Micro-undertakings have no obligation to prepare notes to financial statements or management reports
This is the outcome of an amendment of the existing accounting bill. The amended accounting bill transposes the European Commission Accounting Directive of 26 June, 2013 (hereinafter referred to as ‘directive’). According to the decided changes there are simplifications for the composition of the financial statement 2014. A shortened financial statement can be prepared, if the notes to the balance sheet includes certain disclosures, regarding financial liabilities, debt securities, warranties and guarantees, as well as not in the balance sheet, included contingent liabilities (annex no. 4 of the bill specifies special requirements).
According to the amendments micro-undertakings are determined as follows:
Joint-stock companies, private limited companies, their subsidiaries, that have not exceeded following thresholds at the reporting date:
- PLN 1,500,000.00 Balance sheet total at the end of the financial year.
- PLN 3,000,000.00 Net turnover from goods and products in the fiscal year.
- Average number of employees: 10 (converted into full-time equivalents).
These simplifications can be applied by the following business entities:
- Associations, unions, employer associations, chambers of commerce, professional associations of farmers and professional representatives without business activities.
- Natural persons, partnerships of natural persons and general partnerships, with a net turnover from goods, products and financial transactions of not less than the equivalent of EUR 1,200,000.00 and not more than the equivalent of EUR 2,000,000.00 each in the last financial year.
- Natural persons, partnerships of natural persons and general partnerships, applying these provisions in their 2015 financial year and with a net turnover from goods, products and financial transactions of less than EUR 1,200,000 (equivalent).
If a micro-undertaking applies simplified requirements for the financial statement, it cannot use fair values or adjusted values for its assets and liabilities.
The Department of Finance estimates, that these amendments can be applied to more than 34,000 business entities. From the announcements of the Department of Finance, it is clear that more simplifications for small undertakings are in progress.
Legal basis: 11 June, 2014 bill on amendments of accounting bill (published 21 August, 2014, pos. 1100).