Belarus: Introduction of International financial reporting standards (IFRS)
Introduction of International financial reporting standards (IFRS)
With the new audit Law coming into force it will compulsory to carry out a statutory audit by June 30 of the year following the reporting period. The company must notify the tax authorities by July 1. The list of legal entities subject to compulsory audit remains the same: 1) companies with foreign investments; 2) companies with annual revenues of more than 5 ml. EUR (previously 600 000 EUR); 3) High Tech park residents; 4) open joint-stock companies; 5) banks and insurance companies and others.
The most important development of 2014 is the introduction of new rules for accounting in Belarus – International financial reporting standards (IFRS).
Currently, an act of acceptance of work (services rendered) is bilateral (it must be signed both by the client and the contractor). The new law makes it possible to draw up a unilateral act (invoice) for works and services that will be additionally specified by the Ministry of finance. If a LLC incorporates a unitary enterprise (i.e. a company with a single shareholder) it is obliged to draw up consolidated reports, i.e. to indicate information about all its unitary enterprises.
Once the new law enters into force the representative offices of foreign companies must follow the rules of accounting under Belarusian law (previously, it was possible to apply foreign law of the head office company).
The requirements for chief accountants have become stricter: an accountancy qualification plus at least three years of working experience. The chief accountant of public organisations (open joint stock companies with subsidiaries, banks and other financial institutions, insurance companies) must be certified by the Ministry of finance.
The new Laws enter into force on 1 January 2014.
Source: NRLA No. 2/2055, No. 2/2054.