This update was first published in the February 2012 International edition of Accounting and Business magazine
The European Parliament has given its second and final approval to proposed changes to EU accounting law that will ease accounting requirements for Europe’s smallest companies.
MEPs have backed changes to the fourth accounting directive (78/660/EEC) for ‘certain types of companies as regards micro-entities’.
Under the new legislation, these businesses will be able to file a very simplified balance sheet and profit and loss accounts, as defined in the directive.
The parliament set the maximum size of these companies as having a balance sheet total of €350,000, a net turnover of €700,000 and an average of 10 employees.
The EU Council of Ministers still has to give its final approval, but this is expected to be secured smoothly.
Keith Nuthall, journalist