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Financial Reporting Topics

The Centre for Financial Reporting Reform (CFRR) offers expertise in the wide field of financial reporting. In this section you can find current topics covered by the CFRR. Each topic provides news updates, specific resources like presentations and videos on the respective subject matter.

The content of these pages will be expanded over time to include further financial reporting topics as well as further resources on existing topics.

Learn more on the current developments in the following topics.

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Accounting for banks

Accounting fo SMEsBanks, because of their central role in operating the payment system and in managing customers’ income and savings, have always been subject to stricter financial reporting rules than other companies.
Financial reporting in the banking sector In the EU is governed by the Banking Accounts Directive (86/635/EEC), which was approved in 1986. This directive shares many of the elements of the Accounting Directives (the Fourth and Seventh Company Law Directives) and applies...

Accounting for SMEs

Accounting fo SMEsThe system of International Financial Reporting Standards (IFRS) adopted in the EU is intended mainly for "Public interest Entities" - generally those firms quoted on public stock markets or in regulated branches such as banking or insurance. Complying with the requirement of the full IFRS involves significant costs, which would be an excessive burden on smaller firms. As a result, small and medium-sized entities (SMEs), which are estimated to make up more than 95% of all business entities, are generally subject to a less complex set of reporting requirements...

Accounting by public interest entities

Accounting by public interest entitiesThe EU's Fourth and Seventh Accounting Directives set out the acquis communautaire's legal framework for accounting in the EU.
These directives require the annual preparation of a profits and loss account and of a balance sheet and, in addition, that an independent auditor produce a statutory audit of the accounts for limited liability companies...

Accounting for insurance undertakings

Accounting for insurance undertakingsUndertakings in the insurance sector are subject to specific accounting rules. The EU's Insurance Accounts Directive sets out the acquis communautaire's legal framework for accounting for insurance undertakings in the EU, while IFRS 4, which is currently in the process of being updated by the IASB, is the international reporting standard for insurance undertakings.


AuditingThe EU's regulation of auditing is currently governed by a directive (the Statutory Audit Directive) which came into force in June 2006. This directive (2006/43/EC) replaces the previous Eighth Company Law Directive from 1984 and it is therefore sometimes known as the "new eighth directive". It was introduced in the wake of a series of accounting scandals in both the US and the EU and was intended to raise public confidence in the reliability of audited accounts in the EU...


National, European and Global InstitutionsThere is a complex array of institutions dealing with financial reporting and the related issues of financial regulation at the national, European and global levels.

The following table attempts to summarize the roles of the main institutions involved in financial reporting...

Public Oversight

Public OversightIn the wake of several accounting scandals in the 1990s, national governments across the world sought to raise popular confidence in the integrity of financial statements through measures to make auditors more independent of the companies that they were auditing and also to subject them to more independent scrutiny...

Regulation of banks

Accounting fo SMEsBanking has always been subject to a greater degree of regulation than other industries and the international financial crisis has led to a range of new regulatory measures that seek to reduce the chances of the crisis being repeated.
Banking regulation is largely the responsibility of national financial supervisors. These supervisors are usually either formally part of the central bank or work closely with it.

Regulation of insurance undertakings

Regulation of insurance undertakingsJust as banks are subject to a system of prudential supervision, the EU acquis communautaire requires insurance undertakings to meet additional regulatory requirements set by prudential supervisors. The EU's system of prudential supervision for the insurance sector has recently been reformed with a new EU-wide regulatory authority, the European Insurance and Occupational Pensions Authority (EIOPA) being set up in Jauanary 2011 and having greater powers than the Committee of national regulators that it replaced.

General Introductions

Acquis Communautaire

FredericIntroduction to the Corporate Sector Accounting and Auditing within the Acquis Communautaire by Frederic Gielen

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Source: Advanced Program 06: Mod. 2

Accounting and Auditing Reports on the Observance of Standards and Codes

Lessons learned from the A&A ROSC program by John Hegarty

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Source: REPARIS Ministerial Conference 06

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