NEW ACCOUNTING DIRECTIVE WITH THE AIM TO IMPROVE FINANCIAL REPORTING IN THE EUROPEAN UNION
NEW ACCOUNTING DIRECTIVE WITH THE AIM TO IMPROVE FINANCIAL REPORTING IN THE EUROPEAN UNION

Summary/Abstract: This paper discusses the importance and the foremost intentions of Directive 2013/34/EU. It regulates the basics of financial reporting of micro-, small, medium-sized and large undertakings in the European Union. In addition, the new directive normatively regulates the issue of consolidated financial statements. Finally, it contains the appropriate amendments to the Eighth Directive (Directive 2006/43/EC), which expands the scope of the audit of financial statements, as well as the obligations of statutory auditors. It is therefore rightly called the Accounting Directive. Bearing in mind the importance of the information contained in financial statements, the aim of this paper is to indicate the expected directions of improvement of financial reporting in the European Union, projected by the Accounting Directive. In this regard, the paper points to the most important innovations prescribed by Directive 2013/34/EU. Then, it discusses the challenges which Member States legislatures will face when transposing the Directive into their national legislation, which is a necessary precondition for its application, as of 1 January 2016. Finally, based on the foregoing considerations, the paper analyzes the expected effects of the new regulatory framework for financial reporting in the European Union.

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