Pursuant to amendment to Act No. 433/2002 Coll. on Accounting (Act on Accounting), we would like to inform you about the amendments related to increase in the criteria of size for financial statements to be audited.
Pursuant to the new amendment, all business enterprises are obligated to have the individual financial statements and extraordinary financial statements audited, if the respective conditions are met. In 2021 and 2022, the size criteria for the obligation to have the financial statements audited by the auditor increase.
Increase in indicators to the following extent from 2021
In accordance with the Accounting Act , the following criteria shall apply for the accounting period beginning not earlier than 1.1.2021:
- Total amount of property / assets – from the current 2,0 mil. Euro up to 3,0 mil. euro
- Net turnover of the company – from the current 4,0 mil. Euro up to 6,0 mil. euro
- Number of employees- from the current 30 people up to 40 people
Increase in indicators to the following extent from 2022
In accordance with the Accounting Act , the following criteria shall apply for the accounting period beginning not earlier than 1.1.2022:
- Total amount of property / assets – from the current 3,0 mil. Euro up to 4,0 mil. euro
- Net turnover of the company – from the current 6,0 mil. Euro up to 8,0 mil. euro
- Number of employees – from the current 40 people up to 50 people
Such financial statements shall by audited by an auditor if at least two of three conditions are fulfilled within one year from the end of the accounting period, unless otherwise stipulated by a separate regulation. The auditor’s report shall be deposited in the register of financial statement no later than one year after the end of the accounting period for which the financial statements are prepared.
The obligation of the auditor to verify the individual financial statements will decrease to less than 1 percent of the accounting units thanks to this measure from 2022.