LAW OF THE REPUBLIC OF MOLDOVA

of December 15, 2017 No. 287

About financial accounting and the financial reporting

The Parliament adopts this organic law.

This law partially shifts the Directive of the European parliament and Council 2013/34/EU of June 26, 2013 about the annual financial reporting, consolidated financial statements and the related reports of certain types of the companies, making amendments to the Directive of the European parliament and Council 2006/43/EU and canceling directives of Council 78/660/EEC and 83/349/EEC, published in the Official magazine of the European Union by L 182 of June 29, 2013, with the last changes made by the Directive (EU) of 2021/2101 European parliament and Council of November 24, 2021 about amending the Directive 2013/34/EU regarding disclosure of information on the income tax by certain companies and branches published in the Official magazine of the European Union by L 429 of December 1, 2021.

Chapter I. General provisions

Article 1. Regulation subject

This law establishes the main regulatory base, the general principles and requirements and the mechanism of regulation in the field of financial accounting and the financial reporting in the Republic of Moldova.

Article 2. Scope

This law is applied to the following categories of persons registered in the Republic of Moldova (further – subjects):

a) the legal entities performing business activity irrespective of type of property and form of business;

b) bodies/organization, except for budget bodies / organizations;

c) permanent missions and branches of nonresident subjects;

d) non-profit organizations and representations of nonresident subjects;

e) the physical persons performing business activity, except for owners of entrepreneurial patents;

f) the physical persons performing professional activity in the field of justice (notaries, lawyers, bailiffs, mediators, the authorized managing directors) and the bureaus founded by them, and also individual offices of family doctors.

Article 3. Basic concepts

(The following basic concepts mean 1) For the purpose of this law:

financial accounting – complex system of collection, identification, group, processing, reflection, generalization and idea of informayotion of elements of financial accounting;

cash method of accounting – accounting method according to which elements of financial accounting are recognized on measure получе­ния / payments of money or compensation other form;

managerial accounting – system of collection, reflection, processing and information transfer for planning, control and the analysis of activities of the subject for the purpose of creation of internal reports for acceptance of managerial resheyoniya;

financial accounting – system of collection, reflection, processing and generalization of information on availability and movement of assets, equity, obligations, income and expenses for the purpose of creation of financial statements;

financial accounting by double record – reflection of the economic facts by double record using accounts of financial accounting and creation of financial statements;

simple system of financial accounting – unilateral reflection of the economic facts by the receipt expense method, without application of accounts of financial accounting and creation of financial statements;

Public depositary of the financial reporting – single integriroyovanny system of collection, storage, generalization, the analysis and publication of the financial reporting, report of management and audit opinion of subjects;

the source document – the documentary confirmation certifying making of the economic facts or granting the right to their implementation (making); proves making of event;

double record – method of reflection of the economic fact at least in the debit of one account and in the credit of other account the same amount;

financial accounting elements – assets, equity, obligations, the income, costs, expenses and the economic facts of the subject;

the associated subject – the subject in whom other subject has equity and has significant effect on its financial and operational policies, without being either affiliated enterprise, or the participant of joint liabilities;

the autonomous subject – the subject who is not entering into group;

the subject of public interest – subject which securities are admitted to trading in the controlled market; bank, insurer (overcautious person) / insurance company; the organization of collective investment into securities with the status of the legal entity; the large subject which is the state company or joint-stock company in which authorized capital the share of the state exceeds 50 percent;

the company from area of forest utilization – the company performing activities for operation of the wood;

the company of mining industry – the subject performing activities for investigation, search, opening, development and/or coal production, crude oil, natural gas, ore minerals, stone, sand, clay, peat and/or salt;

affiliated enterprise – the subject fully or partially controlled by parent entity;

parent entity – the subject controlling one or several affiliated enterprises;

parent entity of the highest rank – the parent entity constituting consolidated financial statements of the largest group of subjects;

affiliated subjects are subjects in one group;

assessment – method of determination of the cost size of elements of financial accounting;

the economic fact – the transaction, transaction, event which changed or can change assets, equity, obligations, the income, costs and/or the subject's expenses;

group – parent entity in total with all its affiliated enterprises;

equity – the rights of one subject within another exceeding 20 percent of the authorized capital of the last which purpose is assistance of activities of the subject having the appropriate rights by means of establishment of long-term strategic bonds;

inventory count – control method and the documentary establishment of availability of the assets, equity and obligations belonging and/or being at the interim order of the subject;

The general plan of accounts of financial accounting – the regulation establishing the list of accounts of financial accounting, their characteristic and procedure for their application;

recognition – reflection in financial accounting and representation in financial statements of the element of the financial accounting corresponding to determination and meeting the recognition criteria established by accounting standards;

accounting registers – the registers intended for group, systematization, reflection and generalization of information on availability and movement of the elements of financial accounting reflected in source documents;

financial statements – set of the reports characterizing financial position and financial results, other information relating to activities of the subject for the accounting period;

accounting standards – International accounting standards and National accounting standards;

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