Financial report for 2024 – important changes to the Accounting Act

Financial report for 2024 – important changes to the Accounting Act

1/28/2025
Financial report for 2024 – important changes to the Accounting Act
The amendment to the Accounting Act introduced a number of significant modifications, including, among others, changes to the definition of sales revenue. We explain how to prepare financial statements for 2024 in accordance with the new regulations.

The changes introduced to the Accounting Act have a direct impact on the way in which companies should prepare their financial statements for 2024. Below we present the most important modifications.

Changes to the definition of sales revenues and the applicable profit and loss account templates

Changes have been made to the following definitions:

  • Sales revenues: Sales revenues exclude revenues from the sale of materials
  • Operating result: currently, operating result does not include revenues and costs related to the sale of materials
  • Other operating revenues/expenses: other operating revenues/expenses include revenues and costs related to the sale of materials

Therefore, the structure of the profit and loss account has changed in the calculation and comparative variant. When preparing the financial statements for 2024, a new financial statement schema in the xml format (schema 1.3) applies.

It is necessary to introduce a presentation change to the Profit and Loss Account for 2024 regarding revenues and costs related to the sale of materials. Comparative data for 2023 also require transformation in this respect. Particular attention should be paid here to the provisions of KSR 7 "Changes in accounting principles (policy), estimates, correction of errors, events occurring after the balance sheet date - recognition and presentation"

New definitions: micro, small, medium, large entity

The legislator introduced new definitions of economic entities into the Accounting Act:

  • micro entity
  • small entity
  • medium entity
  • large entity

The status of the entity determines the scope of the financial statements prepared and the right to apply simplifications in valuation.

Fulfilment of the following criteria (see table) for the purposes of preparing the FS for 2024 is determined based on the company's data for 2024 and 2023. It should be noted that the amount of revenue for the assessment of the revenue criterion is currently determined on the basis of revenue from the sale of products and goods, excluding revenue from the sale of materials and revenue from financial activities.

Financial report for 2024 – important changes to the Accounting Act

Application of simplifications in valuation and financial reporting

When preparing the financial statements for 2024, simplifications may only be applied by companies meeting the new definition of a micro entity and a small entity.

The application of simplification in the scope of valuation requires the introduction by the entity's manager of an appropriate entry in the accounting policy. This requirement concerns the application of simplification in the scope of:

  • qualification of leasing contracts
  • determining the cost of producing a product
  • failure to establish deferred income tax
  • waiving the precautionary principle
  • using tax depreciation for balance sheet purposes
  • not creating a reserve for employee benefits
  • non-application of the provisions of the Financial Instruments Regulation

The application of simplifications in the scope of financial reporting requires the adoption of a resolution by the body approving the financial statements. Transitional provisions provide that for the purposes of financial reporting for 2024, it is not necessary to adopt a resolution on the application of simplifications by the body approving the financial statements again. It is worth noting, however, that if the company wants to use simplifications in reporting in 2025, it will be necessary to adopt a resolution again by the body approving the financial statements.

Extension of required disclosures in the business report

The report on the activities of a small entity and a medium-sized entity that are issuers of securities admitted to trading on one of the EEA regulated markets and of a large entity for 2024 should contain additional information:

  • information on the entity's key intangible assets
  • explaining how an entity's business model depends fundamentally on such key intangible resources
  • explaining how intangible resources are a source of value creation for an entity, with key intangible resources means resources that do not have a physical form, on which the entity's business model depends, and which are a source of value creation for the entity

Other changes introduced in the financial reporting regulations include:

  • Change of threshold values, including those concerning exemption from consolidation for 2024
  • Introduction of a new element of the financial report submitted to the National Court Register: Income tax report (The provisions apply for the first time to the income tax report for the financial year starting after 21 June 2024)
  • Mandatory Sustainability Reporting and Certification
  • Amendment of the regulation on financial instruments (as of 2025, a new regulation of the Minister of Finance on the recognition and valuation methods and disclosure and presentation of financial instruments of 17 November 2024 shall apply)

Financial Reporting – how can we help?

We offer assistance in preparing individual and consolidated financial statements and developing consolidation documentation. Our specialists will prepare a financial statement for you that will be a reliable picture of the financial situation of the company. Our support includes the preparation of both the entire report and its individual elements.

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Monika Byczyńska
Monika Byczyńska
Partner, Head of Audit & Assurance
Crowe

Preparation of financial statements

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