Pension Obligations in the European Union: A Case Study for Accounting Policy

2017 ◽  
Vol 7 (3) ◽  
Author(s):  
Yuri Biondi ◽  
Marion Boisseau-Sierra
Keyword(s):  
European Union ◽  
Public Sector ◽  
Accounting Standards ◽  
Building Blocks ◽  
Critical Issue ◽  
Financial Supervision ◽  
The European Union ◽  
Comprehensive Overview ◽  
Member States ◽  
Public Sector Accounting

AbstractPension obligations constitute a critical issue for public finances and budgets. This is especially true for the European Union whose institutional mechanism aims to supervise Member States’ spending through centralised budgetary rules based upon financial covenants. In this context, accounting methods of recognition and measurement of pension obligations become an integral and critical aspect of Europe’s transnational budgetary and financial supervision. Drawing upon a comprehensive overview of pension management and regulation, this article aims to analyse the ongoing debate on accounting for pension obligations with a specific attention to the harmonization of European Public Sector Accounting Standards (EPSAS). While the European Commission has been favouring the ‘indisputable reference’ to the International Public Sector Accounting Standards (IPSAS), European Member States’ practices and views remain inconsistent with the normative solution imposed by the IPSAS 25, which favours and facilitates Definite Contribution pension schemes. In this context, we do summarise the IPSAS position mimicking the IFRS, review the pension’s accounting in national statistics and EPSAS debate, and provide some building blocks for a comprehensive model of accounting for pension obligations that admits and enables several viable modes of pension management.

scholarly journals IPSAS for European Union member states as starting points for EPSAS

2019 ◽  
Vol 33 (2/3) ◽  
pp. 247-264
Author(s):  
Tobias Polzer ◽  
Christoph Reichard
Keyword(s):  
European Union ◽  
Public Sector ◽  
Financial Reporting ◽  
Accounting Standards ◽  
The European Union ◽  
National Accounts ◽  
Member States ◽  
Content Type ◽  
Public Sector Accounting ◽  
Institutional Contexts

Purpose The European Commission is pursuing an initiative to establish European Public Sector Accounting Standards (EPSAS) as a common mandatory set of rules for financial reporting of all member states of the European Union (EU). As a basis for developing EPSAS, the International Public Sector Accounting Standards (IPSAS) are being used. The purpose of this paper is to structure and analyze the discussion around EPSAS, with particular emphasis on the arguments that were brought forward by governments and other stakeholders of various EU countries regarding the suitability of IPSAS. Design/methodology/approach Drawing on several schools of thought in new institutional theory, how the prevailing institutional contexts in countries influence the debates is explored. Empirically, this research investigates the responses to a consultation on the suitability of IPSAS for EU member states and takes a closer look, via document analysis, at France and Germany as two critical cases. Findings It is found that, first, the majority of arguments from respondents are framed in a rational choice way. Second, skeptics of IPSAS tend to make arguments rather from positions closer to historical and/or sociological institutionalism. Research limitations/implications The paper illustrates that while technical matters around EPSAS seem solvable, political, historical and cultural differences go deeper, and need to be addressed by change agents. Regarding limitations of the research, first, the analysis concentrates on financial reporting and does not deal with the implications for more reliable and comparable national accounts in the context of the European System of Accounts (ESA, 2010). Second, it is focused on debates in the context of the EPSAS proposal, and there is a need for an evaluation after the changes have gone live. Originality/value The study looks at a text genre that has so far received less attention in public sector accounting research: responses to consultations. The paper contributes to the literature by showing how institutional contexts matter in settings characterized by contestation of reform contents.

Harmonising public sector accounting laws and regulations of the European Union member states: powers and competences

2021 ◽  
pp. 002085232110600
Author(s):  
Karoline Helldorff ◽  
Johan Christiaens
Keyword(s):  
Public Sector ◽  
Accounting Standards ◽  
The European Union ◽  
Member States ◽  
European Public ◽  
Public Sector Accounting ◽  
Will Force ◽  
The One ◽  
Rules Set ◽  
The Eu

This paper analyses the powers and competences of the EU to standardise public sector accounting of the member states and to take other EU action in the field of public sector accounting. We argue that public sector accounting forms part of the administrative organisation of the member states that is not a core EU competence. EU initiatives such as the European Public Sector Accounting Standards project, which aim to increase transparency and comparability, therefore need to follow the rules set out for administrative matters in general. The study reveals on the one hand that EU actions are essentially limited to voluntary cooperation and influences of other policy areas. But on the other hand, it shows that they do not need to be limited to the initiatives currently driven by Eurostat. Points for practitioners The future of the European Public Sector Accounting Standards project is uncertain. However, it is very unlikely that it will take the shape of a top-down set of readymade EU accounting standards that will force public administrations to adjust their inner workings. Public sector accounting is not (yet) a (typical) European policy, but simply a national one that the EU can support. The EU initiative can be considered as an opportunity for collaboration and knowledge sharing on how to increase transparency of public sector accounting.

