RegulationBusiness RegulationEU lightens micro-entities’ reporting load

EU lightens micro-entities' reporting load

Directive passed to simplify accounting for micro-entities

A PROPOSAL to reduce financial reporting requirements for micro-entities was passed by the European Competitiveness Council yesterday.

Small companies meeting two of three criteria – a balance sheet total under €250,000 (£200,000), net turnover below €500,000, and fewer than 10 employees on average over the financial year – may be permitted to prepare skeletal accounts, with a view to cutting red tape and boosting productivity.

The draft directive will be presented to parliament later this year. Commissioner Michel Barnier claimed it could save €3bn a year for 5.2 million micro-entities in member states.

He said: “Today’s agreement means in practical terms that the balance sheet and profit and loss accounts for these micro-businesses will be pared down to the key elements only. Publication of information will be reduced and simplified to balance sheets only and a one-stop shop.”

Barnier expressed hope that the directive will be approved by parliament on its next reading and commented: “I am confident that this agreement strikes the right balance between the need for simpler procedures and the need for transparency.”

If it is accepted, the directive will pass into law and be applicable to all member states.

Related Articles

What Brexit means for accounting, employment and taxation law

Accounting Standards What Brexit means for accounting, employment and taxation law

1y Keith Nuthall, Reporter
KPMG appoints Brexit chief as clients scramble for help

Business Regulation KPMG appoints Brexit chief as clients scramble for help

1y Kevin Reed, Writer
Brexit 'slog' ahead for accountants, suggest experts at CFO Agenda

Accounting Firms Brexit 'slog' ahead for accountants, suggest experts at CFO Agenda

1y Kevin Reed, Writer
PwC and Deloitte chiefs sign Remain letter

Business Regulation PwC and Deloitte chiefs sign Remain letter

1y Kevin Reed, Writer
EC adopts country-by-country reporting

Business Regulation EC adopts country-by-country reporting

2y Fraser Simpson, Reporter
FRC: No level playing field for disciplining directors in audit cases

Audit FRC: No level playing field for disciplining directors in audit cases

2y Calum Fuller, Reporter
EU orders Belgium to recoup €700m in illegal multinational tax breaks

Business Regulation EU orders Belgium to recoup €700m in illegal multinational tax breaks

2y Chris Warmoll, Writer
EU committee pushing to remove tax competition

Business Regulation EU committee pushing to remove tax competition

2y Keith Nuthall, Reporter