EC Accounting Directives Target SMEs and Transparency
BRUSSELS has proposed a shake-up of European accounting, including simplified financial reporting for SMEs and greater transparency in the logging and extractive industries.
The European Commission is reviewing the 4th and 7th Accounting Directives, and has proposed a package of measures it claims will support entrepreneurship and responsible business.
Under the proposals, SME financial statements would be simpler and the requirement to publish quarterly updates abolished.
Miners and loggers would be forced to report payments to governments on a country-by-country basis in a bid to encourage sustainable business and demonstrate companies' financial impact on host countries.
Businesses with a "positive social impact" would have help with access to funding, measures to improve their visibility and a simplified regulatory environment.
The European Parliament and Council of Ministers will now consider the package of reforms, and stakeholders can contribute at the Commission's conference on social economy and social business next month.
Start free ReadyRatios
reporting tool now!
Last Accounting News
- IASB Confirms One-year Delay for IFRS 17
- IFRS Foundation Publishes IFRS Taxonomy 2018
- IASB Urged to Improve Standards-setting Processes
- FSB Encourages Insurers to Act on the New Insurance Standard
- IFRS Foundation Trustees and the IASB Meets with the Japanese Stakeholders in the Wake of More Japanese companies Adopting IFRS Standards
- IASB Replaces IFRS 4 with the Issuance of a New Standard on Insurance Accounting
- IASB has Proposed Minor Amendments to IFRS 9 Relating to the Measurement of Financial assets with Prepayment Feature