Reporting Standard Requirements Under Dutch Law

ABSTRACT

Under Dutch law legal entities in the Netherlands may prepare their financial report based on Dutch GAAP or IFRS. Further under Dutch law, exemptions are granted for entities or companies with certain size category. The option to choose using Dutch GAAP or IFRS depend on the company size, the type of company, the consolidation and/or group requirements. The exemptions can be granted in relation to presentation, publication and auditing of the management board report and annual accounts. IFRS has become globally favourable for multinational companies, for its simplicity, consistency, and comparability. IFRS sets the standard globally and allow a company or business to become part of the global economy in the most efficient way when it comes to financial reporting. From time to time there has been some changing from Dutch GAAP to IFRS standards, to keep up with global requirements, where there have been some merged between these accounting standards.