Bodies question EC

Three professional European bodies have warned that EC proposals
on simplification in the areas of company law, accounting and
auditing could worsen the business environment for European

The European Federations of Accountants (Fédération des Experts
Comptables Européens – FEE), European Federation of Accountants and
Auditors, and the European Association of Craft, Small and Medium
Sized Enterprises said EC proposals are based on the wrong
assumptions and called on the EC to “promote, not demote” the
single market model.

The three organisations refute the commission’s proposal to allow
member states to exempt micro-companies from the Fourth Company Law
Directive which serves as the harmonised basis for establishing and
publishing business accounts. They said that assimilating
accounting to an administrative burden is contrary to business

FEE chief executive Olivier Boutellis-Taft explained: “Accounting
rules are management tools, not administrative burdens. A European
framework for company law and accounting is essential to ensure
sustainable growth of SMEs and enable small entrepreneurs to seize
the opportunities of a single market.”

Another concern the group expressed relates to the quality and
independence of certain impact assessments. They stressed that
robust methodology and data were essential and that costs and
benefits should be taken into account.

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The group claimed the EC has not properly evaluated the
consequences of a reduction of accounting on the impact of
transparency and comparability.