Annual report for economic association
An economic association must always prepare an annual report and have an auditor.
If the association is considered small, you can choose to prepare the annual report according to the simplified K2 regulations.
Large associations do not have this option, and must prepare their annual report following the main K3 regulations.
Large enterprise
Large enterprises mean, among other things, economic associations that meet at least two of the following conditions two years in a row (the same conditions):
- More than 50 employees on average
- More than SEK 40 million in reported total assets
- More than SEK 80 million in reported net sales
Other economic associations are normally counted as smaller enterprises.
K2 annual report
Economic associations classified as small enterprises can choose to prepare their annual report according to the simplified K2 regulations.
If you choose to prepare your annual report according to the K2 regulations, you must follow all of the regulations. It is therefore not permissible to use advice other than that described in the guide.
K2 regulations on the Swedish Accounting Standards Board's website (in Swedish)
The following must be included in the annual report:
- Directors' report (provides a fair overview of the company's development, position and performance).
- Profit and loss statement (summarises the income and expenditures for the year and shows the company's profit/loss for the year).
- Balance sheet (shows the financial position of the company at the balance sheet date).
- Notes (supplements the information in the balance sheet and profit and loss statement).
K3 annual report
The K3 regulations are the main regulations for annual reports. Larger economic associations must use K3. Smaller associations can instead choose to use K2. If you prepare your annual report according to the K3 regulations, these regulations must be applied in their entirety. This applies regardless of whether you have voluntarily chosen to apply K3 or whether it is mandatory for your association.
K3 regulations on the Swedish Accounting Standards Board's website (in Swedish)
The following must be included in the annual report:
- Directors' report (provides a fair overview of the company's development, position and performance).
- Profit and loss statement (summarises the income and expenditures for the year and shows the company's profit/loss for the year).
- Balance sheet (shows the financial position of the company at the balance sheet date).
- Supplementary information (supplements the information in the balance sheet and profit and loss statement).
- Statement of changes in equity for the year (may also be provided as supplementary information).
If the association is classified as large, the annual report must also include a cash flow statement. This is optional for small associations.
Submit to the Swedish Companies Registration Office
All large associations must submit their annual report to the Swedish Companies Registration Office. Small associations only need to submit their annual report if the Registration Office requests this.
You must submit the following:
- Annual report
- Audit report
- Consolidated accounts with audit report (if the association is the parent company of a large group).
These documents must be submitted to the Swedish Companies Registration Office within one month of the adoption of the balance sheet and profit and loss statement by the general meeting of the association. This means that the annual report must be available at the Swedish Companies Registration Office no later than seven months after the end of the financial year.
Auditor
All economic associations must have an auditor who examines the annual report. For a small association, there is no requirement for the auditor to be authorised. However, if the association is classified as large (see above), at least one auditor must be authorised.