The EU directive 2013/34, set both suggestions and demands for member states, regarding alleviations for administration activities of smaller companies. One these demands, is the small corporation exception for compiling a consolidated financial statement. The demand placed by the directive is obligatory and member states don’t have the possibility to deviate from it. The stated reason for this corporation exception is; “the users of small corporation financial statements don’t have high information requirements and because compiling a consolidated financial statement, in addition to annual financial statement for parent- and daughter company, can be expensive”.

In future, giving a true and fair view is not an adequate reason to demand a consolidated financial statement from a small corporation. However, even though this can no longer be demanded, a small corporation can compile a consolidated financial statement voluntarily. Creating a consolidated financial statement can, in some cases, be in the best interest of a corporation, thus small corporations should practice discretion on this matter.

In addition to exception, the directive placed new criterions for small corporations:

Criterions according to the directive:

1.       The total amount of balance sheet is 4 million €

2.       Revenue of 8 million €

3.       The approximate amount of employees is 50 during an accounting period


The thresh-hold values have also been placed in obligatory form, thus no EU-state can differ from the in the future. While setting the national criterion lower than directive ones is not acceptable, a member state can, if they so desire, raise the monetary criterions up to 1.5 times from directive values. Currently the values set by Finnish legislation are lower than the minimum values of the directive, and thus are due for change. The new values used in Finland would be as follows:

Values to be used in Finland

1.       Total amount of balance sheet is 6 million €

2.       Revenue of 12 million €

3.       The approximate amount of employees is 50 during an accounting period


More information: 

Pienyrityshelpotukset ja vuoden 2013 tilinpäätösdirektiivi ( In Finnish)