The draft law of the Annual report and Consolidated annual report has been developed and published. It must be approved by 20 July 2015, as provided for in European Parliament and Council directive 2013/34/ES on company annual financial statements, consolidated financial statements and related reports.

It is provided that laws On Annual report and On Consolidated annual report currently in force will expire on 1 January 2017.

For the first time the Annual report and the Consolidated annual report, in accordance with the requirements of the new law, must be submitted for the reporting year which begins on 1 January 2016, or during the year 2016. In order to ensure a common understanding of certain issues of the new law enforcement, the Ministry of Finance will develop rules of the Cabinet of Ministers, which are to be adopted by the end of 2015.

Depending on the criteria set out in the draft (balance-sheet total, net turnover and the average number of employees during the reporting year) companies are divided into several categories - micro-enterprise, small, medium and large companies. According to the draft a micro-enterprise and a small corporation in contrast to medium and large companies have a different amount of financial statements.

The draft can be found on the Cabinet's website: www.mk.gov.lv :

http://tap.mk.gov.lv/lv/mk/tap/?dateFrom=2014-03-24&dateTo=2015-03-24&text=gada+pārskatu&org=0&area=0&type=0

Contacts of Tax Advisory unit

If you have any questions or need more detailed information, please contact:

Ina Spridzāne (ina.spridzane@leinonen.lv, tel. 67358635) or Alla Bistrova  (alla.bistrova@leinonen.lv, tel. 67358607).

If you are interested in the news of tax, employment and other business-related legislation in Estonia and Lithuania, please visit http://leinonen.ee/news/news and http://leinonen.lt/news/news