Financial Statement – What should be prepared?

Once again it is time for many companies to prepare a financial statement for the ended accounting period. As you accounting firm, we will take care of most of the financial statement process, but by delivering possibly still-missing documents you can make the process easier and optimize time spent.

The information needed in a Finnish financial statement is mandated in different laws ranging from accounting law to company legislation. Another confusion inducing factor can be the accounting legislation reform, which took effect on 1.1.2016. While accounting period 2015 happened before the reform, the reformed legislation can be applied to the financial statement of 2015.

The following documents should be provided:

  • Tax decision for the previous accounting period
  • All possibly still missing invoices and cash receipts
  • A breakdown of accounts payable and accounts receivable
  • Inventory on 31.12.2015 in order to determine the change in inventory
  • Records from board meetings and shareholders’ meetings
  • Cash balance and all other account balances (bank account, loans…)
  • Write-off plans for fixed assets, if not yet provided

If your company has loans:

  • For bank loans: please provide amortization plans, loan balance, and the interest transferring to the next accounting period
  • For mortgages and collateral: please provide a list of all mortgages and collateral securities.
  • For bonds, loans to companies within the consolidated corporation and other similar loans: please provide a breakdown for these loans
  • For partnership loans: please provide a breakdown of the loan, specifying the nature and purpose of the loan, and its loan terms
  • For subordinated loans: please provide a breakdown of the loan, a specification of the general terms of the loan and the total amount of related interest that have not yet been filed as expenses 

If your company doesn’t make use of our extensive payroll services, please provide:

  • The average amount of staff during the previous accounting period
  • A breakdown of advance salaries
  • The amount of holiday wage accruals
  • The amount of compulsory employer’s insurance premium accruals
  • Pension reserve documents

Additionally, if the following documents or information are missing and needed:

  • Travel expenses statements from the previous accounting period
  • Official notifications (e.g. for dividend distribution)
  • Annual report, if it is required by law
  • Limited companies must provide the amount of non-tied equity
  • For lease contracts and other rental-natured contracts, please provide: a breakdown of all relevant contracts, their payments and payment plans for the past and up-coming accounting periods, and the terms for purchase and termination
  • What appreciation principles would the company like to use in its financial statement?
  • Are there any extraordinary expenses or income from the last accounting period? Though the accounting law reform does not require the income statement to show extraordinary expenses or income as their own item, a breakdown of them must still be provided in the balance sheet specifications if the expenses or income are relevant.

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