On 9 June 2022, the House of Representatives has approved amendments to the Cyprus Companies Law Cap 113 regarding the financial reporting obligations of Cyprus companies.

Companies with less than €200,000 turnover and less than €500,000 of net assets should submit their financial statements for a “review” by a statutory auditor instead a statutory audit as per the provisions of the International Standard on Review Engagements 2400.  A “review” engagement provides limited assurance and confirms that there are no material modifications that should be made to the financial statements to be in conformity with the financial reporting framework.

It should be noted that the Law excludes the following types of companies from the lighter financial reporting obligations :

• Companies that are regulated and supervised by independent authorities.
• Parent companies that are required to prepare consolidated financial statements.
• Subsidiaries whose parent company must prepare consolidated financial statements.

The amendments will apply from 1 January 2023, therefore applicable to the financial year 2022 onwards.