What legal requirements apply to the preparation of a financial statement?
November 20, 2023 | 40,00 EUR | answered by Fanni Ehrig
Dear Tax Consultant,
My name is Isabel Busse and I am the managing director of a medium-sized company. In the past, we have always prepared our annual financial statements internally, but I am unsure if we have met all legal requirements in doing so. I want to avoid any unpleasant surprises, so it would be very helpful to know which legal regulations apply to the preparation of our company's annual financial statements.
At the moment, my main concern is to ensure that we comply with all legal requirements and prepare our annual financial statements correctly. I am worried that possible errors or uncertainties could lead to legal consequences, and therefore want to make sure that we do everything right.
Could you please explain in detail which legal requirements apply to the preparation of our annual financial statements in our case? Are there specific guidelines or regulations that we need to follow? And what steps should we take to ensure that our annual financial statements comply with legal requirements?
Thank you in advance for your support and advice.
Sincerely,
Isabel Busse
Dear Mrs. Busse,
Thank you for your inquiry regarding the legal requirements for preparing a financial statement in your medium-sized company. As a managing director, it is understandable that you want to ensure that your financial statement is prepared correctly and complies with all legal regulations.
First and foremost, it is important to know that the legal requirements for preparing a financial statement in Germany are primarily regulated in the Commercial Code (HGB). As a managing director of a medium-sized company, you should familiarize yourself with the general principles of proper accounting (GoB) as defined in the HGB. These principles serve as guidelines for preparing a correct financial statement.
Furthermore, there are various legal requirements that may apply depending on the legal form and size of your company. As a managing director of a medium-sized company, you are obligated to prepare a financial statement in accordance with the regulations of the HGB. This includes, among other things, preparing a balance sheet, a profit and loss statement (P&L), and notes.
It is important to note that a company's financial statement must be transparent and comprehensible. This means that all relevant information and business transactions must be properly recorded and presented. Additionally, you must ensure that the financial statement complies with the principles of accounting and meets all legal requirements.
To ensure that your financial statement complies with legal requirements, I recommend contacting an experienced tax advisor. A tax advisor can assist you in preparing your financial statement, take into account all legal regulations, and avoid possible errors or uncertainties.
In summary, it is important for you to familiarize yourself with the legal requirements for preparing a financial statement and ensure that your financial statement is prepared properly. An experienced tax advisor can support you in this process and help you avoid potential legal consequences.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Fanni Ehrig
