Audit of a Serbian company, financial statements, accounting, consulting in Serbia

The basis for the establishment of the accounting system in Serbia is the Law on Accounting, which prescribes application of the International Financial Reporting Standards (IFRS) and contains a description of the accounting policy and internal control system, chart of accounts and internal set of rules of annual recognition of assets and liabilities.

Annual financial statements include:

• balance sheet;
• profit and loss statement;
• cash flow statement;
• comprehensive income statement;
• statement of changes in equity;
• notes to financial statements.

Accounts signed by a qualified electronic signature of a lawful representative shall be filed through the special system of the Business Registers Agency in electronic form.

Companies that are obliged to be audited shall present the original auditor’s opinion.

Legal entities in Serbia are classified into micro, small, medium-sized and large enterprises depending on the average headcount of their employees, annual income and asset value on the date of making of their financial statements in the financial year.

Legal entities that do not exceed two of the following criteria are classified as micro enterprises:

1. Average headcount of employees is 10;
2. Operating income is 700 000 EUR;
3. Average value of current assets (calculated as the arithmetic mean of the values at the beginning and the end of the financial year) is 350 000 EUR.

Legal entities that exceed two criteria for micro enterprises but do not exceed two of the following criteria are considered small enterprises:

1. Average headcount of employees is 50;
2. Operating income is 8 800 000 EUR;
3. Average value of current assets (calculated as the arithmetic mean of the values at the beginning and the end of the financial year) is 4 400 000 EUR.

Legal entities that exceed two criteria related to small enterprises but do not exceed two of the following criteria are classified as medium-sized enterprises:

1. Average headcount of employees is 250;
2. Operating income is 35 000 000 EUR;
3. Average value of current assets (calculated as the arithmetic mean of the values at the beginning and the end of the financial year) is 17 500 000 EUR.

Legal entities that exceed two criteria related to medium-sized enterprises are considered large enterprises.

Annual financial statements must be provided for public disclosure by 31 March of the current year for the previous year.

Legal entities that keep accounting records in Serbia shall file regular annual financial statements for the reporting year with the Business Register not later than on 30 June of the next year.

Legal entities whose financial year is different from the calendar year shall provide the Agency with its regular annual accounts for the reporting year for public disclosure not later than 6 months after making those accounts.

Enterprises that have one or several subsidiaries must prepare consolidated financial statements.

Consolidated and standalone financial statements along with an auditor’s opinion must be presented by 30 September.