AMENDMENT TO THE ACCOUNTING ACT

#127Amendment to the Accounting Act

Parliament approved an amendment to the Act on Accounting, which brings changes in the area of ​​reporting information on the sustainability of businesses and in the area of ​​criteria for classifying accounting units into size groups, where the selected conditions are increased by 25%. The approved amendment to the law represents a reaction to the implementation of the directive of the European Parliament and the Council of the European Union on the reporting of information on corporate sustainability, known as ESG reporting.

The primary goal of the adopted amendment is to improve the quality of the information provided in the annual report of the accounting units, thereby ensuring assistance to investors for a better evaluation of opportunities and risks during the transition to a green economy. ESG reporting will now apply to companies that meet at least 2 of the following conditions:

The most significant changes brought by the amendment to the law are:

1. the total amount of assets worth 25,000,000 euros;
2. net turnover exceeds 50,000,000 euros;
3. the number of employees exceeds 250 employees.

According to ESG reporting, the sustainability information in the annual report will now have to be verified by a statutory auditor. Only a subsidiary of an EU company will be exempt from ESG reporting.

In the field of criteria for classifying accounting units into size groups, the amendment to the law makes a new distinction between:

1. Micro accounting unit, which must now meet at least 2 of the following conditions:
1. the total amount of assets does not exceed 450,000 euros (compared to the original 350,000 euros);
2. the net turnover does not exceed the amount of 900,000 euros (compared to the original 700,000 euros);
3. the average number of employees during the accounting period does not exceed 10 employees.
2. A small accounting unit, which must now meet at least 2 of the following conditions:
1. the total amount of assets from 450,000 euros to 5,000,000 euros (compared to the original 350,000 euros to 4,000,000 euros);
2. net turnover from 900,000 euros to 10,000,000 euros (compared to the original 700,000 euros to 8,000,000 euros);
3. average number of employees during the accounting period from 10 to 50 employees.
3. A large accounting unit, which must now meet at least 2 of the following conditions:
1. the total amount of assets exceeds 5,000,000 euros (compared to the original 4,000,000 euros);
2. the net turnover exceeds the amount of 10,000,000 euros (compared to the original 8,000,000 euros);
3. the average number of employees during the accounting period does not exceed 10 employees.