related documents
EU company law developments
EU documents
Much of UK company law, in particular its accounting and reporting provisions, now derive directly from EU Directives and Regulations . The full text of the official EU documents that impact on UK company law can be found with the link listed under ‘See Also'.
Simplifying the business environment for companies
In July 2007 the European Commission launched a radical review of the burdens placed on business by the EU's legislation on company law, accounting and auditing. The Commission's 'consultative communication' has proposed significant reforms in a number of areas of interest to accountants. The changes proposed include the following:
- In addition to the present categories of 'small' and 'medium-sized' companies, there should be a new category of 'micro company', from which member states would be able to exempt from all EU legal rules on accounting and reporting.
- Small companies should not be required to publish their annual accounts on the public record.
- Medium-sized companies that are owner-managed should be entitled to take advantage of the accounting and reporting exemptions for small companies.
- The 'adaptation period', which regulates the eligibility of a company to take advantage of exemptions for 'small' or 'medium-sized' company, should be extended from two years to five.
The full text of the consultative communication Simplifying the business environment for companies can be found with the link listed under 'See Also'.
Comments on the proposals are invited by the Commission by mid-October. ACCA will be making a full response to the proposals in due course. All members in the UK and the Republic of Ireland have already been canvassed for their views on the proposals and the results of this exercise will be taken into account by ACCA in framing its response to the Commission.