Austrian Financial Reporting Enforcement Panel
About the Panel
The establishment of an examination procedure for the financial reporting of companies whose home member state is Austria pursuant to § 1 Z 14 BörseG 2018 and whose securities are admitted to trading on a regulated market ("capital market-oriented companies") by means of the Accounting Control Act (RL-KG) is carried out in implementation of the Regulation 1606/2002/EC ("IAS Regulation) of the European Communities from 2004, which prescribes the mandatory application of International Financial Reporting Standards (IFRS) for such companies. The aim is to strenghten confidence in the capital market in Austria.
The RL-KG was passed in the Austrian National Councel in December 2012 and came into force on July 1, 2013. The law is to be applied for the first time to financial statements and other required information for the financial year ending on or after December 30, 2013.
As an institution under private law, the AFREP is an independent, not-profit association recognized by the BMF - after consultation with the BMJ. The association has set up an examination body which basically carries out the examination of company financial statements and reports and is not bound by instructions in its activities. The FMA acts as an authority pursuant to § 3 (1) of the RL-KG.
The Enforcement Panel is headed by a chairwoman respectively and her deputy. The independent examination activities are carried out by the Panel' members who are not bound by instructions and who must have many years of experience in performing, auditing, consulting, supervising or teaching activities in the field of accounting. A comprehensive control system - by means of specially established examination panels ("checks and balances") - and a continous six-eyes principle prevent potential incompatibilities at an early stage and ensure an objective and high-quality examination.