Financial Reporting: Analysis of the Regulatory Framework of the Republic of Moldova

Abstract

This research analyses the regulatory framework for financial reporting for entities in the Republic of Moldova, which depends on the way accounting is organized: based on national accounting standards or international accounting standards, as well as the category of the entity, which is distinct for accounting purposes versus the national legislative framework that defines the classification of small and medium-sized entities. The study uses scientific research methods such as the analysis of the regulatory framework governing the study, the synthesis of information regarding various provisions, and comparison to identify the distinctive features related to financial reporting. The study reveals that for entities organizing their accounting according to national accounting standards, three sets of financial reporting are foreseen depending on the category of the entity, the content of which is established by the National Accounting Standard (NAS) “Presentation of Financial Statements,” while for entities organizing their accounting according to International Financial Reporting Standards (IFRS), IAS 1 “Presentation of Financial Statements” contains minimum presentation requirements for information to adapt to each type of entity. Regarding the identification of the category of entities, the research examines the indicators presented by the accounting regulatory framework, versus the categories of entities defined by the Law on Small and Medium Entities. JEL: M41; UDC: 657.37(478)