In the draft of the new accounting standard for micro and small enterprises, currently under consultation until February 28, 2027, the Italian Accounting Standard Setter (OIC) also addresses the regulations for revenue, income taxes, and foreign currency transactions. The document was created with the aim of simplifying the application of accounting rules for smaller companies, eliminating certain cases considered infrequent and providing a framework more proportionate to their actual complexity.
Regarding revenue, Chapter 15 of the standard establishes the criteria for its recognition, referring to the moment the company transfers the goods or services involved in the transaction to the customer. The approach thus maintains the reference to the accrual basis principle, according to which revenue must be allocated to the fiscal year to which it relates, regardless of when payment is received.
Particular attention is also given to the accounting of income taxes. The draft addresses the recognition of deferred tax assets and liabilities, with the intent of preventing smaller companies from having to apply excessively complex procedures for cases that occur only occasionally in their business or have a non-significant impact on the financial statements.
Deferred tax assets and liabilities will continue to be linked to temporary differences between the value assigned to an asset or liability according to statutory rules and the value recognized for tax purposes. However, under the new approach, their recognition becomes significant primarily when the effects are material to the representation of the company's economic, equity, and financial position. The simplification thus aims to focus disclosure on truly material elements, reducing the compliance burden related to marginal situations.
Another aspect considered by the draft concerns foreign currency transactions, a particularly important topic for companies that maintain commercial relationships with foreign customers or suppliers. Transactions are initially recorded in euros based on the exchange rate in effect on the date they are carried out. At the end of the fiscal year, monetary assets and liabilities expressed in foreign currency must instead be appropriately measured, taking into account the exchange rate on the balance sheet date. Exchange differences arising from the measurement are recognized according to the provisions set forth in the standard.
In this area as well, the goal is to make the rules simpler and more direct for micro and small enterprises, avoiding the inclusion of regulations for transactions considered infrequent in the new standard. The expected result is a more streamlined accounting framework that allows companies to focus on the most relevant aspects for the presentation of their financial statements.
The new regulation is part of a broader OIC project aimed at preparing a single accounting standard dedicated to micro and small enterprises. The intent is to ensure greater proportionality between the size of the company and the required accounting compliance, without sacrificing the quality and reliability of the information contained in the financial statements.
Since this is still a draft under consultation, the provisions may be subject to changes before final approval. For companies and the professionals who handle their accounting compliance, it will therefore be important to follow the project's evolution and any changes made to the text during the consultation process.