
Article 1 
Regulation (EU) No 258/2014 is amended as follows:

((1)) in Article 3(1)(a), point (i) is replaced by the following:
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(i) EFRAG;
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((2)) Article 6 is amended as follows:

((a)) paragraph 1 is replaced by the following:
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1. The financial envelope for the implementation of the Programme for the period 2014 to 2020 shall be EUR 57 007 000 in current prices.';
((b)) in paragraph 3, point (a) is replaced by the following:
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(a) for EFRAG: EUR 23 134 000;
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((3)) Article 9 is amended as follows:

((a)) the following paragraph is inserted:
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4a. With regard to the IFRS Foundation and the IASB, the report referred to in paragraph 3 shall also assess their governance, in particular in terms of transparency, the prevention of conflicts of interest and the diversity of experts, and the steps that have been taken to ensure broad representation of interests and public accountability.In addition, with a view to ensuring high-quality accounting standards and high standards of transparency, accountability and integrity, the report shall identify and assess actions taken within the IFRS Foundation which, inter alia, concern public access to documents, open dialogue with European institutions and various stakeholders, rules on transparency of stakeholders' meetings, and the establishment of transparency registers.';
((b)) paragraph 5 is replaced by the following:
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5. With regard to PIOB and its successor organisation, the report referred to in paragraph 3 shall cover developments in the diversification of funding and shall assess how the work of PIOB contributes to the enhancement of audit quality, including the integrity of the auditing profession. If funding by the IFAC in a given year reaches more than two thirds of the total annual PIOB funding, the Commission shall propose to limit its annual contribution for that year to a maximum of EUR 300 000.';
((c)) the following paragraph is inserted:
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6a. With regard to EFRAG, the report referred to in paragraph 3 shall assess as of 2018:
(a) whether the expanded public good criterion as recommended in the special advisor's report has been respected during the endorsement process undertaken during the previous year;
(b) whether the European Parliament and the Council have been involved at an early stage when developing financial reporting standards, in general, and in the endorsement process in particular;
(c) whether the EFRAG financing structure is sufficiently diversified and balanced to enable it to accomplish its public interest mission in an independent and efficient manner; and
(d) the governance of EFRAG, in particular in terms of transparency, and the steps that have been taken to ensure broad representation of interests and public accountability.In addition, it shall identify and assess the actions taken within EFRAG in order to ensure high standards of democratic accountability, transparency, and integrity which, inter alia, concern public access to documents, open dialogue with European institutions and various stakeholders, the establishment of mandatory transparency registers and rules on transparency of stakeholders' meetings as well as internal rules, in particular prevention of conflict of interests.'.
Article 2 
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
It shall apply from 1 January 2017.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Strasbourg, 17 May 2017.
For the European Parliament
The President
A. TAJANI
For the Council
The President
C. ABELA