EU Accounts Modernisation Directive, 2003

EU Upcoming

Directive 2003/51 (the ‘Modernisation Directive’) amended the Accounting Directives and added that European companies are required to also include non-financial information in their annual and consolidated reports, if it is necessary for an understanding of a company’s development, performance or position. Such reporting should include environmental and employee matters and key performance indicators, where appropriate (consistent with Commission Recommendation 2001/43/EC). Member States may choose to exempt small and medium-sized companies (SMEs) from these non-financial reporting obligations. Another amendment of the Accounting Directives (Directive 2006/46) introduced an obligation for listed companies to include a corporate governance statement in their annual report. By 2010 all Member States transposed the Accounts Modernisation Directive and most of the Member States transposed Directive 2006/46 in national laws.

Scope

General sustainability/ESG/non-financial

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

Type of instrument

Legislation

Mandatory or voluntary

The geographical scope

International/regional (eg. EU)

Project Partners