Accounting will be regulated by a new law that was adjusted to the provisions of the European legislation on corporate financial reporting. Only the public authorities and self-managing institutions will be obliged to implement the Accounting Law. In case of budget-funded institutions, financial reporting will be regulated by the Law on Public Finances, IPN reports.
The new accounting law approved by the Cabinet updates the criteria for classifying by categories the entities and groups of enterprises (micro, small, medium-sized and large) and specifies the accounting and financial reporting requirements for these.
The bill envisions the application of three sets of financial statements (abridged, simplified and complete), depending on the category and informational needs of the entities that apply the National Accounting Standards.
The audit of financial situations will be mandatory for medium-sized and large entities, entities of public interest and other entities specified by the law and in the case of consolidated financial statements of groups obliged to compile these.
Besides transporting the requirements of the EU directives in the field, the draft law updates the notions used in accounting and financial reporting and specifies the requirements as regards the primary documents and accounting registers and the persons responsible for keeping accounting records and financial reports at the entity. The bill also contains provisions concerning the financial situation responsibility of the members of the Board and of the executive and surveillance body.
