Annual report for tenant-owner association
A tenant-owner association must always prepare an annual report and have an auditor. Most tenant-owner associations can choose to draw up their annual report according to the simplified K2 rules.
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Tenant-owner associations must always draw up annual reports and have an auditor. The auditor must have the necessary insight and experience in accounting and financial matters to audit correctly. If the association is considered large, it must have an approved auditor or authorised public accountant.
The annual report must be prepared according to one of the Swedish Accounting Standards Board's K regulatory frameworks. A tenant-owner association that is considered a larger association must prepare an annual report in accordance with the main K3 regulations and submit the annual report to the Swedish Companies Registration Office. A tenant-owner association is considered larger if it reaches more than one of the following thresholds for each of the last two financial years.
- More than 50 employees on average.
- More than SEK 40 million in reported balance sheet total.
- More than SEK 80 million in reported net turnover.
If the association meets more than one of the above conditions, it must also have an authorised public accountant. However, there very few tenant-owner associations of this size.
A small tenant-owner association is not normally required to submit its annual report to the Swedish Companies Registration Office, but may receive an order from the public authority to do so. Small associations can choose to prepare annual reports according to the simplified K2 rules instead of the main K3 regulatory framework. All tenant-owner associations must also apply the guidance supplementary information, etc. in the housing association's annual report together with K2 or K3.
Annual report under K2
Tenant-owner associations that are considered small can choose to prepare the annual report under the simplified K2 rules.
K2 rules at the website of the Swedish Accounting Standards Board (in Swedish)
This should be included in the annual report:
- Directors’ report
- Profit and loss statement
- Balance sheet
- Notes supplementing the information in the balance sheet and profit/loss statement.
Annual report under K3
The K3 regulatory framework is the main framework for annual report. Larger associations must apply K3. Smaller associations can choose to apply K2 instead.
K3 rules at the website of the Swedish Accounting Standards Board (in Swedish)
This should be included in the annual report:
- Directors’ report
- Profit and loss statement
- Balance sheet
- Notes supplementing the information in the balance sheet and profit/loss statement.
If the tenant-owner association is considered large, a cash flow statement must also be included in the annual report. For small tenant-owner associations this is optional.
More information for housing associations
Tenant-owner associations at the website of the Swedish Accounting Standards Board (in Swedish)
Keeping accounts at the website of Swedish Accounting Standards Board (in Swedish)