Accounting policies
 

What is the accounting policy of the company?

The accounting policies are the set of principles, inputs, concepts, rules, bases and procedures that the company adopts in preparing its annual financial statements. The accounting policies are set by the general manager of the company before the respective reporting period and is required to be disclosed in the annual financial statements.

Additional information regarding the requirements to the annual financial statements of the company is available here.

 

What should the company’s accounting policies be based on?

Companies in Bulgaria, regardless of their size, may base their accounting policies both on the National Accounting Standards (NAS) and on the International Accounting Standards (IAS). The only exception deals with companies the shares of which are listed at a regulated market in an EU member state. Their accounting basis must be in accordance with IAS (see art. 34 and art. 35 of the Accountancy Act).

 

Important to know
Important to know

Companies which are currently basing their accounting policies on either of the two sets of standards (NAS or IAS) may change their basis of accounting once and may transition to the other set of standards. Listed companies are an exception and they are required mandatory to comply with IAS.

 

What should be disclosed in the financial statements in addition to the selected accounting policies?

In the notes to the financial statements, ddisclosure of the measurement basis - e.g., the method chosen for the recognition of the amount of the non-current tangible and intangible assets in the financial statements): for example, whether they are carried at the historical amount they were acquired or at revalued amounts.

  • In the notes to the financial statements, a documented clarification regarding the cases whether priority is given to one accounting principle before another when the chosen accounting policy is applied;
  • In the notes to the financial statements, disclosure of deviation from the accounting principles and the adopted accounting policies which is allowed only in exceptional cases.

 

For more information
For more information

Additional information regarding the drawing up of the accounting policies and the related legislative framework is available in the Accountancy Act.

Write to us
Ministry of Economy
8, Slavyanska Str., Sofia 1052, Bulgaria
BULSTAT: BG176789453
phone: +359 2 940 7001

fax: +359 2 987 2190
 
Operational Programme This item is available only in Bulgarian
Contacts: 8, Slavyanska Str. Sofia 1000, Bulgaria tel: +359 2 940 7001 e-mail: e-docs@mi.government.bg
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