What is an annual report?
An annual report is a temperature check of the state of a company. In other words, it is a report on how a company is progressing and performing financially.
The report must consist of a number of mandatory documents, including an annual statement of accounts, which clearly sets out the company’s finances in relation to expenses and income.
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What should an annual report contain at a minimum?
The annual report is one comprehensive document with relevant information about the company’s finances. What you need to include in the annual report is:
- The annual statement of accounts, which contains three parts: income statement, balance sheet, and notes.
- The management review, which provides an overview of the past year and expectations for the coming year.
- The management declaration, which is a signature confirming that the information in the report is accurate (not required if there is only one member of management).
- Accounting-related information.
- Accounting practices, which indicate the calculations and methods the company has used to arrive at the final accounts.
- The auditor’s report, which is a confirmation from the auditor that the figures are correct (only required if an audit has been performed).
Who needs to submit an annual report?
Not all companies in Denmark need to create and submit an annual report to the Danish Business Authority. It depends primarily on size, form, and accounting class.
The size and form of your company determine whether you need to make an annual report. All companies must be able to produce accounts, but not all must submit an annual statement of accounts and report.
Learn more about which types of companies must submit an annual report in our article on accounting classes.
When is the deadline for submitting the annual report?
If your company type requires you to submit an annual report, you must do so within a certain deadline.
In 2022, the Danish Business Authority extended the deadline for annual reporting from 5 to 6 months. This means that you must submit your annual report no later than 6 months after the end of the financial year.
The 6-month deadline only applies to companies in accounting classes B and C.
There are two deadlines to keep in mind:
- June 30 – This deadline for submitting the report to the Danish Business Authority applies to the majority of all companies, as most have their financial year ending on December 31.
- December 31 – The deadline applies to companies that end their financial year on June 30.
Class A still does not need to submit an annual report, while the 4-month deadline still applies to companies in accounting class D (large state-owned companies and listed companies).