Preparing annual financial statements should be easier. The Bundestag passed a corresponding regulation that will mean that more than 50,000 companies will have lower requirements in the future.
The Bundestag is making it easier for tens of thousands of companies to prepare their annual financial statements. The MPs raised the thresholds for total assets and sales revenue, on the basis of which companies are divided into small, medium-sized and large corporations.
This assignment decides whether an abbreviated balance sheet is sufficient for the annual financial statements or whether a detailed balance sheet including a management report and a profit and loss statement is required instead.
Retroactive validity for 2023 financial statements
The new thresholds, which are estimated to shift around 52,000 companies into a lower category with lower requirements, already apply retroactively to the 2023 annual financial statements.
As a result of the new regulation, the annual relief for the economy is estimated at around 650 million euros. “Our goal is to give our entrepreneurs more time for business and more freedom,” explained Justice Minister Marco Buschmann (FDP).