Companies applying simplifications in their financial statements have until 31 March 2026 to adopt a new resolution. This obligation also applies to entities whose situation has not changed and which intend to continue applying exactly the same simplifications as before. It does not apply to entities that already adopted the relevant resolutions in 2025.
Obligation to adopt new resolutions
The requirement stems from the amendment to the Polish Accounting Act of 6 December 2024 (Journal of Laws, item 1863), which entered into force on 1 January 2025. The transitional provisions clearly state that resolutions adopted before 1 January 2025 remain valid only for financial statements for financial years starting between 1 January and 31 December 2024.
This means that the previous resolution “expired” with the 2024 financial statements. For the 2025 financial statements, a new decision of the approving body is required. This position has been confirmed by the Polish Ministry of Finance.
Even if the content of the new resolution is identical, the obligation to adopt it still applies. This is because earlier resolutions often referred to provisions that have since been repealed (Article 3(1b)(1) and Article 3(1d)(1)) and moved to Article 49c(1)(1–2) of the Act. The mere restructuring of the provisions makes it necessary to adopt a new resolution.
The deadline for adopting the resolution is no later than 31 March 2026 (for entities whose financial year corresponds to the calendar year).
Scope of entities
The obligation applies to micro and small entities that use simplifications in their financial reporting.
Micro entities
According to Article 3(1)(1a) of the Accounting Act, a micro entity is an entity that, in the reporting year and the preceding year, did not exceed at least two of the following thresholds:
- total assets: PLN 2,000,000
- net revenues from sales: PLN 4,000,000
- average annual employment: 10 employees
Small entities
According to Article 3(1)(1b) of the Accounting Act, a small entity is an entity (other than a micro entity) that did not exceed at least two of the following thresholds:
- total assets: PLN 33,000,000
- net revenues from sales: PLN 66,000,000
- average annual employment: 50 employees
Scope of simplifications
For micro entities (Annex 4 to the Accounting Act)
Financial statements prepared under Annex 4 include general information, a balance sheet, supplementary notes to the balance sheet, and a profit and loss account.
Following the adoption of a resolution, entities may apply the following simplifications:
1. Simplified balance sheet (Article 46(5)(4))
2. Simplified profit and loss account (Article 47(4)(4))
3. No additional notes, provided supplementary information to the balance sheet is disclosed (Article 48(3))
4. Exemption from preparing a management report, provided required information on treasury shares is disclosed (Article 49(4))
Micro entities do not prepare a cash flow statement or a statement of changes in equity (unless voluntarily). They also do not measure assets and liabilities at fair value and do not apply financial instruments regulations.
For small entities (Annex 5 to the Accounting Act)
Financial statements prepared under Annex 5 include: an introduction, a balance sheet, a profit and loss account (by function or by nature), and additional notes.
Available simplifications include:
1. Simplified introduction to the financial statements
2. Simplified balance sheet (Article 46(5)(5))
3. Simplified profit and loss account (Article 47(4)(5))
4. Simplified notes and disclosures
5. Exemption from preparing a management report, subject to conditions (Article 49(5))
As with micro entities, small entities are not required to prepare a cash flow statement or a statement of changes in equity (unless voluntarily).
Approving body
The decision is made by the approving body, such as:
- the shareholders’ meeting (limited liability company),
- the general meeting (joint-stock company),
- the owner (for sole proprietors maintaining full accounting records).
An exception applies to enterprises in succession, where the decision is made by the entity’s manager.
Summary
Entities meeting the criteria of a micro or small entity and wishing to apply simplifications in their financial statements for 2025 should ensure that an appropriate resolution is adopted by the approving body by the end of March 2026.
This requirement applies regardless of whether the entity’s situation has changed compared to previous years.
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