Starting in 2020 listed companies will be obliged to file annual reports as an XHTML-file, in which core financial information has to be tagged in iXBRL. This is laid down in a Delegated Regulation on the EU Transparency Directive. Currently it is discussed whether the iXBRL tagging must be audited or not. From Deutsches Aktieninstitut's perspective this is neither necessary from a material perspective nor can it be derived from other EU legislation.
Starting in 2020 listed companies in Europe will have to file their yearly financial reports in the inline extrensible business reporting (iXBRL) format. This is proposed by ESMA in a draft Regulatory Technical Standard amending the EU Transparency Directive despite of negative experiences made by companies during a field test conducted over the summer 2017. We reniew our critique on iXBRL-reporting and call for a public debate on the results of test before the endorsement of the RTS.
Deutsches Aktieninstitut comments on the proposal regarding technical rules of the Institut der Wirtschaftsprüfer in Deutschland e.V. - IDW (Institute of Public Auditors in Germany) for non-financial companies under the derivative regulation EMIR. In its comment Deutsches Aktieninstitut asks the IDW to provide more clarity regarding certain definitons and the scope of the auditing process.
Deutsches Aktieninstitut criticises ESMA for the proposal to make XBRL reporting mandatory for listed companies by 2020. Such an obligation would cause significant additional compliance costs and risks for issuers although there is no evidence that analysts or investors are interested in XBRL reporting. The paper is Deutsches Aktieninstitut's response to an ESMA-consultation on the concretisation of the EU Transparency Directive.
In this position paper Deutsches Aktieninstitut and the Federation of German Industries (BDI) criticize the far-reaching consequences of the German transposition act of the EU audit reform as it partially undermines well-tried corporate governance-mechanisms of the two-tier-system. This applies especially to the newly introduced rules on audit committees of which some threaten to cross the line between the management and the supervisory function.
The European Securities Regulator ESMA has become more and more important for issues of accouting and the enforcment of financial information. This may result in a widening of the scope of the enforcement of companies' accounts. The proposed ESMA Guidelines on enforcement of July 2013 appear to work in this direction. Deutsches Aktieninstitut's position paper raises concerns about a number of aspects of the proposal that counter the efficient German system of enforcement.
Comment of Deutsches Aktieninstitut on the ministerial draft of the legislation for the implementation of the European Market Infrastructure Regulation (EMIR)
Comment of Deutsches Aktieninstitut on the regulation of the external auditor market
This joint study of Deutsches Aktieninstitut and PricewaterhouseCooopers summarises the experience of listed companies with the enforcement of accounts by the German enforcer, Deutsche Prüfstelle für Rechnungslegung (Financial Reporting Enforcement Panel, FREP). It reveals how companies prepare for the enforcement, how they evaluate the work of the FREP as well as their general attitude towards the German system of enforcement. The study continues a similar work performed in 2009.
The German enforcer, the Deutsche Prüfstelle für Rechnungslegung (Financial Reporting Enforcement Panel) has been assigned high marks / high intensity of examinations and critique for tight time limits / Influence on accounting practices / Professional preparation and respect for error findings and their publication on the side of companies
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