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28 April 2005

FEE proposal on amending Fourth and Seventh Directives





The European Federation of Accountants (FEE) issued a proposal to amend the forth and the seventh company lay directives. The location of the corporate governance statement and related audit implications may inhibit development of disclosure. There is a need for clarification of the term “arrangements”. Disclosure requirements for related party transactions should not go beyond IAS 24.

The FEE discusses in how far it is appropriate to extend improved financial statement provisions, which is well-accepted for listed companies, to apply also for non-listed companies, especially for SMEs.

In this paper the FEE outlines its three main concerns with the existing proposals, two of which aim to tailor the requirements for non-listed companies:

  • Location of the corporate governance statement and related audit implications may inhibit development of disclosure.
  • Need for clarification of the term “arrangements”.
  • Disclosure requirements for related party transactions should not go beyond IAS 24.

    Document


    © FEE


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