EU contemplates Sarbanes Oxley-style reforms

The European Commission has proposed significant revisions to the European Union’s accounting directives in an attempt to boost confidence in companies’ financial reporting. The proposals would enshrine in EU law collective responsibility of limited company board members for any published financial and other key information about their businesses. Another change would extend the duty to disclose large unusual transactions with all related parties, such as family members and company managers, from directors of listed companies to directors of all limited liability companies. Brussels also wants all companies to disclose any off-balance sheet arrangements, and it proposes that listed companies should include statements on corporate governance in their annual reports.