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FINANCIAL STATEMENTS AND ACCOUNTING STANDARDS FOR NPOS

Which are the financial statements for NPOs?

Based on Law No. 25/2018 dated 10.05.2018 “On accounting and financial statements” , the financial statements for NPOs are:

  • Statement of financial position;
  • Statement of activities;
  • Cash Flow Statement;
  • Notes to the financial statements.

Is there a difference in reporting between small and large NPOs?

NPOs with an asset or income figure of more than ALL 5 million apply accrual accounting and prepare all financial statements under paragraph 25 of the “National Accounting Standard for NPOs”.  NPOs that do not meet these criteria apply cash accounting and build only the cash flow statement accompanied by explanatory notes on the type of activities or services they offer.

Is it mandatory for an NPO to certify its financial statements by a certified accountant or audit firm?

According to Law No. 10 091, dated 5.3.2009 “On the legal audit, organization of the profession of the registered accounting expert and the certified accountant” NPOs are not obliged to perform statutory audit of their annual financial statements.

Do NPOs have a legal obligation to publish financial statements?

Starting from January 1st 2019, with the entry into force of the Law Nr.25/2018 “On accounting and financial statements” all NPOs in excess of ALL 30 million in assets or income in the financial statements, are obliged to publish their financial statements on their official website.