The EU Parliament’s committee on economic and monetary affairs will vote on 12 June on whether to adopt its draft report on the Commission’s proposal to introduce mandatory public country-by-country reporting (CbCR) for multinational groups. The draft report recommended changes beyond the Commission’s original proposals, including:
applying the new disclosure requirements to groups with a turnover exceeding €40m, based on existing categories within the directive, instead of the €750m threshold proposed by the Commission;
requiring multinational corporations to provide information on their activities worldwide, not just for EU member states;
requiring non-aggregated data disclosing information for each country in which they operate; and
standardising the format of the reporting documents for all companies within the scope of the directive.
Public CbCR would be implemented through an amendment to the accounting directive. The Commission regards this as a financial reporting change, subject only to qualified majority voting by the Council. However, there is understood to be some uncertainty within EU institutions as to whether public CbCR is a fiscal measure which would require unanimous consent of the EU member states.
The EU Parliament’s committee on economic and monetary affairs will vote on 12 June on whether to adopt its draft report on the Commission’s proposal to introduce mandatory public country-by-country reporting (CbCR) for multinational groups. The draft report recommended changes beyond the Commission’s original proposals, including:
applying the new disclosure requirements to groups with a turnover exceeding €40m, based on existing categories within the directive, instead of the €750m threshold proposed by the Commission;
requiring multinational corporations to provide information on their activities worldwide, not just for EU member states;
requiring non-aggregated data disclosing information for each country in which they operate; and
standardising the format of the reporting documents for all companies within the scope of the directive.
Public CbCR would be implemented through an amendment to the accounting directive. The Commission regards this as a financial reporting change, subject only to qualified majority voting by the Council. However, there is understood to be some uncertainty within EU institutions as to whether public CbCR is a fiscal measure which would require unanimous consent of the EU member states.
