SME parent companies with no material subsidiaries don’t need to prepare consolidated accounts, and medium-sized companies can be exempted from providing detailed data in the annual accounts. The Commission also approved proposals for two other measures to reduce administrative burdens for SMEs, including that these no longer need to publish business data in the national gazettes, and can use certified translations when opening branches in other Member States.
The proposal includes a possibility for Member States to exempt medium-sized entities, which often focus on only one business, activity from the obligations to disclose unnecessary information in the notes to the annual accounts. This concerns the breakdown of net turnover into categories of activity and geographical markets and the formation expenses of the company (amendment to Directive 78/660/EC).
By dropping the requirement that parent companies with no material subsidiaries need to prepare consolidated accounts, redundant work of preparing twice virtually the same sets of accounts will be abandoned. Therefore, the proposal clarifies the relationship between Directive 83/349/EC (consolidated accounts) and the International Financial Reporting Standards (IFRS).
Press release
© European Commission
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article