Legislation amendments

The Federal Law dated 29.12.2020 No. 476-FZ introduced the amendments to the Law «On audit activities» concerning the conditions for the mandatory audit of financial statements.

According to the amendments, starting from January 1, 2021, the financial indicators below, exceeding the threshold values of which is the basis for conducting the mandatory audit, were increased:

- revenue - from 400 to 800 million RUB;

- assets of the balance sheet - from 60 to 400 million RUB.

Thus, the opportunities for accounting under the simplified procedure by small businesses that have this right are expanded, with the exception of companies with the indicators listed above.

In addition, nonprofit organizations are exempt from the mandatory audit if at least one of the following conditions is met:

• compliance with the above limits on revenue and assets of the balance sheet;
• founded as funds with property, including cash, not exceeding 3 million RUB;
• nonprofit organizations which are consumer cooperative societies, the activities of which are regulated by the Federal Law dated 19.06.1992 No. 3085-1 "On consumer cooperation (consumer societies, their unions) in Russian Federation".

According to data of the Information and Analytical system Globas, in Russia, there are more than 6 thousand small businesses that meet the updated financial criteria for conducting the mandatory audit of 2019 financial statements.