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On 23 September 2016 ,Cyprus Company Law was amended by the Law 97 (I) of 2016, as published in the official gazette of the Republic.
Based on those amendments the following now apply:
a) Small sized Companies or small sized Groups
As at the balance sheet date (balance sheet date of the parent company for Groups), do not exceed the limits of at least two out of the three following criteria:
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Total Gross Assets - less than €4.000.000
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Total Net turnover - less than €8.000.000
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Average number of employees during the year - less than 50
b) Medium sized companies or medium sized Groups
As the balance sheet date (balance sheet date of the parent company for Groups) they do not exceed the limits of at least two out of the three following criteria:
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Total Gross Assets – between € 4,000,000 to less than €20.000.000
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Total Net turnover - between € 8,000,000 to less than €40.000.000
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Average number of employees during the year – between 50 to less than 250
c) Large sized Companies or large sized Groups
As at the balance sheet date (balance sheet date of the parent company for Groups) they do not exceed the limits of at least two out of the three following criteria:
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Total Gross Assets - more than €20.000.000
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Total Net turnover - more than €40.000.000
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Average number of employees during the year - more than 250
For the purpose of calculation of the limits on a Group basis in terms of above, it is permissible not to apply the following:
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Carrying value of the share capital of the group entities and the percentage of the share capital of the subsidiaries participating in the group netted-off against the percentage of their Net Assets;
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Offset the following intercompany balances and transactions:
o Intercompany assets and liabilities,
o Intercompany revenues and expenses,
o Unrealised profits/losses on intercompany transactions.
In cases where there is insufficient information of the Group’s companies on a stand-alone basis, Total Gross Assets and Net Turnover criteria shall be increased by 20%. (Article 141.A)
From now on small/dormant companies and Groups are subject to statutory audit, as the exception that existed in the Law has been abolished. This does not apply where any affiliated company is a public-interest entity or where the obligation to draw up consolidated financial statement is required by other legislations.
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
Definitions
1) 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
2) Gross Assets are the total value of assets without deducting any liabilities
3) Groups shall be considered any groups consisting of parent and subsidiary companies to be included in a consolidation.
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