The Department for Business, Innovation and Skills (BIS) has issued a consultation on the UK implementation of the EU Accounting Directive, which consolidates existing legislation on financial reporting and aims to reduce the regulatory burden on smaller companies.

The European Union published the EU Accounting Directive 2013/34/EU (link to European Commission site) (‘the Directive’) on 26 June 2013, which amended Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC. The Directive aimed to simplify the accounting requirements for small companies and improves the clarity and comparability of companies' financial statements within the Union. The UK government is now seeking views on the proposed implementation of the accounting and auditing provisions of the Directive into UK law.

The Accounting Directive must be incorporated into UK law no later than 20 July 2015, but permits that the changes may first apply for financial years beginning on or after 1 January 2016.

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