The regular annual financial report can be prepared for a fiscal year that is either the same as the calendar year or a different one. If the fiscal year is not the calendar year, prior approval from the Ministry of Finance or the Securities Commission is required. The scope of these reports depends on the size of the legal entity or entrepreneur, which means that it is not directly conditioned by the regulations applied by the entity, except in specific cases where the Ministry of Finance’s opinion indicates the application of specific regulations.

Financial statements of obliged entities can be prepared in three different scopes:

1. Complete set of financial statements
2. Shortened set of statements (Balance Sheet, Profit and Loss Account, and Notes)
3. Balance Sheet and Profit and Loss Account

For all obliged entities, along with the regular annual financial report, a Statistical report must also be submitted.

Types of reports for legal entities
• Large legal entities, medium legal entities, parent companies preparing consolidated reports, public companies, and companies preparing for the public market under the Capital Market Law are required to prepare:

1. Balance Sheet
2. Profit and Loss Account
3. Statement of Other Comprehensive Income
4. Statement of Changes in Equity
5. Cash Flow Statement
6. Notes to the Financial Statements

• Other legal entities not covered by the previous item are required to prepare:

1. Balance Sheet
2. Profit and Loss Account
3. Notes to the Financial Statements

• Micro legal entities are only required to prepare:

1. Balance Sheet
2. Profit and Loss Account

The law does not specify whether the term “large legal entity” includes entrepreneurs, which creates room for different interpretations. According to current practice, entrepreneurs classified as micro legal entities are not required to submit Notes, while entrepreneurs in the small, medium, and large legal entity categories must prepare a Balance Sheet, Profit and Loss Account, and Notes to the Financial Statements.The Ministry of Finance issued an interpretation stating that entrepreneurs classified as small legal entities as of December 31, 2021, will be required to submit Notes to the Financial Statements along with the Balance Sheet and Profit and Loss Account. Entrepreneurs classified as medium and large legal entities, as well as those applying MSFI or MSFI for SMEs, must submit a complete set of reports.

Scope of financial reports based on size and regulation
• Complete set of reports: large and medium legal entities, entrepreneurs in the category of large and medium legal entities, public companies, companies preparing for the public market, entities with the obligation to prepare consolidated reports.
• Shortened set of reports: small legal entities, micro businesses, micro other legal entities applying MSFI, entrepreneurs in the category of small legal entities.
• Balance Sheet and Profit and Loss Account: micro legal entities, micro other legal entities applying the Regulation for Micro and Other Legal Entities.