In connection with the introduction of the euro in the Republic of Bulgaria, guidelines 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 adaptation of the information systems processing financial information of enterprises in the non-financial sector have been adopted.
The accounting guidelines have been developed by the Non-Financial Sector Working Group of the Coordination Council for the Preparation of the Republic of Bulgaria for Euro Area Membership (CC) with the Ministry of Economy and Industry as the leading institution. Experts from the Ministry of Finance, chartered accountants and business organisations took part in their preparation.
The guidelines aim at ensuring smooth conversion of the accounting information of enterprises from BGN to EUR as from the day of the introduction of the euro in the country, so that the process of the country’s 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 Law and with the International Accounting Standards, with the leading standard in the conversion of accounting information being AS 21 ‘The Effects of Changes in Foreign Exchange Rates’, IAS 21 ‘Effects of Changes in Foreign Exchange Rates’, respectively. The guidelines contain references to the Accountancy Law and to the accounting standards, the requirements of which are applicable to the procedures for the conversion of the accounting information of enterprises.
The guidelines are applicable to the current accounting and compilation of annual financial statements the reporting period for which ends after the date of introduction of the euro.
The guidelines for adaptation of the information systems aim to provide methodological guidance to enterprises when adapting their information systems carrying out activities with currency units and processing financial information.
The guidelines have been drawn up by the Non-Financial Sector Working Group of the CC consisting of experts from the Ministry of Finance, the Ministry of Electronic Governance, the Ministry of Economy and Industry and the Ministry of Innovation and Growth in accordance with the Law on the Introduction of the Euro in the Republic of Bulgaria. It is important that any changes related to the adaptation of the information systems for the operation of enterprises in the non-financial sector in EUR comply with the principle of consumer protection, the principle of information, the principle of efficiency and economy, the principle of transparency and the principle of continuity and automatic conversion of amounts from BGN to EUR.
The guidelines refer to the run-up period of introduction of the euro needed to make changes to the IT systems of an enterprise in preparation for handling the euro.