Publishing of Annual Financial Statements

The deadline for publishing Annual Financial Statements (AFS) – 30 June draws near. If you are an Enterprise under the Accountancy Act you have to publish your AFS in the Commercial Register to the Recording Agency as a part of the Justice Ministry.

Enterprises shall include (Art.1, para 2 Accountancy Act): any traders, within the meaning of the Commerce Act; any legal persons that are not traders; any budget-funded enterprises and non-corporations, trade representative offices and any foreign persons conducting business operations within the territory of Bulgaria through a permanent establishment, except in the cases where the business operations are performed by a foreign person from a Member State of the European Union or from another state being a contracting party to the Agreement on the European Economic Area, solely under the terms of free provision of services.

Are you sure you have got the full package for publishing your AFS? Do you know that except the 4^th general financial statements you should attach disclosed information to the AFS and other appendixes? In order to get full details concerning the publishing of your AFS including all needed documents and the whole legal procedure you can call to V.A.V. Consultants Ltd.

We kindly remind you that the penalties in case of not publishing the AFS starts at 2000 BGN to 3000 BGN under Art.47, para 3 of the Accountancy Act. Where a violation has been committed for a second time, the pecuniary sanction in a doubled amount shall be imposed.

Often asked question is whether an Enterprise /branch/ which has not realized business activity shall file an Application for pronouncement of acts and if it is so, what is necessary to file into the Recording Agency?

Although in some cases an Enterprise has not got any incomes or expenses, this entity has to publish it’s AFS by 30 June of the following year because there is not a special edict for such cases in the Accountancy Act. At the other hand, the Commercial Act directs all specific issues back to the Accountancy Act where there is not a regulation which allows the Enterprise to not compile AFS if it has not been executed business activity within the respective year. Concerning the sole traders there is an easier form of accountancy which scopes only Profit and loss account but there is not a legal reason by virtue of the law defining that sole trader is free of publishing of AFS. In this way the legislation aims to get pubic information for all Enterprises and not only these who does business activities.

If you still have not re-registered your Enterprise, have in mind that the deadline for this is up to 31.12.2010.

How to do this and what we recommend in case you have not re-registered your Enterprise up to the moment?

You would better to re-registered your Enterprise before 30.06.2010 because in this case you will be able to publish AFS for the last three years /2007, 2008, 2009/ with only one state tax payment

The Enterprises who finish the re-registration within the period from 01.06.2010 to 31.12.2010 should declare and file for publishing in the Commercial Register the documents under Art.40, para 1 of the Accountancy Act since 2007 to 2009 within 3 month period as at the date the date of re-registration.