Finland
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Standards are required for domestic public companies |
|
All domestic companies whose securities trade in a regulated market are required to use IFRS Standards as adopted by the EU in their consolidated financial statements. |
| IFRS Standards are permitted but not required for domestic public companies | ||
| IFRS Standards are required or permitted for listings by foreign companies |
|
IFRS Standards as adopted by the EU are required in their consolidated financial statements except that a foreign company whose home jurisdiction’s standards are deemed by the EU to be equivalent to IFRS Standards may use its home standards. |
| The IFRS for SMEs Standard is required or permitted | No. | |
| The IFRS for SMEs Standard is under consideration | No. |
Organisation
Ministry of Employment and the Economy.
Suomen Tilintarkastajat ry (Finnish Association of Authorised Public Accountants).
Role of the organisation
The Ministry of Employment and the Economy is responsible for accounting legislation and related guidance in Finland. The application of IFRS Standards is stipulated in IAS Regulation adopted by the European Union and in the Finnish Accounting Act. Details may be found here: www.tem.fi/en/enterprises/accounting
Suomen Tilintarkastajat ry translates IFRS into Finnish based on a contract with one of the freelancers that delivers translations to the EU Commission.
Website
Ministry of Employment and the Economy: www.tem.fi
Finnish Institute of Authorised Public Accountants: www.suomentilintarkastajat.fi (for translations and publications)
Email contact
hanna.tahtivaara@suomentilintarkastajat.fi (for translations)
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Yes.
Refer to the IAS Regulation adopted by the European Union in 2002: http://ec.europa.eu/internal_market/accounting/legal_framework/ias_regulation_en.htm
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
Yes.
Refer to the IAS Regulation adopted by the European Union in 2002: http://ec.europa.eu/internal_market/accounting/legal_framework/ias_regulation_en.htm
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
As a member state of the European Union, Finland is subject to the IAS Regulation adopted by the European Union in 2002.
The EU IAS Regulation requires application of IFRS Standards as adopted by the EU for the consolidated financial statements of European companies whose securities trade in a regulated securities market starting in 2005. The EU IAS Regulation gives member states the option to require or permit IFRS Standards as adopted by the EU in separate company financial statements (statutory accounts) and/or in the financial statements of companies whose securities do not trade on a regulated securities market. See the Profile for the European Union for more detailed information about the EU IAS Regulation.
There is one regulated market in Finland -- NASDAQ Helsinki OY.
Finland used the option under the IAS Regulation to:
- Require IFRS Standards as adopted by the EU in the separate financial statements of companies whose securities trade in a regulated market but that do not prepare consolidated financial statements because they have no subsidiaries.
- Permit optional application of IFRS Standards as adopted by the EU for the separate company financial statements of other companies whose securities trade in a regulated market other than insurance companies.
- Permit optional application of IFRS Standards as adopted by the EU for both the consolidated and separate company financial statements of companies whose securities do not trade in a regulated market other than insurance companies, provided that such companies have an independent audit.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Required for some and permitted for others. Foreign companies whose securities trade in a regulated market in Finland (and generally in the EU) are required to report under IFRS Standards as adopted by the EU for their consolidated financial statements unless the European Commission has deemed their local accounting standards to be equivalent to IFRS Standards, in which case they may use their local standards.
http://ec.europa.eu/finance/company-reporting/legal-framework/index_en.htm#legal-acts-equivalence
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnotes states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
Yes.
The European Union has 24 official and working languages. They are: Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish. Before they are published in the Official Journal of the European Union, and therefore become binding under EU law, individual IFRS Standards must be translated into all of those languages (other than English and Irish).
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Pursuant to a copyright waiver agreement with the Directorate-General for Translation of the European Commission, the Commission takes care of the translation into the official languages according to their own translation process. The translation only covers the standards and mandatory guidance, which is then published in the Official Journal of the European Union.
In addition, some countries (usually the standard setter or institute) have a translation contract with the IFRS Foundation to produce an ‘official translation’ for publication of a bound volume of IFRS Standards (usually the ‘Red Book’) and publication, in some cases, of individual standards and exposure drafts.
The Finnish Association of Authorised Public Accountants translates IFRS Standards based on a contract with one of the freelancers that provide translations to the Commission, and arranges a review by experts. Suomen Tilintarkastajat ry and ST-Akatemia publish a bound volume (‘Blue Book’) based on a contract with IFRS Foundation.
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
Other comments regarding use of the IFRS for SMEs Standard?
Finland has already adopted IFRS Standards for the consolidated financial statements of all companies whose securities trade in a regulated market. For a fuller description of the Finnish reporting requirements see Finland’s jurisdictional profile.
Other entities prepare their financial statements in accordance with the Finnish Accounting Act and with decrees based on that Act.General requirements for companies for-profit entities
Entities are required to file a copy of the financial statements in the Finnish Trade Register in the Finnish Patent and Registration Office no later than six months after the end of the financial period. The obligation to submit the financial statements for publishing by the Trade Register varies by type of business.
A tax return must be filed within four months from the end of the financial period. The Finnish Tax Administration forwards to the Trade Register the financial statements (with the enclosures) submitted by organisations, using a specific tax return form.
https://www.prh.fi/en/kaupparekisteri/julkistamisvelvollisuus.html
and
http://www.vero.fi/en-US/Companies_and_organisations/Income_Tax_ReturnsListed companies
A listed company shall disclose both its financial statements and the management report three weeks before the general meeting at which the financial statements shall be presented for confirmation at the latest, but no later than within four months from the end of the financial period.
A financial statements release shall be disclosed without undue delay and not later than three months from the expiry of the reporting period.
The issuer of a security entitling to a share shall prepare and publish for each financial period that exceeds six months an interim report for the first six months of the financial period. Interim reports shall be disclosed without undue delay and not later within three months from the expiry of the reporting period.
See further information:
http://business.nasdaq.com/media/Nasdaq-Helsinki-Rules-of-the-exchange-EN_tcm5044-30771.pdf
Reporting of financial information is also required semi-annually and annually by Financial Supervisory Authority (FSA) using reporting applications (see further information: http://www.finanssivalvonta.fi/en/Reporting/Applications/Pages/Default.aspx).
FSA’s supervision of financial reporting is directed at Finnish listed companies and companies that have applied to issue shares for public trading. In 2007, supervision was extended to include bond issuers. Supervision of listed companies’ financial reporting, ie monitoring of compliance with IFRS Standards, has been under the FIN-FSA’s authority since 2005.
