt
the presentation of the balance sheet set out in Article 10a
as an alternative to the layouts otherwise prescribed or
permitted.’;

(12)

The IASB is developing and refining the accounting stan-
dards applicable to insurance activities.

4.

in Article 9, under ‘Liabilities’, in point B, the title ‘Provi-
sions for liabilities and charges’ shall be replaced by ‘Provi-
sions’;

(13)

(14)

Insurance undertakings should also be allowed to use
fair-value accounting as expressed through appropriate
standards issued by the IASB.

Consequently Council Directive 91/674/EEC of 19
December 1991 on the annual accounts and consoli-
dated accounts of insurance undertakings (3) should be
amended.

(1) OJ L 156, 13.6.2001, p. 33.
(2) OJ L 372, 31.12.1986, p. 1. Directive as last amended by Directive

2001/65/EC.

(3) OJ L 374, 31.12.1991, p. 7.

5.

in Article 10, point J, the title ‘Provisions for liabilities and
charges’ shall be replaced by ‘Provisions’;

6. the following Article shall be inserted:

‘Article 10a

Instead of the presentation of balance sheet items in accor-
dance with Articles 9 and 10, Member States may permit
or require companies, or certain classes of company, to
present those items on the basis of a distinction between
current and non-current items provided that the informa-
tion given is at least equivalent to that otherwise required
by Articles 9 and 10.’;

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7. Article 20 shall be amended as follows:

Article 42f

(a) Paragraph 1 shall be replaced by the following:

‘1.
Provisions are intended to cover liabilities the
nature of which is clearly defined and which at the
likely to be
date of
incurred, or certain to be incurred but uncertain as to
amount or as to the date on which they will arise.’;

the balance sheet are either

(b) Paragraph 3 shall be replaced by the following:

Provisions may not be used to adjust the values

‘3.
of assets.’;

Notwithstanding Article 31(1)(c), Member States may
permit or require in respect of all companies or any classes
of company that, where an asset is valued in accordance
with Article 42e, a change in the value is included in the
profit and loss account.’;

13.

in Article 43(1)(6) the reference to ‘Articles 9 and 10’ shall
be replaced by a reference to ‘Articles 9, 10 and 10a’;

8.

in Article 22, the following paragraph shall be added:

14. Article 46 shall be amended as follows:

to present a statement of

‘By way of derogation from Article 2(1), Member States
may permit or require all companies, or any classes of
company,
their performance
instead of the presentation of profit and loss items in
accordance with Articles 23 to 26, provided that the infor-
mation given is at
to that otherwise
least equivalent
required by those Articles.’;

(a) paragraph 1 shall be replaced by the following:

‘1.

(a) The annual report shall include at least a fair
review of the development and performance of
its position,
the company's business and of
together with a description of
the principal
risks and uncertainties that it faces.

9. Article 31 shall be amended as follows:

(a) in paragraph 1(c), point (bb) shall be replaced by the

following:

‘(bb) account must be taken of all liabilities arising in
the course of the financial year concerned or of a
previous one, even if such liabilities become
apparent only between the date of the balance
sheet and the date on which it is drawn up,’;

(b) the following paragraph shall be inserted:

amounts

In addition to those

‘(1a)
recorded
pursuant to paragraph (1)(c)(bb), Member States may
permit or require account to be taken of all foreseeable
liabilities and potential losses arising in the course of
the financial year concerned or of a previous one, even
if such liabilities or
losses become apparent only
between the date of the balance sheet and the date on
which it is drawn up.’;

The review shall be a balanced and comprehen-
sive analysis of the development and perfor-
mance of the company's business and of its
position,
and
complexity of the business;

consistent with

size

the

(b) To the extent necessary for an understanding of
the company's development, performance or
position, the analysis shall include both finan-
cial and, where appropriate, non-financial key
performance indicators relevant
to the parti-
cular business,
including information relating
to environmental and employee matters;

(c) In providing its analysis,

the annual report
shall, where appropriate, include references to
and
amounts
reported in the annual accounts.’;

explanations

additional

of

10.

in Article 33(1), point
following:

(c)

shall be replaced by the

(b) the following paragraph shall be added:

‘(c) revaluation of fixed assets’;

11.

in Article 42, the first paragraph shall be replaced by the
following:

‘Provisions may not exceed in amount the sums which are
necessary.’;

12. the following Articles shall be inserted:

‘Article 42e

By way of derogation from Article 32, Member States may
permit or require in respect of all companies or any classes
of company the valuation of specified categories of assets
other than financial instruments at amounts determined by
reference to fair value.

