New Accounting Directive Approved and Published by European Parliament.

Directive 2013/34/EU of the European Parliament has been published by European Union EU which covers annual financial statements and consolidated financial statements. The official journal was published on 29^th June 2013 which covered other aspects of related reports such as undertakings, amending Directive 2006/43/EC of the European Parliament.

The Official Journal published by European Union on 29 June 2013 also considered amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC.

The major aim of the directive was to simplify the accounting requirements for the small companies so that the performances may be improved. Also, this simplifying aspect will increase the margin of comparability of companies. The financial statements of the small companies will improve within the union.

The directive has been functioning ever since its publication. Around 20 days post the publication of Official Journal of the European Union the directive has been implemented effectively. Moreover, it is also stated that the directive will be incorporated with the national laws. This act will be processed by European Union member states and it will be functional as a part of National law by 20 July 2015.

The scope of this directive lies with the inclusion of under­takings with limited liability such as public and private limited liability companies. The directive is principle-based and under-taking can’t exclude itself from the scope which has been mentioned in the detail in the official journal by European Union.

With the help of this directive, the requirements will be compatible across the union. The revised transparency directive is yet to be published. Earlier it wasn’t published in the Official Journal of the European Union. European parliament which had approved the inclusion of Directive 2013/34/EU as a part of publication had also approved the revised transparency directive publication the same day. The text will soon be published.

The major focus remains on the simplification of accounting requirements which will help small companies to develop better financial statements within the union. This will further lead to the clarity and comparability of small companies. After the functioning of directive post publication the directive will soon become part of National Law by 20^th July, 2013.