Background

The Institute of Certified Public Accountants in Bulgaria (IDES) is an independent and self-sustained professional legal entity. IDES plays a crucial role in advising the Ministry of Finance (ie the government), the official standard-setting body in Bulgaria, on the adoption of accounting standards and ensuring their implementation and enforcement at the national level. IDES also actively participates in discussions on new projects related to accounting legislation, tax, and other regulations with Bulgarian institutions and other professional organizations.

Accounting Standards

Enterprises in Bulgaria are required to draw up their financial statements in accordance with the National Accounting Standards. However, certain enterprises, such as credit and financial institutions, payment service providers, insurers and reinsurers, retirement insurance companies, investment firms, management companies and collective investment schemes, alternative investment funds managers, national investment funds, enterprises whose transferable securities are traded on a regulated market in the EU, market operators, and central securities depositories, as defined by relevant laws and regulations, are required to prepare their financial statements in accordance with the IFRS Accounting Standards.

Sustainability Disclosure Standards

Bulgaria’s Accountancy Act requires large enterprises and all public-interest entities (except for micro-enterprises) to include a sustainability report within their annual management report, with a phase-in period from 2024 to 2026. The report must follow the European Sustainability Reporting Standards (ESRS), disclose environmental, social and governance impacts, risks, targets and due-diligence processes.

*The above information has been translated and compiled from publicly available sources, including the official websites of relevant institutions and the website of IFRS.