NEW ACCOUNTING STANDARDS APPROVED BY CABINET
On February 7 the Government passed a decree, approving 37 national accounting standards.Harmonization between Bulgarian accounting practice and the international standards in this sphere is aimed to create an organization of accounting in compliance with the new Accounting Act, enforced in the beginning of 2002. The law stipulates that in the 2003-2005 period all economic entities will be applying international accounting standards in the financial reports of their operation. The new standards are aimed to facilitate the work of companies because the Accounting Act stipulates that these stadards should be applied when evaluating the firms' assets and liabilities. According to Prof. Stoyan Dourin, Chairman of the Managemenet Board of the Institute of Certificated Expert Accountants, the requirement for implementation of the international standards will cause serious problems to the firms, and they should already be thinking about for the qualification of their accountants.The companies will be able to choose between two of the approved methods for making financial reports. The major approach recommends that the accountants should be deducting the depreciation of tangible long-term assets. The alternative approach concerns their revaluation. There are no specific provisions in the Accounting Act, regarding the revaluations. After the promulgation of the recently approved decree, all revaluations will be made on the basis of accounting standards. The implementation of international accounting standards will also necessitate changes in some of the currently effective laws, experts commented.