• Register
Return to: Home > News > Regulation > EC adopts amended non-financial reporting directive

EC adopts amended non-financial reporting directive

The European Commission (EC) plans to adopt a directive on non-financial reporting tomorrow in line with its recent amendments to the EU accounting directives.

The directive, which will be adopted by the College of Commissioners tomorrow, comes a week after the EC, European Parliament and the Council of the European Union agreed on toughen disclosure requirements for companies in extractive industry companies across Europe and their subsidiaries around the world.

According to a leaked final version of the EC directive seen by The Accountant, certain large companies would have to include a disclosure statement called "fair review" in their annual reports.

The EC stated companies would have to include "information relating to at least environmental, social, and employee-related matters, respect of human rights, anti-corruption and bribery aspects".

The final directive will apply to companies whose average number of employees exceeds 500, and exceeds either a balance sheet total of €20m or a net turnover of €40m. This proposed threshold doubles the current limit of 250 employees regulated in the accounting directives as a way to avoid undue administrative burdens.

The EC states the current approach to the disclosure of non-financial information in the accounting directives "has not been sufficiently effective".

"Clearer requirements and stronger focus on topical issues important for the company's long-term success are necessary," the EC stated.

As in a previous draft version of the directive leaked to The Accountant in December 2012, the EC maintains compulsory disclosures related to companies' diversity policy. Such disclosure of information would include aspects such as age, gender, nationality, education and professional background.

The final version of the updated directive is due to be issued tomorrow (Tuesday 16 April 2013).

Related articles
EU toughens disclosures for extractive industries

EC to propose mandatory non-financial reporting

Related link
European Commission

Top Content

    Addressing tax challenges and the digitisation of the economy

    As the economy becomes even more globalised through digital sources, the tax systems currently in place need to be scrutinised to examine whether they are still fit for current and emerging business models. Joe Pickard reports on the OECD’s approach to this issue.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.