Press Release: Accounts: Commission proposes collective board responsibility and more disclosure on transactions, off-balance sheet vehicles and corporate governance

The European Commission proposed four key revisions of the EU's Accounting Directives on 28 October 2004 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. Fourth, making listed companies issue an annual 'corporate governance statement'. The proposals were part of the Commission's Company Law Action Plan, published in May 2003.

European Commission: DG Internal Market: Financial Reporting: Accounting: Board responsibilities and improvement of financial information relating to financial and corporate governance matters http://ec.europa.eu/comm/internal_market/accounting/board/index_en.htm

European Commission: MEMO: MEMO/04/246 http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/04/246&format=HTML&aged=0&language=EN&guiLanguage=en

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