Brussels, 21/02/2011 (Agence Europe) - Following an agreement reached with the European Parliament at second reading, the Council on Tuesday 21 February adopted a directive aiming to exempt very small companies from their national accounting and financial reporting obligations.
The new provisions have the potential to significantly reduce administrative bureaucracy for those companies for which, during the financial year, the balance sheet does not exceed €350,000, net turnover does not exceed €700,000 and the average number of employees is 10 or below.
The directive will allow EU member states to exempt micro-enterprises from the publication of annual accounts. This optional exemption will be compatible with national obligations to keep records showing the company's business transactions and financial situation. (EH/transl.fl)