Moldova’s Accounting Landscape: A Mixed Bag of Adoption

As of December 2022, Moldova has made significant progress in adopting international accounting standards, but there are still areas that require improvement.

Code of Ethics for Professional Accountants

According to the International Federation of Accountants (IFAC), Moldova has partially adopted the Code of Ethics for Professional Accountants. While auditors are required to adhere to the International Ethics Standards Board for Accountants (IESBA) code, other accountancy professionals may voluntarily join professional associations and be subject to their self-regulation.

Public Sector Accounting

Moldova has not yet fully adopted International Public Sector Accounting Standards (IPSAS). The country’s National Public Sector Accounting Standards (NPSAS) are accrual-basis and are currently being developed in compliance with IPSAS. However, the Ministry of Finance plans to develop an integrated information accounting system for public entities by 2027.

Investigation and Discipline

Moldova has partially adopted IFAC’s Statement of Mutual Recognition (SMO 6). The Public Audit Supervisory Council is responsible for investigating and disciplining auditors, but there are concerns that its procedures do not fully align with SMO 6 best practices. Meanwhile, the Association of Professional Accountants and Auditors (ACAP) operates an investigation and discipline system for its members.

Financial Reporting

In a positive development, Moldova has adopted International Financial Reporting Standards (IFRS), with public interest entities required to apply IFRS. The country has also endorsed all IFRS standards through:

• IFRS 13 Fair Value Measurement
• IFRS 16 Leases
• IFRS 17 Insurance Contracts
• IFRIC Interpretations

Conclusion

While Moldova has made progress in adopting international accounting standards, there are still areas that require attention to ensure full compliance with global best practices.