Amendment to the Accounting Act

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On 15 October 2019, an amendment to Act No. 431/2002 Coll., on accounting, was approved that, with effect from 1 January 2020, brings a 100% increase in size of the two criteria in determining the duties of the statutory audit of financial statements, specifically the total amount of assets, and the value of the net sales of an accounting entity.

An entity, that is a business company or cooperative, will be required to have audited an ordinary and extraordinary individual financial statement, if at least two of the following criteria are met in two consecutive accounting periods:

  1. total assets more than EUR 2,000,000,
  2. net sales more than EUR 4,000,000,
  3. average number of employees during an accounting period that exceeds 30.

There is also a change in the condition for statutory audit only for those trading companies that mandatorily generate share capital. The circle of entities that will be required to audit financial statements will thus be extended to general partnership and limited partnerships, provided that they meet the above size criteria.

For entities that prepare financial statements under IFRS, auditors will have an extra responsibility to verify that the data reported in the statement of data selected from the financial statements (“výkaz vybraných údajov z účtovnej závierky“) is consistent with the financial statements prepared in accordance with IFRS. This shall not apply to entities that fall under the supervision of the National Bank of Slovakia.

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