This is the fundamental information that must appear in the annual accounts filing
Posted: Wed Dec 18, 2024 4:50 am
Find out what annual accounts look like and what documentation accompanies them when they are filed in the Commercial Registry.
The annual accounts are a set of accounting documents.
Along with the annual accounts, other documents are filed in the Commercial Registry.
Capital companies whose financial year coincides with the calendar year have 6 months to hold an ordinary meeting. This means that they must approve the annual accounts before 30 June .
Start of marked textSHARE IT! Are you
cuba email list thinking about the documentation that needs to be filed with the annual accounts? Take note of what you need to take to the Commercial Registry!End of marked text
They then have one month to file them at the Commercial Registry . This brings us to the end of July as the deadline for filing. Therefore, before closing, it is necessary to be clear about what needs to be filed .
Download your FREE copy of the “Basic Kit for Keeping Your Accounting Up to Date”
The balance
The balance sheet is a snapshot of the company's financial and equity situation. It includes the following elements:
Assets represent the company's assets and rights. They are divided into current and non-current assets depending on whether they will remain in the company for less or more than one year, respectively .
Debts are listed under liabilities . They are divided into current liabilities (debts due in less than one year) and non-current liabilities (due in more than one year).
The difference between assets and liabilities constitutes the net worth . It includes the partners' contributions, retained earnings and other variations.
The profit and loss account
The profit and loss account shows the results of the financial year. It shows income and expenses. In terms of presentation, the different components are presented in the form of a list. In it you will find, among other data:
Operating income . Shows the main activities of the company.
The financial result . Includes financial income and expenses, the change in the fair value of instruments, exchange differences, impairment and results from the sale of financial instruments.
The sum of the operating and financial results is called profit before taxes .
The result of the exercise will be given, finally, by subtracting the profit tax from the result before taxes.
In addition, in the normal model of profit and loss accounts, a result of continuing operations is recorded. This is entered in case there are discontinued operations, which would have to be discounted before arriving at the result for the year.
Integrate your accounting and management into a single tool with Sage 50 to control all areas of your business.
The management report
The management report is not part of the annual accounts, but accompanies them. It contains a true account of the company's business performance and situation. It also describes the main risks and uncertainties.
In any case, not all companies are required to prepare a management report . Thus, capital companies that can prepare an abbreviated balance sheet and statement of changes in net assets are exempt.
As for the content , it may be different depending on size factors (assets, turnover, employees). In particular, larger companies must present a non-financial information statement , although they may also present it in a separate document.
The management report is not part of the annual accounts, but it is filed with the Commercial Registry together with them.
The cash flow statement
It allows us to know the company's capacity to meet its payment obligations and its liquidity needs . It is part of the annual accounts, but only in the normal format. It is optional for companies that prepare abbreviated balance sheets and reports.
It distinguishes three categories of collections and payments :
Cash flows from operating activities . These are the monetary transactions carried out as a result of the company's economic activity.
Cash flows from investing activities . Includes payments for investments and receipts from divestments.
Cash flows from financing activities . These include those related to equity instruments, financial liability instruments, dividend payments and remuneration of other equity instruments.
The annual accounts are a set of accounting documents.
Along with the annual accounts, other documents are filed in the Commercial Registry.
Capital companies whose financial year coincides with the calendar year have 6 months to hold an ordinary meeting. This means that they must approve the annual accounts before 30 June .
Start of marked textSHARE IT! Are you
cuba email list thinking about the documentation that needs to be filed with the annual accounts? Take note of what you need to take to the Commercial Registry!End of marked text
They then have one month to file them at the Commercial Registry . This brings us to the end of July as the deadline for filing. Therefore, before closing, it is necessary to be clear about what needs to be filed .
Download your FREE copy of the “Basic Kit for Keeping Your Accounting Up to Date”
The balance
The balance sheet is a snapshot of the company's financial and equity situation. It includes the following elements:
Assets represent the company's assets and rights. They are divided into current and non-current assets depending on whether they will remain in the company for less or more than one year, respectively .
Debts are listed under liabilities . They are divided into current liabilities (debts due in less than one year) and non-current liabilities (due in more than one year).
The difference between assets and liabilities constitutes the net worth . It includes the partners' contributions, retained earnings and other variations.
The profit and loss account
The profit and loss account shows the results of the financial year. It shows income and expenses. In terms of presentation, the different components are presented in the form of a list. In it you will find, among other data:
Operating income . Shows the main activities of the company.
The financial result . Includes financial income and expenses, the change in the fair value of instruments, exchange differences, impairment and results from the sale of financial instruments.
The sum of the operating and financial results is called profit before taxes .
The result of the exercise will be given, finally, by subtracting the profit tax from the result before taxes.
In addition, in the normal model of profit and loss accounts, a result of continuing operations is recorded. This is entered in case there are discontinued operations, which would have to be discounted before arriving at the result for the year.
Integrate your accounting and management into a single tool with Sage 50 to control all areas of your business.
The management report
The management report is not part of the annual accounts, but accompanies them. It contains a true account of the company's business performance and situation. It also describes the main risks and uncertainties.
In any case, not all companies are required to prepare a management report . Thus, capital companies that can prepare an abbreviated balance sheet and statement of changes in net assets are exempt.
As for the content , it may be different depending on size factors (assets, turnover, employees). In particular, larger companies must present a non-financial information statement , although they may also present it in a separate document.
The management report is not part of the annual accounts, but it is filed with the Commercial Registry together with them.
The cash flow statement
It allows us to know the company's capacity to meet its payment obligations and its liquidity needs . It is part of the annual accounts, but only in the normal format. It is optional for companies that prepare abbreviated balance sheets and reports.
It distinguishes three categories of collections and payments :
Cash flows from operating activities . These are the monetary transactions carried out as a result of the company's economic activity.
Cash flows from investing activities . Includes payments for investments and receipts from divestments.
Cash flows from financing activities . These include those related to equity instruments, financial liability instruments, dividend payments and remuneration of other equity instruments.