International Financial Reporting Standards, or IFRS, are a set of accounting standards that provides guidance on how companies should prepare and disclose their financial statements. The aim of the IFRS is to create a common accounting language so that companies’ accounts are consistent, comparable and understandable across more countries. However, keeping control of all obligations across multiple countries can be quite a challenge for international business. When does a company become qualified for IFRS reporting? What affects the obligation? Hereby we summarize whether you are required to file the individual or consolidated financial statements according to IFRS.
Financial statements in accordance with IFRS must be prepared by:
- Public interest entities – banks, insurance companies (except health), asset management companies, stock exchange and their branches
- An entity that is a trading company and has at least two consecutive accounting periods. It shall also meet at least two of the following conditions: the total amount of assets (gross balance sheet) exceeding EUR 170 000 000, net turnover exceeding EUR 170 000 000 or the average recalculated number of employees exceeding 2,000 in one accounting period
Financial statements in accordance with IFRS may also be prepared by:
- An entity that issued securities in the accounting period and these were admitted to trading on a regulated market
- Payment institutions, electronic money institutions, securities dealers
- Societas Europaea
It can be difficult to navigate through extensive IFRS guidelines and follow their frequent updates to correctly apply them. Our in-country experts offer both the best-practice compliance and complex IFRS advisory while also dedicated consultancy on various aspects of IFRS – addressing the specific needs of your organization.