Brussels, 24/05/2006 (Agence Europe) - On 22 May the Council formally adopted the draft directive amending directive 78/660/ECC on the annual accounts of certain companies, and directive 83/349/ECC on consolidated accounts. Adopted during the first reading, this directive aims to improve confidence in the annual financial publications and reports that companies publish. It establishes collective responsibility for members of the board in the monitoring and management involved when elaborating these documents; it reinforces obligations on companies to divulge information and institutes a declaration on corporate governance. Small and Medium-sized Enterprises (SMEs) are subject to specific attention. In an effort to reduce bureaucracy weighing down on small firms, the new directive expands the field of their exemption by increasing the threshold on balance sheets and net turnover criteria by 20% for companies having to comply with the new rules. Those qualifying for exemption in the directive (certain provisions exist) are SMEs fulfilling the three criteria applying to their balance sheets, turnover and number of personnel.
At the end of April, the Council formally adopted the directive on amending European directives 78/660/ECC and 84/253/ECC on legal inspections of annual and consolidated accounts (EUROPE 9179).