The Department for Business, Innovation and Skills (BIS) has published a response to its consultation on the implementation of the country-by-country reporting provisions of the EU Accounting Directive in relation to extractive companies
Following its consultation on proposals for new reporting requirements for extractive industries, which ran from 28 March to 16 May 2014, the government has decided that UK registered companies will be required to complete extractive reports on payments to governments covering financial years beginning on or after 1 January 2015.
The government has also stated its commitment to the early introduction of transparency requirements.
Transitional arrangement for UK registered subsidiaries of parent companies registered in other EU member states, which will apply only for one year, will be put in place.
Further draft regulations, which take into account comments from the consultation, have also been published alongside the response document.
The regulations remain subject to drafting and technical changes.
The regulations are expected to be introduced later in 2014, in line with the Prime Minister’s G8 commitment. They will detail the penalty regime, which is based on existing offences in Companies Act 2006.
The response document and further draft regulations are available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/343599/bis-14-1006-eu-accounting-directive-implementation-extractive-industries-reporting-response.pdf and https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/346331/bis-14-1019-draft-statutory-instrument-reports-on-payments-to-governments-regulations-2014.pdf respectively.