The statutory financial statements (bilancio ordinario) are the comprehensive form of financial statements and serve to present a company’s financial position, financial performance, and cash flows as of the end of a fiscal year.
They provide shareholders, creditors, and other stakeholders with an overview of the company’s financial situation and form an important basis for business decisions.
The ordinary annual financial statements consist of the following components:
In Italy, corporations are generally required to prepare regular annual financial statements if they do not meet the legal requirements for simplified financial statements.
Full annual financial statements are required, in particular, if a company exceeds at least two of the following thresholds in two consecutive fiscal years:
If these size criteria are exceeded, the company must prepare a complete set of annual financial statements with all components required by law.
The annual financial statements are prepared by management and then submitted to the shareholders for approval. Depending on the legal form and statutory requirements, an audit by supervisory bodies or a certified public accountant may also be required.
Once approved, the annual financial statements of corporations must generally be filed with the Commercial Register (Registro delle Imprese).
The annual financial statements not only meet legal requirements but also provide important information about a company’s financial position. They enable an assessment of the company’s asset structure, profitability, and financial situation.