What Is a Polish Financial Statement? Guide for Entrepreneurs

What is an annual financial statement in Poland? Definition and significance of financial statements

A financial statement is an organized compilation of data about a company’s assets, financial situation, and business results, usually prepared at the end of the fiscal year. It consists of a balance sheet, profit and loss statement, and additional information, among other things. Its main purpose is to show the company’s condition - both to owners, investors, contractors, and state institutions (e.g., tax offices or the National Court Register). Financial statements help assess the company’s financial liquidity, profitability, and stability.

Balance day and legal basis

According to the Accounting Act of September 29, 1994, financial statements are prepared on the day of closing the accounting books. The day for which this statement is prepared is called the balance day. If the fiscal year coincides with the calendar year, the balance day is December 31.

The obligation to prepare financial statements arises in the following situations:

• On the day ending the fiscal year;
• On the day of termination of business activity;
• On the day preceding a change in legal form;
• On the day preceding the start of liquidation or bankruptcy.

The second legal act regulating financial statements for businesses is the International Financial Reporting Standards (IFRS). This document applies to consolidated annual financial statements of entities that issue securities, as well as banks.

It should be added that in cases where an issue is not regulated in the Accounting Act or in the National Accounting Standards (KSR), Polish enterprises may voluntarily refer to IFRS. However, companies obligated to apply IFRS must also use the Accounting Act in areas not covered by international standards.

Who prepares organizational financial statements and what are the deadlines in Poland?

The obligation to prepare financial statements stems directly from the Accounting Act of September 29, 1994. It applies to entities maintaining accounting books in accordance with this act and those who voluntarily chose full accounting. The form of business activity is not relevant here - the key is the method of recording revenues and costs.

Entities required to prepare financial statements in Poland

Mandatory preparation of financial statements applies to:

• Commercial companies (partnerships and corporations);
• Associations conducting business activities;
• Other legal persons;
• Natural persons, civil partnerships of natural persons, and general partnerships of natural persons with net revenues for the previous fiscal year amounting to at least the equivalent of 2.5 million euros.

Exceptions from the reporting obligation in Poland

Exceptions from the reporting obligation are general partnerships of natural persons and limited partnerships whose revenues did not exceed the threshold of 2.5 million euros. Instead, they submit a statement to the National Court Register about the lack of obligation to prepare financial statements within 6 months from the end of the fiscal year.

Types of financial statements in Poland

There are two basic types of statements:

1. Individual financial statement - based on the accounting books of a single company;
2. Consolidated annual statement - concerning groups of entities linked by capital.

Entity’s financial statement vs. consolidated financial statement in Poland

An entity’s financial statement presents the assets, financial situation, and business results of a single business entity. In contrast, a consolidated financial statement covers a capital group and shows the combined data of all related entities (e.g., the parent company and its subsidiaries), eliminating mutual settlements. This allows investors and institutions to get a complete picture of the condition of the entire group, not just an individual company.

Elements of a financial statement in Poland - What data does a financial statement contain?

A financial statement consists of several mandatory parts that show the company’s situation:

1. Balance sheet (assets and sources of financing);
2. Profit and loss statement (revenues, costs, and financial result);
3. Additional information (explanations and notes to numerical data).

In the case of larger entities, subject to mandatory audit by a certified auditor, organizational financial statements must also include a statement of changes in equity and a cash flow statement.

Financial statement header

All financial statements begin with a header that includes the following elements:

• Full name and address of the company;
• Specification of the moment or period covered by the data;
• Information on whether it concerns a single entity or a capital group;
• Currency of preparation.

Balance sheet in the Polish financial statement

The content of a financial statement includes a balance sheet, which presents the state of assets and liabilities of the entity on the balance day. It constitutes a kind of “portrait” of the company’s asset situation at a specific moment.

Assets include all company property and are divided into:

• Fixed assets (long-term) - used by the company for more than a year;
• Current assets (short-term) - used in ongoing operations.

Liabilities show the sources of asset financing and consist of:

• Equity capital;
• Liabilities and provisions for liabilities.

The key principle of the balance sheet is balance equilibrium - the sum of assets must always equal the sum of liabilities. This fundamental rule is the basis for controlling the correctness of document preparation.

Profit and loss statement - a picture of operational effectiveness

The profit and loss statement is another component of a financial statement. It differs from the balance sheet in that it presents the results of activities for the entire period, not the state on a specific day. This document shows revenues, costs, profits, and losses for the current and previous fiscal year.

Entrepreneurs can choose one of two preparation variants:

• Comparative variant - costs grouped by types;
• Calculation variant - costs classified by places of origin.

