Legal entities and entrepreneurs required to audit their financial statements, as defined by the Audit Law, include large and medium-sized legal entities, public companies in accordance with the Capital Markets Law, and all legal entities and entrepreneurs whose total revenue exceeds 4.4 million euros in dinar equivalent. These entities are required to submit the following along with their regular annual financial statements and Consolidated Annual Financial Statements (for parent companies):

1. Decision on the adoption of the annual or consolidated report,
2. Annual operating report or consolidated operating report,
3. Auditor’s report, in accordance with the Audit Law, which includes the financial statements that were audited.

Essentially, audit-required entities have the option to submit corrected financial statements – either regular or consolidated – approved by the competent authority, if they contain corrections compared to previously submitted and publicly disclosed reports.

Exceptions and specifics
Micro and small legal entities, as well as micro and small entrepreneurs, excluding public interest companies, are not required to submit an annual operating report. However, these entities must include information about the repurchase of their own shares or stakes in the Notes to the Financial Statements. Additionally, according to the Ministry of Finance’s opinion (Opinion MF no. 011-00-00690/2020-16), entrepreneurs classified as large and medium-sized legal entities are also not required to prepare an annual operating report.

Relatively new reports within the Annual report
The rules regarding the submission of reports as part of the annual business report or consolidated annual business report are as follows:
• Corporate governance report – Prepared by public companies and companies preparing to become public, in accordance with the Capital Markets Law.
• Non-financial report – Prepared by large legal entities that are public interest companies and exceed the threshold of 500 employees during the business year. Dependent legal entities are not required to submit this report if they are included in the consolidated business report.
• Obliged to prepare Consolidated non-financial report – Legal entities in groups classified as large and exceeding the threshold of 500 employees on a consolidated basis during the business year.
• Report on payments to authorities – Public interest companies operating in the extractive industries or primary forest cutting.
• Consolidated report on payments to authorities – Prepared by public interest companies, as parent entities obligated to prepare consolidated reports, operating in the extractive industries or primary forest cutting.