DOCUMENTS FOR THE PRESENTATION OF ANNUAL ACCOUNTS
There is less time for the deposit of the annual accounts and I am sure that many of you have not yet prepared all the necessary documentation. If this is you, I invite you to read this post, where we will examine the documents necessary for the presentation of annual accounts.
1. The documents that form part of the annual accounts are (article 254 LSC):
- Balance sheet
- Profit and loss account
- Statement of changes in equity
- Cash flow statement (in certain cases)
- Annual report
2. There are three types of annual accounts:
- Normal
- Abridged
- SME
In order to know if a company is required to carry out normal or abridged annual accounts, it is necessary to take into account the circumstances of the company in two consecutive years with respect to:
- Total items of the asset.
- Net amount of annual turnover.
- Average number of workers during the tax year.
3. Illustrative chart of quantities:
| Illustrative chart of quantities: | ||||||
|
| Micro | SMEs GCoA (General Chart of Accounts) | Balance, Annual report and abridged SCE [Statement of Changes in Equity] | Short-term profit and loss accounts | Audit report | Normal Model |
| Companies | ||||||
| Total assets | ≤€1,000,000 | ≤€2,850,000 | ≤4,000,000 | ≤€11,400,00 | ≤€2,850,000 | Rest |
| Turnover amount | ≤€2,000,000 | ≤€5,700,000 | ≤8,000,000 | ≤22,800,000 | ≤€5,700,000 | Rest |
| No. of workers | ≤10 | ≤50 | ≤50 | ≤250 | ≤50 | Rest |
If the figures for at least two of them are below the limit, they can formulate the abridged model.
4. Other documents
4.1 Cash Flow Statement
– Required companies: those that cannot present an abridged balance sheet.
– Neither the statement of changes in equity nor the cash flow statement will be required when an abridged balance sheet can be formulated (Article 257.3 LSC).
4.2 Management Report
– Not part of the annual accounts.
– Companies required to deposit it (Article 262 LSC): are those that, according to the law, are obliged to present the balance sheet, annual report and statements of changes in equity (normal).
5. Illustrative time frame for formulation and deposit
| Formulation – must be approved in the administrative body’s minutes | Deadline: 3 months from year-end. |
| Approval – shall be recorded in the minutes of the General Meeting or the sole shareholder | General deadline: 6 months from year-end |
| Deposit – in the Mercantile Registry of the registered office | Deadline: 1 month from approval |
6. Presentation period of model 200 (Corporate Tax)
The model is presented starting from the sixth month after the end of the tax period with a term of 25 calendar days from that time. This means that, in most cases, the deadline for submission is from July 1 to 25 of each year, since, as a general rule, entities usually match the fiscal year with the calendar year. However, if the tax year-end date was different, the filing date would also be different, differing from other tax returns that operate with a fixed date of filing.
The current regulations establish the use conditions of normal annual accounts, abridged and SME models, with separate indication of these conditions for each of the documents that comprise them. The following table lists the criteria that determine the model to be used
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| Ordinary Annual Accounts Model | Abridged Annual Accounts Model | SMEs Model |
| Balance Sheet | All companies except those able to present abridged balance sheets or SMEs | They will present an abridged balance sheet if, during two consecutive tax years, they meet at least two of these circumstances: | They will present an SME balance sheet if, during two consecutive tax years, they meet at least two of these circumstances: |
| Asset = or < €4,000,000 | Asset = or < €2,850,000 (micro-enterprise = or < €1,000,000) | ||
| Net amount of annual turnover = or < €8,000,000 | Net amount of the annual turnover = or < €5,700,000 (micro-enterprise = or < €2,000,000) | ||
| Average number of workers during the year = or < 50. | Average number of workers during the year = or < 50 (micro-enterprise = or < 10) | ||
| Statement of changes in equity | All companies except those that may present an abridged statement of changes in net equity | They will present a statement of changes in net equity if, for two consecutive years, they meet at least two of these circumstances: | They will present an SME balance sheet if, during two consecutive tax years, they meet at least two of these circumstances: |
| Asset = or < €4,000,000 | Asset = €2,850,000 (micro-enterprise = €1,000,000) | ||
| Net amount of annual turnover = €8,000,000 | Net amount of the annual turnover = or < €5,700,000 (micro-enterprise = or < €2,000,000) | ||
| Average number of workers during the year = or < 50. | Average number of workers during the year = or < 50 (micro-enterprise = or < 10). | ||
|
| Not required if abridged balance sheet can be presented | ||
| Profit and loss account | All companies except those that may have an abridged P&L Account | They will present an abbreviated model if, during two consecutive exercises, they meet at least two of these circumstances: | They will present an SME balance sheet if, during two consecutive tax years, they meet at least two of these circumstances: |
| Asset = or < €11,400,000 | Asset = or < €2,850,000 (micro-enterprise = or < €1,000,000) | ||
| Net amount of annual turnover = or < €22,800,000 | Net amount of the annual turnover = or < €5,700,000 (micro-enterprise = or < €2,000,000) | ||
| Average number of workers during the year = or < 250. | Average number of workers during the year = or < 50 (micro-enterprise = or < 10) | ||
| Cash Flow Statement | Required if unable to present an abridged balance sheet (article 257.3 LSC) | Not required if abridged balance sheet can be formulated | Not required if abridged balance sheet can be formulated |
| Annual Report | Its contents shall be as indicated in article 260 LSC | Abbreviated annual report if they present a balance sheet and abridged statement of changes in stockholders’ equity. It must contain, at least, the first, second, third, fifth, ninth and tenth indications of art. 260 LSC. | Abbreviated annual report if they present a balance sheet and abridged statement of changes in stockholders’ equity. It must contain, at least, the first, second, third, fifth, ninth and tenth indications of art. 260 LSC. |
| Management report | Not part of the annual accounts. Mandatory if presenting balance sheet, annual report and statement of changes in equity (normal) | Not required | Not required |
| Audit report | Required | Not mandatory if 2 of the following are met: | Not required |
| Asset = or < €2,850,000 | |||
| Net amount of annual turnover = or < €5,700,000 | |||
| Average number of workers during the year = or < 50. | |||
| Formulation – shall be recorded in the administrative body’s minutes | Deadline: 3 months from year-end | Deadline: 3 months from year-end |
|
| Approval – shall be recorded in the minutes of the General Meeting or the sole shareholder | Deadline: 6 months from year-end | General deadline: 6 months from year-end |
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| Deposit – in the Mercantile Registry of the registered office | Deadline: 1 month from approval | Deadline: 1 month from approval |
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