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Financial reporting

EU rules on financial information disclosed by companies.

What the EU is doing and why

All limited liability companies established in the EU have to prepare financial statements to monitor the health of their business and provide a true and fair view of their financial performance and financial position. In addition, the EU has introduced rules to promote the convergence of accounting standards at global level and to ensure consistent and comparable financial reporting across the EU.

Under EU rules, listed companies (those whose securities are traded on an EU regulated market) must prepare their consolidated financial statements in accordance with a single set of international standards called international financial reporting standards (IFRS accounting standards).

Other requirements apply to non-listed companies and small businesses.

Policy making timeline

  1. 21 December 2023
    Legislation - Thresholds defining micro, small and medium-sized companies
  2. 17 October 2023
    Legislative proposal - Thresholds defining micro, small and medium-sized companies

    2024 Commission work programme: Commission Delegated Directive amending Directive 2013/34/EU on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings as regards the adjustments of the size criteria for micro, small and medium-sized undertakings (not in force until it is published in the Official Journal)

  3. 19 July 2013
    Legislation - Accounting Directive

    The Accounting Directive enters into force.

Relevant legislation