CELEX: 51979PC0423
Language: en
Date: 1979-07-24 00:00:00
Title: Recommendation for a COUNCIL DECISION concerning the Community position to be adopted in discussions on the development of international accounting and reporting standards within the United Nations Organization (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 423
Vol. 1979/0150
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
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p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                            COM(79)423 final.
                                                            Brussels . 24 July 1979
                               Recommendation for a
                                    COUNCIL DECISION
 concerning the Community position to be adopted in discussions on
 the development of international accounting and reporting standards
                     within the United Nations Organization
                           >J
                                ">«• . i; >? . ->
                                                  .
                                                          V
                     \ n .   ■         U-.J         ■-:)//
                ( submitted to the Council by the Commission )
                                                                                    /
COM ( 79 ) 423 final .
 ---pagebreak---                             Exp 1 an a t ory _r-ferrK'yr andum
1, The Economic and Social Council ( ECC-SOC ) of \-h& United Nations Organi zation
   ( UNO ) adopted a resolution on 11 May 1979 setting up a s ; ecial inter-
   governemritcil working party , Its terms OL reference concern the develop­
   ment of international accounting and reporting standards . The v-crking
   party will ccsnrnence work in the Autumn of 1979 in Geneva . In 1380 , it
   is to report to the Committee on Multinational Enterprises on the measures
   to be adopted in the field of international accounting and reporting
   standards particularly in relation to the proposed information system
   and code of conduct .
2. On the basis of Article 54(2 ) and ( 3)(g ) of the EEC Treaty , the Council
   adopted the ( First.) Directive of 9 March 1968 ( 68/151/EEC )^" ^ which is
   concerned inter alia , with the disclosure of the balance sheet of limited
   companies . In accordance with Article 2 ( 1 ) ( f ) of that directive , the
   Member States have adopted the measures necessary to ensure that the
   compulsory disclosure by companies covers the balance sheet and profit
   arid loss accounts of limi ted companies . In the case of societes a
   responsabilite limi tee the application of this principle was postponed
   until the date of implementation of a directive on the coordination of
   the contents of balance sheets and profit and loss accounts .
   Thj.s , the fourth directive , on the annual accounts of certain c .ipanies ,
                                                             2
   was adopted by trie Council on 25 July 1978 ~ . It establishes " legal
   framework for accounting standards in the Community . There ar       more
   than fifty articles comprising detailed provisions on the stricture
   of balance sheets , profit, and loss accounts , rules of valuation , the
   content of the annex to annual accounts and disclosure , tome articles
   deal with the problems of the annual accounts of a ccsn; any       ich has
   links with other companies in a group .
   1 ) OJ L 65 of 14 March 1968 , p. 8 .
   2 ) CJ L 222 of 14 August 1978 , p. 11 .
 ---pagebreak---                                      - 2 -
   The recitals to the fourth directive stress that where a company belongs
   to a group , only the presentation of the consolidated accounts of the
   group can give a faithful and comprehensive picture of the position of the
   undertakings in question „ For this reason the Commission has proposed a
   seventh directive , concerning group accounts ^ . This proposal is founded
   on the same legal basis as the fourth directive and deals with the
   specific problems of the annual accounts of groups - The two instruments
   are therefore closely linked ,
3„ Cn the basis of Article 75 of the EEC Treaty , the Council adopted
   Regulation ( EEC ) 2830/77 of 12 December 1977 on the measures necessary to
   achieve comparability between the accounting systems and annual accounts
                              2
   of railway undertakings      . As is shown by Article 2 of that regulation ,
   some of these undertakings are organi zed as companies .
4. According to the decisions of the Court of Justice ( judgment of 31 March
   1971 in the AETR case 22/70 ) the effect of all the decisions thus adopted
   at Community level in respect of the annual accounts of certain companies
   is to empower the Community alone to enter into commitments with non-member
   countries cn these subjects . In view of the fact that the Gcanmunity pro­
   visions referred to above and the discussions undertaken within the UNO
   have the same object , the Community as such should take part in the
   discussions and accept , where necessary , any agreements or arrangements
   arising frcsn them , whatever form these may take .
                                              J
   Community provisions concerning standards should, not be prejudiced by
   instruments drawn up within the UNO . This applies to the provisions of
   the fourth directive but also , in view of the close links between the
   latter and the amended proposal for a seventh directive , to the subject
   matter of that proposal .
   1 ) OJ C 14/2 of 17 January 1979 , p. 2 .
   2 ) CU L 334 of 24 December 1977 , p. 13 .
 ---pagebreak--- The IM) recommenda kions or agreements on internet} onax accounting and
reporting standards could directly affect the content of the fourt
directive .
                                          J
Similarly , Council Regulation ( EEC ) 2830/77 should not be prejudiced
by UNO instruments .
The Commission therefore recommends the Council to take the attached
decision concerning the Community position to be adopted in the discus­
sions on the development of international accounting and reporting
standards within the UNO .
 ---pagebreak---                             Recommendation for a
                              COUNCIL DECISION
                                  I
concerning the Community position to be adopted in discussions on the
development of international accounting and reporting standards within
the United Nations Organization .
THE COUNCIL OF THE EUROPEAN (IMMUNITIES'
Having regard to the Treaty establishing the European Economic Community ,
Having regard to the recommendation by the Commission ,
Whereas a decision should be taken on the Community position to be adopted
in the discussions on the development of international accounting and
reporting standards within the thited Nations Organization
                                    /
HAS DECIDED AS FOLLOWS :
                                  Sole Article
1 . During the discussions of the special working party of the United
    Nations Organization on the development of international- accounting and
    reporting standards , set up by the Economic and Social Council on 11 May
    1979 , the Commission shall express the Community position insofar as
    these discussions relate to siibjects covered by common rules .
    The Commission shall act in consultation with the representatives of
    the Member States .
2 . The Commission shall ensure that the proposals for greater harmonization
    of company law which it has submitted to the Council are presented in
    such a way during the discussions of the working party referred to in
    paragraph 1 that they clearly show the importance V /hich the Community
    attaches to such harmonization .
 ---pagebreak---                                      2
3. The Member States and the Commission shall coordinate their positions
   with a view to reaching a common position in the meetings of the working
   party referred to in paragraph 1, in particular on the desirability of
   action by the United Nations Organizations in the field of accounting
   standards .                                                              'Ij
                                                                            «
                                               For the Council .
                                               The President
   Done at Brussels .