The classification of companies according to their achieved turnover on an annual basis is not applicable anymore and therefore the kind of books they must keep.

Under Article 2 of the new law, the determination of the size of entities (new definition by removing the word company) is as follows:

Very small Entities: Very small entities are entities which at the date of their Financial year’s closing, they do not exceed the limits of at least two of the following three criteria:

 

a) Total assets: 350.000,00 euro

b) Net turnover: 700.000,00 euro

c) Average employees during the period: 10 persons

Note: The limited partnership, the general partnership, a sole partnership and any other entity of the private sector, fall into the category of the very small entities with the sole condition that their turnover does not exceed the amount of 1.500.000 euro.

Small Entities: Small entities are entities which at the date of their Financial year’s closing, they do not exceed the limits of at least two of the following three criteria:

a) Total assets: 4.000.000 euro

b) Net turnover: 8.000.000 euro

c) Average employees during the period: 50 persons

Middle Entities: Middle entities are entities which at the date of their Financial year’s closing, they do not exceed the limits of at least two of the following three criteria:

a) Total assets: 20.000.000 euro

b) Net turnover: 40.000.000 euro

c) Average employees during the period: 250 persons

Big Entities: Big Entities are entities, which at the date of their Financial year’s closing they do exceed the limits of at least two of the following three criteria:

a) Total assets: 20.000.000 euro

b) Net turnover: 40.000.000 euro

c) Average employees during the period: 250 persons

According to article 3 of the new Law, all entities keep double entry books, either electronically or manually (paragraph 6 of article 3 if the Law 4308/2014), with exception of the very small entities which do not issue a Balance seat that means that they can keep single books (books of revenues and costs) according to paragraph 12 of article 3 of the new Law.

Article 4 of the new Law sets / defines additional files (books) with deadline the last date of the reporting period. That means the date of financial years closing.

Specifically the following needs to be kept:

1. Fixed assets register
2. Investments register
3. Inventory book
4. Inventory Book for stocks of third parties
5. Other assets register
6. Equity capital register
7. Liabilities register
8. Register for receivables and liabilities in foreign currency

The above 1 – 8 files / books, have basically replaced the inventory book - Balance Sheet of the previous provisions.

In any case we are expecting detailed instructions from the ministry of finance for further clarification and the correct implementation of provisions of this Law.

Entities whose shares are listed on the Athens Exchange, insurance and reinsurance companies, credit institutions, such as those which are established in Greece and are subsidiaries of entities whose shares are listed on a regulated market in a Member - State of EU, since they represent more than 5% of the net turnover or assets or the average employee of the parent company, have to prepare their financial statements in accordance with International financial Reporting Standards (paragraph. 3 Article 1 of the new Law).

NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of   the reader. Reception of specialized advice is required.

Our company does not hold any responsibility for any actions, taken by the readers, based on the present article.