Mapping standards

Another interesting report from KPMG UK! This one creates a list of accounting items and maps those to the appropriate standards in IFRS and US GAAP, respectively. A 144-page "overview" is available for free download. However, it may soon be obsolete if the SEC permits US corporations to report using IFRS ...

DNB on pensions

In a recent speech, the president of the Dutch central bank has presented a concise and well structured comparison between US and Dutch occupational pensions. He particularly focused on the benefits of a legal separation between sponsor and pension fund as well as on the advantages of professional asset management which is supported by the more collective approach in the Dutch system.

New interpretations for IAS 19

IFRIC, the International Financial Reporting Interpretations Committee has issued an important interpretation of the limit on an asset recognised in the surplus of a defined benefit plan under IAS 19. Especially the treatment in the presence of minimum funding requirements is of interest in the European context. IFRIC 14 is only available to eIFRS subscribers, but its draft is openly available.

Mediation mechanism for supervisors

CEIOPS invites comments on its Consultation paper to establish a non-binding mediation mechanism available to supervisory authorities under the directives within the Committee's purview. The mechanism is proposed to work with an accept or explain approach, thus forstering transparency. However, the issue that might be considered to be most in need of mediation (i.e. different funding requirements in Belgium and the Netherlands) appears not to fall within the scope of the mechanism.

ECJ deals first blow

In an important decision in case C-522/04 Commission vs. Belgium, the Court's second chamber has found, among other things, that Belgian tax provisions effectively taxing retirement capital to be transferred to an IORP resident outside of Belgium to be in breach of several Treaty freedoms (recital 40) and therefore inadmissible (IPE).

This is the first decision dealing with an issue that is critically important to the establishment of cross-border pensions, and its favourable, albeit unsurprising outcome virtually removes yet another area of legal uncertainty. It is interesting to note that the Court evaluates the equivalent applicability of its reasoning to the EEA, which it confirms.