Exemptions in financial reporting

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The main exemptions in financial reporting relate to:

limited contents of the financial statements, audit requirements and consolidation exemptions for small companies;
limited contents of the financial statements for medium sized companies;
preparation of consolidation for guaranteed group companies section 2:403;
preparapreparation of consolidation for intermediate holding companies section 2:408.

For the situations described under 1 and 2 above please refer to the table with the summary per category.

group company exemption of section 403

If the figures of subsidiary companies are included in the financial statements of the parent company and the parent issues a “joint and several liability statement” assuming responsibility for all debts of the subsidiary companies, then the intermediate company can refrain from consolidation. Furthermore an audit is not required. A declaration in writing with the shareholders’ resolution on the joint and several liability and the consolidated parent financial statements prepared in accordance with the 7th Eu Directive is required to be filed with the Chamber of Commerce.

Intermediate subconsolidation exemption’ of section 408.

A subconsolidation is not required if the parent company includes the figures of Dutch intermediate company in their audited consolidated financial statements. The consolidated parent financial statements prepared in accordance with the 7th Eu Directive are required to be filed with the Chamber of Commerce.

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