Amendment in the Companies Law, Cap 113
The House of Representatives has recently passed amendments to the Companies law. The gist of the amendments is Review rather than 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.
The amendments of the Companies law stipulate that companies which fall under the above criteria, may submit their financial statements for review instead of audit, with such review being performed by a statutory auditor or an audit firm, in accordance with the International Standard on Review Engagement 2400, subject to the company’s annual turnover not exceeding the amount of €200,000 and the total value of the assets of such company (without deducting liabilities) does not exceed the amount of €500,000.
It is to be noted that exceptions are applicable for companies that are subject to regulation and supervision by regulatory authorities in the Republic of Cyprus. Additionally, exceptions apply to parent companies which are obliged to prepare consolidated financial statements.
The amendments to the Companies law will be applicable as of the 1st of January 2023 and are applicable to financial statements of companies for the financial year ending 31st of December 2022.
The House of Representatives has recently passed amendments to the Companies law. The gist of the amendments is Review rather than 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.
The amendments of the Companies law stipulate that companies which fall under the above criteria, may submit their financial statements for review instead of audit, with such review being performed by a statutory auditor or an audit firm, in accordance with the International Standard on Review Engagement 2400, subject to the company’s annual turnover not exceeding the amount of €200,000 and the total value of the assets of such company (without deducting liabilities) does not exceed the amount of €500,000.
It is to be noted that exceptions are applicable for companies that are subject to regulation and supervision by regulatory authorities in the Republic of Cyprus. Additionally, exceptions apply to parent companies which are obliged to prepare consolidated financial statements.
The amendments to the Companies law will be applicable as of the 1st of January 2023 and are applicable to financial statements of companies for the financial year ending 31st of December 2022.