Which information must be included in the appendix to the annual financial statements?
November 3, 2022 | 40,00 EUR | answered by Alice Heck
Dear tax consultant,
I have a question regarding my financial statements and hope that you can help me. My name is Christine Ullmann and I run a small business. While preparing my financial statements, I came across the appendix and I am wondering what information needs to be included there.
To give you some context: my business generated a revenue of 100,000 euros in the last fiscal year and I am self-employed. I am unsure about the specific details that need to be included in the appendix and I am concerned that I might overlook something important.
The current situation is that I have no prior experience in preparing financial statements and therefore I am unsure about the information that needs to be included in the appendix. I want to ensure that my financial statements are complete and accurate in order to avoid any potential errors.
My concerns are that I might forget to include important details in the appendix which could potentially lead to issues. Therefore, I am wondering what information needs to be included in the appendix to the financial statements in order to be legally compliant.
Could you please explain to me what details need to be included in the appendix to the financial statements and what I should consider in order to create a complete and accurate financial statement? I would greatly appreciate your help and guidance.
Thank you in advance.
Sincerely,
Christine Ullmann
Dear Mrs. Ullmann,
Thank you for your inquiry regarding the appendix to the annual financial statements of your company. It is understandable that you may feel uncertain when it comes to preparing an annual financial statement, especially if you have no prior experience with it. I will be happy to explain to you what information needs to be included in the appendix to the annual financial statements and what you should pay attention to in order to prepare a complete and accurate annual financial statement.
The appendix to the annual financial statements serves to provide additional information that is not included in the actual financial statements themselves. The appendix primarily includes information necessary to obtain a complete picture of the financial position and business activities of the company. Mandatory disclosures in the appendix may include information on accounting and valuation methods, explanations of individual items in the balance sheet and income statement, information on provisions, liabilities, equity, and possibly on related companies.
Other important information in the appendix may include: explanations of business and goodwill, information on changes in fixed assets, information on contingent liabilities, and information on the tax treatment of certain items. It is important that all information in the appendix is clearly and understandably formulated so that it can be understood by external parties, such as banks, investors, or tax authorities.
To prepare a complete and accurate annual financial statement, it is best to consult a tax advisor or a certified accountant who can professionally assist you in preparing the financial statements and the appendix. They will ensure that all necessary information is included in the appendix and that your annual financial statement complies with legal requirements.
I hope that this information has been helpful to you and I am available for any further questions you may have. Thank you for your trust and I wish you success in preparing your annual financial statement.
Yours sincerely,
Alice Heck
