The European Commission to simplify the business environment... (1/3)
The European Commission have recently published some documentation that is aimed to significantly simplify the business environment that EU companies face. They revolve around reducing reporting and auditing requirements for SMEs, simplifying disclosure requirements, and convergence.
My first blog of this series is relating to Micro-entities.
A potentially new category of business, a micro entity, is being proposed.
A member state could opt micro-entities out of domestic accounting frameworks and instead adopt a more simple framework. This would reduce the time and cost burden of complying with some relatively complicated accounting standards. But there are draw backs, as potential investors and banking organisations may view the new frameworks with some scepticism. As simpler frameworks, are likely to be user generated, reliability and comparability may suffer.
A ‘tentative’ definition of micro is likely to be…
• <10 employees
• <€500,000 Balance sheet total
• <€1,000,000 Turnover
For further details on this EU documentation follow the link below
European Commission:
http://ec.europa.eu/internal_market/company/simplification/index_en.htm
My next blog in this series will cover changes in SME thresholds and the associated ‘overlap’ periods.
A potentially new category of business, a micro entity, is being proposed.
A member state could opt micro-entities out of domestic accounting frameworks and instead adopt a more simple framework. This would reduce the time and cost burden of complying with some relatively complicated accounting standards. But there are draw backs, as potential investors and banking organisations may view the new frameworks with some scepticism. As simpler frameworks, are likely to be user generated, reliability and comparability may suffer.
A ‘tentative’ definition of micro is likely to be…
• <10 employees
• <€500,000 Balance sheet total
• <€1,000,000 Turnover
For further details on this EU documentation follow the link below
European Commission:
http://ec.europa.eu/internal_market/company/simplification/index_en.htm
My next blog in this series will cover changes in SME thresholds and the associated ‘overlap’ periods.
