The Ministry of Finance publishes guidelines for businesses regarding the conversion of accounting information from leva to euro

In connection with the introduction of the euro in our country, guidelines have been published for the implementation of tax and accounting reporting and for the adaptation of information systems in the non-financial sector, the Ministry of Finance announced, BTA reports.

The adopted guidelines are for the implementation of Chapter Four, Section II “Accounting Documents” of the Law on the Introduction of the Euro in the Republic of Bulgaria and for the adaptation of information systems processing financial information of enterprises in the non-financial sector.

The guidelines for accounting reporting were developed by the “Non-financial Sector” working group at the Coordination Council for the Preparation of the Republic of Bulgaria for Membership in the Eurozone (CC) with the Ministry of Economy and Industry as the lead institution. Experts from the Ministry of Finance, chartered accountants and business organizations participated in their preparation.

The guidelines aim to ensure the smooth conversion of accounting information of enterprises from levs to euros from the day of the introduction of the euro in the country, so that the process of our accession to the single European currency is carried out in a transparent and smooth manner.

These guidelines have been prepared in full compliance with the requirements of the Accountancy Act (AA) and international accounting standards, with the leading standard for the conversion of accounting information being AC 21 – Effects of Changes in Foreign Exchange Rates, respectively IAS – 21 Effects of Changes in Foreign Exchange Rates. The guidelines contain references to the AA and the accounting standards, the requirements of which are applicable to the procedures for the conversion of accounting information of enterprises.

The guidelines are applicable to current accounting reporting and the preparation of annual financial statements for which the reporting period ends after the date of the introduction of the euro.

The guidelines for adapting information systems are intended to provide methodological guidance for enterprises in adapting their information systems that carry out activities with currency units and process financial information.

The guidelines have been prepared in accordance with the Law on the Introduction of the Euro in the Republic of Bulgaria by the Working Group “Non-Financial Sector” at the Constitutional Court of Bulgaria, consisting of experts from the Ministry of Finance, the Ministry of e-Government, the Ministry of Economy and Industry and the Ministry of Innovation and Growth.

It is important that all changes related to adapting the information systems of enterprises in the non-financial sector to work in euro are consistent with the principle of consumer protection, the principle of information, the principle of efficiency and economy, of transparency and the principle of continuity and automatic conversion of amounts from levs into euros.

The guidelines apply to the period until the date of the introduction of the euro, necessary for making changes in the information systems of an enterprise in connection with its preparation for working with the euro, the announcement states.

To make it easier for you to switch your systems to euros, you can contact FTS Bulgaria for more information. Contact us today.

Source: Profit.BG and BTA

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