The House of Representatives has approved the amendment to the Companies Law Cap 113 by passing the Law 51(Ι) of 2017, which transposes the EU Accounting Directive (2013/34/EU) into domestic law. Several changes have been noted, however, we set out below some of the most important ones for informative purposes.
(i) The abolition of exemption from audit which had previously applied to small/dormant companies;
(ii) Exceptions to certain accounting and disclosure requirements which are available to the companies/groups categorized as being small or medium sized, based on the criteria of gross assets at the last balance sheet date, turnover excluding VAT for the financial year and average number of employees during the financial year;
(iii) Prohibition on payment of dividends if any development and formation costs are included as assets in the balance sheet and have not been completely written off, unless the amount of the reserves available for distribution and profits brought forward is at least equal to that of the costs not written off and
(iv) Management report is now the name for the directors’ report whereby certain amendments have been made to the said report which include amongst others that the report should include an objective review of the development and performance of the company’s business, position as well as description of the principal dangers and uncertainties that it faces.
For further information on this topic please contact
Ms. Nada Starovlah (firstname.lastname@example.org) at SOTERIS PITTAS & CO LLC,
by telephone (+357 25 028460) or by fax (+357 25 028461)
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