Such permission or requirement may be restricted to
consolidated accounts as defined in Directive 83/349/EEC.

‘4. Member States may choose to exempt companies
covered by Article 27 from the obligation in paragraph
1(b) above in so far as it relates to non-financial infor-
mation.’;

15.

in Article 48, the third sentence shall be deleted;

16.

in Article 49, the third sentence shall be replaced by the
following:

the person or persons responsible for
‘The report of
auditing the annual accounts (hereinafter:
the statutory
auditors) shall not accompany this publication, but it shall
be disclosed whether an unqualified, qualified or adverse
audit opinion was expressed, or whether the statutory
auditors were unable to express an audit opinion. It shall
also be disclosed whether the report of the statutory audi-
tors included a reference to any matters to which the statu-
tory auditors drew attention by way of emphasis without
qualifying the audit opinion.’;

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17. Article 51(1) shall be replaced by the following:

‘1.
The annual accounts of companies shall be audited
by one or more persons approved by Member States to
carry out statutory audits on the basis of
the Eighth
Council Directive 84/253/EEC of 10 April 1984 on the
approval of persons responsible for carrying out the statu-
tory audits of accounting documents (*).

The statutory auditors
shall also express an opinion
concerning the consistency or otherwise of the annual
report with the annual accounts for the same financial
year.

(*) OJ L 126, 12.5.1984, p. 20.’;

18. the following Article shall be inserted:

‘Article 51a

1.

The report of the statutory auditors shall include:

(a) an introduction which shall at least identify the annual
accounts that are the subject of the statutory audit,
together with the financial reporting framework that
has been applied in their preparation;

(b) a description of the scope of the statutory audit which
shall at least identify the auditing standards in accor-
dance with which the statutory audit was conducted;

(c) an audit opinion which shall state clearly the opinion
of the statutory auditors as to whether the annual
accounts give a true and fair view in accordance with
the relevant financial reporting framework and, where
appropriate, whether the annual accounts comply with
statutory requirements;
the audit opinion shall be
either unqualified, qualified, an adverse opinion or, if
the statutory auditors are unable to express an audit
opinion, a disclaimer of opinion;

(d) a reference to any matters to which the statutory audi-
tors draw attention by way of emphasis without quali-
fying the audit opinion;

(e) an opinion concerning the consistency or otherwise of
the annual report with the annual accounts for the
same financial year.

The report shall be signed and dated by the statutory

2.
auditors.’;

19. Article 53(1) shall be deleted;

20. the following Article shall be inserted:

‘Article 53a

Member States shall not make available the exemptions set
out in Articles 11, 27, 46, 47 and 51 in the case of
companies whose securities are admitted to trading on a
regulated market of any Member State within the meaning
of Article 1(13) of Council Directive 93/22/EEC of 10 May
1993 on investment services in the securities field (*).

(*) OJ L 141, 11.6.1993, p. 27. Directive as last amended
by Directive 2002/87/EC of the European Parliament
and of the Council (OJ L 35, 11.2.2003, p. 1).’;

21.

in Article 56(1) the reference to ‘Articles 9, 10’ shall be
replaced by a reference to ‘Articles 9, 10, 10a’;

22.

in Article 60, first paragraph, the words ‘on the basis of
their market value’ shall be replaced by ‘on the basis of
their fair value’;

23.

in Article 61a, the reference to ‘Articles 42a to 42d’ shall
be replaced by a reference to ‘Articles 42a to 42f’.

