The European Accounting Directives : Status of the Fourth and Seventh Company Directives after implementation of Directive 2009/49/EC

Abstract: This thesis examines the effects from Directive 2009/49/EC. This directive amend the Fourth and Seventh Company Directives, the Accounting Directives, regarding the information that Small and Medium-sized Enterprises (SME) have to present in notes connected to both the annual reports and notes to the consolidated accounts, in situations with subsidiaries when its necessary to draw up consolidated accounts. The Accounting Directives does not affect all companies, almost only private limited liability companies, is this type of companies the only one discussed. Directive 2009/49/EC is not affecting all sizes of private limited liability companies within the European Union, since the most important reason for implementing it is to give SMEs less administrative burden by lower requirements regarding the information presented in notes attached to the reports. The implementation of Directive 2009/49EC is a positive change since it is in line with the idea of an Internal Market with equal rights and obligations to all sized of limited liability companies, private or public. The lower obligations in the annual reports in the Fourth Directive are for SMEs to the better because of the less administrative burden and the loss of information for interested is not more important, but of course, for some it is crucial. Amending the Seventh Directive may have larger effect to some companies, most likely medium-sized SMEs, since the obligation to draw consolidated accounts will for some companies not be necessary.