Accounting rules for European micro entities eased
16 Dec 2011
The European Parliament has voted to considerably simplify life for more than 5 million of the smallest companies in Europe.
In February 2009, the European Commission tabled proposals to reduce burdensome accounting rules for Europe's smallest companies – so-called "micro entities". From next year, it will be possible for Member States to radically simplify the way in which micro-entities prepare their accounts. When it comes to publishing accounts, governments will be able to create a "one-stop-shop" which would see micro-entities only having to send their accounts to the tax administration, which would in turn be responsible for passing the accounts onto the Company Registry. Today, in many countries micro-entities have to file a full set of financial statements, including the balance sheet and profit and loss account, and are required to disclose this through publication in a national gazette.
This simplification ties in with the European proposals for revising the Accounting Directives and the Transparency Directive published in October 2011.
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