A new law adjusted to the European requirements in the field of accounting and financial reporting was drafted by the Ministry of Finance. The bill was proposed for public debates, IPN reports.
As the institutions, organizations and enterprises vary by size, the author suggests a classification of the given entities according to three criteria – total assets, revenues from sales and the average number of salary earners in the management period.
Thus, micro entities will be considered those that possess assets to the value of 5.5m lei, have sales of up to 11.2m lei and an average number of ten employees. For small entities, the figures are as follows: 63.5m lei, 127.2m lei for sales and 50 employees. The medium-sized entities must have assets to the value of 318m lei, revenues of 636m lei and 250 employees. Large entities are considered those that exceed the limits of at least two criteria set for medium-sized entities.
The bill also stipulates the criteria for groups of entities that consist of mother and daughter entities: small, medium-sized and larger groups. Depending on size, the entities will keep double financial records and will compile short (micro enterprises), simplified and complete reports on the financial situation. An idea accepted at European level, which was transposed to this bill, is that the administrative burden imposed by accounting and provision of information about the financial situation of entities should be proportional to their size.
The draft law lays down requirements concerning the primary documents and accounting registers, the responsibilities of accountants and the methods of financial reporting for entity managers.
The bill envisions the creation of the Council of Accounting and Financial Reporting under the Ministry of Finance. This will consist of representatives of the Ministry of Finance, the National Bank of Moldova, the National Commission for Financial Markets and of the academic and business communities. Its key mission will be to collect proposals for improving and developing accounting and financial reporting.
The bill is to be agreed by the Government and Parliament. The law is to take effect on January 1, 2018.
