Financial Crime World

Financial Reporting Regulations in Moldova: Progress and Challenges

Aligning with European Union Standards

A significant step towards aligning Moldova’s financial reporting regulations with European Union standards has been made, according to a recent senior officials workshop held in Brussels. The country aims to transpose the EU’s acquis communautaire on corporate financial reporting into its national legislation by September 2017.

Key Achievements

• Development and publication of draft accounting and audit laws aligned with EU directives • Regulatory impact assessment of the improved legislation

These new laws will introduce changes such as:

  • Re-designing the public oversight function
  • Simplifying disclosure requirements for small and medium-sized enterprises
  • Establishing an audit committee for public interest entities

Implementation and Enforcement: Key Challenges

Despite these achievements, implementation and enforcement remain key challenges. The Ministry of Finance has committed to promoting reforms transparently with stakeholder involvement, while dialogue with the profession continues. Several public debates have been organized, including with participation from the Center for Financial Reporting Reform (CFRR).

Support from STAREP Project

The STAREP project, co-funded by the European Union, has played a crucial role in Moldova’s reform progress, providing technical support and policy advice during the drafting process. The project also organized roundtables, seminars, and training sessions on various topics related to accounting and auditing directives.

Future Plans and Expectations

For the remainder of 2017-2018, Moldova expects continued support from STAREP, including regional activities and dedicated technical assistance. Specifically, the country is seeking help in:

  • Developing by-laws and regulations supporting the improved legislation
  • Providing guidance for small and medium-sized enterprises to enforce new provisions

Upcoming Roundtable

An upcoming roundtable on April 29 will discuss key topics such as:

  • The drafting process of accounting and auditing laws
  • Consultations with the business community
  • The importance of sharing experience with STAREP countries