Knowing and complying with the Non-Financial Disclosure Statement (NFS) is essential for companies committed to transparency and social responsibility. Because of this, Leialta will share with you some key details to ensure compliance with the NFS in Spain.
What is the NFS, and who is obliged to submit it?
- The Statement of Non-Financial Information (EINF in Spanish) is a mandatory report on disclosure of non-financial information according to Law 11/2018.
- It is mandatory for Public Interest Entities and Companies or Business Groups with more than 250 employees that meet specific financial criteria for two consecutive years. Specifically, they must have assets of more than 20 million euros and an annual turnover of more than 40 million euros.
Mandatory content of the NFS
The report must address key issues, including:
- Environmental issues.
- Employee and social matters.
- Commitment to sustainable development.
- Respect for human rights.
- Anti-corruption and anti-bribery.
Process of submission of the NFS:
- It must be filed together with the Company’s Annual Accounts management.
- It must be submitted within the next 3 months period following the Company’s financial year-end.
What happens if you do not file the Non-Financial Disclosure Statement?
- Failure to file carries financial penalties: Fines up to 300,000 euros per year under the Capital Companies Law.
- It also leads to the impossibility of registering the annual accounts in the Commercial Register.
- Moreover, it could lead to a loss of market confidence from customers, investors, and domestic banks.
Steps for the preparation of the annual financial statements:
- Planification and definition of the content structure of the Annual Report.
- Materiality analysis.
- Information gathering and results measurement.
- Report preparation.
- Support the verification of non-financial information by an independent expert.
In short, the EINF is necessary to guarantee transparency and avoid sanctions.
At Leialta, we offer personalized advice and direct contact to cover the needs and objectives of consultancy for companies with specialized teams. All of this, with a commitment to transparency and social responsibility.
