Accounting Regulation in Europe by Stuart McLeay (eds.)

Accounting Regulation in Europe by Stuart McLeay (eds.)

By Stuart McLeay (eds.)

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It attempted to ensure that employees were provided with a clear and correct picture of the economic and financial situation of the enterprise. Moreover, the information had to enable the employees to understand the firm's position within the group as a whole and in its sector of operations and local economy. Although no detailed analysis of this decree is presented here (see Lefebvre, Lin and Van Nuffel, 1995), it is interesting to note the main thrust of its rationale. First, the emphasis is on disclosure requirements rather than on the preparation and registration of accounts, the type of information that should be disclosed being stressed rather than the procedures for processing accounting data.

Members of the Accounting Standards Commission generally have a legal background. The president is nominated by the Crown from among the members of the Accounting Standards Commis­ sion for a renewable period of six years, on the recommendation of the Minister of Economic Affairs, the Minister of Finance, the Minister of Justice and the Minister of Small Business. The Commission is composed of at least one representative from each of the main interest groups (government, business, trade unions).

The insurance companies them­ selves reacted against the draft, since they found contradictions in the legal text and were not prepared to take on the extensive publication requirements proposed. In order to reach a compro­ mise, a new working group was established within the Insurance Regulation Office with the task of writing a new draft text. Taking the different points of view into account, the text of the new decree seemingly satisfied the various interest groups on this issue. The new decree was finalised without further criticism.

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