Accounting Directives – Revision

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Opinjoni tal-KESE: Accounting Directives – Revision

Key points

In its opinion, the EESC:

  • welcomes the complete harmonisation of size criteria throughout the EU and considers that they should be extended to cover "micro-enterprises";
  • recommends that the simplification and harmonisation proposals also be applicable for tax purposes;
  • welcomes small businesses being exempted from mandatory statutory audits, irrespective of whether or not they are limited liability companies, but the EESC feels that this procedure should be mandatory for companies with more than 25 employees. ;
  • points out that, if accounting procedures are carried out electronically and financial statements are drawn up using readily available accounting software, simplification could initially incur higher costs, due to businesses having to update this software;
  • recommends continuing and stepping up training and awareness-raising schemes to help entrepreneurs and accountants interpret the information available, thus potentially avoiding certain mistakes caused by the management approach of "navigating by sight";
  • recommends that the requirement for companies involved in the extractive industry and in primary forest logging to disclose payments to governments be extended to other relevant areas;
  • draws attention to the fact that some of the provisions in the directive under consideration run counter to the practices laid down in the International Financial Reporting Standards (IFRS).

For more information please contact the INT Section Secretariat