Annual accounts (financial statements)

Annual accounts summarise the financial position and performance of a business for the financial year. Under the EU Accounting Directive they consist of at least a balance sheet, a profit and loss account and notes; larger companies add a management report, a cash-flow statement and an auditor's report. The layout follows national formats derived from the directive.

Limited companies in every member state must have the accounts approved by the shareholders and file them with the national business register within a deadline after the year end, often six to twelve months, where they become public. Micro and small entities benefit from abridged formats and reduced disclosure. Sole traders usually only need accounts for their tax return. The annual accounts are also the starting point for the corporate income tax computation. Kontevia exports the ledger data that an accountant needs to prepare the statements.