Who can prepare an annual financial report?


Who can prepare an annual financial report?

Financial statements are prepared by accountants or accounting entities. Here is an exception to the rule. If my company falls into the category of so-called micro-enterprises and did not operate during the year, the financial statement may be drawn up instead of an accountant - from me as the owner (EOOD, EAD) or from the partners in the firm.
 
There are also certain companies whose financial statements are subject to mandatory independent financial audit by registered auditors. Here, the annual financial statement is also prepared by an accountant, but it needs to be audited by an auditor prior to the announcement in the Commercial Register. These companies have several categories:
 
Joint Stock Companies (AD, EAD) and limited partnerships with shares (KAA) (except when they did not carry out activity during the year).
Small enterprises that on 31 December of the preceding year meet at least two of the following conditions:
balance sheet value of the assets - more than BGN 2 million;
net sales revenue - more than BGN 4 million;
average number of staff for the reporting period - over 50 people. For example, if on December 31, 2016, my small enterprise had a book value of the assets of BGN 2,000,000; net income from sales - BGN 4 000 001 and staff - 51 people, its activity will be subject to mandatory independent financial audit.
Medium and large enterprises.
Public interest entities - banks, insurers, pension insurance companies, investment intermediaries and others.
Medium and large groups and groups in which there is at least one enterprise of public interest.
Undertakings for which this requirement is established by law.
Consolidated enterprises (companies) - this is the hypothesis of a parent company and subsidiaries.
Non-profit-making legal persons * that engage in community service and meet at least one of the following conditions:
Carrying amount of assets at 31 December of the previous year - more than BGN 1 mln.
Amount of income from economic and non-profit activity for the year - over 2 million BGN
The sum of the funds received during the year and the unused funds in previous years exceed BGN 1 mln.
Non-profit legal entities engaged in community service and mediation in international adoption.
* Non-Profit Legal Entities do not declare the FOI in the Commercial Register. From 1 January 2018, non-profit-making legal entities operating in the public interest will have to announce their GIF in the Register of Non-Profit Legal Entities kept by the Registry Agency.
 
If my business does not fall into any of the above points, my report may be prepared by my accountant without the need for auditing.
 


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Who can prepare an annual financial report? Who can prepare an annual financial report?