When must a Polish limited liability company prepare annual financial statements?
A Polish limited liability company that maintains accounting records prepares annual financial statements after the end of each financial year. The head of the entity should ensure that they are prepared no later than within 3 months of the reporting date. Where the financial year coincides with the calendar year, this generally means by 31 March of the following year.
By when must a company's financial statements be approved?
The annual financial statements should be approved by the competent body no later than within 6 months of the reporting date. In a Polish limited liability company, the approving body is generally the shareholders' meeting. For a calendar financial year, the deadline therefore generally falls on 30 June.
How long does a company have to file financial statements with KRS after approval?
An entity entered in the register of entrepreneurs of the National Court Register (KRS) must file the required documents with the relevant register within 15 days of approval of the annual financial statements. The filing includes not only the financial statements themselves, but also the other documents required by law for the relevant entity.
What is included in the financial statements of a Polish limited liability company?
The basic components are the balance sheet, profit and loss account and notes to the financial statements. Depending on the category of the entity and the applicable regulations, the financial statements may also include a statement of changes in equity and a cash flow statement. The exact scope should be determined for the specific company.
Is the management report part of the financial statements?
No. The management report is a separate document. Some companies are required to prepare it and file it together with the documents relating to the annual financial statements, but it should not be treated as one of the components of the financial statements themselves.
Does TOP Outsourcing prepare an XML e-financial statement ready for filing with KRS?
Yes. For companies preparing financial statements under the Polish Accounting Act, we can prepare a structured e-financial statement in XML format. Approval and filing of the financial statements with KRS remain the client's responsibility; however, TOP Outsourcing supports the process by providing templates of the relevant documents or resolutions and can explain the sequence of steps required to file the complete set of documents with KRS.
Does every company file its financial statements in XML format?
No. The rules are not identical in every case. Structured financial statements are prepared by entities covered by the logical structures published by the Ministry of Finance. Entities preparing financial statements in accordance with IAS/IFRS are subject to different format requirements. The basis for preparing the financial statements and the entity's status should therefore be determined before the file is prepared.
Who signs the financial statements of a Polish limited liability company?
The financial statements are signed by the person entrusted with maintaining the accounting records and by the head of the entity. Where the management board has more than one member, the financial statements may be signed by at least one management board member, provided that the remaining members submit the required statements or refusals to sign together with reasons.
Which electronic signatures can be used to sign e-financial statements?
Financial statements in electronic form may be signed with a qualified electronic signature, a Trusted Profile signature or a personal signature. For management board members who are foreign nationals, a qualified electronic signature is often used in practice.
Can financial statements be prepared on the basis of accounting records maintained by another accounting firm?
Yes. Before work starts, however, the data must be reviewed and responsibility for the historical accounting records clearly defined. We check whether balances are reconciled, whether the documentation is complete and what additional information is required from the client or the existing accounting firm.
Can financial statements be prepared if the accounting records have not been reconciled?
It is technically possible to generate the financial statements, but this should not be regarded as a properly completed financial reporting process. Unreconciled accounting records increase the risk of errors in the balance sheet, financial result, tax data and notes to the financial statements. The scale of the differences should first be established and the necessary adjustments made.
What should be done if the previous accounting firm did not prepare the financial statements on time?
The first step is to assess the state of the accounting records and identify missing documents, reconciliations, tax returns and information required for the notes to the financial statements. A closing plan, adjustment priorities and the scope of work required to prepare the financial statements can then be agreed. The absence of a completed XML file does not in itself determine the scale of the problem – the condition of the accounting records is what matters. If the statutory deadline has already passed, preparation of the financial statements should not be delayed further.
What documents are needed to prepare financial statements?
The scope depends on the company, but typically includes the accounting records and trial balance, fixed asset register, information on inventories, receivables and payables, bank accounts, taxes, provisions, accruals and prepayments and equity, as well as agreements and other information required for disclosures in the notes to the financial statements.
When must a company's financial statements be audited by a statutory auditor?
Some entities are subject to statutory audit because of the nature of their activities or legal form, including, among others, joint-stock companies and entities applying International Accounting Standards. For many Polish limited liability companies, the audit requirement arises when at least two of three statutory criteria relating to employment, total assets and revenue are met. The current thresholds are 50 employees, EUR 3,125,000 of total assets and EUR 6,250,000 of net revenue from the sale of goods and products, calculated for the preceding financial year for which the financial statements were prepared. It is also important that the statutory audit provisions of the Polish Accounting Act apply to entities continuing as a going concern.
Can TOP Outsourcing work directly with the statutory auditor?
Yes. Within the agreed scope, we can prepare schedules, supporting documentation for balances, explanations and responses concerning accounting data and coordinate the list of open matters. The statutory auditor's responsibility for the audit remains separate from the responsibility of the team preparing the accounting records and financial statements.
What should be done if the auditor proposes adjustments to the financial statements after they have been prepared?
If the adjustments are accepted and affect the financial statements, the accounting records or reporting data should be updated accordingly and a revised version of the financial statements prepared. If the previous version has already been signed, the revised financial statements must go through the appropriate preparation and signing process again, unless they have already been approved and filed with KRS; in that case, the adjustments should be recognised and appropriately disclosed in the next financial statements.
How can last-minute adjustments at year-end be avoided?
The best approach is to reconcile accounts regularly during the year, close each month using a consistent checklist, document material transactions and prepare information for disclosures and the audit in advance. The more issues are left until the final weeks before the financial statements are prepared, the greater the risk of delays.
How do the financial statements relate to CIT-8 and JPK CIT?
All of these obligations use accounting data, but present it for different purposes and within different scopes. The closing process should make it possible to reconcile accounting profit with taxable profit, permanent and temporary differences and the data reported in JPK CIT structures. Any discrepancies should be explainable and documented.
Can financial statements be combined with group reporting?
Yes. If the company also reports to foreign headquarters, we can reconcile the local financial statements with the group reporting package, account mapping and adjustments arising from group accounting policies. This helps limit unexplained differences between statutory and group reporting.
Can TOP Outsourcing take on only the preparation of the financial statements without providing ongoing accounting services?
Yes. This can be a separate project. Before starting, however, we need access to the accounting records and documentation and agreement on who is responsible for the accuracy of historical data and any adjustments. Following the review, we define the scope of work and the information needed to prepare the final financial statements.
