What is a financial statement and who must submit it in Poland?

What is a financial statement in Poland?

A financial statement is a document submitted by entities obligated to do so, containing financial data for a specific reporting period. A company’s financial statement pertains to a specific fiscal year and must be prepared on the last day of that period. The day on which the financial statement is prepared is called the balance sheet date. If the fiscal year coincides with the calendar year, the balance sheet date is December 31.

Consolidated financial statements

It is also worth mentioning what consolidated financial statements are. These are financial statements for a group of companies that include data from the parent company and its subsidiaries, regardless of their level or location.

A consolidated financial statement consists of:

1. A consolidated balance sheet.
2. A consolidated profit and loss account.
3. A consolidated cash flow statement.
4. A statement of changes in consolidated equity.
5. Additional information, including an introduction to the consolidated financial statements and additional explanations.

Which companies are required to prepare financial statements?

The obligation to prepare financial statements rests on companies that:

• Keep accounting books due to the level of their revenues or legal status, in accordance with the Accounting Act.
• Voluntarily decided to keep accounting books, in accordance with the Accounting Act.

It should be noted that banks and issuers of securities required to submit financial statements must also comply with International Accounting Standards (IAS). For them, the Accounting Act does not apply.

Who exactly must prepare a company’s financial statement?

In various companies, it is the management that is responsible for preparing the financial statement. The responsibility falls on:

• Partners in civil, partnership, and general partnerships.
• Members of the management board in capital companies.
• General partners in limited partnerships and limited joint-stock partnerships.
• Members of managing bodies in other entities, according to the Accounting Act.
• Liquidators, trustees, or administrators in bankruptcy proceedings.

When must annual financial statements be submitted?

An entity required to submit a financial statement must do so within 3 months from the balance sheet date. If a company’s fiscal year ends on December 31, the financial statement must be prepared by March 31. It is important to note that if this day falls on a weekend or holiday, the deadline is not extended to the next business day.

Who approves the financial statements?

The financial statements are approved by the appropriate bodies specified in the company’s statute, e.g. the general meeting of shareholders or all partners. The prepared report is also approved by the owner of the sole proprietorship.

The time for approving the financial statement is no later than 6 months from the balance sheet date, i.e., by June 30 if the fiscal year coincides with the calendar year.

Need help with VAT or e-commerce accounting?

You’ve come to the right place! Regardless of whether we are talking about e-commerce accounting or VAT & VAT OSS issues in EU and UK countries!

Check out our e-commerce accounting offer

How to prepare e-financial statements?

A company’s financial statement must be submitted electronically as an e-financial statement, which must conform to the structure and format required by the Ministry of Finance.

To whom must the financial statement be submitted?

Depending on the company’s status and revenues, the authorities, deadlines, and method of submitting the financial statement may vary.

1. Entities registered in the National Court Register (KRS) that do not prepare financial statements in accordance with IAS must submit the statement within 15 days of its approval to KRS via the Ministry of Justice’s teleinformation system.
2. Income tax (PIT) payers who keep accounting books and are required to prepare financial statements must submit the e-financial statement by the deadline for filing their tax return for the fiscal year to the head of the National Tax Administration using the e-statements application.
3. CIT taxpayers not registered in KRS, who are required to prepare financial statements, must submit the unit’s financial statement within 15 days of its approval to the head of KAS using the e-statements application.

How to sign e-financial statements

Before submitting a financial statement electronically, it must be signed. This can be done using a qualified signature, a trusted signature, or by signing in person. If a qualified signature is chosen, it must comply with the XadES algorithm.

The e-financial statement is signed by the head of the unit or the person responsible for keeping the accounting books, e.g., an accountant.

If the company is managed by a multi-person body, one of them can sign the financial statement, but the others must declare that the document meets legal requirements. Refusing to make such a declaration is equivalent to refusing to submit the financial statement, which must then be properly justified.

Such declarations or refusals must also be signed with a qualified, trusted, or personal signature and then submitted electronically or on paper. If they are hand-signed, electronic versions must also be provided.

Who can submit e-financial statements?

While the unit’s head must prepare the documents required for submitting the financial statement, the financial statement can be submitted by the unit itself or an authorized person, such as a legal representative, lawyer, or a designated person in the case of restructuring proceedings.

Penalties and sanctions for failing to submit financial statements

If the financial statement is not submitted on time, KRS will send a relevant summons. If the unit does not fulfill the obligation within 7 days of receiving the summons, it faces penalties, including:

• A fine for the head of the unit ranging from 10 to 720 daily rates.
• Restriction of freedom for the head of the unit from 1 month to 2 years.
• Compulsory proceedings.
• Appointment of a curator.
• Dissolution of the company and removal from KRS.

If a financial statement is not submitted for two consecutive fiscal years, the company can be dissolved by court order without liquidation proceedings.

Storing financial statements

An entity required to submit a financial statement must also store the financial statements for at least 5 years, starting from the year following the fiscal year in which the financial statement was approved.

Who has access to financial statements?

E-financial statements can be accessed by anyone interested. This can be done on the Ministry of Justice’s website by entering the KRS number of the entity.

What data does a company's financial statement contain?

A company’s financial statement for a fiscal year includes:

• A balance sheet, which includes the company’s assets and liabilities at the end of the current and previous fiscal year.
• A profit and loss account, which differentiates between revenues, costs, profits, and losses, as well as charges to the financial result for the current and previous fiscal year.
• Additional information concerning the adopted accounting policy, including valuation methods and changes compared to the previous year.

Need help with VAT or e-commerce accounting?

You’ve come to the right place! Regardless of whether we are talking about e-commerce accounting or VAT & VAT OSS issues in EU and UK countries!

Check out our e-commerce accounting offer

Additional documents to prepare with the financial statement

It is important to include several other required documents with the financial statement, such as:

• Approval of the financial statement.
• Business report, if required (e.g., for limited joint-stock partnerships).
• Resolution on profit distribution or loss coverage.
• Auditor’s opinion if the statement was audited.

Financial statements in e-commerce - summary

When running a business, it is essential not to forget the obligations that lie before the management. These include the annual submission of financial statements, containing data for the past fiscal year of the company. The preparation deadline is 3 months after the end of the fiscal year, followed by another 3 months to approve and sign the prepared documents, and then submit them to the appropriate entity, depending on the company’s status.

Financial statements are submitted electronically, and failure to comply can result in financial penalties, restrictions on freedom, or even dissolution of the company. If you want to ensure that your e-commerce accounting duties are properly and diligently performed, schedule a consultation and see how our specialists can help you and your business. We also gladly provide support in VAT and VAT OSS matters, such as registration, filing declarations, or settlements in EU and UK countries!