Financial Statement simplifications for 2015

On September 23, 2015, an amendment to the Accounting Act came into force, giving the small entities the right to use simplifications, including those relating to the financial reporting.

The amendment to the Accounting Act provides a definition of the so-called small entity, which is the unit that in the current and preceding fiscal year did not exceed two of the following three figures (excluding entities acting under the banking law, insurance law and issuers securities):

  • 17 mln PLN – total balance sheet assets
  • 34 mln PLN – net revenue
  • 50 persons – average annual employment.


The small entities are allowed to exercise many simplifications in the accounting policy, including:

  • the exemption from the obligation to establish assets and reserves for the deferred income tax;
  • no obligation to prepare the cash flow statement and the statement of changes in equity;
  • the possibility to classify the leasing transactions according to the Tax Law;
  • simplified revaluation of financial instruments;
  • new, simplified templates of balance sheet and profit and loss statement.


The new regulations apply to financial statements for the fiscal year ending after September 23, 2015. Management must taken an appropriate resolution to allow for an entity to exercise simplification.


Adoption of simplified solutions introduced by the legislature involves a change in the accounting policy. The entities, that implemented the simplified financial statement for year 2015, will be obliged to draw up a comparative data for year 2014. Helpful in this regard might be the recommendations of the National Accounting Standard no. 7, which precisely defines how to present comparative data (there is a requirement to present them in the form of three columns: current year, comparable year and statutory report).