Greece

As a member of the European Union (EU), Greece is subject to the accounting, auditing and financial reporting requirements established in EU Regulations and Directives as transposed into national laws and regulations.

The requirements for the preparation of financial statements are established in Law 4308/2014, which was issued to transpose the EU Directive 2013/34. Under the law, the Ministry of Finance (MoF) and the Ministry of Development & Competitiveness are responsible for establishing accounting and auditing standards. The Hellenic Accounting and Auditing Standards Oversight Board (ELTE), subject to the supervision of the MoF, provides advice on the standards. Following the enactment of Law 4308/2014, the MoF issued Ministerial Circular 1003/2014, which contained new provisions for general rules on keeping accounting books and records.

Law 4308/2014 introduced differentiated financial reporting requirements for different types of companies depending on their size in terms of annual turnover, number of employees, and total assets, specifying applicable accounting standards. Under the law, public interest entities (PIEs)—listed companies, banks and financial institutions, and insurance companies—are required to use IFRS Standards as adopted by the EU for the preparation of their financial statements. IFRS should also be applied by other types of entities defined in Article 1.3 of the Law. All other companies are required to apply the Greek General Accepted Accounting Principles (Greek GAAP), which differ from the IFRS, and may apply IFRS if they wish to do so. IFRS for Small-and Medium-Sized Entities has not been adopted and there are no plans to do so.

Meanwhile, Law 4336/2016 establishes requirements for mandatory audits. Under the law, all PIEs and all companies that meet two of the following criteria for two consecutive years are subject to mandatory statutory audits: (i) total assets of EU 4,000,000; (ii) net turnover of EU 8,000,000; and (iii) average employees of 50 for the year. The auditing standards are set in the Law 4449/2017, which was issued to transpose the Audit Directive and Regulation (EU) No 537/2014. The law directly adopts ISA, as translated, and incorporated into the official Gazette, without modifications.

The audit profession is regulated at the state and professional level by two laws. First, the Law 3148/2003, as amended by the Law 4449/2017, which established the Hellenic Accounting and Auditing Standards Oversight Board (ELTE)—the public oversight authority that operates subject to the supervision of the Minister of Finance (MoF). Second, the Presidential Decree No. 226/1992, as amended by Presidential Decree No. 341/1997, which established the Institute of Certified Accountants of Greece (SOEL). Only Certified Public Accountants (CPA) are permitted to conduct audits, and every CPA must be employed by an auditing firm.

In accordance with the Law 4449/2017, candidates who wish to acquire the title of CPA and become a SOEL member are required to meet specific requirements defined in the Law such as: (i) have a university degree; (ii) pass final professional accountancy examinations; and (iii) have five years of practical experience. Two years of practical experience need to be completed after passing the final exam.

The ELTE’s responsibilities include: (i) maintaining a registry of CPAs and audit firms; (ii) overseeing SOEL activities; (iii) providing advice to the MoF on standards; (iv) developing an investigative and disciplinary (I&D) system; (v) setting ethical requirements for CPAs following proposals made by the SOEL; and (vi) establishing a quality assurance system (QA) for CPAs of all public interest entities (PIEs). Some responsibilities of ELTE do overlap with the responsibilities of the SOEL.

For example, the SOEL carries out the following regulatory activities under the oversight of ELTE: (i) maintaining a registry of CPAs and audit firms; (ii) administering the professional examination of CPAs; (iii) establishing and enforcing initial and continuing education requirements; and (iv) conducting QA inspections of CPAs of non-PIEs.

The Law 3148/2003, amended by the Law 4449/2017, established the Hellenic Accounting and Auditing Standards Oversight Board (ELTE) as the independent public oversight authority of the auditing profession in Greece subject to the supervision of the Ministry of Finance (MoF). ELTE is a member of the International Forum of Independent Audit Regulators. Its responsibilities are described in the Regulation section.

