Auditing of financial statements of Cyprus companies – New changes
The process of auditing the financial statements of Cyprus companies whose net turnover and total balance sheet do not exceed € 200,000 and € 500,000 respectively for at least two consecutive years, is now simplified through the implementation of an alternative assurance procedure, which must be carried out by statutory auditor or statutory audit firm. The procedure is now referred to as companies’ financial statements review.
It is clarified that the net amount of turnover for Cyprus companies includes the net amount of turnover, rental income, interest, dividends, and intellectual property rights.
An individual who runs a business and whose total annual turnover and any other gross income does not exceed the amount of € 70,000 is exempt from the obligation to prepare financial statements. An individual whose total annual turnover and any other gross income exceeds € 70,000 but does not exceed € 200,000 and € 500,000 respectively for at least two consecutive years as stated above may also apply the same.
The Law enters into force on 1 January 2023 and applies to the financial statements of Cyprus companies ending on 31 December 2022 or any other subsequent date.
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