Nicosia, Cyprus. The Institute of Certified Public Accountants of Cyprus (Selk) on Thursday announced the appointment of the Financial Reporting Standards Committee, in a move toward creating a simplified framework for small businesses.
New committee under new law
The specialised regulatory body was established under a legislative act passed by the House of Representatives on January 22, 2026. Selk said the committee will be responsible for establishing, monitoring and reviewing the designated financial reporting standard for small entities.
Purpose of the framework
The main objective of the new body is to draft a simplified financial framework designed to reduce the administrative burden of preparing corporate accounts for small business entities. The new reporting parameters will allow qualifying enterprises, as defined under Companies Law Capital 113, to prepare financial statements in a less complex format tailored to their operational needs.
Public information and approval process
To support transparency, Selk has created a dedicated section on its official website with relevant updates for the public. The platform includes the full terms of reference for the committee and the due process manual governing the development of the standard.
Next steps
The institute said that, under the new legislation, it is the competent authority for defining the standard in the local market. Final executive approval must still be granted by the Finance Minister before the framework can become law, and the implementation timeline will be determined later.
