The European Parliament Committee on Economic and Monetary Affairs has published a draft report putting forward a more stringent version of the Commission’s proposal to introduce mandatory public country by country reporting (CBCR) for multinational groups. The Commission submitted its proposal in April 2016 for an amendment to the EU accounting directive. The committee’s report (see http://bit.ly/2leHFBY) suggests amendments to the Commission’s text including:
applying the new disclosure requirements to groups with a turnover exceeding €40m, based on existing categories within the directive, in place of the €750m threshold proposed by the Commission;
requiring multinational corporations to provide information on their activities worldwide, not just for EU member states;
requiring non-aggregated data disclosing information for each country in which they operate; and
standardising the format of the reporting documents for all companies within the scope of the directive.
The proposal will now go forward for agreement by the Council and national parliaments. Press reports have suggested that a difference of legal opinion exists within the EU institutions as to whether final agreement on public CBCR could be achieved by qualified majority voting, or whether it would require unanimous consent of the member states.
The European Parliament Committee on Economic and Monetary Affairs has published a draft report putting forward a more stringent version of the Commission’s proposal to introduce mandatory public country by country reporting (CBCR) for multinational groups. The Commission submitted its proposal in April 2016 for an amendment to the EU accounting directive. The committee’s report (see http://bit.ly/2leHFBY) suggests amendments to the Commission’s text including:
applying the new disclosure requirements to groups with a turnover exceeding €40m, based on existing categories within the directive, in place of the €750m threshold proposed by the Commission;
requiring multinational corporations to provide information on their activities worldwide, not just for EU member states;
requiring non-aggregated data disclosing information for each country in which they operate; and
standardising the format of the reporting documents for all companies within the scope of the directive.
The proposal will now go forward for agreement by the Council and national parliaments. Press reports have suggested that a difference of legal opinion exists within the EU institutions as to whether final agreement on public CBCR could be achieved by qualified majority voting, or whether it would require unanimous consent of the member states.
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