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Another 3.8 percent submitted them too late. The majority of them, 3.4 percent, fulfilled their obligation within three months of the deadline. There is an acute need to catch up,” said Ricardo-José Vybiral, CEO of KSV1870 Holding GmbH, according to a KSV1870 broadcast. “This is not only illegal, but also irresponsible in terms of professional risk management and creditor protection.”
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Business errors creep into annual financial statements
Finally, the balance sheet must be submitted within nine months of the balance sheet date. But according to the credit protectors, there is also a need for improvement in the other companies: it is primarily business errors that have crept into the annual financial statements.
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The qualitative points of criticism primarily include business aspects. Many errors are obvious: For example, a negative cash balance is shown, which is actually impossible. Or assets and liabilities are not identical, criticized the KSV1870. Furthermore, it happens that companies submit exactly the same balance sheet values for years, with only the respective balance sheet year being updated, the creditor protectors cited as negative examples. But balance sheets submitted by hand would also massively restrict readability.
“Minimum standards not met and quality control not carried out”
“Unfortunately, minimum standards not being met and quality control not being carried out before submission occur more frequently than one might believe,” said Günther Fasching, authorized representative of KSV1870 Information GmbH, according to the broadcast. This is a consequence of the fact that the requirements have been gradually reduced in recent years. “As KSV1870, we view this development critically and advocate a return to previous publication regulations,” added Fasching.
Therefore, the KSV1870 also rejects the repeatedly discussed extension of the submission deadline. “The longer the time at which the business results are announced is from the actual financial year, the less the balance sheet says about the current economic status quo of the respective company,” added Fasching. “That doesn’t necessarily make a thorough risk assessment any easier.” On the contrary, the conditions should be significantly tightened, according to the KSV1870 demand. Accordingly, not only should the extent of the punishment be considered, but the issue of liability should also be taken into consideration. “Pressure has to be built up where it hurts the most,” said Fasching.
KSV1870 advocates rigorous action against companies
But it is not only the KSV1870 that advocates more rigorous action against companies that do not meet their legal obligations. Last Friday there was a round table in the Ministry of Justice on the subject of balance sheet concealment: Justice Minister Alma Zadic (Greens) discussed the topic with experts from the Finanzprokuratur, the creditor protection associations KSV1870, Creditreform and AKV, the Chamber of Labor and the Chamber of Commerce, and the Chamber of Tax Consultants and auditors, the ÖGB, Transparency International and various universities. Noticeably stricter regulations were discussed.
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Source: Nachrichten
