Small companies are not required to prepare a management
report, and the notes to the financial statements are largely sim-
plifed. The balance sheet may be presented in an abbreviated
format. The balance sheets of micro-entities are even more
condensed. Furthermore, micro-entities may prepare a con-
densed income statement and may forgo notes to the financial
statements under certain conditions.
Enterprises that are neither corporations (Kapitalgesellschaften)
nor “KapCoGesellschaften” are not required to disclose their
financial statements. There are exceptions, however, under the
Disclosure Act (Publizitätsgesetz – PublG) for large enterprises
that exceed two of the three size criteria (balance sheet total:
€ 65,000,000; sales revenue: € 130,000,000; number of em-
Special disclosure requirements also apply to
enterprises in specifc industry sectors (e. G. Banking, insurance).
Corporations and “KapCoGesellschaften” must prepare their bal-
ance sheets in the accounting format prescribed by law for their
respective size category. This method of presentation is followed
by many other types of enterprises.