For Danish companies in the smaller segment, the last couple of changes to the Financial Statement Act had been with a focus to minimize administrative burdens. The Danish lawmaker did that in two ways. First they decreased the regulation regarding auditing. Fewer of the smaller companies would need an audit opinion and a cheaper substitute for audit was available for the smaller companies. This act, should procure a decrease in auditing fee for the companies, which they could use to boost growth. The other way was a decrease in requirements for information in the financial statement for the smaller companies. They raised the requirements for the accounting classification, which gave some companies the opportunity to submit a financial statement from a lower accounting class. The lower class had fewer requirements, which meant fewer administrative burdens. In addition, they created a new accounting class for the micro companies. This class had fewer requirements on the financial statement disclosure requirements. Each year, the new requirements should save the companies millions of Danish crones in cost. These millions should rapidly boost the growth of the companies and the society. The Danish government calculation method, AMVAB, made the estimation. In 2012, they made a big change in the audit requirements and in 2015 the financial statements requirements was changed. This report focuses on the effect for the changes had lived up to the initial estimations and analyses if there may have been some negative effects with lowering the regulation. The quality of the financial statements and the level of information output decreased with the regulatory change. The report will conclude on, which changes could be made going forward, to support the focus on minimizing the administrative burdens for the companies.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||92|