WRITTEN QUESTION E-2298/03 by Esko Seppänen (GUE/NGL) to the Commission. Entry of emission allowances in businesses' balance sheets.
Date: 2003-07-11
Institutions: European Parliament, Provisional data
Subjects: application of EU law, business administration, business management, consolidated account, economic consequence, management accounting, stock-exchange listing, tradeable emission permit

C 65 E/128

Official Journal of the European Union

EN

13.3.2004

Supplementary answer
given by Mr Prodi on behalf of the Commission

(11 November 2003)

In view of the length of its answer, the Commission is sending it direct to the Honourable Member and to
Parliament’s Secretariat.

(2004/C 65 E/143)

WRITTEN QUESTION E-2298/03

by Esko Seppänen (GUE/NGL) to the Commission

(11 July 2003)

Subject: Entry of emission allowances in businesses’ balance sheets

When the European Parliament was considering the directive on emission allowances (report A5-0207/
2003) in plenary on 1 July, Commissioner Margot Wallström did not reply exactly to the question as to
how the emission allowances allocated administratively to businesses would be entered in businesses’
books and thus in their balance sheets, on the basis of which businesses’ stock exchange quotations are
likely to be determined. How can the Commission ensure that emission allowances are treated in the same
way in all Member States and all businesses, and what provisions does the Commission intend to adopt on
this subject?

Answer given by Mrs Wallström on behalf of the Commission

(10 September 2003)

The Commission is aware of
the importance of harmonised accounting standards for the efficient
functioning of the Community capital market and the Internal Market. Accounting issues are regulated by
the Fourth Council Directive 78/660/EEC of 25 July 1998 based on Article 54(3) (g) of the Treaty on the
annual accounts of certain types of companies (1), and the Seventh Council Directive 83/349/EEC of
13 June 1983 based on Article 54(3) (g) of the Treaty on consolidated accounts (2). These Directives do not
contain any specific rules on emission rights (allowances) as such, but the Recommendation on the
recognition, measurement and disclosure of environmental
issues in the annual accounts and annual
reports of companies (3) published on 30 May 2001 by the Commission deals with this specific subject. In
this Recommendation the Commission recommends the Member States to ensure that companies covered
by the two Directives apply the provisions of the Recommendation, which also cover emission rights.

Moreover, according to Regulation (EC) No 1606/2002 of the Parliament and of the Council of 19 July
2002 on the application of international accounting standards (4), Community companies, whose securities
are admitted to trading on a regulated market in any Member State shall, from 2005 onwards, prepare
their consolidated accounts in conformity with international accounting standards that have been adopted
by the Commission. Member States may also permit or require other companies to use such accounting
standards in their annual and/or consolidated accounts. This was further facilitated by the Directive of the
Parliament and of the Council to modernise and update accounting rules adopted on 6 May 2003 (5).

The Commission adopts international accounting standards by way of a comitology procedure in
accordance with Regulation (EC) No 1606/2002. It provides that the Commission can adopt International
Accounting Standards (IAS), International Financial Reporting Standards (IFRS), and related Interpretations
(SIC-IFRIC interpretations) to the extent that their application results in a true and fair view of the financial
position and performance of an enterprise, is conducive to the European public good and meets the basic
criteria as to the quality of information required for financial statements to be useful to users (Article 3 of
the Regulation).

13.3.2004

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Official Journal of the European Union

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in May 2003, the International Accounting Standards Board’s (IASB) International Financial
Recently,
Reporting Interpretations Committee (IFRIC) issued its first draft Interpretation (D1) of existing standards,
which addresses the accounting treatment of emission rights.

Once the IASB has issued this interpretation on emission rights, the Commission will consider it for
endorsement at Community level.

(1) OJ L 222, 14.8.1978, Directive as last amended by Directive 2003/38/EC of the Parliament and of the Council of

13 May 2003, OJ L 120, 15.5.2003.

(2) OJ L 193, 18.7.1983, Directive as last amended by Directive 2003/38/EC.
(3) OJ L 156, 13.6.2001.
(4) OJ L 243, 11.9.2002.
(5) http://register.consilium.eu.int/pdf/en/03/st03/st03611en03.pdf

(2004/C 65 E/144)

WRITTEN QUESTION P-2311/03

by Luciana Sbarbati (ELDR) to the Council

(8 July 2003)

Subject: Freedom and pluralism of communications media and granting the EU powers in this field under

the European constitution

Knowing that:

(cid:1) mass communications media, particularly television, are playing an increasingly important role in
providing citizens with information and with cultural and civic education, and in creating the
conditions under which consensus can emerge;

(cid:1) it should be borne in mind that the effects of the role played by the media may be determined by the

social, political and cultural opinions their ownership and management choose to propagate;

(cid:1) in a society organised on the basis of democratic principles, pluralism and impartiality of sources of
information and culture are vital factors in ensuring the proper functioning and survival of institutions
and thus of
the democratic system, as highlighted in the Declaration of Rome adopted on
30 November 2002 by the European Association of Former Members of Parliament of the Member
States of the Council of Europe or European Union (point 5);

(cid:1) the need to ensure pluralism in the media and prevent concentration in one or a few dominant
centres of political and economic interest, which are capable of influencing national policy, is a matter
of
level, and indeed has already been
enshrined in the Charter of Fundamental Rights of the European Union,

importance worthy of being dealt with at constitutional

Will the Council take steps to ensure that, when the European constitution is drawn up, freedom and
pluralism of the media are included among the Union’s values (Article 2 of the preliminary draft) and that
the protection of these rights is included among the Union’s objectives (Article 3 of the preliminary draft),
while specifying the conditions and means deemed necessary for securing and maintaining them, and
conferring the relevant powers upon the Union, either exclusively or jointly with the Member States?

Reply

(17 November 2003)

The Council is not competent to reply to the question asked by the Honourable Member. It will be for the
Intergovernmental Conference on the revision of the Treaties, which is due to meet in October 2003, to
decide on this question if need be.