When the accounting period has ended, the financial statements and annual report are created. The financial statements for a small business comprise a profit and loss account, a balancesheet and the notes to the financial statements. All these documents should comply with the specific formal requirements of the Finnish Accounting Act, the Finnish Accounting Decree and
Community Law. The board of a company or co-operative, the active partners of a partnership or a sole trader accept the financial statements and annual report with their signatures. If the business has an auditor, (s)he will check the bookkeeping and the governance of the company, and (s)he will write an auditor’s report.
In a limited company, the shareholders ratify the financial statements and annual report in the general meeting or with a written document. In a co-operative, the members ratify the financial statements and annual report in the general meeting or with a written document. In a partnership, a formal meeting is not required, as the financial statements are signed by the active partners. The same applies to sole traders.