Article 2

Directive 83/349/EEC is hereby amended as follows:

1.

in Article 1, paragraph 2 shall be replaced by the
following:

Apart from the cases mentioned in paragraph 1 the
‘2.
Member States may require any undertaking governed by
their national law to draw up consolidated accounts and a
consolidated annual report if:

(a) that undertaking (a parent undertaking) has the power
to exercise, or actually exercises, dominant influence or
control over
subsidiary
undertaking); or

another undertaking (the

(b) that undertaking (a parent undertaking) and another
undertaking (the subsidiary undertaking) are managed
on a unified basis by the parent undertaking.’;

2.

in Article 3(1), the reference to ‘Articles 13, 14 and 15’
shall be replaced by a reference to ‘Articles 13 and 15’;

3. Article 6 shall be amended as follows:

(a) paragraph 4 shall be replaced by the following:

This Article shall not apply where one of the
‘4.
undertakings to be consolidated is a company whose
securities are admitted to trading on a regulated market
of any Member State within the meaning of Article
1(13) of Council Directive 93/22/EEC of 10 May 1993
on investment services in the securities field (*).

(*) OJ L 141, 11.6.1993, p. 27. Directive as last
amended by Directive 2002/87/EC of the European
Parliament and of the Council (OJ L 35, 11.2.2003,
p. 1).’;

(b) paragraph 5 shall be deleted;

4. Article 7 shall be amended as follows:

(a) in paragraph 1(b), the second sentence shall be deleted;

(b) in paragraph 2(a), the reference to ‘Articles 13, 14 and
15’ shall be replaced by a reference to ‘Articles 13 and
15’;

(c) paragraph 3 shall be replaced by the following:

‘3.
This Article shall not apply to companies whose
securities are admitted to trading on a regulated market
of any Member State within the meaning of Article
1(13) of Directive 93/22/EEC.’;

5.

in Article 11(1)(a) the reference to ‘Articles 13, 14 and 15’
shall be replaced by a reference to ‘Articles 13 and 15’;

6. Article 14 shall be deleted;

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7.

in Article 16(1) the following subparagraph shall be added:

‘Member States may permit or require the inclusion of
other statements in the consolidated accounts in addition
to the documents referred to in the first subparagraph.’;

out statutory audits on the basis of the Eighth Council
Directive 84/253/EEC of 10 April 1984 on the approval of
persons responsible for carrying out the statutory audits of
accounting documents (*).

8.

in Article 17(1) the reference to ‘Articles 3 to 10’ shall be
replaced by a reference to ‘Articles 3 to 10a’;

9. Article 34 shall be amended as follows:

(a) in point (2)(b) the terms ‘Articles 13 and 14 and,
without prejudice to Article 14(3),’ shall be replaced by
a reference to ‘Article 13 and’;

(b) in point (5) the words ‘and those excluded pursuant to

Article 14’ shall be deleted;

10. Article 36 shall be amended as follows:

(a) paragraph 1 shall be replaced by the following:

The consolidated annual report shall include at
‘1.
least a fair review of the development and performance
of the business and of the position of the undertakings
included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face.

The review shall be a balanced and comprehensive
analysis of the development and performance of the
the undertakings
the position of
business and of
included in the consolidation taken as a whole, consis-
tent with the size and complexity of the business. To
the extent necessary for an understanding of such
development, performance or position,
the analysis
include both financial and, where appropriate,
shall
non-financial key performance indicators relevant to
the particular business, including information relating
to environmental and employee matters.

In providing its analysis, the consolidated annual report
shall, where appropriate, provide references to and
additional explanations of amounts reported in the
consolidated accounts.’;

(b) The following paragraph shall be added:

‘3. Where a consolidated annual report is required
in addition to an annual report, the two reports may
be presented as a single report. In preparing such a
single report,
it may be appropriate to give greater
emphasis to those matters which are significant to the
undertakings included in the consolidation taken as a
whole.’;

11. Article 37 shall be replaced by the following:

The person or persons responsible for auditing the consoli-
dated accounts (hereinafter: the statutory auditors) shall
also express an opinion concerning the consistency or
the consolidated annual report with the
otherwise of
consolidated accounts for the same financial year.

