As explained in our previous article, ‘BVI Annual Return – Everything You Need To Know’, from 1 January 2023, all BVI Business Companies need to prepare and submit to their BVI Registered Agent a BVI Annual Financial Return (‘Annual Return’) 9 months after their financial year end. The form of the Return is simple and straightforward to us Accountants, however, in this article we explain in further detail what each line of the Annual Return template represents so that to give you a better understanding on what is to be reported.
BVI Annual Return Template consists of the following:
Cash and Cash Equivalents
This represents the total value of liquid assets held by the company, including physical cash, bank account balances, and highly liquid investments with short maturities. It reflects the company’s ability to meet its short-term obligations.
Loans and Receivables
This includes any money owed to the company, often in the form of loans provided or trade receivables. It’s an important indicator of the company’s liquidity and ability to generate cash flow. It represents assets that are expected to be collected in the future, usually within a year.
Investments and Other Financial Assets
This section encompasses investments in other entities, stocks, bonds, and any other financial instruments held for the purpose of generating profit. It also includes any financial assets that don’t fit into the categories of cash equivalents or loans and receivables.
Tangible Fixed Assets
Tangible fixed assets are physical assets with a finite useful life, such as land, buildings, machinery, and vehicles. They are not meant for sale in the ordinary course of business.
Intangible assets lack a physical presence but may have significant value. This includes items like patents, trademarks, software copyrights, and goodwill.
This category covers any other assets that don’t fit into the aforementioned categories. It may include prepaid expenses or deferred tax assets or accrued income.
Accounts payable represent the company’s outstanding bills and obligations to suppliers and vendors. This is essentially the money the company owes to external parties.
Long-term debts are financial obligations that are due over an extended period, usually longer than one year. This includes loans, mortgages, or any other debt instruments.
This section encompasses any other liabilities that don’t fall into the categories of accounts payable or long-term debts. It could include deferred tax liabilities or contingent liabilities or accruals.
Revenue, also known as sales or turnover, is the total amount of money generated by the company from its normal business operations. This is a critical metric for assessing a company’s financial performance.
Cost of Sales
The cost of sales includes all the direct costs associated with producing or delivering the company’s products or services. This encompasses items like raw materials, labor, and manufacturing overheads.
Gross profit is the difference between revenue and the cost of sales. It reflects the profitability of the company’s core operations before considering indirect costs like operating expenses.
Operating expenses are the costs associated with running the day-to-day operations of the business. This includes items like rent, utilities, salaries, and marketing expenses.
This category encompasses any non-operating expenses that are not included in the cost of sales or operating expenses. This might include interest expenses or losses from the sale of assets.
Income Tax Expenses
Income tax expenses represent the amount of income tax the company owes based on its taxable income.
Total expenses are the sum of all the costs incurred by the company, including both operating and non-operating expenses.
Net Income / Expenses
This is the final line item in the income statement and reflects the overall profitability of the company. A positive figure indicates a net profit, while a negative figure indicates a net loss.
Copy of the Return
You can find a copy of the return in pdf format here. You can also see the full annual financial return template below:
Understanding the components of the BVI Annual Financial Return is essential for businesses to maintain compliance with BVI Business Companies Act requirements. The form of the return is simple, but depending on the activities of your Company, you may need expert assistance to complete the accounting records and Annual Return of your Company. You can contact us at firstname.lastname@example.org for more information.
Why Asterisk BVI
At Asterisk BVI (the operating firm of domain bviaccountants.com), we specialize in assisting businesses in meeting their regulatory obligations, including the preparation and filing of the BVI Annual Financial Return. Our team of seasoned professionals is dedicated to providing tailored solutions that ensure accuracy and compliance. With years of experience in the field, we understand the intricacies of BVI financial reporting, offering clients peace of mind and the assurance that their filings are in expert hands. For any inquiries or assistance, please feel free to email us at email@example.com.
Additionally, to streamline this process, we’ve launched a specialized website, www.annualreturn.vg, designed to provide you with comprehensive guidance and support. At Asterisk BVI, we understand the importance of compliance, and we’re here to make the process as seamless as possible for you. We look forward to helping you navigate the complexities of financial reporting in the British Virgin Islands.
The information provided in this article is intended for general informational purposes only. It does not constitute professional advice or services, and should not be relied upon as such. Therefore, readers are encouraged to consult with qualified professionals or relevant authorities for specific advice tailored to their unique circumstances. We disclaim any liability for actions taken based on the information provided in this article.