2014年-世界发展银行全球_Corporate_Financial_Reporting_in_Austria___An_Overview_43页_1mb

Summary of Corporate Financial Reporting in Austria

Core Content

This report provides an overview of the corporate financial reporting environment in Austria, with a particular focus on Small and Medium Enterprises (SMEs). It is intended for policy makers, regulators, and practitioners in Central, Eastern, and Southeast Europe, offering insights into how Austria aligns with the EU acquis communautaire.

The report outlines the institutional framework, statutory requirements, and the role of the accounting and auditing profession in Austria. It also discusses the practical implications of financial reporting for SMEs, including their value perception, constraints, and interactions with financial institutions.

Main Abbreviations and Acronyms

• AFRAC: Austrian Financial Reporting and Auditing Committee
• AeQ: Committee for External Quality Inspections
• AG: Stock Corporation
• GmbH: Limited Liability Company
• KWT: Austrian Chamber of Public Accountants
• OePr: Austrian Review Panel for Financial Reporting
• FMA: Financial Supervisory Authority
• GAAP: Generally Accepted Accounting Principles
• IFRS: International Financial Reporting Standards
• QKB: Austrian Audit Quality Control Oversight Board
• ROSC: Reports on the Observance of Standards and Codes
• REPARIS: Road to Europe: Program of Accounting Reform and Institutional Strengthening
• SME: Small and Medium Enterprise
• UGB: Entrepreneurial Code
• WKO: Austrian Federal Economic Chamber

Overview of the Financial Reporting Environment

Austria has a well-developed institutional framework for corporate financial reporting. The legal system incorporates EU law, and financial reporting standards are influenced by both international and national norms. The financial reporting environment is characterized by a balance between promoting quality financial information and minimizing regulatory burden on SMEs.

SMEs are a crucial part of the Austrian economy, contributing significantly to employment and GDP. They are primarily funded by banks, and financial statements play a key role in their financial management and access to credit. The report highlights the importance of financial reporting for SMEs and the challenges they face in compliance.

SMEs and Financial Reporting

Key Findings

• Financial Statements are Valued: SMEs use financial statements to improve financial management and secure access to finance.
• Compliance Challenges: Over half of SMEs find accounting requirements complex and time-consuming, with 56% considering compliance costs high.
• Outsourcing Common Practice: Almost 75% of SMEs outsource financial statement preparation to specialist service providers, with high satisfaction levels.
• Audited Financial Statements: While only certain legal entities are required to have audited financial statements, most SMEs (especially LLCs) see value in audits for enhancing credibility and strengthening internal controls.
• Bank Financing: Banks are the main source of financing for Austrian SMEs, with 67% using bank financing in the past three years.
• Documentation Requirements: SMEs perceive an increase in documentation requirements from banks, especially for credit applications.

Statutory Framework for Corporate Sector Accounting

Austria's statutory framework for corporate financial reporting is based on the Entrepreneurial Code (UGB) and other specific laws, such as the Banking Act (BWG) and the Insurance Supervision Law (VAG).

• Bookkeeping Obligations: Enterprises are required to maintain books and records depending on their turnover.
  • Turnover less than EUR 220,000: Flat-rate, cash basis, or double-entry bookkeeping
  • Turnover less than EUR 700,000: Cash basis or double-entry bookkeeping
  • Turnover above EUR 700,000: Double-entry bookkeeping
  • Capital companies (GmbHs, AGs): Always use double-entry bookkeeping
• Annual Inventory and Financial Statement: Enterprises with annual turnover exceeding EUR 700,000 must prepare an annual inventory and financial statement.
• Auditing Requirements: Financial statements of enterprises with supervisory boards must be audited.
• Accounting Standards: Austrian GAAP is based on EU law and is aligned with IAS/IFRS. However, full implementation of ISA is not yet achieved.

Accounting and Auditing Profession and Education

• Distinction between Accountants: In Austria, there is a distinction between public accountants (including certified public accountants) and self-employed accountants (including certified management accountants and payroll accountants).
• Registration and Qualifications: Self-employed accountants must be officially registered, meet work experience and other general requirements, and pass written and oral exams.
• Continuing Professional Development (CPD): Accountants are required to complete 22.5 hours of CPD annually.
• Oversight Bodies: The Joint Commission oversees appointments, while the AeQ and QKB are responsible for quality assurance and public oversight of the audit profession.

Quality Assurance and Public Oversight

• Two-Tier System: Austria has implemented a two-tier monitoring system involving the OePr and the FMA.
• External Quality Assurance: The AeQ oversees the quality of audits, with appointed inspectors evaluating internal QA measures.
• Sanctions and Certifications: If QA measures are inadequate, the AeQ may impose sanctions or revoke audit certificates.
• QKB Oversight: The QKB ensures the quality of the audit oversight system, with non-practitioners overseeing the appointment of inspectors.

Conclusion

The report concludes that financial statements, both audited and unaudited, are of significant value to SMEs in Austria. The effectiveness of financial reporting for SMEs is closely tied to the balance between promoting quality and reducing regulatory burden, as well as the competence of the accounting and auditing profession. The statutory framework and quality assurance systems in Austria are aligned with EU standards, and the role of financial reporting in SME credit applications is well recognized by financial institutions.