Primexis
Menu
Primexis
Fermer
Spontaneous application

Consolidated Accounts impacted EU “Accounting” Directive

Primexis Insights
20 September 2016
people talking

The new European directive n°2013/34/EU of 26 June 2013, the ‘Accounting’ directive, to be transposed into French law.

 

Objective: Simplify financial reporting obligations and harmonise European accounting framework.
For whom: All of the companies establishing consolidated accounts (with exceptions).
When : It applies to fiscal years beginning 1 January 2016.

The key new issues and challenges:

  • Creation of categories of groups with new threshold levels :

These new levels have been defined at a European level according to the balance sheet, turnover and the average number of employees of the group for the following categories: small groups, medium-sized groups, major groups and the public-interest entities. Thus, companies must meet at least 2 of 3 criteria mentioned above to be included in a category.

  • Obligation to establish consolidated accounts and management report (in France):
  • When the company controls exclusively or jointly one or more other companies;
  • Unless it holds under its significant influence subsidiaries to the exclusion of all other controls;
  • On the other hand, if it is to produce consolidated accounts, it has to include in the scope of its consolidated accounts subsidiaries under its significant influence.
  • Lessening of obligations of consolidation (in France) :

Raising thresholds referred to in the Commercial Code (reminder 2 of 3 thresholds not to be exceeded):

  • Balance sheet total: 15 M€ to 24 M€; – Net turnover:: 30 M€ to 48 M€;
  • Average number of employees during the financial year: same, 250 employees.

Remaining excluded from this exemption scheme: credit institutions, insurance companies and listed companies.

This European directive and its transposition into French law have certain consequences on companies established in France, whether they are French or international. Each of them can question its accounting obligations: from the preparation of the consolidated accounts to their publication by the French authorities.

Primexis, a leading independent Accounting and Consulting firm, can assist you in bringing your accounting into compliance following the implementation of the European ‘Accounting’ directive in the European Union and France.

 

These posts may interest you