Slowly moving towards reducing the amount of reporting that “micro-entities” have to undertake
In February 2012 the European Union adopted a “Directive on the annual accounts of certain types of companies as regards micro-entities“, with the intention of reducing the financial reporting requirements of the smallest business. The Directive will allow Member States to exempt micro-enterprises from the publication of annual accounts, April 2012. We covered that February 2012 decision in this post.
EU Member States are not required to implement the Directive, but have the option to do so.
Yesterday the Department of Business, Innovation and Skills and the Financial Reporting Council confirmed that “in principle, the UK Government intends to take advantage of the option now available to Member States under the revised arrangements”, and that it will “consult on implementation in due course”.
The Government consulted on this subject in the autumn of 2011 – see this post for details – and the responses to that consultation will now be used by the Government “to consider how, within the current EU framework, the financial reporting regime for the smallest companies can be made less burdensome and more informative”.
“Micro-entity” is defined in the Directive as a business having a balance sheet total of EUR 350, 000, a net turnover of EUR 700,000 and an average of ten employees during the financial year.
Friendly Corporate PSL
To subscribe for our free weekly update e-mail, click here.