Evaluating public sector management approaches towards undeclared work in the European Union

2008 ◽  
Vol 21 (3) ◽  
pp. 285-294 ◽  
Author(s):  
Colin C. Williams
Keyword(s):  
European Union ◽  
Public Sector ◽  
Positive Reinforcement ◽  
The European Union ◽  
Member States ◽  
Content Type ◽  
Public Sector Management ◽  
The Public ◽  
Undeclared Work ◽  
Good Behaviour

PurposeThis paper seeks to analyse the various approaches being used by the public sector across the European Union to tackle undeclared work and to evaluate the direction of change.Design/methodology/approachTo do this, the National Action Plans for Employment 2001 and 2003 (NAPs) and the National Reform Programmes 2005‐2008 (NRPs) are analysed, along with the data collected in international reviews conducted by the European Employment Observatory in Autumn 2004 and the European Industrial Relations Observatory (EIRO) in 2005 on undeclared work.FindingsIn parallel with public sector management in other realms, where it is accepted that positive reinforcement of “good” behaviour is more effective at eliciting change than negative reinforcement of “bad” behaviour, the finding is that the public sector in EU member states is moving away from solely a repressive approach that seeks to detect and penalise offenders and towards an approach that also seeks to stimulate good behaviour by rewarding compliance. Until now, however, these positive reinforcement measures appear to remain firmly entrenched in a bureaucratic management approach that uses externally imposed direct control systems to generate reactive behaviours, rather than an internalised post‐bureaucratic approach that seeks to generate constructive pro‐activity and commitment to tax morality on the part of populations.Originality/valueThis is one of the first attempts to evaluate how public sector management is tackling undeclared work in European member states.

The Digital Economy in the Context of Foreign Direct Investment Flows

2021 ◽  
pp. 210-227
Author(s):  
Aneta Bobenič Hintošová
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Union Member ◽  
Theoretical Background ◽  
Digital Economy ◽  
The European Union ◽  
Comprehensive Overview ◽  
Member States ◽  
European Union Member States

The main objective of the chapter is to provide a comprehensive overview of the development of the digital economy in the context of foreign direct investment flows, especially from the European Union member states point of view. First, the term and conceptualization of the digital economy is introduced, followed by an overview of theoretical background and empirical findings related to the role of foreign direct investment in the digital transformation of the economy. In this regard, the nature, position, and international footprint of digital multinational enterprises are also analyzed. The level of the digital economy and society development in the context of foreign direct investment flows is evaluated specifically in the conditions of the European Union member states. The conclusion summarizes the main partial findings, evaluates them in a mutual context, and brings implications for future research.

scholarly journals Compatibility of the IFRS for Small and Medium-sized Entities and the new EU-Accounting Directive

2015 ◽  
Vol 63 (6) ◽  
pp. 1945-1951 ◽  
Author(s):  
Gerrit Kaufhold
Keyword(s):  
European Union ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
The European Union ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Member States ◽  
Financial Reporting Standards ◽  
Accounting Principles

The new EU-Accounting Directive of 26 June 2013 (DIRECTIVE 2013/34/EU) has the intention to harmonize the accounting and financial reporting of enterprises in the European Union. “Think small first” is the central principle in the new EU-Accounting Directive and the new regulations have to be adopted in the laws of European member states by 20 July 2015. The International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) was published in 2009 by the International Accounting Standards Board (IASB). The IASB intended to create simplified international financial reporting standards for the special needs of smaller and medium-sized enterprise. The IASB completed in May 2015 a comprehensive review of the IFRS for SMEs and made amendments to the Standard. The revised version of the IFRS for SMEs will be issued in the last quarter of 2015. The aim of the paper is to analyze the compatibility of the IFRS for SMEs and the new EU- Accounting Directive and the problems in connection with the harmonization of the European accounting legislation especially in Germany. Based on the results of the research most of the former incompatibilities could be removed, but the remaining complexity of the IFRS for SMEs and the lack of an option for the member states to adopt the IFRS for SMEs as an accounting and reporting standard besides or instead their local accounting principles will prevent the wide use of the IFRS for SMEs in Germany and in other member states of the European Union.

Sign in / Sign up

Export Citation Format

Share Document