A reminder to check the thresholds that, if exceeded, trigger the obligation to audit the financial statements. And as for the financial statement audit itself – what thresholds qualify for this obligation in Poland? This article will detail the threshold amounts, as well as information in terms of which report to pull data from in order to verify potential overruns.
The audit for 2022 – in light of Article 64 (1) of the Polish Accounting Act – shall apply to the annual consolidated financial statements of capital groups and the annual financial statements of – continuing operations:
|Amounts specified in Article 64 (1) point 4|
of the Accounting Act
|Data for 2021 converted at the average exchange rate of the National Bank of Poland as of December 31, 2021. (1 EUR = 4.5994 PLN/euro)|
average annual FTE employment was
|at least 50 persons|
|total assets of the balance sheet at the end of the financial year were the equivalent in the Polish currency of at least EUR 2,500,000||EUR 2,500,000 × 4.5994 PLN/EUR|
= PLN 11,498,500*
|net income from sales of goods and products and financial operations for the financial year was the equivalent in the Polish currency of at least EUR 5,000,000||EUR 5.000.000 × 4.5994 PLN/EUR|
= PLN 22.997.000*
|||*The amounts expressed in EUR were converted into Polish currency at the average exchange rate announced by the National Bank of Poland as of the balance sheet date.|
The audit also applies to the financial statements of the acquiring companies and newly formed companies, prepared for the fiscal year in which the merger took place. The mandatory audit of financial statements also applies to the annual financial statements of entities prepared in accordance with IAS, the annual combined financial statements of investment funds with segregated sub-funds, and the individualannual statements of sub-funds (see Article 64 (3) and (4) of the Polish Accounting Act).
It is also mandatory for those ledger entities that have chosen the balance sheet method of determining exchange differences for tax purposes to have their financial statements audited.
Author: Agnieszka Piętak, Manager of the Accounting area, accounting office in Warsaw MDDP Outsourcing.