Accounting by small and medium-sized entities Rep aris Workshop - PowerPoint PPT Presentation

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Accounting by small and medium-sized entities Rep aris Workshop

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  1. Accounting by small and medium-sized entitiesReparis Workshop Annette Davis March 2006

  2. Topics • EU law for limited liability companies • Unlisted companies: SME criteria • Unlisted companies: accounting requirements • SME exemptions • Implementation of SME exemptions • IASB SME project: Commission view • EFRAG / FEE joint working group

  3. Unlisted companies: Fourth Directive 1978 Seventh Directive 1983 as transposed into National legislation Local accounting standards Listed companies: 2002 IAS Regulation Apply “endorsed” IASB Standards and Interpretations From 1 January 2005 EU law for limited liability companies

  4. Unlisted companies: SME criteria

  5. Population of Fourth Directive and IFRS companies in Europe 5 000 000 – 7 000 000 Total number of companies 8 000 Listed companies 3 700 000 Small companies Large unlisted companies 66 000 Medium-sized companies

  6. Unlisted companies: accounting requirements • Publication of annual accounts to include • Balance sheet • Profit and loss account • Notes to the accounts • Using prescribed formats • Must show true and fair view • Publication of annual report • Must be audited

  7. Small company exemptions from accounting requirements • Publication of abridged balance sheet • Publication of abridged notes to the accounts • Omit publication of profit and loss account • No requirement for an annual report • No requirement for a statutory audit

  8. Medium-sized company exemptions from accounting requirements • Publication of a partially summarised profit and loss account • Publication of abridged balance sheet • Omit non-financial information from the annual report • No requirement to draw up consolidated financial statements

  9. Implementation of small company exemptions * From survey of 19 MS

  10. Implementation of medium-sized company exemptions * From survey of 19 MS

  11. IASB SME project: Commission view • IASB SME working group • Commission is a member • Once Exposure draft is issued we will consult Member States on their views • Any decision taken would require a separate legal measure

  12. EFRAG / FEE joint working group • Proactive group • Met in January to discuss IASB’s tentative decisions so far • There concerns are: • That some simplifications proposed by EFRAG were not taken into account • Discussed further simplifications • That it should be a simplification of principles rather than extracts from full IFRS

  13. Contacts • Internal Market and Services website: • http://europa.eu.int/comm/internal_market/en/index.htm • annette.davis@cec.eu.int