Definition of EU accounting and transparency directives

The EU Directives on Accountancy and Transparency includes rules which comprise one of a number of transparency initiatives (see also Dodd-Frank Wall Street Reform and Consumer Protection Act, and CRD IV).

The rules in the Accounting Directive are aimed at certain EU entities active in the extractives and logging industries, and require various payments to governments to be reported on a country by country basis. Domestic legislation to implement the terms of the directive into the law of individual Member States should have been enacted by 20 July 2015, though not all States met this deadline. In the UK, reporting is required for financial years beginning on or after 1 January 2015.

The Transparency Directive extends the provisions of the Accounting Directive to all companies in the extractives and logging sector that are listed on recognised exchanges in the EU, irrespective of their country of incorporation or registration. Again, legislation to transpose this into the domestic law of Member States should have been enacted in 2015. [1]

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