The simplified financial statements for micro-enterprises are the most simplified form of financial statements for small corporations in Italy. The regulation is set forth in Article 2435-ter of the Italian Civil Code (Codice Civile).
The aim is to relieve very small companies of certain accounting obligations.
Micro-enterprises are defined as companies that, in their first fiscal year or in two consecutive fiscal years thereafter, do not exceed at least two of the following three thresholds:
| Criterion | Threshold |
|---|---|
| Total assets: | 220,000 euros |
| Revenue: | 440,000 euros |
| Average number of employees: | 5 |
If at least two of these thresholds are exceeded in two consecutive fiscal years, the simplifications for micro-enterprises can no longer be applied.
The annual financial statements for micro-enterprises are generally based on the regulations for abbreviated annual financial statements (bilancio in forma abbreviata), but provide for additional simplifications.
In particular, micro-enterprises are generally not required to prepare notes to the financial statements (nota integrativa) if certain legally required disclosures are included directly below the balance sheet.
The management report (relazione sulla gestione) may also be omitted under the conditions provided by law.
Furthermore, a cash flow statement (rendiconto finanziario) is not required.
The simplified financial statement for micro-enterprises should not be confused with the abbreviated financial statements (bilancio in forma abbreviata). The latter is subject to higher thresholds and less extensive simplifications.
The financial statements for micro-enterprises are thus intended in particular for very small limited liability companies (Srl) whose business activities do not exceed the statutory size criteria.