Press Release: Financial reporting: Commission welcomes Parliament’s support for strengthened accounting rules and easing burdens on small companies

The European Commission welcomed the European Parliament's vote on 15 December 2005 to approve the proposal for a Directive amending the European Union’s Accounting Directives. The amendments were to bring improved disclosure by obliging listed EU companies to provide annually a corporate governance statement and providing more insight into the use of off-balance sheet arrangements and unusual transactions with related parties, such as the spouse of a board member. In addition, thresholds defining small and medium sized companies were to be increased by 20%, which would help to reduce those companies' financial reporting burdens.