Consolidated financial statements of Group companies

We can provide the following at your request:

Preparation of consolidated financial statements in accordance with International Financial Reporting Standards (IFRS).
Audit of consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS).

COMPANY LAW REQUIREMENTS

The Companies’ Law was amended by the Law 97(I) 2016, as published in the official gazette of the Republic on 23 September 2016. The provisions of the Amending Law are the result of the transposition of the EU Accounting Directive (2013/34/eu) into domestic Law.

Categories of Groups

Category of Group	Criteria			Condition
Category of Group	Total Gross Assets	Net Turnover	Average no of employees during the year	Condition
Small Groups⁽²⁾	Less than €4.000.000	Less than €8.000.000	Less than 50	On a consolidated basis, do not exceed the limits of at least two of the three criteria as at the balance sheet date of the parent company
Medium Sized Groups ⁽²⁾	Less than €20.000.000	Less than €40.000.000	Less than 250	Groups which are not small groups, and which, on a consolidated basis, do not exceed the limits of at least two of the three criteria as at the balance sheet date of the parent company
Large Groups ⁽²⁾	More than €20.000.000	More than €40.000.000	More than 250	Groups which on a consolidated basis, exceed the limits of at least two of the criteria as at the balance sheet date of the parent company

Notes:

‘Net turnover’ means the amounts derived from the sale of products and the provision of services after deducting sales rebates and value added tax and other taxes directly linked to turnover.

As Groups shall be considered any groups consisting of parent and subsidiary companies to be included in a consolidation.
For the purpose of calculation of the limits presented in the Table above, it is permissible not to apply the following:
- Carrying value of the share capital of the group entities and the percentage of the share capital of the subsidiaries participating in the group can be netted-off against the percentage of their Net Assets;
- Offset the following intercompany balances and transactions:
  - Intercompany assets and liabilities,
  - Intercompany revenues and expenses,
  - Unrealised profits/losses on intercompany transactions.

In such cases, when the above are not applied, the limits for the Total Gross Assets and Net Turnover criteria shall be increased by 20%. (Article 141.A)

Exemptions from Consolidation

The exemption of the Law to prepare consolidated financial statements which applied to small groups has been extended to apply to Small and Medium – size groups (as these are defined in section I above) except where any affiliated company is a public-interest entity or where the obligation to draw up consolidated financial statement is required by other legislations. (Article 142(1)(ε))
The provisions of the Law exempting group of companies from preparing consolidated financial statements if the ultimate parent or parent companies publish consolidated financial statements on the basis of Generally Recognized Accounting Principles continue to apply
The provisions for consolidation exemption in the cases of (i) severe and longterm restrictions, (ii) disproportionate cost or undue delay and (iii) held exclusively with the view to subsequent sell, as these were provided by the Article 142.A.(5) of the Law have been abolished. (Article 142(A))

Combining the financial results of several subsidiary companies into the financial results of the parent company