The Institute of Certified Accountants of Greece (SOEL)

Presidential Decree No. 226/1992, amended by Presidential Decree No. 341/1997, established SOEL in 1992 as a legal entity. Before the establishment of the Hellenic Accounting and Auditing Standards Oversight Board (ELTE), SOEL acted as a supervisory body for the auditing profession. The institute’s current mandate, under ELTE’s supervision, includes: (i) maintaining a registry of CPAs and audit firms; (ii) administering the professional examination of CPAs; (iii) establishing and enforcing initial and continuing education requirements; and (iv) conducting QA inspections of CPAs of non-public interest entities.

In addition to being a member of IFAC, the SOEL is a member of Accountancy Europe.

In Greece, a mandatory quality assurance (QA) review system is required for all statutory audits of financial statements. Under Law 4449/2017, the Hellenic Accounting and Auditing Standards Oversight Board (ELTE), operating under the oversight of the Ministry of Finance, is responsible for conducting the reviews.

Accordingly, ELTE has established a QA review system for auditors of all public interest entities (PIEs)—listed companies, banks and financial institutions, and insurance companies. As far as non-PIEs QA reviews are concerned, ELTE has delegated the reviews to the Institute of Certified Accountants of Greece (SOEL). In fulfilling this responsibility, SOEL maintains a QA system under the oversight of ELTE. In Greece, auditors providing services to PIEs are inspected every three years, and non-PIEs are inspected every six years. As of the date of this assessment, the relevant standards of ISQM 1 & 2 and ISA (220 revised) are adopted. SOEL reports that the QA review system has been revised to address the quality management standards.

SOEL reports that it has assessed the QA review systems against the best practices of SMO 1 and concluded that the systems fulfill the requirements.

Current Status: Adopted

Law 4449/2017 outlines general initial and continuing professional development (IPD and CPD) requirements for Certified Public Accountants (CPA) and authorizes the Hellenic Accounting and Auditing Standards Oversight Board (ELTE) and the Institute of Certified Accountants of Greece (SOEL) to further set and implement educational requirements.

In accordance with the law, candidates who wish to acquire the title of CPA and become a SOEL member, are required to: (i) have a university degree; (ii) pass a final professional accountancy examination; and (iii) have five years of practical experience. Two years of practical experience need to be completed after passing the final exam.

ELTE is responsible for oversight of the professional accountancy examination and determines the content of the examination syllabus, which seem to now be the Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in England and Wales (ICAEW) examinations. In addition, SOEL has established a local taxation and law exam in Greek.

SOEL is empowered by Presidential Decree 341/1997 to administer the professional examination and establish other IPD and CPD requirements for its members. Law 4449/2017 does establish mandatory completion of at least 120 hours of CPD over three years by members of SOEL. ELTE monitors compliance with CPD requirements through the quality assurance program.

SOEL reports that its educational program incorporates the requirements of the 2019 IES.

Current Status: Adopted

The auditing requirements are set in Law 4449/2017, which was issued to transpose the Audit Directive and Regulation (EU) No 537/2014. The law directly adopts ISA without modifications, as translated, and incorporated into the official Gazette. In accordance with the law, the Ministry of Finance and the Ministry of Development and Competitiveness are responsible for the adoption of auditing standards.

The Institute of Certified Accountants of Greece (SOEL) and the public oversight body—the Hellenic Accounting and Auditing Standards Oversight Board (ELTE)—collaborated to translate the 2015 version of ISA, as well as the 2011 version of ISAE 3000, the 2014 ISAE 3420 and the revised ISAs 805, 800, 720, 706, 705, 701, 700, 260, 570, 4400, 3000, all of which have been made publicly available and disseminated to members of SOEL via print and online.

As of the date of this assessment, SOEL completed the translation of ISA 600 which is under review by ELTE prior to publishing. SOEL is currently translating ISA 220 (revised) and ISA 250.

SOEL also reports to be engaging in discussions with local regulators regarding the adoption of the ISA for Less Complex Entities (LCEs).

