28 February 2009

Commission consults on review of fourth and seventh company law directives

The consultation aims at modernising and simplifying the Accounting Directives. It focuses on issues of interest for SMEs in the Fourth Directive, but the intention is also to do needed modernisation of rules in the Seventh Directive.

The consultation aims at raising issues relating to the modernisation and simplification of the Accounting Directives.

 

The consultation focuses on certain issues of main interest for SMEs in the Fourth Directive, but the intention is also to do needed modernisation of rules in the Seventh Directive.

 

The many amendments as well as the addition of new requirements have made the Directives unwieldy and difficult to read. They are sometimes also criticised for not providing the same level of detail concerning different accounting areas. The many options make comparisons of national financial statements from different Member States difficult.

 

A revision of the Accounting Directives will have consequences for other Directives as well as other reporting rules at EU as well as national level. Changes made in the context of this project may therefore have intended or unintended effects on other legal and regulatory texts. Careful analyses at EU as well as Member State level therefore need to be undertaken.

 

The Fourth Directive aimed at co-ordinating Member States' provisions concerning the presentation and content of annual accounts and annual reports, the valuation methods used and their publication and audit in respect of companies with limited liability. The Seventh Directive co-ordinates national laws on consolidated accounts.

 

Following an analysis of the comments received to the consultation paper a legislative proposal will be presented by the end of 2009

 

The Commission - parallel to this consultation – has also published a proposal for exempting micro entities from the scope of the Fourth Directive.

 

Deadline for consultation is 30 April 2009.

 

Further information

The Consultation document is attached below

 

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