European Parliament sends mixed message with reporting changes

The European Parliament has confirmed changes to the European Union rulebook on annual and consolidated accounts, toughening companies’ requirements to fight fraud and irregularities, while exempting more smaller businesses from full reporting obligations. MEPs widened annual turnover thresholds for small and medium-sized companies, which, under the 1978 directive on annual accounts, are allowed to file simplified returns, from €3.6 million to €4.4 million for smaller and from €14.6 million to €17.3 million for medium-sized businesses. In addition, MEPs mandated collective responsibility for limited company board members for published financial and other key company information. They also agreed that more information should be published on large and unusual transactions with related parties such as families and managers, except for smaller companies.