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The various responsibilities are closely connected to the separate categories related to the scope of reporting and disclosure of financial information, or the obligation to have financial statements certified by the statutory auditor.
Transition between categories is possible if the entity in two consecutive accounting periods, based on the results of the regular financial statements, exceeds two other criteria of another category. The company then changes its category from the start of the immediately following accounting period.
What does it mean? If you prepare the financial statements as at the balance sheet date on 31 December, the category may be changed for the first time on 31 December 2018 and you will be required to compile and publish the financial statements as at 31 December 2018 in accordance with the new obligations of the category. For example, if you change a small entity to a secondary level, you will be required to compile and publish a statement of changes in equity and a cash flow statement for the current and prior periods. Remember that determining the obligation of a statutory audit of financial statements is bound to the categorisation of entities, which may affect the later date of submission of the corporate income tax return, or the obligation of the highest authority to determine the auditor.
This change may affect companies that move from the micro to small entities category. In case of non-compliance with the category-related obligations, you will be exposed to a fine of up to 6% of the net asset value.