New directive amending statutory accounts
The new European directive n°2013/34/EU of 26 June 2013, the ‘Accounting’ directive, to be transposed into French law.
Objective: Simplify financial reporting obligations and harmonise European accounting framework.
For whom: All of the companies establishing consolidated accounts (with exceptions).
When : It applies to fiscal years beginning 1 January 2016.
Four key new issues:
- Creation of categories of companies with new threshold levels:
These new levels have been defined at a European level according to the balance sheet total, net turnover and the average number of employees for the following categories: micro-businesses, small businesses, medium-sized businesses, large businesses and public-interest entities. Thus, companies must meet at least 2 of 3 criteria mentioned above to be included in a category.
- modulation of accounting obligations:
- Information to provide in the notes to the accounts or not;
- Simplification of the balance sheet and the statement of profit and loss.
They are defined on the basis of the French specificities (physical or legal persons, taxation) and the category of business (micro, small, medium or large). It should be noted that the lightening of obligations is an option and not an obligation for companies.
- waiver of advertising accounts and the management report:
- Only micro-business can declare that the accounts that they deposit will not be made public;
- Non-listed companies are not required to file their annual report to French authority but must keep it available if requested.
- accounting principles and policies reexamined:
- Amortisation and depreciation of goodwill;
- New treatment of merger losses;
- Exceptional profits.
This new European directive and its transposition into French law have many impacts on companies established in France, whether they are French or international. Each of them can question its accounting obligations: from preparation of statutory accounts to the audit of the financial statements and ending with their publication by the French authorities.
Stefan Petrovski
Supervisor,
qualified Chartered Accountant
International Business Services
