COMPANIES LAW

The Companies Law was amended by Law 97(I) and the provisions of the Amending Law are the result of the transposition of the EU Accounting Directive (2013/34/EU) into domestic law. All changes are effective for period beginning on or after 1 January 2016.


COMPANIES LAW

The Companies Law was amended by Law 97(I) and the provisions of the Amending Law are the result of the transposition of the EU Accounting Directive (2013/34/EU) into domestic law. All changes are effective for period beginning on or after 1 January 2016.

 

Companies subject to statutory audits

From 2016 onwards ALL companies in Cyprus, including small/dormant companies, are subject to statutory audit and the exception that existed previously in the Law has now been abolished.

 

Management Report

The revised Law introduced also the term ‘Management Report’ to replace the term ‘Board of Directors Report’.  Most of the provisions relating to the content of this report have remained the same.  The revised Law mentions all new and amended provisions in detail.

The most significant change is that as per the revised Law small and medium-sized companies are exempted from preparing a management report, provided that certain criteria are met.

 

Other provisions

The revised Law also includes additional disclosures to be included in the financial statements of medium and large sized companies.  Examples include specific disclosures for staff costs, audit fees, number of employees, and details about the registered office.

Furthermore, other relevant provisions have been added in the revised Law which impact the corporate governance statement that is required to be included in the Management Report of companies whose shares are listed on the stock exchange of any EU member state.

 

Auditors and Statutory Audits

Specific amendments to the auditor’s report have also been incorporated in the revised Law which are mainly the result of the specific provisions as mentioned in the changes of the Companies Law.