3 Basic Accounting Rules in the European Union
The EU has 27 countries that share the same fiscal policies, such as the same currency, an interconnected market and one fiscal calendar for all countries to follow.
With this, it is only natural that countries in the EU also follow the same finance and accounting rules when it comes to their own dealings.
If you are looking to deal with European countries, here are some of the most basic accounting rules to follow.
EU Accounting Directive Provisions
The EU Accounting Directive set by the European Parliament in 2013 sets the standard for financial reports, financial statements and transactions within the EU.
This directive gives a rundown of the necessary information needed, the format, and other requirements that all companies must adhere to for all financial dealings.
International Financial Reporting Standards (IFRS)
The IFRS are accounting rules that are generally followed by most companies even outside the EU.
It is a widely accepted list of policies that state the information needed in financial dealings, such as income documentation, cash flow, equity changes, and financial position and reports.
The Annual EU Budget and Finance Lifecycle
When dealing with certain non-government and government agencies in the EU, it is important to note that they have the so-called EU annual budget, with a lifecycle of up to 3 years.
EU’s annual budget (and how long it will last) is important to keep in mind for annual financial reporting and other regulatory compliances.
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