The Accounting Act regulates main accounting functions in all business entities registered in Estonia. The essence of the law is framed in compliance with International Accounting Standards (IAS). Almost all Estonian companies can choose whether to prepare their consolidated and annual accounts in accordance with:
The length of a financial year is generally 12 months. At the end of each financial year, an accounting entity is required to prepare an annual report that consists of the annual accounts and the management report. The auditor's report and, in the case of a company, the profit distribution proposal for the financial year should be annexed to the annual report. The auditor's report need not be annexed to the annual report if auditing is not compulsory. The annual report should be filed (electronically) to the Commercial Register during six months after the end of the financial year.
Is your company subject to audit or review?
An audit or a review of the annual accounts is compulsory for other entities (incl. for private limited companies) in whose annual accounts at least two of the indicators of the financial year exceed the following conditions:
At least two of the indicators of the financial year exceed the following conditions |
Audit |
Review |
sales revenue or income |
4,000,000 EUR |
1,600,000 EUR |
total assets as of the balance sheet date |
2,000,000 EUR |
800,000 EUR |
the average number of employees |
50 people |
24 people |
An audit or a review is obligatory also if at least one of the following indicators of the financial year exceeds the following conditions:
At least one of the indicators of the financial year exceed the following conditions |
Audit |
Review |
sales revenue or income |
12,000,000 EUR |
4,800,000 EUR |
total assets as of the balance sheet date |
6,000,000 EUR |
2,400,000 EUR |
the average number of employees |
180 people |
72 people |
Please note that the above-mentioned criteria apply to Estonian private limited companies (“Osaühing” or “OÜ” in Estonian). All Estonian public limited companies (“Aktsiaselts” or “AS” in Estonian) are subject to an audit.
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