The Directive 2013/34/EU, adopted on 26 June 2013, establishes comprehensive regulations for annual and consolidated financial statements of specific undertakings within the European Union. It aims to enhance consistency and transparency in financial reporting, particularly for small and medium-sized enterprises (SMEs), while reducing administrative burdens. The directive outlines definitions, categories of undertakings, and general principles for financial reporting, emphasising a 'think small first' approach to establish proportional requirements.

Additionally, the directive mandates tailored disclosures reflecting the size and complexity of the entity, and requires that large undertakings and public-interest entities disclose payments made to governments from extractive activities. Member States are encouraged to implement these regulations effectively to promote fair and meaningful financial reporting and governance, ensuring stakeholders are adequately informed.