By: Terje Tampere and Aleksandra Anissimova
Once again it is time to start thinking about preparing corporate annual reports.
Provided that the financial year runs from 1 January to 31 December 2016, annual reports would need to be filed to the Commercial Register by 30 June 2017.
Below, we will briefly discuss the stages of preparing an annual report and changes in the rules.
The process of preparing and filing an annual report
Preparation of the annual report is something best not left to the last minute; instead, start early in the new year. We suggest agreeing early on with your accountant a schedule for preparing the annual report so that all the necessary activities and control procedures would be completed on time.
Preparing and filing the annual report covers the following activities:
Preparation of the annual report depends on the size of the business
Aments to the Accounting Act entered force on 1 January 2016. The amendments stem from Directive 2013/34/EU of European Parliament and of the Council, which sets out requirements for the information included in annual financial statements and the public disclosure of the report. The new requirements will apply to annual reports starting in the 2016 calendar year.
For the first time, the Accounting Act incorporates the terms micro-enterprises, small enterprises, medium-sized enterprises and large enterprises.
|
Category of enterprises |
Explanation |
Preparing an annual report |
|
Micro-enterprise |
Private limited company whose indicators as at the balance sheet date of the reporting year correspond to all of the following criteria: assets total less than 175,000 euros, obligations less than equity, one shareholder, who is also the management board member, revenue in reporting year of under 50,000 euros |
Balance sheet, income statement + up to 3 notes |
|
Small enterprise |
Company, of whose indicators as at the balance sheet date of the reporting year only one may exceed the following criteria: assets total 4,000,000 euros, revenue 8,000,000 euros and average number of employees during the reporting year is 50 people |
Balance sheet, income statement + up to 9 notes + management report |
|
Medium-sized enterprise |
Company, of whose indicators as at the balance sheet date of the reporting year only one may exceed the following criteria: assets total 20,000,000 euros, revenue 40,000,000 euros and average number of employees during the reporting year is 250 people |
Balance sheet, income statement, cash flow statement, statement on changes in equity + notes + management report |
|
Large enterprise |
Company, of whose indicators as at the balance sheet date of the reporting year at least two exceed the following criteria: assets total 20,000,000 euros, revenue 40,000,000 euros and average number of employees during the reporting year is 250 people |
Balance sheet, income statement, cash flow statement, statement on changes in equity + about 15 notes + management report |
Note: Please be aware that the annual report for small enterprises is no longer required to include a cash flow statement or statement on changes in equity. If a small enterprise nevertheless wishes to submit a report in the same form, this should be cleared with one’s accountant and, when entering the report in the Commercial Register, the medium-sized enterprise report form should be selected instead of the one for small enterprises.
If you have any questions about filing annual reports, please contact Grant Thornton Baltic’s accounting department via email at info@ee.gt.com or by telephone 626 4500. We’ll be glad to help