European Union Directive: 78/660/EWG: Transparency at Risk

Proposal for a Directive of the European Parliament and the Council to change the Directive 78/660/EWG of the Council on the Accounts Simplification for Companies of certain Legal Forms with regard to Micro Entities

The purpose of this EU Directive is to release smallest companies (Micro Entities) from obligations to set up annual accounts.  According to FEBIS Europe this would be a step in the wrong direction and harmful to transparency.

FEBIS, an affiliated industry association member of BIIA, has released a commentary to its members stating that this directive is harmful for the credit granting industry and credit reporting.   If the EU Directive 78/660/EWG will be adopted, approximately 82% of companies domiciled within 15 EU countries would not be required to file financial statements.  Dr. Roedl, the secretary general of FEBIS, regards this EU Directive as a serious setback in promoting openness and transparency in trade credit transactions.

To read the comment of FEBIS click on the attachment:  Micro Entities