Impact of EC Directive on Disclosure of Accounting Information for Small and Medium-Sized Companies

The objective of the Directive issued on June 18, 2009 is to reduce administrative burdens relating to certain disclosure requirements imposed on medium-sized companies and obligation to draw up consolidated financial statement for certain companies within the Community. Small and medium-sized companies are often subject to the same rules as larger companies, but their specific accounting needs have rarely been assessed. Extensive reporting rules create a financial burden and can decrease the use of capital for productive purposes. There is also need to clarify the relationship between the accounting rules for consolidation required by Directive 83/349/EEC and IFRS.