Current Status: Partially Adopted

Law 3693/2008, as amended by the Law 4449/2017, introduced the application of the IESBA Code of Ethics for all Certified Public Accountants (CPA). Under the law, the Hellenic Accounting and Auditing Standards Oversight Board (ELTE), the audit oversight authority, is responsible for the enactment of a code of conduct for CPAs, taking into consideration the provisions of the IESBA Code of Ethics, following proposals made by the Institute of Certified Accountants of Greece (SOEL).

SOEL reports that the 2015 IESBA Code of Ethics was translated into Greek, in cooperation with ELTE. The Code was approved by ELTE and published in the Greek Government Gazette (FEK A 3916/7.11.2017). SOEL has stated plans to translate the 2023 International Code of Ethics.

Current Status: Partially Adopted

The Government of Greece is responsible for issuing public sector accounting and reporting standards in accordance with Law 3429/2005.

According to the CIPFA/IFAC 2020 International Public Sector Financial Accountability Index, Greece uses partial accrual basis standards that reference IPSAS.

Current Status: Partially Adopted

Under Law 4449/2017 the Hellenic Accounting and Auditing Standards Oversight Board (ELTE), operating under the oversight of the Ministry of Finance, is responsible for establishing a mandatory investigative and disciplinary (I&D) system for all Certified Public Accountants.

ELTE has established a Disciplinary Council, which consists of the Board of ELTE and two members of the Legal Counsel of the State. The ELTE’s Quality Control Board (SPE) is tasked with carrying out the investigative procedures while the Disciplinary Council issues sanctions.

According to Institute of Certified Accountants of Greece (SOEL), the I&D system operated by ELTE almost fully complies with the best practices of SMO 6 with the exception of there not being a process for the independent review of complaints.

Current Status: Partially Adopted

The requirements for the preparation of financial statements are established in Law 4308/2014, which was issued to transpose the EU Directive 2013/34. Under the law, the Ministry of Finance (MoF) and the Ministry of Development & Competitiveness are responsible for establishing accounting standards. The Hellenic Accounting and Auditing Standards Oversight Board (ELTE), subject to the supervision of the MoF, provides advice on the adoption of these standards.

Under the law, public interest entities—listed companies, banks and financial institutions, and insurance companies—are required to use IFRS Standards as adopted by the EU for the preparation of their financial statements. IFRS should also be applied by other types of entities defined in Article 1.3 of the Law.

EU-endorsed IFRS have slight modifications from IFRS (e.g., temporary 'carve-out' from IAS 39 Financial Instrument: Recognition and Measurement and a temporary extension of the scope of applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts) but according to the IFRS Foundation, the majority of companies can state full compliance with the IFRS.

All other companies are required to apply the Greek General Accepted Accounting Principles (Greek GAAP), which differ from the IFRS, but may apply IFRS if they wish to do so. IFRS for Small-and Medium-Sized Entities has not been adopted and there are no plans to do so.

Current Status: Adopted

Relevant Organizations

• Institute of Certified Public Accountants of Greece (SOEL)
• Hellenic Accounting and Auditing Standards Oversight Board (ELTE)
• National Accounting Council (ESYL)

Relevant Legislation

• Law 4308/2014
• Law 4449/2017
• Presidential Decree No. 341/97
• Greek Banking Laws

Relevant Publications

• Ernst & Young, New Greek GAAP and Accounting Books and Documents, November 2014.
• International Forum of Independent Audit Regulators, IFIAR Member Profile: Greece, 2024.
• IFRS Foundation, IFRS Application Around the World, Jurisdictional Profile: Greece, June 2016.
• Kreston International, A Brief Review of the Audit, Taxation, Accountancy and Legal Professions in Greece, n.d.
• PriceWaterhouseCoopers, Tax Bulletin, January 2015.
• SOEL, SMO Action Plan, 2022.