Two bills unanimously approved by the House Plenum on Thursday, 22 January are anticipated to provide relief to small companies submitting their financial statements.
With the proposals of Kyriakos Hatzigiannis, DISY MP for the Famagusta constituency, and Nikos Sykas, DISY MP for the Limassol constituency, the Companies Law is amended to allow small companies and groups of small companies to prepare their financial statements based on the Financial Reporting Standards for small companies.
Among other things, the net turnover threshold that companies must meet in order to be able to submit their financial statements for review by a statutory auditor or statutory audit firm has also been increased from €400,000 to €300,000.
Financial Reporting Standards have also been defined, which these companies may apply.
As mentioned during the discussion of the proposals in the Commerce Committee, the proposed regulations are deemed necessary for the purposes of relieving these companies of the disproportionate administrative burden they bear, as they are required to comply with the requirements of the International Financial Reporting Standards.
It was pointed out that small companies have limited resources and therefore it is an unachievable and costly task for them to comply with high regulatory requirements, and their strict compliance with these standards may not be proportionate or relevant.
The competent authority for determining the Financial Reporting Standards is The Institute of Certified Public Accountants of Cyprus (ICPAC) and the Minister of Finance will be responsible, among other things, for approving the Standards submitted to it.
(Source: InBusinessNews)
