Dutch Accounting and Audit Requirements for Limited Companies

Dutch public limited companies (NV) and private limited companies (BV) have the obligation to prepare annual accounts and have to file a copy of the accounts with the Trade register of the Chamber of Commerce. The Dutch Civil Code requires all public and private limited companies prepare and present to the shareholders: the annual report, the directors report and other information (e.g. auditors? report, certain legal matters, a statement of post-balance sheet events which materially affect the financial position). The Dutch accounting rules are regulated by law. Dutch Generally Accepted Accounting Principles (Dutch GAAP) are mainly based on EU directives. Dutch GAAP still differs from International Financial Reporting Standards (IFRS) but is brought in line with IFRS on a continuing basis. The annual accounts should provide sufficient information to allow the reader to form a realistic opinion about the company’s capital and results and insofar as is consistent with the nature of the annual accounts, its solvency and liquidity. Medium and large sized companies are required by law to have their annual accounts audited. A company is considered to be small, medium or large sized if it meets two of the three following criteria during two consecutive financial years and on a consolidated basis: balance sheet total, net turnover and average number of employees. If an audit is not required (small sized company) a voluntary audit is possible. For more information please contact Mr. Bouwe Algra. He can be contacted by e-mail: b.s.algra@hlb-nannen.nl or by phone: + 31 591 612 377.