15 December 2005

Parliament adopted report on accounting rules

Parliament adopted a report concerning the annual accounts of certain types of companies and consolidated accounts. The amendments to the Accounting Directives allow Member States to remove inconsistencies between IAS 39, the renowned international accounting standard on fair value measurement, and the Accounting Directives. The thresholds defining small and medium sized limited liability companies will be increased by 20%, thus reducing financial reporting burdens.

The amendment of the Accounting Directives establishes collective responsibility of board members at EU level, improves transparency about unusual related parties’ transactions and off-balance sheet arrangements, and introduces an obligation for listed EU-companies to annually provide a corporate governance statement.

Adopted report on annual and consolidated accounts (see pp.31ff)
Commission press release

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