Audited Financial Statements 

Every company incorporated in Cyprus, is required to have its Financial Statements audited by an external auditor, in accordance with article 152(a)(1) of the Company Law.

Consolidated Financial Statements

Section 142(I)(b) of the Companies Law imposes an obligation upon Cypriot Companies which have Investments in Subsidiaries (direct or indirect control) to prepare also Consolidated Financial Statements for their whole Group in accordance with International Financial Reporting Standards (IFRS).

The relationship of group companies is defined in section 148 of the Companies' Law Cap.113 as follows:

A Company is deemed to be a subsidiary of another only if any the following criteria are met:
  1. It is either: a) a member of it and controls the composition of its board of Directors; or b) holds the majority of the voting shares; or c) is its member and controls the majority of the voting shares by agreement which has been signed with other members.
  2. the first mentioned Company is a subsidiary of any Company which is that other’s subsidiary.


The Board of Directors can claim an exemption from preparing Consolidated Financial Statements in cases where two of the following criteria are met:

  1. The Net Assets of the Group do not exceed €17.5m
  2. The Turnover for the Group does not exceed €35m.
  3. The Average Number of Employees in the Group during the year is below 250 persons.

Subsidiaries held for sale within the following 12 months can be exempt from the above calculations.

An exemption is given also when the Subsidiary or Parent Company of the Cyprus Company prepares and files Statutory Consolidated Financial Statements in their Country of Jurisdiction.