Moldova’s New Financial Reporting Regulations Take Shape

As Moldova prepares to transpose the Accounting Directive 2013/34/EU into national legislation, a new accounting law is being drafted to ensure compliance with EU standards.

Draft Law Under Review The draft law, currently undergoing legal review by the Ministry of Justice, is expected to be submitted to the government soon. The Accounting Directive sets out a range of requirements for financial reporting, including:

• Classification of entities and groups
• Disclosure requirements
• Statutory audit requirements

Key Issues Debated

• Education requirements for chief accountants
• Requirement for statutory audits not just for medium-sized and large enterprises, but also for small ones

Classification of Entities and Groups The draft law categorizes entities into micro-enterprises, small businesses, medium-sized companies, and large corporations, each with its own set of reporting requirements.

Financial Statement Preparation The draft law requires:

• Financial statements to be prepared in accordance with national accounting standards (NAS) for individual financial statements
• Consolidated financial statements must be prepared using international financial reporting standards (IFRS)

Disclosure Requirements The draft law provides for more transparency than the Accounting Directive allows, including:

• Medium-sized and large enterprises are required to produce a management report and non-financial statement
• Large corporations must also submit a report on payments to government

Publication Deadline and Statutory Audits

• The publication deadline for financial statements is 120 days after the end of the financial year
• Statutory audits are required for all public interest entities, large, and medium-sized companies