WRITTEN QUESTION P-2880/01

by Marianne Thyssen (PPE-DE) to the Commission

(10 October 2001)

Subject: Introduction of international accounting standards/financial support for training members of the accounting profession and national standards setters

In view of the proposed introduction of international accounting standards (cf. proposal for a regulation in COM(2001) 80 final)(1), will the Commission state if there is any legal basis for providing financial support for members of the accounting profession and national standards setters, who, very soon, will need to undergo a huge amount of training?

If there is currently no legal basis, are there any legal obstacles to creating one? Is the Commission prepared to draw up and present a relevant proposal in the near future?

(1) OJ C 154 E, 29.5.2001, p. 285.

Answer given by Mr Bolkestein on behalf of the Commission

(14 November 2001)

The Commission adopted on 13 February 2001 a proposal for a Regulation of the Parliament and of the Council on the application of international accounting standards in the Union. Under this proposal, companies whose securities are traded on a regulated market as well as companies required to publish a public-offer prospectus will have to prepare their consolidated accounts in accordance with International Accounting Standards (IAS) from the year 2005 onwards. Member States will have the possibility to extend this obligation to the preparation of annual accounts. Furthermore, Member States will have the choice to permit or require other companies to prepare their consolidated accounts and /or their annual accounts in accordance with IAS.

The Commission is aware that this switch-over from national accounting standards to IAS entails a substantial training effort for accountants and statutory auditors involved in the preparation and the audit of consolidated accounts. However, the Commission does not consider it either appropriate or necessary to provide resources for supporting these activities, because the market is already catering for the training needs of accountants, auditors and national standard setters.

The profession in every Member State is indeed currently preparing itself to the switch-over to IAS. Accounting professional bodies, be they at regional or national level, are already setting up substantial training programmes for their members. Although the adoption of IAS implies a non-negligible training investment, it is important to recall that it will only be immediately relevant to those professionals who already have to deal with the complex task of preparing consolidated accounts and are therefore already equipped to evolve in a sophisticated accounting and financial reporting environment. As for those professionals dealing primarily with small and medium sized enterprises (SMEs), as stated above, it will be for Member States to decide whether they want to extend the obligation to apply IAS to SMEs. In any case, this process will be gradual and will leave enough time for the professionals concerned to prepare progressively and to adapt to a new environment, as they have successfully managed previously.

To maximise the time available for this transition, the Commission urges the adoption of the proposed Regulation as soon as possible.