• Bulgaria is included in the IFAD GAAP Convergence Studies
• National Professional Organisation Website: Institute of Certified Public Accountants of Bulgaria
• Response to IFAC Member Body Survey on Standard Setting and Regulation
• World Bank ROSC Accounting and Auditing Report

Financial Reporting Framework in Bulgaria

IFRSs Required for Listed and Large Unlisted Companies

Since 2003, all listed companies in Bulgaria, as well as banks, insurance companies, mutual funds, and other financial institutions, have been required to prepare their consolidated financial statements using IFRSs.

Starting in 2005, IFRSs are required in both the consolidated and individual company financial statements of listed companies and financial institutions and all large Bulgarian limited liability entities. A large company is one that meets two of the following three criteria:

• turnover greater than approximately €7.5 million
• tangible assets greater than approximately €4 million
• more than 50 employees

Companies below these size criteria are permitted but not required to use IFRSs.

Adoption of IFRSs in Europe Effective in 2005

Bulgaria became an EU Member State on 1 January 2007.

In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:

• Require or permit IFRSs for unlisted companies.
• Require or permit IFRSs in parent company (unconsolidated) financial statements.
• Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
• Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.

The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) - Iceland, Liechtenstein, and Norway.

Bulgaria became an EU Member State on 1 January 2007. Consequently, Bulgarian companies listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:

• Table on Use of IFRS Options 30 EU Member and EEA States (PDF 64k)

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):

• "in accordance with International Financial Reporting Standards as adopted by the EU" or
• "in accordance with IFRSs as adopted by the EU".

Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.

In September 2011, the European Commission services published a report an update on the extent to which certain options included within the Accounting Directives have been incorporated into the law of the Member States and EEA countries. Please click for access to the report (PDF 816k, link to EC website).