Regulation 2014/258 - Union programme to support specific activities in the field of financial reporting and auditing for the period of 2014-20 - Main contents
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official title
Regulation (EU) No 258/2014 of the European Parliament and of the Council of 3 April 2014 establishing a Union programme to support specific activities in the field of financial reporting and auditing for the period of 2014-20 and repealing Decision No 716/2009/EC Text with EEA relevance| Legal instrument | Regulation |
|---|---|
| Number legal act | Regulation 2014/258 |
| Original proposal | COM(2012)782  |
| CELEX number i | 32014R0258 |
| Document | 03-04-2014 |
|---|---|
| Publication in Official Journal | 08-04-2014; OJ L 105 p. 1-8 |
| Effect | 01-01-2014; Application See Art 11 09-04-2014; Entry into force Date pub. +1 See Art 11 |
| End of validity | 31-12-2020; See Art. 11 |
8.4.2014 |
EN |
Official Journal of the European Union |
L 105/1 |
REGULATION (EU) No 258/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 3 April 2014
establishing a Union programme to support specific activities in the field of financial reporting and auditing for the period of 2014-20 and repealing Decision No 716/2009/EC
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee (1),
Acting in accordance with the ordinary legislative procedure (2),
Whereas:
(1) |
Decision No 716/2009/EC of the European Parliament and of the Council (3) established a Community programme to support specific activities in the field of financial services, financial reporting and auditing. On the basis of that Decision, the European Financial Reporting Advisory Group (EFRAG), the International Financial Reporting Standards Foundation (the IFRS Foundation), which is the legal successor to the International Accounting Standards Committee Foundation (IASCF), and the Public Interest Oversight Board (PIOB) benefited from Union co-financing in the form of operating grants until 31 December 2013. |
(2) |
The crisis in the financial markets which has unfolded since 2008 has put the issue of financial reporting and auditing at the centre of the Union’s political agenda. A well-functioning common financial reporting framework is essential for the internal market, for the effective functioning of the capital markets and for the realisation of the integrated market for financial services in the Union. |
(3) |
As well as playing a central role in ensuring that investors are equipped with important information relating to the balance sheet, the profit and loss statement and cash flow, financial statements support effective corporate governance. |
(4) |
As well as playing a vital role in protecting shareholder and creditor interests, financial statements form the bedrock of prudential regulation in the sense that all major legislative instruments on financial services rely on company financial statements, including Regulation (EU) No 648/2012 of the European Parliament and of the Council (4) and Regulation (EU) No 575/2013 of the European Parliament and of the Council (5). Regulators rely on accounting terminology in order to understand what risks a company is taking and therefore what is required of that company. |
(5) |
In a global economy, there is a need for a global accounting language, while taking into account the many different accounting traditions already used. The G20 has repeatedly called for global accounting standards and for the convergence of existing and future accounting standards. International Financial Reporting Standards (IFRS) developed by the International Accounting Standards Board (IASB) are adopted and used in many, but not in some major, jurisdictions around the world. Such international accounting standards need to be developed under a transparent and democratically accountable process. To ensure that the interests of the Union are respected and that global standards are of high quality and compatible with Union law, it is essential that the interests of the Union are adequately taken into account in that international standard-setting process. Those interests include the maintenance of the principle that financial statements should give a ‘true and fair view’, and should be reliable and understandable, comparable and relevant. |
(6) |
In accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the... |
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