Strasbourg, 26/10/2006 (Agence Europe) - On Tuesday 24 October, the European Parliament adopted two financial services resolutions.
The first covers the accounting standards used by organisations issuing shares in third countries and their convergence with the International Financial Reporting Standards (IFRS), themselves covered by the draft implementing measures of EU Directive 2003/71/EC on prospectuses and EU Directive 2004/109/EC on transparency. The MEPs accept the implementing measures drawn up by the European Commission but are unhappy about the inclusion of new measures aiming to exempt professional share issuers for a new two year period. They call for a new work programme to be prepared for talks with third countries on the convergence of third country accounting standards with IFRS standards. Failing agreement by 1 January 2009 on the equivalence of EU and US accounting standards, the EP says US companies established in Europe should fully use IFRS standards.
The second resolution covers the implementation measures foreseen in the Transparency Directive (2004/109/EC). The MEPs endorse the implementing measures drawn up by the European Commission and call on the Commission to 1) monitor changes in international verification and accounting standards; 2) decide whether it would be appropriate to revise the definition of minimum content of consolidated financial balance sheets draw up by companies quoted on the stock exchange which do not apply international accounting standards; 3) ensure effective notification procedures are established to monitor the setting of quoted values; and 4) re-examine standards on the publication of financial information. (mb)