The EU parliament has voted to exempt
micro-entities from the EU’s financial reporting requirements,
which will enable member states to individually decide what
reporting rules to apply for small businesses.

The exemption, part of the EU Fourth Company
Law Directive, was said to be a “step in the right direction and
the culmination of an initiative that has been underway for nearly
three years” by the Institute of
Chartered Accountants in England and Wales (ICAEW)

ICAEW head of
financial reporting faculty
Nigel Sleigh-Johnson said as the
majority of businesses of this size don’t operate beyond their home
country’s borders, “it makes sense to allow each member state to
decide what reporting rules are appropriate”.

“There is an important balance to be struck
here, as there will be continuing demand from various types of user
for reliable financial information about micro businesses. It is
also absolutely critical that any initiatives to reduce or change
the reporting requirements are not confused with the importance of
sound financial management by these businesses,” Sleigh-Johnson

Once the European Council gives its seal of
approval on the voted exemption, member countries will have to
decide whether or not to implement changes to existing
micro-entities’ reporting rules.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.