14 April 2016 — Consultation Response
The Federation of European Accountants commented on the guidelines that the European Commission prepared to assist companies in reporting of non-financial and diversity information, according to the relevant new Directive.
In our response we emphasise that these guidelines should address materiality to help reducing the administrative burden of preparation, and enhance the relevance of the information disclosed. Materiality is crucial in the reporting process to give a clear picture of the company’s development, performance and position, and how it manages risk.
For companies that already prepare such information, high-level, principles-based guidance is sufficient. For new adopters, more detailed guidance is required and the Commission should provide this, including general and sectoral KPIs, by reference to existing frameworks.
Related FEE work:
FEE Position Paper on EU Directive on disclosure of non-financial and diversity information – Achieving good quality and consistent reporting
FEE Position Paper on EU Directive on disclosure of non-financial and diversity information – The role of practitioners in providing assurance