Micro-entities to escape accounting red tape

by Rose Orlik

More from this author

14 Dec 2011

  • Comments
European Union flag

SMALL BUSINESSES could soon be exempt from financial reporting requirements following a vote in the European Parliament.

Micro-entities' reporting requirements will now be set at member-state level, a move welcomed by those who point out such businesses rarely operate across borders.

To be eligible for the more relaxed rules, businesses must meet two out of three criteria: less than €750,000 turnover; €350,000 assets; ten or fewer employees.

ICAEW head of financial reporting Nigel Sleigh-Johnson called the move "a step in the right direction," but said there is an important balance to be struck.

Demand for financial information from banks and other users is unlikely to drop, he warned, saying: "It is absolutely critical that any initiatives to reduce or change the reporting requirements are not confused with the importance of sound financial management by these businesses."

As a result of the vote, micro-entities could be exempted from preparing full accounts, and some stakeholders are also calling for an end to statutory audit for this group.

To finalise the decision, the European Council must give its approval, but this stage is generally seen as a formality and is unlikely to derail the deregulatory process.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send


Financial Planner

The Ministry of Defence Surgeon General’s (SG) Finance Department, Lichfield, Staffordshire, Permanent, Full Time, £ £30,008




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.