in Anything else...
Mon Aug 28, 2023 6:04 pm
• 6 Posts
Drafting annual financial statements can be both an easy and a complicated task. It all depends on the size of your business and the number of monthly transactions. There are financial statements, which do require footnote disclosures. On the other hand, there are financial statements, which are presented without any footnotes.
There may be different purposes for the statements. For example, normally your bank will be satisfied to see some basic financial figures in order to make sure your company is able to settle debts. Financial statement or report is usually prepared by transferring account trial balances to a set of templates, appropriate for accounting laws of specific country.
Specific requirements for annual financial statements in different jurisdictions Today the majority of year-end financial statements are made in full accordance with generally accepted accounting principles (GAAP). However, you should always consider the specific requirements for the chosen jurisdiction. For example:
The fiscal year. In vast majority of countries (especially EU member states), the financial year ends on December 31st. Other jurisdictions may have different approaches, since the financial year may end in different periods, depending on the registration date of the company, e.g., (in Singapore, the United Kingdom, Hong-Kong and others); Timeframes to file the annual reports. Depending on the jurisdiction, the timeframe for submission of the annual report may vary from just few months up to a year: 3 months in Bulgaria and in Singapore; 4 months in Latvia, up to 12 months on Cyprus, or up to 8 months in the UK; Requirements for audit. Note that in some countries every company must submit audited report (Cyprus, Singapore, Hong-Kong, Ireland). While in other countries companies may prepare an audited report voluntarily or, if they reach certain criteria (read further about Audit). We highly recommend checking up local national legislation prior to drafting or submitting annual report, as in different jurisdictions requirements may slightly vary. You can also ask our bookkeepers for detailed information - click here to know more.