EU Accounting Directive—summary of main provisions
EU Accounting Directive—summary of main provisions

The following Corporate guidance note provides comprehensive and up to date legal information covering:

  • EU Accounting Directive—summary of main provisions
  • Brexit impact
  • Background
  • Regulatory Framework and overview
  • Micro-entities
  • Small companies
  • Medium-sized companies
  • Large companies
  • Other changes applicable to all companies irrespective of size
  • 2014 Directive amendments

Produced in partnership with Tessa Park of Kingston Smith. This Practice Note provides an overview of the main provisions of the Accounting Directive (2013/34/EU) and the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 which transposed the requirements of the Directive into UK law.

Brexit impact

The UK corporate reporting framework may be affected by Brexit. For further details of its impact, see Brexit—accounts and reports.

Background

The EU Accounting Directive (Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC, referred to from here as the Directive) sets out a new regime for the form and content of annual financial statements, and has the fundamental objective of modernising and streamlining reporting requirements for the smallest entities (the ‘think small first’ approach).

The UK implemented the Directive through the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (the 2015 Regulations). Companies are required to apply the new financial reporting framework (the New Framework) for financial years commencing on or after 1 January 2016. For financial years commencing on or after 1 January 2015 but before 1 January