1. The new Accounting Directive
Simplify, modernise
HLG on Administrative Burden
23 July 2013 – Jean-Philippe Rabine - MARKT
03/12/2018

2. Key milestones and features
Timeline
Content
> 2009: Proposal for micro > Oct. 2011: Proposal for new Accounting Directive > March 2012: Micro Directive > June 2013: New Accounting Directive (includes micro)
Financial statements / management report: >Simplified small regime >Optional: micro-regime >Modernised language >Comparability (less options) CBCR (extractive/forestry)
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3. Timeline new Directive
June 2013
1st reading agreement
July 2015
Transposition deadline
2016
1st full application
03/12/2018

4. Small regime – a "safe harbour"
Simplification
Small undertakings
Small category is mandatory
Comparable definitions accross the EU:
Less than 50 employees and/or less than:
€8 to 12m T/O
€4 to 6m B/S
> 90% companies
Small regime – a "safe harbour"
Financial statements: only balance sheet + P&L + notes
Exceptional result: not in P&L
Notes: (MS option) max.
Audit: out of scope (MS option)
Management report: may be exempt (MS option)
Publication: may be simplified (MS option)
Small groups: no consolidation
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5. Simplification (cont'd)
Micro undertakings
circa 70% companies
Less than 10 employees and/or less than:
€0.7m T/O
€0.35m B/S
Micro regime
Optional – cap: small regime
List: cherry picking
Minimal B/S, P&L and Notes
No calculation of year end cut off for charges
Publication: simpler + one stop shop
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6. Simplification (cont'd)
Derogations
Derogation to align with tax return where single filing system
Missed opportunities?
Right to draw up abridged balance sheet for small companies decided by Member State (not company)
Full IFRS remains an option under the IAS regulation
No full exemption of micro-entities
XBRL?
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7. Key elements of the new Directive
CBCR (Country-by-country reporting)
Reporting on payments to governments
Extractive industry + logging of primary forest
By type, recipient, country, project
Above €
Scope: large and listed
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8. Follow up of HLG opinion 2008
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9. Directive 2006/46/EC – follow up
Mandatory: Corporate governance of listed companies, collective responsibility towards financial statements, and other measures
Optional: simplification measure through increased thresholds (+20%):
Small : < 50 employees + < €8.8m T/O + < €3.65 m total B/S
Medium-sized : < 250 employees + < €35m T/O + < €17.5 m total B/S
All Member States have transposed (16 after deadline of )
Estimated maximum burden reduction: €0.9bn
Reminder: thresholds become mandatory for small with Directive 2013/34/EU
03/12/2018

10. Directive 2006/46/EC – follow up
Contrasted use regarding the optional increase of thresholds:
17 MS report increasing thresholds between 2006 and 2011
1 MS with no Small type, 9 with very low thresholds, 10 above average, and 7 using maximum (AT, DE, DK, IT, NL, SL, UK)
More than half MS with no Medium-sized type
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11. Directive 2006/46/EC – follow up (cont'd)
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12. Directive 2012/6/EU – follow up
100% about simplification
Entirely optional
Definition micro-entities: < 10 employees + < €0.7m T/O + < €0.35 m total B/S
Transposition – no deadline, scarce information (early days):
3 MS have adopted simplification measures since 2012
5 MS plan simplification measures
8 MS report unsure about adopting measures or never adopting
11 MS did not provide information
Extent of simplification (when done or planned):
Reduced B/S and / or P&L: 5 MS
Reduced notes: 6 MS
Exemption of year-end cut-off for charges: 3 MS
No management report: 3 MS
No audit: 5 MS
Light publication regime: 3 MS
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13. Directive 2012/6/EU – follow up
Extent of companies impacted:
57% to 73% of companies depending on each Member State (source: MS)
Maximum burden reduction at EU level: €3.5bn
Part of this burden reduction will be achieved through new directive 2013/34/EU
No uniform approach to the assessment of savings for Member States which report estimations
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14. Any questions?
Thank you!
03/12/2018