ANNUAL FINANCIAL REPORT

ANNUAL FINANCIAL REPORT

Dear entrepreneur,
The period for submitting the annual financial report is every year from January 1st to June 30th (applies to those whose financial year is from 01.01 to 31.12). Companies registered before July 1st of the previous year must submit the report https://www.riigiteataja.ee/akt/835246. The report must be submitted even if there has been no direct activity in the company.

What is the purpose of the annual financial report and who needs it?

The Accounting Act defines entrepreneurs based on their size into four groups – micro-enterprises, small enterprises, medium-sized enterprises, and large enterprises. Based on this, each group is assigned minimum reporting requirements. However, the general principle is that an entrepreneur can always choose a more detailed report format. This is particularly relevant if the company has potential interest groups for whom its annual report may be of greater interest.

Micro-enterprise

A micro-enterprise is a private limited company whose indicators meet all the following conditions on the balance sheet date of the reporting year: total assets up to €175,000, liabilities are not greater than equity, one shareholder who is also a board member, and annual sales revenue up to €50,000.
A micro-enterprise must submit a shortened balance sheet, profit and loss statement, and depending on the company's activity, up to three annexes. The annual report of a micro-enterprise is usually very brief and provides only the minimum information.

Small enterprise

A small enterprise is a business entity whose indicators on the balance sheet date of the reporting year may exceed the following conditions in only one case: total assets €4,000,000, sales revenue €8,000,000, and an average number of employees during the year 50.
A small enterprise must submit a shortened annual report, prepared in accordance with the Estonian financial reporting standard, consisting of two main reports: a detailed balance sheet and profit and loss statement, and up to 9 annexes. A small enterprise must also prepare an activity report.

Medium-sized enterprise

A medium-sized enterprise is a business entity whose indicators on the balance sheet date of the reporting year may exceed the following conditions in only one case: total assets €20,000,000, sales revenue €40,000,000, and an average number of employees during the year 250.