Small companies granted relief on EU accounting rules

Small companies will have to reveal less information in annual financial statements as a result of a red-tape cutting measure formally accepted by a vote in the European parliament in Strasbourg on the 12 June 2013.

The new accounting directive permits small companies to prepare only abridged balance sheets and profit and loss accounts, although such enterprises remain entitled to provide more information if they wish.

The new rule affects companies with less than 50 employees, a turnover of not more than €8 million and/or a balance sheet total of not more than €4 million, which are defined as small in the directive.