Annual report

What is an annual report?

An annual report is a record of a business’s development in a given year. The annual report contains annual accounts, the management report and possibly additional information.

There are some requirements for an annual report and in the end, it needs to contain all the information that is relevant for the user of the accounting program to be able to get a true and fair picture of the business. The additional records, that are voluntary, could be accounts for social responsibility, environmental impact, or ethics, among other things.

The requirements that are required by law in an annual report depend on which accounting class the business in question is in. Some points a frontpage must contain are:

• The term ‘Annual report’
• The business’s name, CVR and address
• The accounting period
• General chairman of the general assembly’s name
• Date of approval of the annual report

Annual reports must have documentation for that it is both compiled and approved in compliance with the law and the business in question’s bylaws. It must be clearly stated who has worked on, revised, confirmed and approved the report.

Below you can see the requirements there are for businesses in the different accounting classes. This what they must include in their annual report as the minimum.

Accounting class A:

• Management signature
• Income statement
• Balance
• Notes
• Revision signature

Accounting class B:

• Management signature
• Management account
• Income statement
• Balance
• Notes
• Revision signature

Accounting class C:

• Management signature
• Management account
• Key performance index (KPI overview)
• Income statement
• Balance
• Equity statement
• Cash flow statement
• Notes
• Revision signature

Accounting class D:

• Management signature
• Management account
• Key performance index (KPI overview)
• Income statement
• Balance
• Equity statement
• Cash flow statement
• Notes
• Revision signature

Not all businesses are required to report their annual report. The following businesses do not have to:

• Solo proprietorships
• Personally owned small businesses
• Associated businesses (if the fully responsible final owner isn’t a capital company)
• Limited partnership businesses (if the fully responsible final owner isn’t a capital company)
• Businesses that have submitted a declaration of exception
• Businesses that have declared bankruptcy
• Businesses that are under reconstruction following the Bankruptcy Act – if it is reported to the Danish Business Authority.