2.

The report of the statutory auditors shall include:

(a) an introduction which shall at least identify the conso-
lidated accounts which are the subject of the statutory
audit, together with the financial reporting framework
that has been applied in their preparation;

(b) a description of the scope of the statutory audit which
shall at least identify the auditing standards in accor-
dance with which the statutory audit was conducted;

(c) an audit opinion which shall state clearly the opinion
of the statutory auditors as to whether the consolidated
accounts give a true and fair view in accordance with
the relevant financial reporting framework and, where
appropriate, whether the consolidated accounts comply
with statutory requirements; the audit opinion shall be
either unqualified, qualified, an adverse opinion or, if
the statutory auditors are unable to express an audit
opinion, a disclaimer of opinion;

(d) a reference to any matters to which the statutory audi-
tors draw attention by way of emphasis without quali-
fying the audit opinion;

(e) an opinion concerning the consistency or otherwise of
the consolidated annual report with the consolidated
accounts for the same financial year.

The report shall be signed and dated by the statutory

3.
auditors.

4. Where the annual accounts of the parent undertaking
are attached to the consolidated accounts, the report of the
statutory auditors
required by this Article may be
combined with any report of the statutory auditors on the
annual accounts of the parent undertaking required by
Article 51 of Directive 78/660/EEC.

(*) OJ L 126, 12.5.1984, p. 20.’;

‘Article 37

12.

in Article 38, the following paragraph shall be added:

1.
The consolidated accounts of companies shall be
audited by one or more persons approved by the Member
State whose laws govern the parent undertaking to carry

‘7.
Paragraphs 2 and 3 shall not be applied in respect of
companies whose securities are admitted to trading on a
regulated market of any Member State within the meaning
of Article 1(13) of Directive 93/22/EEC.’

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Article 3

Article 4

Directive 86/635/EEC is hereby amended as follows:

1.

in Article 1, paragraphs 1 and 2 shall be replaced by the
following:

Articles 2, 3, 4(1), (3) to (6), Articles 6, 7, 13, 14,
‘1.
15(3) and (4), Articles 16 to 21, 29 to 35, 37 to 41, 42 first
sentence, 42a to 42f, 45(1), 46(1) and (2), Articles 48 to 50,
50a, 51(1) and 51a, 56 to 59, 61 and 61a of Directive 78/
660/EEC shall apply to the institutions mentioned in Article
2 of this Directive, except where this Directive provides
otherwise. However, Articles 35(3), 36, 37 and 39(1) to (4)
of this Directive shall not apply with respect to assets and
liabilities that are valued in accordance with Section 7a of
Directive 78/660/EEC.

2. Where reference is made in Directives 78/660/EEC
and 83/349/EEC to Articles 9, 10 and 10a (balance sheet)
or to Articles 22 to 26 (profit and loss account) of Directive
78/660/EEC, such references shall be deemed to be refer-
ences to Articles 4 and 4a (balance sheet) or to Articles 26,
27 and 28 (profit and loss account) of this Directive.’;

2. Article 4 shall be amended as follows:

(a) the first sentence shall be replaced by the following:

‘The Member States shall prescribe the following layout
for the balance sheet. As an alternative, Member States
may permit or require credit institutions to adopt the
presentation of the balance sheet set out in Article 4a.’;

(b) under ‘Liabilities’,

in point 6, the title ‘Provisions for

liabilities and charges’ shall be replaced by ‘Provisions’;

3. the following Article shall be inserted:

Directive 91/674/EEC is hereby amended as follows:

1.

in Article 1, paragraphs 1 and 2 shall be replaced by the
following:

‘1.
Articles 2, 3, 4(1), (3) to (6), 6, 7, 13, 14, 15(3) and
(4), 16 to 21, 29 to 35, 37 to 41, 42, 42a to 42f, 43(1),
points 1 to 7 and 9 to 14, 45(1), 46(1) and (2), 48 to 50,
50a, 51(1), 51a, 56 to 59, 61 and 61a of Directive 78/660/
EEC shall apply to the undertakings mentioned in Article 2
of this Directive, except where this Directive provides other-
wise. Articles 46, 47, 48, 51 and 53 of this Directive shall
not apply in respect of assets and liabilities that are valued
in accordance with Section 7a of Directive 78/660/EEC.

