Amendments to the Accountancy Act promulgated in SG No. 72 of 27.08.2024 entered into force retroactively – 06.07.2024, include a new obligation for sustainability reporting, higher thresholds for enterprise categories, new thresholds for mandatory financial audit, documentation in euros and in a foreign language.
I. Sustainability Reporting
Art. 1, para 3 of the Accountancy Act introduces the regulation of the applicable framework for sustainability reporting.
Large enterprises, as well as some small and medium-sized enterprises, should include in their activity reports information on the main intangible resources, how the enterprise depends on them and how they create value for the enterprise. They should also include a separate section with information related to sustainability issues (sustainability report).
The managers and members of the management body of the enterprise are responsible for carrying out an engagement for sustainability assurance by registered auditors.
The annual and consolidated reports of activity of enterprises are obliged to prepare and publish a sustainability report subject to a mandatory sustainability assurance engagement in accordance with the requirements of the Independent Financial Audit and Sustainability Assurance Act.
The report must contain quantitative and qualitative information that is disclosed in accordance with the requirements of the European Sustainability Reporting Standards. The sustainability report is part of the activity report and will be published in a single electronic reporting format.
II. Categorization of enterprises
The enterprise categories remain the same, with the thresholds for the indicators „book value of assets“ and „net sales revenue“ being increased.
The enterprise categories are determined based on values that do not exceed at least two of the indicators provided for in the Sustainability Act:
III. Thresholds for mandatory financial audit
The thresholds of the indicators for the annual and consolidated financial statements subject to audit are also changed. According to Art. 37, the reports of enterprises that as of December 31 of the reporting period exceed at least two of the following indicators will be subject to mandatory audit:
- balance sheet value of assets – 4,000,000 BGN;
- net sales revenue – 8,000,000 BGN;
- average number of personnel for the reporting period – 50 people.
IV. Documents in euros and in a foreign language
With the amendment of Art. 5, the rule is introduced that accounting documents in enterprises must be drawn up in Bulgarian with Arabic numerals and in euros. They may also be drawn up in the relevant foreign language in foreign currency in cases of transactions agreed in foreign currency with foreign counterparties. When the transaction is agreed in a foreign currency, the equivalent in euros is determined by applying the central exchange rate of the Bulgarian National Bank on the date of the transaction to the amount in foreign currency.
Accounting documents received by enterprises in a foreign language are translated into Bulgarian, in cases where this is required for by law.
NB! Financial statements are drawn up in Bulgarian, with Arabic numerals and in thousands of euros.
*The rules are applied in accordance with the provisions of the LAW ON THE INTRODUCTION OF THE EURO IN THE REPUBLIC OF BULGARIA.
