Directive on annual financial statements of micro-entities

A Directive amending the 4th Directive on annual financial statements of certain forms of companies has been published in the Official Bulletin of the European Union. The Directive allows member countries to introduce legislation that inter alia allows member countries to determine more benevolent rules for the financial statements of “micro-entities”. These entities would be permitted either to compile abbreviated versions of the balance sheet and profit and loss account or, under certain circumstances, to refrain from publishing financial statements all together. A micro-entity is a company that does not exceed certain limits set forth by the Directive (total assets of EUR 350,000/CZK 8.75 mil., net turnover of EUR 700,000/CZK17.5 mil. and average number of full-time equivalent employees: 10).

The Directive took force on the twentieth day following the announcement in the Official Bulletin of the European Union, i.e. on 10 April 2012. The question of implementing this Directive into the Czech legal system has not yet been resolved.