International update. 28 maart 2018

Transcription

1 International update 28 maart 2018

2 NBA International Update Mark Vaessen, Accountancy Europe Vice-President Amsterdam, 28 March 2018

3 Close to 1 million professionals 28 EU Member States 50 institutes 37 countries

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6 Our mission Influence decision makers Help the profession shape its future Facilitate cooperation amongst Members 6 6

7 Strategy 2017/18 Ensure transparency Promote trust and integrity Support a sustainable economy Technology 7 7

8 Ensure transparency Better corporate reporting (CR) Good governance Stable public finance IFRS Fitness check with EC consultation on public CR for companies Programme on future of CR NFI Reporting Tax transparency, including CBCR Future of corporate governance IPSASB EPSAS VAT Better tax base: CCCTB, digital taxation 8

9 Promote trust and integrity Future of audit and assurance Influencing international professional standards Fight against financial crime Impact of audit reform Attractiveness of the audit profession SME audit Developing assurance services: ESG, tax, etc. IAASB & IESBA Standard setting in the 21st Century & MG Consultation Follow-up of EU policy on AML Factual data on suspicious activity reporting Inventory on Members initiatives Explaining the auditor s role in fighting financial crime Understanding the new landscape: follow-up of implementation status / survey on organisation of public oversight Preparing for 5- year review 9

10 Support a sustainable economy Sound financial markets Sustainable finance Supporting SMEs Outreach to regulators & stakeholders: ECB, SRB, EBA, ESMA CMU: Prospectus, Business Insolvency, PEPP EU policy: follow-up of EC action plan Where does our profession stand? EU policy: consultation on SME definition, GDPR, EC initiative on proportionate regulatory environment SME forum & SME hub 10

11 Horizontal issue: Technology Awareness raising on technology Best practice sharing on technology EU policy on digitalisation Digital Day II Tech Hub Tech barometer II EC action plan on Fintech Digitalisation of company law ESEF 11

12 A few examples of what we did lately and what is coming next 12 12

13 Financing Sustainable Growth 8 March EC's Action Plan on sustainable finance Based on HLEG recommendations Roadmap for future work, combining(non)legislative actions Objectives: Reorient capital flows towards sustainable investment Mainstream financial risks originating from climate change Foster transparency and long-termism in financial and economic activity 13 13

14 Urgent action: sustainability taxonomy Action 9: strengthening accounting rule-making By Q3 2018: EU Corporate Reporting Lab as part of EFRAG IFRS concerns: Q4 2018: EFRAG to consider alternatives to fair value Q2 2019: IAS Regulation - Flexibility on endorsement By Q2 2019: revision of the NFI non-binding guidelines May a legislative proposal on institutional investors' duties outcome of the public consultation Accountancy Europe responded 14 14

15 Consultation on EU framework on public corporate reporting Scope: Accounting Directive, NFI, IAS Regulation, Transparency Directive, IFRS evaluation, BAN & INS Accounts Directive Purpose: 1. EU public reporting: still fit for purpose? 2. Sustainability and non-financial information reporting 3. On-going market developments (banks, insurance, ) 4. Digitilisation Deadline 21 July 2018 EC Staff Working Document for

16 EC response to PANA recommendations 26 February 2018: Evaluate the possibility of splitting audit firms ( legal separation audit firm and financial or tax service providers ) Consider transparency requirements for groups and networks As part of EC 5-year review of audit reform due June 2019 Similar debate in UK, plus cap on number of listed entity audits by 1 firm We start preparing for this now! 16 16

17 Stay connected! #FutureCorporateReporting Join our LinkedIn Group Debate on the Future of Corporate 17

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19 Monitoring Group Consultation Strengthening the governance and oversight of the international audit-related standard setting boards in the public interest International Update Paul Hurks 28 maart 2018

20 Monitoring Group Consultation The Monitoring Group is responsible for the overall governance of the standard-setting process and the review of its implementation, effectiveness and responsiveness to the public interest. The Monitoring Group also ensures public accountability. Monitoring Group (chair Gerben Everts), established by: - IOSCO - Basel Committee on Banking Supervision - European Commission - Financial Stability Board - International Association of Insurance Supervisors - World Bank Group - IFIAR

21 MG on SSBs MG Working Group: Strengthening the governance and oversight of the international audit-related standard setting boards in the public interest. Timetable: Nov 2017 Feb 2018: 1st 90 day consultation: NBA replied Feb 2017 June 2018: outreach 2nd half 2018: 2nd 90 day consultation: Proposed new model Impact assessment Transition Plan 2019: transition (with new chair) 2020/2021: target date to start journey of new model

22 Standard Setting Objectives SS Public interest Independence Credibility Cost effectiveness Relevance Transparency Accountability SSBs IAASB, IESBA, IAESB, IPSASB (facilitated by IFAC)

23 MG 3 key concerns 1. Perception of undue influence by the profession 2. Risk of standards not being in the public interest 3. Relevance and timeliness

24 MG overall reform considerations All key stakeholders should participate equally in board and oversight, no undue influence from any side Oversight: no intervention in the work of SSBs Broad-based and diversified funding (not only from the profession)

25 NBA process for reply Accountancy Europe workshop (and publication Standard Setting in the 21st century) EFAA GPPC IFAC Big-4 Bestuur, ACB

26 NBA reply: princples of ss Principle based standards in the public interest (professional judgment), avoid compliance orientation Credibility: no undue influence Legitimacy: timely responsiveness, innovative Balance quality, applicability, enforcebility

27 NBA reply: major response (1) Agree with independent, distinct and separate roles for ss and oversight, independent from IFAC Participation of all relevant stakeholders in ss and oversight (priority setting, timely responsive decision-making) Adequate practitioner involvement in the total ss model (smaller core board, permanent staff, remunerated) Governance by guardian or trustees model, overseeing due process, nomination, no technical intervention

28 NBA reply: major response (2) Broad-based multi-stakeholder funding model Cost-effectiveness (reformed model will be more costly) Sound impact assessment and proper transition process (no staged reforms, coherent transition)

29 NBA response: other isues (1) One holistic (non-)assurance model for (non-) financial info Broad market and service inclusive Public sector inclusive (ISSAIs) Appropriate for PIE, non-pie and SMEs Consider necessary oversight level in differentiation context Voting process: preference for general consensus, or at least qualified majority to avoid exclusion of specific expertise/stakeholders

30 NBA response: other isues (2) Consider one oversight body (now PIOB and MG) Independence regulation part of assurance regulation Ethics regulation to remain broad based, connecting all professional accountants IFAC role focus on global voice, advocacy, ethics, education, capacity building, adoption and implementation, member compliance, not ssoversight

31 Dank voor uw aandacht???