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04-04-2018

Standalone financial statements according to IFRS

Magdalena Michniewicz | Senior Manager at MDDP Outsourcing

Magdalena Michniewicz

Senior Manager at MDDP Outsourcing

 

According to Polish Accounting Act,  standalone financial statements should be prepared according to the rules of this Act.

At the same time, Act allows for preparation of stand alone statements according to IFRS:

  • of issuers of securities admitted to trading on one of the regulated markets of the European Economic Area countries and issuers intending to apply or applying for such admission
  • of entities being members of a capital group, where the parent entity prepares consolidated financial statements in accordance with IAS
  • of a branch of a foreign enterprise may be prepared in accordance with IAS, if the enterprise prepares its financial statements in accordance with IAS

In other cases it is impossible to prepare financial statements under IFRS for companies falling under Accounting Act in Poland. Possibility of using IFRS according to art. 10 of Accounting Act is limited only to matters not regulated in Accounting Act or National Accounting Standards.

It is also worth to mention one aspect that is often forgotten – all financial statements prepared under IFRS must be audited. This is regulated by Accounting Act, art. 64.

There is one more, often ignored aspect, especially for foreign entities starting their activities in Poland, which would like to use own accounting systems with accounting policies based on IFRS. It is obligation to adjust system to Accounting Act requirements and to evidence transactions in accounting system according to tax rules.

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