Every company incorporated in Cyprus is obliged by law to maintain accurate books of accounts, which should reflect the true and correct position of its affairs and give sufficient clarity of its activities.
According to Cyprus Company Law company accounts must include the following:
- A directors’ report, which should accompany the balance sheet and be submitted to the shareholders’ annual general meeting.
- An auditor’s report containing certain prescribed statutory information, unless the company is exempt from this requirement (small companies).
- Full financial statements as prescribed by IFRS (International Financial Reporting Standards) and
- Consolidated Financial Statements in the case of parent companies (unless specifically exempted in some cases).
All companies with share capital are also required to submit an Annual Return to the Registrar of Companies.
The Annual Return must be accompanied by the audited financial statements of the company, adopting the IFRSs translated into the Greek language.