Change in the definition of net turnover and the impact on the 2024 financial statements

By NOVINKY

The new definition of net turnover effective from 1 January 2024 includes only revenue from the sale of products and goods and the provision of services. The business model of the company, or the industry and markets in which the company operates, is critical in determining the correct revenue to include in net turnover.

Net turnover is one of the criteria for categorizing accounting entities and also for assessing the obligation to carry out an audit.

How will this change affect the 2024 financial statements? The Ministry of Finance has determined that, in accordance with the Decree, the profit and loss statement will not include net turnover for the comparative period. The “Net turnover for the accounting period” column in the 2024 profit and loss statement will therefore remain blank for the previous accounting period (2023).

What does this mean for you?

  • To prepare an internal policy on the new definition of net turnover.
  • The procedure for determining net turnover needs to be described in a notes to the company’s financial statements.
  • In the case of threshold values decisive for the determination of the obligation to have the financial statements audited – the net turnover for 2023 as one of the criteria is assessed according to the former definition (if the obligation to have the financial statements audited is abolished, the date of filing the income tax return is also changed).

Do you have any questions about the determination of net turnover? Do not hesitate to contact us!