The choice of variant depends on the specifics of the business and the company’s management needs.

Additional information - key explanations and supplements

An organization’s financial statement also includes additional information, which serves as an explanatory function for the numerical data contained in the balance sheet and profit and loss statement. It consists of two main parts:

• Introduction to the financial statement;
• Additional information and explanations.

It contains a description of the adopted accounting policy, explanations regarding specific items, and other data necessary for a reliable presentation of the entity’s financial situation. Without this part, the statement would be incomplete and could be misleading.

Statement of changes in equity - analysis of capital transformations

The statement of changes in equity applies to entities audited by a certified auditor. It presents detailed information about transformations of individual components of equity capital for the current and previous fiscal year.

The document shows:

• Initial state of capital;
• Increases and decreases during the year;
• Final state of capital.

This part of the statement allows owners and investors to track how the value of their shares in the company has changed.

Cash flow statement - control of financial liquidity

The cash flow statement divides cash movement into three categories of activities:

• Operational - related to the company’s core business
• Investment - concerning the purchase and sale of fixed assets
• Financial - covering the acquisition and return of capitals

This document shows where the company gets cash from and what it spends it on. It allows for assessing the company’s actual ability to generate cash and its financial liquidity. Micro-enterprises are exempt from the obligation to prepare this element of the statement.

Schedule of reporting obligations in Poland

A proper business financial statement should be prepared and submitted according to the schedule:

1. Preparation of the financial statement: The manager of the entity is obligated to prepare the annual financial statement no later than 3 months from the balance day. For most companies, this means a deadline of March 31.
2. Approval of the annual financial statement: The appropriate body (e.g., general meeting of shareholders) must approve the statement, and the deadline for approval is no later than 6 months from the balance day, which is usually by June 30.
3. Submission of the financial statement: After approval, the statement must be submitted to the appropriate court register within 15 days. For companies registered in the National Court Register, the final deadline for submitting the statement for 2024 is July 15, 2025.

Approval of the Polish financial statement by the appropriate bodies

The financial statement must be approved by the appropriate body no later than 6 months from the balance day. For companies whose fiscal year ends on December 31, this means a deadline by June 30.

The approving body depends on the legal form of the entity:

• Limited liability company - meeting of shareholders;
• Joint-stock company - general meeting of shareholders;
• General partnership - all partners;
• Business activity of a natural person - owner.

Where to submit financial statements?

The place of submission depends on the registration status of the company:
Entities in the National Court Register (KRS) submit documents to the KRS through:

• Financial Documents Repository Application (RDF) - free of charge.
• S24 system - for a fee;

Entities outside the KRS submit statements to the Head of the National Revenue Administration using the e-Financial Statements application.

Submission deadlines and consequences of delays

After approval by the appropriate body, the statement must be submitted within 15 days. Non-compliance with this obligation results in serious sanctions:

• Fine from 10 to 720 daily rates - in the highest variant, the fine in 2025 may amount to 41,279,040 PLN;
• Restriction of liberty punishment;
• Enforcement proceedings with a fine of up to 15,000 PLN;
• Possibility of company dissolution.

The registration court may initiate enforcement proceedings, setting a 7-day deadline for submitting documents. Lack of statements for two consecutive years may lead to the dissolution of the entity without conducting liquidation.

Who must sign the financial statement in Poland and how?

The financial statement prepared by the appropriate body must then be approved and signed. This obligation rests on all persons who are members of the entity’s management (e.g., the company’s board, partners managing the affairs of a partnership) and on the person who keeps the accounting books.

Signatures must be submitted in a specified order and within the timeframe provided for by the Accounting Act, and failure to submit them may result in legal liability. A multi-person body may authorize one person to sign, provided appropriate statements are submitted by the remaining members. Permissible types of signatures are a qualified signature, a trusted signature, and a personal signature.

In addition, the financial statement must be signed electronically - with a qualified electronic signature or an ePUAP trusted profile.

Natural persons conducting business activities and not obligated to register in the KRS attach the financial statement to the annual tax return and submit it to the tax office by April 30.

Entity’s financial statement in Poland - Summary

A financial statement is a statutory report showing the company’s assets, finances, and results for the fiscal year - the basis consists of: balance sheet, profit and loss statement, and additional information (in larger entities, also cash flow and a statement of changes in equity). It is prepared by entities maintaining full accounting, in accordance with the Accounting Act and quality principles - including reliability, comparability, timeliness.

If you need support in preparing a business financial statement or assistance with accounting, especially accounting in transport or accounting in limited liability companies, we will be happy to provide it! Contact us, and the Evotax team will take care of the rest!