On 9th of June 2022, the House of Representatives passed amendments to the Companies Law imposing a small company audit exemption.
The changes are stated below:
Review instead of audit of financial statements for companies whose net turnover does not exceed €200,000 and the total value of assets does not exceed €500,000.
According to the amendments of the Companies Law, companies may submit their financial statements for review instead of audit, by a statutory auditor or statutory audit firm, according to the International Standard on Review Engagements 2400, when the company’s net turnover does not exceed the amount of €200,000 and the total value of Gross assets does not exceed the amount of €500,000.
It is important to note that the exemption mentioned above does not apply for regulated companies, for parent companies that are required to prepare consolidated financial statements, for subsidiaries whose parent company must prepare consolidated financial statements, and others.
The new regulation is applicable from the 1st of January 2023 and the provisions apply to the financial statements of companies ending 31 December 2022 or any other subsequent date.
More details will be given with the publication of the Law in the Official Gazette of the Republic.
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