Additional reporting obligations for EU subsidiaries of entrepreneurs in financial reporting for public disclosure purposes.
The latest amendments to the Accounting Act (Official Gazette 85/24) of July 27, 2024, have introduced a new reporting obligation for the public disclosure of branches of entrepreneurs headquartered in another EU member state.
In accordance with Article 47, Paragraph 10, Item 2, branches of entrepreneurs headquartered in another EU member state are required to submit annual financial statements along with the corresponding auditor’s report if the financial statements are subject to statutory audit under Article 20 of this Act.
In other words, in addition to the documents specified in Article 47, Paragraph 10, Item 1, a branch of an entrepreneur from another EU member state must also submit its annual financial statements with the corresponding auditor’s report for public disclosure if a statutory audit obligation exists.
Consequently, for the financial year 2024 and beyond, a branch of an entrepreneur from another EU member state must submit to the Financial Agency, for public disclosure, the documentation specified in Article 47, Paragraph 10 of the Act. This includes the documentation of the parent company establishing the branch, as well as the annual financial statements of the branch itself, along with the corresponding auditor’s report, if they are subject to statutory audit under Article 20 of the Act.
The statutory audit obligation for the annual financial statements of a branch of an entrepreneur from another EU member state for the financial year 2024 will be determined in accordance with Article 20 of the Act, applying the classification criteria for entrepreneurs outlined in Article 5 of the Act.
Please note that the deadline for submitting "local" annual financial statements with the corresponding auditor’s report for public disclosure is six months from the last day of the financial year, while the deadline for submitting the accounting documents of the founder is regulated by the deadlines of the founder’s country.
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