The amendments will bring improved disclosure by obliging listed EU companies to provide annually a corporate governance statement and providing more insight into the use of off-balance sheet arrangements and unusual transactions with related parties, such as the spouse of a board member.

The European Commission has proposed four key revisions of the EU’s Accounting Directives to enhance confidence in financial reporting by companies. First, establishing that board members are collectively responsible for financial statements and key non-financial information. Second, making unlisted companies’ transactions with related parties more transparent. Third, ensuring that all companies provide full information about off-balance sheet arrangements, including Special Purpose Vehicles which may be located offshore.

It also provided an option for Member States to permit or require the application of adopted IAS in the preparation of annual accounts and to permit or require the application of adopted IAS by unlisted companies.

4. The rights and obligations of the participating companies on terms and conditions of employment arising from national law, practice and individual employment contracts or employment relationships and existing at the date of the registration shall, by reason of such registration be transferred to the SE upon its registration.

The four cardinal points in the proposal are as follows: - transparency is required of the group of companies to which a financial undertaking belongs; - a financial undertaking is required to have its registered office and its head office in the same Member State; - the scope for exchanging information between authorities is extended; - auditors are required to report to the supervisory authorities any irregularities discovered in financial undertakings. Once it has received the abovementioned Opinions, the Council will return to this proposal in order to adopt a common position ...[+++].

The Directive provides for reinforcement along the following lines: - transparency is required of the group of companies to which a financial undertaking belongs; - a financial undertaking is required to have its registered office and its head office in the same Member State; - the scope for exchanging information between authorities is extended; - auditors are required to report to the supervisory authorities any irregularities discovered in financial undertakings.