Financial statements of entities include regular preparation of financial data on the financial position of an entity (profit-seeking limited civil liability legal entities (and non-limited civil liability legal entities if legal acts commit them to draw up financial statements or they decide themselves to make financial statements), its performance results, and cash flows as well as disclosure thereof in a set form. The purpose of financial statements is to satisfy the need of information users to get the correct information about the financial position, performance results and cash flows.

Categories of undertakings: micro-undertakings, small undertakings, medium-sized undertakings and large undertakings.

Micro-undertakings may not prepare explanatory notes and then their financial statements shall include:

  • short balance sheet;
  • short profit (loss) account.

The financial statements of small undertakings shall include:

  • balance sheet or abridged balance sheet;
  • profit (loss) account;
  • explanatory notes.

The financial statements of medium-sized undertakings and large undertakings shall include:

  • balance sheet;
  • profit (loss) account;
  • cash flow statement;
  • statement of changes in equity;
  • explanatory notes.

Regulation and application

Financial statements of entities shall be drawn up in compliance with:

If a company has subsidiaries, it must draw up consolidated accounts. Consolidated accounts shall include the financial statements of a group of undertakings drawn up and presented as the financial statements of a single entity. The Law on Consolidated Accounts of Groups of Undertakings shall regulate the drawing up of consolidated accounts, which shall be applied to public limited liability companies and private limited liability companies that may have direct or indirect decisive effect on a single or several profit-seeking legal entities.

Last updated: 12-11-2023