A tale of three directives
Article Abstract:
The European Commission has proposed a draft Directive to harmonize the recognition of professional qualifications within the European Community. Under the Directive on higher education diplomas, necessary qualifications for professional membership in one state will be universally recognized in the European Community (EC). Derogations are allowed for professions requiring precise knowledge of national law, which the UK interprets as including the profession of accountancy. However, auditors from another state wishing to audit a UK company will, under terms of the Directive, have the right to conduct business in the UK if they have the proper diploma required by the UK. The Directive will not amend any rules pertaining to professional ethics applicable to professionals practicing in the territory of an EC member.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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A tale of three directives
Article Abstract:
Three European Community proposals concerning the integration of the single European market of 1992 that affect the accounting profession in the UK are: the Seventh Council Directive, Consolidated Accounts; the Eighth Council Directive, Approval of Persons Responsible for Audits; and the Council Directive on the Recognition of Higher Education Diplomas. The Seventh and Eight Council Directives have been enacted into UK law, while the directive on higher education was only recently adopted. The Seventh Directive defines a subsidiary in terms of voting rights rather than equity. The Eight Directive delineates qualifications of auditors; requires auditors to be independent and conduct audits with integrity; and allows the designation of professional groups as audit approval authorities.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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The EC experience of harmonization: part 2
Article Abstract:
The purpose of the European Commission's directives for harmonization in the field of accounting is not to impose one system of uniform rules but to ensure that the disclosure of financial information of competing companies will be comparable. Harmonization has, in most cases, set minimum standards in the many countries in Europe which lacked standards. The commission has played a role in making sure that sufficient information will be disclosed for the comparison of different sets of accounts which will be crucial in the single European market of 1992.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
User Contributions:
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