Accounting Directive
Definition
An EU directive (2014) that aims to simplify the disclosure requirements for small companies, notably through the introduction of abridged accounts. There are special rules for micro-entities. In the UK the new rules apply to financial periods beginning on or after 1 January 2016.
Example
Example 1:
Just as Nigeria’s FIRS periodically reviews and simplifies tax and financial reporting rules for small businesses, the EU’s Accounting Directive did the same for European small companies, reducing their paperwork burden while maintaining financial transparency.
Example 2:
A small family-owned printing business in Edinburgh welcomed the Accounting Directive when it took effect in 2016, they could now file simpler abridged accounts with Companies House, saving significant time and accountancy fees previously spent on full financial disclosures.