About FEE and its Activities 10 th Visegrad 4 Countries Meeting

1. About FEE and its Activities10th Visegrad 4 Countries Meeting Sárvár, 10 June 2010 Hans van Damme, FEE President

2. Content • About FEE Organisation • Activities of various bodies • Engagement of our members • Overview of current FEE Activities • Questions

3. About FEE • 43 professional institutes of more than 500.000 accountants all contributing to a more efficient, transparent and sustainable European economy • 32 European countries, including all 27 EU MS

4. FEE’s Role: Representing the Profession and Adding Value to Members With PCAOB, SEC, etc. With EC, EP, EU Council & Committees With IFAC & its Boards: IAASB, IESBA, IAESBA, CAGs, IPSASB, etc. Inform, advise & influence Facilitate consensus between Catalyst in Europe institutes, accountancy firms (big & small) EU & intl. regulation, policy standard setting, etc.

5. Adding value to members • Making representations to the EU Institutions • Making representations to international organisations • Identifying, analysing and influencing relevant public policy developments • Promoting co-operation among Members • Contacts with other regional groupings

6. Working with members

7. FEE General Assembly • GA is top FEE governance body • Decisions on Constitutional matters: • Admission of new member organisations • Determination of members’ contribution • Appointment of President and Deputy President • Approval of annual financial statements • Decision on level of expenditure for next two years • Meets every second year • Execution of work at Council and Executive level

8. FEE Council • Council is top FEE decision-making body • Exclusive right to decide FEE’s positions • Possibility to contribute to agenda and propose additional items with appropriate documentation • Increased transparency and accountability: Executive’s agendas and (draft) minutes provided to Council • General delegation to Executive

9. FEE Executive • More central role in execution: • Implementing Council’s strategy and decisions • Coordinating and supervising Working Parties • Possibility to address WPs’ issues where necessary • Reporting to Council • Executive has full and unconditional implementation powers

10. Decisions at FEE • Council creates and dissolves WPs • Member Bodies appoint Representatives,Executive may set criteria, President may make requests • Executive decides creation of Groups within WPs and of Joint-Groups • Coordinates the work of WPs • May impose reporting mechanisms • May specify and limit the use of denominations such as 'Committees‘, ‘Policy groups’ or 'Task Forces‘ • No denomination may be used without Executive’s prior approval

11. FEE: Advancing members’ activities Auditing Sustainability Financial Reporting Qualification and Market Access Ethics Accounting Company Law Corporate Governance SMEs-SMPs Insurance Taxation Banks Public Sector And more…

12. Accountants: involved for centuries

13. Developments impacting our profession

14. 5 decisive years to fostering recovery and sustainability

15. FEE: contributing to policy debates • ONE: Making the Internal Market a reality • TWO: Thinking small first for SMEs, green and global too • THREE: Promoting transparency through high quality financial reporting and global standards • FOUR: Fostering trust and integrity through auditing • FIVE: Improving corporate governance and company law • SIX: Ensuring better regulation and better financial supervision • SEVEN: Integrating sustainability at the heart of policymaking, society and markets

16. Key issues: Accounting 1 • International • Pressure on IASB to respond to G20 and financial crisis  Convergence and new standards • Many new standards out for comments • Heavy work on IAS 39 overhaul (IFRS 9) • Ongoing IASCF constitutional review • Developments US and elsewhere • Level playing field • FEE favours high-quality principles-based global standards

17. Key issues: Accounting 2 • Europe • Overhaul of 4th and 7th Directives • Proposal for Micro enterprises • Proposals on dynamic provisioning • Major implementation work on Solvency II • EFRAG enhancement • Improved operating structure (PRC) • Joint funding from EU, founding fathers and NFM • New Supervisory Board • More attention on pro-active role

18. Key issues: Audit 1 • Clarified ISAs • Project finalised by IAASB • Adoption for use in EU in relation to outcome Consultation document 2009 • Some countries will need to move from National standards to ISAs • Task force on proportionality • Survey on audit software, training and other implementation issues • SAD issues • Article 47 on access to audit working papers • FEE consistent position inspections: mutual reliance

19. Key issues: Audit 2 • Audit exemptions • Use of increased audit thresholds in various EU countries • Alternative assurance services • Increasingly addressed by accountancy bodies, regulators and EU institutions • Desire to arrive at positive audit opinion but with less work • FEE survey: Wide variety of practices confirmed • XBRL • Allowing or mandating filing of audited FS under XBRL becoming more and more common

20. Other areas of work • SME/SMP • Consideration on new working methods and strategy • QMA • EU Broad Consultation into Accountancy sector • Ethics • New ethical code 2009 • FEE discussion paper Integrity in Professional Ethics • Comparison EC and IESBA independence principles and requirements being done • Corporate Governance/Company Law • More attention on governance in view of crisis: Green Papers • Assurance on Corporate Governance Statements • Sustainability • Policy statements on Sustainability issues

21. Questions

22. Standing for trust and integrity Visit us @ www.fee.be