Accounting
Bulgaria introduced International Accounting Standards (IAS) on January 1, 2003, for certain companies. This was done two years ahead of European Union countries. The companies for which IAS as mandatory as from the beginning of 2003 include Bulgarian banks, insurance companies, social security institutions, and investment and public companies. They are now required to prepare their entire monthly, quarterly, and six-monthly accounts according to IAS. IAS is mandatory from 2005 for all companies in Bulgaria, including small and medium-sized enterprises. This is in contrast to EU countries, where only public companies will be obliged to use IAS from 2005. Questions have been raised about whether SMEs in Bulgaria will have the capacity to comply with the requirements of using IAS. Elsewhere in Europe, there has been major resistance among small and medium enterprises to being required to use IAS. Media reports in early 2003 pointed out that the Bulgarian-language version of IAS runs to 800 pages. An English-language version has been compiled by a group of experts. The introduction of IAS in Bulgaria was regulated by the new Accounting Act, which was approved by Parliament towards the end of 2001. In January 2002, the Government adopted 37 new National Accounting Standards, compliant with the IAS. Of these, 32 standards refer directly to the IAS and five are Bulgarian standards because they have no equivalents in the IAS list. A Government ordinance regulates the use of IAS, and flows from the provisions of the Accounting Act. According to the Accounting Act, the reporting period is January 1 to December 31. |
