25 May Deferment of financial statements
Deferment of financial statements
25 May, 2021
The management board of public or private limited companies is obliged to prepare the business’s financial statements within five months after the end of the financial year. The cooperative and the mutual insurance company are given an extra month by law to prepare the financial statements. Further deferment of preparation is possible, however.
Based on the above, the board of a private limited company must therefore draw up the financial statements for 2020 by 31 May 2021 at the latest. That is if the financial year is the same as the calendar year.
Request for deferment
There are special circumstances in which it can occur that the board needs more time to prepare the financial statements. These special circumstances are not specified by law. In order to defer the preparation, the board must ask for permission at the shareholders’ meeting. The meeting can grant a maximum deferment of five months. The members’ meeting of a cooperative or a mutual insurance company can extend the period by up to four months. Regardless of the legal form, the maximum period for preparing the financial statements is therefore ten months after the end of the financial year.
If the financial year equals the calendar year and the shareholders’ meeting grants the maximum extension, the annual accounts for 2020 of a private limited company need to be drawn up by the management board by 31 October 2021 at the latest.
Documenting the deferral
Approval of the deferment must be recorded in writing in the minutes of the shareholders’ meeting in due time (no later than 31 May 2021). If you like, we would be happy to send you a sample text of these minutes.
Would you like to know more about the deadlines and conditions for preparing, signing, adopting and publishing financial statements? Read this blog by Edwin Vogel, audit partner at Joanknecht and lecturer in external reporting at Nyenrode Business Universiteit . You can also contact our colleague Stefan Schipper, accountancy advisor, by phone on +31 (0)40 240 9565 or by e-mail.