Draft law amending accounting and audit legislation: New Business Challenges in the Light of European Union Law
In recent years, the European Union has been working intensively to harmonise and improve corporate reporting and audit standards. In this context, a new legislative initiative was created to implement the provisions of Directives (EU) 20222/2464 of the European Parliament and of the Council and Commission Delegated (EU) 2023/2775.
Changes in corporate reporting on sustainable development
The first of these directives, 2022/2464, concerns the amendment of the regulation and directives relating to the reporting of sustainable development by companies. It introduces new standards for environmental, social and corporate management information to promote business accountability and transparency of corporate activities.
The bill, based on this directive, introduces new reporting requirements for businesses, requiring them to report not only on financial results but also on sustainable development activities.
Adjustment of enterprise size criteria
Another significant change resulting from Commission Delegated Directive (EU) 2023/2775 is the adaptation of the enterprise size criteria. The definitions of micro, small, medium and large individuals so far are revised to better reflect economic reality and promote the development of small and medium-sized enterprises.
The draft law takes account of these changes, which may require companies to adapt to new classification and reporting requirements.
Conclusions
The draft Act amending the Accounting Act, the Act on auditors, audit firms and public oversight, and some other acts, constitutes an important step towards harmonising and harmonising accounting and audit standards in accordance with European Union law.
The introduction of new reporting requirements related to sustainable development and the adaptation of enterprise size criteria are a challenge for companies, but also an opportunity to improve transparency, accountability and competitiveness of the European business sector.
The project is expected to contribute to a more sustainable and competitive economy in line with the values and objectives of the European Union.