2. Where reference is made in Directives 78/660/EEC
and 83/349/EEC to Articles 9, 10 and 10a (balance sheet)
or to Articles 22 to 26 (profit and loss account) of Directive
78/660/EEC, such references shall be deemed to be refer-
ences to Article 6 (balance sheet) or to Article 34 (profit
and loss account) of this Directive as appropriate.’;

2. Article 4 shall be replaced by the following:

‘Article 4

1.
This Directive shall apply to the association of under-
writers known as Lloyd's. For the purpose of this Directive
both Lloyd's and Lloyd's syndicates shall be deemed to be
insurance undertakings.

2.
By way of derogation from Article 65(1), Lloyd's shall
prepare aggregate accounts instead of consolidated accounts
required by Directive 83/349/EEC. Aggregate accounts shall
be prepared by cumulation of all syndicate accounts.’;

3.

in Article 6, under ‘Liabilities’, in point E, the title ‘Provisions
for other risks and charges’ shall be replaced by ‘Other
provisions’;

‘Article 4a

4. Article 46 shall be amended as follows:

Instead of the presentation of balance sheet items in accor-
dance with Article 4, Member States may permit or require
credit institutions, or certain classes of credit institution, to
present those items classified by their nature and in order of
their relative liquidity provided that the information given is
at least equivalent to that otherwise required by Article 4.’;

4.

in Article 26, the following paragraph shall be added:

‘By way of derogation from Article 2(1) of Directive 78/
660/EEC, Member States may permit or require all credit
institutions, or any classes of credit institution, to present a
statement of their performance instead of the presentation
of profit and loss items in accordance with Articles 27 or
28, provided that the information given is at least equivalent
to that otherwise required by those Articles.’;

5. Article 43(2)(f) shall be deleted.

(a) in paragraph 5, the following sentence shall be added:

‘Member States may permit derogations
requirement.’;

from this

(b) paragraph 6 shall be replaced by the following:

‘6.
The method(s) applied to each investment item
shall be stated in the notes on the accounts, together
with the amounts so determined.’;

5. the following Article shall be inserted:

‘Article 46a

1. Where assets and liabilities are valued in accordance
with Section 7a of Directive 78/660/EEC, paragraphs 2 to 6
of this Article shall apply.

The investments shown as assets under D shall be

2.
shown at their fair value.

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3. Where investments are shown at their purchase price,
their fair value shall be disclosed in the notes on the
accounts.

4. Where investments are shown at their fair value, their
purchase price shall be disclosed in the notes on the
accounts.

5.
The same valuation method shall be applied to all
investments included in any item denoted by an arabic
numeral or shown as assets under C(I). Member States may
permit derogations from this requirement.

6.
The method(s) applied to each investment item shall
be stated in the notes on the accounts, together with the
amounts so determined.’;

When Member States adopt these measures, they shall contain
a reference to this Directive or shall be accompanied by such a
reference on the occasion of their official publication. The
methods of making such reference shall be laid down by the
Member States.

Article 6

This Directive shall enter into force on the day of its publica-
tion in the Official Journal of the European Union.

This Directive is addressed to the Member States.

Article 7

6. the Annex shall be deleted.

Article 5

Done at Luxembourg, 18 June 2003.

Member States shall bring into force the laws, regulations and
administrative provisions necessary to comply with this Direc-
tive by 1 January 2005 at the latest. They shall forthwith
inform the Commission thereof.

For the European Parliament

The President

P. COX

For the Council

The President

G. DRYS