FINANCIAL REPORTING IN THE MICRO ENTERPRISES IN SELECTED EUROPEAN COUNTRIES

Micro enterprises are an important element of European economies. The number of micro companies constitutes average 93% of all registered entities. They employ nearly 30% of all workers in the European Union countries. It can be observed that highly developed countries as well as those still developing, having a different political, social and cultural structure have been devoting much attention to these enterprises. Their further development largely depend on their financial situation and adequate, reliable data from information system, which is based on accounting. The main aim of this research paper is to carry out a comparative analysis of the reporting obligations of micro enterprises which keep account books in selected European countries (Latvia, Poland, United Kingdom). At the beginning of this paper, criteria for classification of enterprises as micro, small and medium, resultant from legal regulations in selected countries, will be presented and compared. The analysis of macroeconomic data will indicate significance of micro sector. Next part will be concerning the analysis of the legal regulations allowed identification and comparison of the requirements arising from the accounting law regarding micro enterprises in the researched countries. This paper is a basis for seeking the best solutions and practices collecting and presenting information, not only for the reporting purposes, but also for constructing effective information system which will be adequate to ensure the needs all groups of the stakeholders.