financial-reporting

/financial-reporting

Walk a Kosovo entity through its financial-reporting and corporate-tax obligations: which standards apply, whether it must be audited, and the annual filing calendar. This is a structured walkthrough, not accounting or tax advice — recommend a KCFR-licensed auditor / kontabilist for the actual statements and filing.

Usage

/financial-reporting $ARGUMENTS

Examples:

• /financial-reporting classify a firm: €3.2M turnover, €1.1M assets, 38 staff
• /financial-reporting do we need a statutory audit at €820k turnover?
• /financial-reporting when are the annual financial statements due?
• /financial-reporting CIT position for a SH.P.K. with €450k profit
• /financial-reporting what changes when we cross into the IFRS-for-SMEs tier?

Flow 1 — Reporting-tier classification

Ask for three figures: annual turnover, total assets, average employees. Then classify (an entity sits in a band if it meets two of the three criteria):

Tier	Standard	Criteria (meet two of three)
Large	Full IFRS	turnover > €4,000,000; total assets > €2,000,000; avg. employees > 50
SME	IFRS for SMEs	between the micro and large bands (may opt into full IFRS)
Micro	KCFR micro standards	turnover ≤ €50,000; total assets ≤ €25,000; avg. employees ≤ 10

ENTITY: [name]
  Turnover:          €[__]   → [over/under €4M] [over/under €50k]
  Total assets:      €[__]   → [over/under €2M] [over/under €25k]
  Avg. employees:    [__]    → [over/under 50]  [over/under 10]
  Criteria met for:  [Large / SME / Micro]
  → APPLICABLE STANDARD: [Full IFRS / IFRS for SMEs / KCFR micro]

⚠️ Financial institutions (banks, insurers, MFIs, etc.) are generally required to apply full IFRS regardless of size — confirm the carve-out. The standard-setter is the KCFR (Kosovo Council for Financial Reporting) under Law 04/L-014.

Flow 2 — Statutory audit test

AUDIT REQUIRED?
  Tier [Large / Medium]                → audit required (KCFR-licensed auditor)
  Tier [Small / Micro]                 → no statutory audit
  Commonly-cited practical trigger: annual turnover > €750,000 → audit (VERIFY against current law)
  Regulated financial institution?     → likely audited irrespective of size (confirm)

State the result and the basis, and flag the €750k figure as a verify-item rather than settled law.

Flow 3 — Annual filing calendar

ANNUAL FILING — FY [year]
  Financial statements + corporate tax declaration → ATK, electronically via EDI
  Window: 1 January – 31 March [year+1]  (occasionally extended by ATK notice — check)
  Registration / records: ARBK
  Audit (if required) completed before filing

Flow 4 — CIT position (high level)

• CIT rate: 10% for taxpayers with annual gross income over €30,000 (and those electing real-income taxation). Law 06/L-105.
• Taxpayers with gross income ≤ €30,000 may pay quarterly tax on gross receipts at 3–10% by activity type instead of standard CIT.

CIT SKETCH
  Accounting profit:        €[__]
  +/- tax adjustments:      €[__]   (non-deductibles, depreciation differences — kontabilist confirms)
  Taxable profit:           €[__]
  CIT @ 10%:                €[__]
  Quarterly advances paid:  €[__]
  → Balance due / refund:   €[__]

This is a sketch to frame the conversation — the kontabilist computes the adjustments and files.

Reference (cache)

• Framework: Law 04/L-014 on Accounting, Financial Reporting and Audit; standard-setter KCFR / KKRF; profession SCAAK (IFAC member).
• Tiers: micro (KCFR), SME (IFRS for SMEs), large (full IFRS); thresholds above.
• Audit: medium/large audited; small not; €750k practical trigger (verify).
• Filing: ATK via EDI, 1 Jan–31 Mar; CIT 10% over €30k gross; small-taxpayer gross-receipts regime 3–10%.

What this skill does NOT do

• Does not prepare or file statements. It classifies and plans; a KCFR-licensed auditor / kontabilist prepares and files via EDI.
• Does not compute tax adjustments — the CIT sketch is illustrative, not a return.
• Does not state the audit threshold as settled — €750k is a verify-item (see research/kosovo-financial-sector.md).

Tips

1. Get all three size figures — the tier turns on two of three, so a single number isn't enough.
2. Flag financial-institution full-IFRS treatment — size-based tiers may not apply to regulated entities.
3. Watch the 31 March window and whether an audit must finish first.
4. Chain into xlsx to build the statements model or the tier/audit decision sheet (zero formula errors), and docx/pdf for the narrative report.

Built by 38Shift

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