ASSESSMENT OF THE IMPACT OF DIRECTIVE 2013/34/EU ON THE FINANCIAL STATEMENTS OF EU COMPANIES

Abstract

Directive 2013/34/EU is an important legislative instrument of the European Union that establishes common rules and standards for the financial statements of certain companies. In order to perform the analysis, the following methods were used: synthesis and analysis of scientific literature, summarization and comparison; statistical data grouping, systematization, graphic visualization; analysis of financial statements of companies from different countries. And the impact of this directive has been found to be multifaceted and important in all EU countries, especially for small and micro-enterprises. Analyzing the research carried out by researchers, it can be seen that the directive had a positive impact on reducing the costs of preparing financial statements, improving the quality of reports and reducing the administrative burden on small companies. The directive also promotes transparency, comparability and consistency between companies' financial statements, making it easier for investors and other interested parties to understand companies' financial results. The research on the financial statements of the companies of the Baltic countries (Lithuania, Latvia, Estonia) revealed the differences between the countries in the presentation of the balance sheet and profit (loss) statements, but it turned out that the directive made it possible to draw up abbreviated statements, facilitating the financial reporting process. In addition, the directive promotes the classification of companies according to established criteria and standardizes the presentation of financial statements, contributing to a uniform structure in corporate reports. Thus, Directive 2013/34/EU is very important, as it not only regulates the financial reporting process, but also promotes transparency, compatibility, and efficiency in EU countries.