What is an annual financial report?
The annual financial report gathers full information about the financial position of the company. It includes a statement for revenues and expenses, a balance sheet, a statement for share capital and a cash flow statement.
The financial report is drawn up for one financial year, coinciding with the calendar year – from January 1st to December 31st. E.g: If you have a company created on 01.12.2020, you need to submit a report on the activity carried out in 2020 – in this case only one month.
Who is obliged to announce an annual financial report?
All the traders according to the Bulgarian Commerce Act – this includes Limited Liability Companies (Ltd.), Limited Partnerships, General Partnerships, Joint-Stock Companies, Limited Partnerships with shares. The non-profit legal entities and the rest enterprises are also obliged.
Financial statements are prepared by accountants or accounting firms. However, there are certain legal entities whose reports are subject to independent financial audit by registered auditors. These reports are also prepared by accountants but they are necessary to be verified by a registered auditor before their announcement in the Commercial Register.
These specific legal entities are several types:
- Joint-Stock Companies and Limited Partnerships with shares;
- Companies that issue securities for public offering;
- Credit institutions, insurance companies, investment companies;
- Companies involved in social insurance and funds management;
- Companies that shall draw up consolidated financial statements – parent companies and their subsidiaries;
- Non-profit organizations in public benefit with assets over 1 million BGN or business income over 2 million BGN;
- enterprises that exceed or meet certain indicators.
The announcement of the annual financial statements has certain deadlines as follows:
- For all the traders within the meaning of the Commerce Act – until 30.09;
- For the non-profit legal entities – until 30.09;
- For all the rest enterprises – until 30.09.
The deadline must be followed for each year thereafter. If the financial statement has not been announced on time, the fine that may be imposed to the company’s management is from 200 BGN to 3000 BGN. Upon repeated violation the amount оf the fine is double. There is a separate property sanction for the company.
How to submit an annual financial report for a company in Bulgaria?
Refer to our team of professionals. We will prepare the report and the accounting records together with the additional applications – a protocol of the general meeting of the shareholders / a decision of the sole shareholder for adoption of the report, a declaration of the truthfulness of the circumstances stated.