Europe: the 'micro entity' and financial reporting - Commission consultation

The European Commission has published a proposal for a Directive amending Directive 78/660/EEC (the Fourth Company Law Directive). The proposed Directive will provide Member States with the option to create a 'micro entity' category of company that will be exempt from the accounting requirements of the Fourth Company Law Directive. The proposal defines a micro entity as one which meets two of the following criteria:

• A balance sheet total of not more than EUR 500,000;
  
• A net turnover of not more than EUR 1, 000,000;
  
• Not more than ten as average number of employees during the financial year.

For further information see: press release | FAQs | citizens' summary | impact assessment |

The Commission is also undertaking a wider review of the Fourth and Seventh Company Law Directives: see here for further information.