WRITTEN QUESTION E-0582/04 by Richard Corbett (PSE) to the Commission. Application of Accounting Standard IAS 32 to co-operatives.
Date: 2004-02-26
Institutions: European Parliament, Provisional data
Subjects: accounting, accounting entry, cooperative, cooperative bank, international standard, share capital

C 84 E/814

Official Journal of the European Union

EN

3.4.2004

Answer given by Mrs Wallström on behalf of the Commission

(5 April 2004)

The Commission would like to thank the Honourable Member for the additional
provided.

information he has

On the basis of the facts reported by the Honourable Member in question E-1307/02 (1), the Commission
opened an own-initiative case to check whether the installation of new tanks for the storage and transit of
petroleum products on the Vasova estuary,
is compatible with
Community environmental law. The site in question is a wetland of great ecological importance, which has
been designated by the Greek authorities as a special protection area (‘Nestos Delta and Keramoti Lagoons’
(cid:1) code GR115001) under Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild
birds (2), and also proposed as a site of Community importance (‘Nestos Delta and Keramoti Lagoons (cid:1)
surrounding region and coastal area’ (cid:1) code GR11500010) under Council Directive 92/43/EEC of 21 May
1992 on the conservation of natural habitats and of wild fauna and flora (3).

in addition to the existing tanks,

The case has been investigated and it has not been possible to confirm any infringement of Council
Directive 85/337/EEC of 27 June 1985 (4), as amended by Council Directive 97/11/EC of 3 March 1997 (5),
on the assessment of the impact of certain public and private projects on the environment, or of Council
Directive 96/82/EC of 9 December 1996 (6) on the control of major-accident hazards involving dangerous
substances.

However, the Greek authorities do not appear to have taken the necessary measures to establish an
adequate system for protecting the site and preventing the deterioration of habitats and significant
disturbance of species. Neither have they ensured that any plan or project likely to have a significant effect
on the site in question, either individually or in combination with other plans or projects, be subject to
appropriate assessment of its implications for the site in view of the site’s conservation objectives.

The Commission is following the case very closely and will not hesitate to take appropriate measures,
including the initiation of infringement proceedings, to ensure that Greece meets the obligations arising
from Article 4(1), (2) and (4) of Directive 79/409/EEC, Article 7 and Article 6(2) and (3) of Directive 92/43/
EEC.

(1) OJ C 301, 5.12.2002.
(2) OJ L 103, 25.4.1979.
(3) OJ L 206, 22.7.1992.
(4) OJ L 175, 5.7.1985.
(5) OJ L 73, 14.3.1997.
(6) OJ L 10, 14.1.1997.

(2004/C 84 E/0909)

WRITTEN QUESTION E-0582/04

by Richard Corbett (PSE) to the Commission

(26 February 2004)

Subject: Application of Accounting Standard IAS 32 to co-operatives

Is the Commission aware of the effect that the adoption of Accounting Standard IAS 32 by the EU’s
Accounting Regulatory Committee would have on the co-operative movement?

Does the Commission accept that it was drawn up with only public limited companies in mind and is
totally inappropriate for co-operatives because it classifies co-operative share capital as debt?

the Commission ensure that, as in the USA,

Will
this particular provision to
co-operatives should be avoided, without which the effect on the co-operative sector would be devastating?

the application of

3.4.2004

EN

Official Journal of the European Union

C 84 E/815

Answer given by Mr Bolkestein on behalf of the Commission

(5 April 2004)

It should first of all be remembered that only those cooperatives whose shares are traded on a European
stock market and that produce consolidated accounts will be affected by Accounting Standard IAS 32,
i.e. a minority of cooperatives. Moreover, according to our information, the American situation is more
complex than the Honourable Member describes since in the United States stock exchange-quoted entities
cannot benefit from the deferred application of the provisions of the American standard FAS 150,
equivalent to IAS 32.

the Commission is well aware of

That said,
the problem raised by the possible reclassification of
cooperatives’ share capital as debt in the application of Accounting Standard IAS 32. This issue has been
the subject of numerous discussions with the International Accounting Standards Board (IASB) and is
currently under examination.

Although Accounting Standard IAS 32 was published by the IASB in December 2003, the specific
accounting treatment of cooperatives’ shares is currently being examined by the International Financial
Reporting Interpretations Committee (IFRIC) of the IASB, where the Commission has observer status.
Progress has already been made thanks to sustained dialogue between the IASB and the European
Association of Co-operative Banks. It would appear that the IASB and IFRIC are starting to have a better
understanding of the way in which cooperatives operate as well as the characteristics of their shares.

Discussions have highlighted that there is more than one type of cooperative, that the issue of shares is
complicated and that their accounting treatment can depend on attributes given to them by the statutes of
the cooperatives concerned. It is up to the IASB to take into account the variety of these situations
through either an interpretation of Accounting Standard IAS 32 or advice on its application.

The IFRIC should be able to issue such interpretation or advice before the summer, clarifying the fact that
cooperative members’ contributions are considered as capital if their reimbursement by the cooperative is
subject to a decision by the competent body within the organisation, implying that this reimbursement is
neither automatic nor unconditional.

It would seem that the cooperative world, particularly its banking sector, will be satisfied with this result.
The Commission will continue to follow very closely the developments in this field in order to guarantee
that the result of current discussions accords with the indications provided by the IASB.

(2004/C 84 E/0910)

WRITTEN QUESTION E-0595/04

by Christopher Huhne (ELDR) to the Commission

(26 February 2004)

Subject: Horse racing prizes in Greece

1. Will the Commission confirm whether it has received any complaints concerning discrimination by
the Greek Jockey Club against owners whose winners are bred outside Greece, notably in Britain and
Ireland?

2. Will it confirm that a proportion of the prize money is withheld by the Greek racing authorities if
the horse is bred outside Greece? If so, does it agree that this represents prima facie evidence of
discrimination against the nationals of another Member State?

3.
Is it investigating the case? On what timescale does it expect to reach a conclusion that upholds the
Treaty provisions against discrimination? Can arrangements be made for the reimbursement of prize
money unfairly withheld from owners with horses bred outside Greece?