RSM Poland


Audit & assurance - page 9

National Accounting Standard No. 9 and the relevance of presented information...

4 December 2015
When reviewing financial statements for the year 2014, I could not escape the thought that the National Accounting Standard No. 9 (referred to as NAS 9) 'Director's Report' did not result in any visible improvement in the quality of the elaborated documents. You may still come across reports that are roughly one page long, based on financial data from only two years or simply information that has been pasted straight from the financial statement, perhaps with a little comment saying 'increase/decrease by so and so', without any kind of detailed clarification as to the root cause of such changes. Obviously, this is not to say that the management report should be revealing company business secrets. Still, a more comprehensive approach may be expected here, with the information provided allowing the reader to assess the company's actual condition.

Changes in financial statements following amendment of the Accountancy Act

28 September 2015
On 23rd September 2015 a law amending the current Accountancy Act as well as several other regulations came into force. The new law introduces changes to the templates of the balance sheet, loss and profit account and statement of changes in equity.

Penalties for unreliable accounting

14 September 2015
Business transactions conducted by taxpayers require appropriate documentation. That is a reason for keeping tax books. They constitute an evidence for proper accounting and they should, therefore, reflect the actual state. Only reliably and correctly kept books may be considered an evidence in the case of tax proceedings pending before tax authorities.

Expecting changes – new regulations for auditing firms and statutory auditors

2 September 2015
On 11th August 2015 the Ministry of Finance made public its latest draft legislation guidelines to the amended Act on statutory auditors and their self-government, entities authorised to perform audits of financial statements and public supervision, as well as on other laws.

How to correct an error in a financial statement

20 July 2015
An error in a financial statement may happen to any business unit. Often, errors will be revealed after the statement has been signed or even approved. According to the National Accounting Standard No. 7, all business entities are obliged to correct any error that has been revealed, regardless whether such errors pertain to the current trading year, or previous years.

ISAs in Poland – will they change anything?

15 June 2015
Introduction of International Auditing Standards (hereinafter: ISAs) in Poland offers a huge opportunity of improving the quality of audit services, and thereby the quality of financial statements themselves for the benefit of all interested parties (management boards, shareholders, prospective investors and statutory auditors).

National Accounting Standard 9 will help you prepare Directors’ Report

15 June 2015
Published in May 15, 2014, National Accounting Standard (NAS) No. 9 "Directors’ Report" is to provide assistance in the preparation of the Directors’ Report , in accordance with Article 49 of the Accounting Act, and also disseminate good practices in the scope of the presentation of financial information. The Standard applies to Directors’ Reports prepared for the financial year commenced in 2014, and it is intended for entities preparing Financial Statements in accordance with the Accounting Act and IAS/IFRS. The indications included in the Standard refer to both single entities as well as capital groups.

New approach to revenue according to IFRS 15

18 May 2015
The new International Financial Reporting Standard 15 "Revenue from Contracts with Customers" (IFRS 15) is due to enter into force on 1st January 2017. What is important is that comparable data presented in financial statements for the trade year due after 1st January 2017 must comply with the new standard, which actually means that provisions of IFRS 15 should be applied starting 1st January 2016. The introduction of the new standard comes as a great convenience to businesses operating internationally. In fact, the requirements of IFRS 15 constitute a complete unification of accounting principles according to IFRSs and US GAAP.

Poland adopts International Standards on Auditing

27 April 2015
On 1st April 2015 Poland adopted the International Standards on Auditing (further referred to as the ISAs). The ISAs are global standards to be followed by statutory auditors in carrying out auditing services and similar activities.  Although the ISAs directly apply to statutory auditors, their implementation is also going to benefit entrepreneurs. Auditors who follow the ISAs should focus on understanding the organization, address significant risks threatening the enterprise and assess their impact on the financial statement. An audit should therefore serve organizations in identifying weaknesses with the help of an independent advisor who may see the business with new eyes. 

The Treaty on a Good Job

17 April 2015
We have already covered the issue of cooperation with an auditor but, while scanning publicly available financial statements, especially of the companies listed on New Connect, I came to the conclusion that there is still too little talk about certain issues. I suggest looking at a few randomly selected financial statements presented on the issuers’ websites. My point is not to assess the economic activity of the companies, but to see how information on achievements of a company in a given year is included in its annual financial statements, which, to my mind, should constitute the information provided by the board to the supreme authority of the company, namely its owners (indeed, it is shareholders that are most important in the company, because the ownership belongs to them). I browse through financial statements of the companies listed on New Connect quite often and two things strike me, as an outside reader, most: first, not including all data required by the Accounting Act and second, overall slovenliness of the presented financial statements, which aspects show the attitude of the companies’ managements to this official document.