Amendment to Companies' Law - Review instead of audit of financial statements for certain companies

The House of Representatives voted on the 9th of June 2022 the below amendment to the Companies Law:

“Review instead of audit of financial statements for companies whose net turnover does not exceed €200,000 and the total value of the assets does not exceed the amount of €500,000.”

As per the recent amendment of the Companies Law, Companies shall be able to proceed with the submission of their financial statement for review instead of audit by a statutory auditor or statutory audit firm, as directed by the International Standard on Review Engagements 2400, provided that the company’s net turnover is calculated below the amount of €200,00 and the total value of the assets without deducting liabilities does not exceed the amount of €500,00.

One shall also note that the abovementioned amendment has been paired with the relevant exceptions to the rule. The exceptions refer to companies that are regulated or supervised by independent authorities, parent companies that shall meet the requirement of preparing consolidated financial statements as well as their subsidiaries, and others.

The amendment comes into force from the 1st of January 2023 and the provisions are applicable to the financial statements of companies ending 31 December 2022 or any other subsequent date.

The publication of the Law in the Official Gazette of the Republic is expected to provide more details as to the use, as well as, the exceptions of the recent amendment.



Corporate Department