New Dimensional Measurement Bases In The Definition Of Undertakings

Financial statement disclosure obligations in Italy are based on company size, taking into account the average number of employees, balance sheet total and turnover.

Foreword

With European Directive 2013/34/EU of 26 June 2013 the EU legislator enacted new undertakings measurement bases, with a view to simplifying the administrative requirements concerning the drafting and publication of the financial statements for small-sized undertakings and harmonising the regulatory framework at an international level, as far as larger-sized companies are concerned.

In fact, art. 3 of the directive establishes the categories of undertakings, separating micro enterprises from small, medium and large enterprises, whereas in the case of corporate groups, small groups are separated from medium and large groups.

The directive was transposed into the Italian legal system by Legislative Decree No. 139 of 18 August 2015,which introduced new financial statement disclosure obligations based on company size regarding the average number of employees, balance sheet total and net turnover.

Categories of undertakings and groups

Even though the EU legislator had identified a classification of four categories of undertakings (micro, small, medium and large), the national law-maker, having regarded the size of the Italian market, preferred grouping medium and large-sized enterprises in one single category. As a result of this simplification, three categories of undertakings have been identified for accounting purposes: micro undertakings, small undertakings and medium-sized / large undertakings.

The figures in the table below show the values, at least two out of three, to be complied with at the balance sheet date, in the first financial year or, later, for two consecutive years:

Micro undertakings

Legislative decree No. 139/2015 introduces in art. 2435-ter of the Italian civil code the new simplified measurement bases for "micro undertakings", which are exempted from drawing up:

the cash flow statement the notes to the financial statements, if the information envisaged by the first paragraph of article 2427, numbers 9) and 16) of the Italian civil code is already disclosed at bottom of the balance sheet the management report, if the information requested by numbers 3) e 4) of article 2428 of the Italian civil code is already disclosed at bottom of the balance sheet. As far as the preparation of the financial statements is concerned, micro undertakings can draw up...