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Art. 11
This Law shall regulate:
- The organisation and methodology of setting up accounting systems (accounting offices) with enterprises and their operation; and
- The preparation of financial reports so that they present a true picture of the material and financial condition of the enterprise and the changes which have occurred therein, and the results generated in the course of its activity.
Art. 2.
- (1)
- Enterprises shall apply the double-entry accounting system.
- (2)
- Enterprises with annual average number of employees of up to 10 persons and total income for the previous year of up to BGN 75 million may apply double-entry or single-entry book keeping.2
- (3)
- State budget enterprises shall apply double-entry bookkeeping.
- (4)
- Enterprises the reports of which are subject to consolidation shall apply double-entry book keeping.3
- (5)
- Joint-stock companies, partnerships limited by shares, limited liability companies and all enterprises registered under the Law on Value Added Tax shall apply double-entry book keeping.
Art. 3.
Enterprises record their business transactions in a chronological order.
Art. 4.
- (1)
- 4 The records of the enterprises shall be kept in the Bulgarian language, in Arabic digits and in Bulgarian Leva. Accountancy documents in enterprises shall be kept in the Bulgarian and in the respective foreign language in Bulgarian Leva and in foreign exchange in cases of deals negotiated in foreign exchange and/or with foreign contractors.
- (2)
- Accountancy documents received by the enterprise written in a foreign language shall be accompanied by a Bulgarian translation having the requisites obligatory for the business transactions reflected therein.
Art. 5.5
Accountancy shall be executed in observance the following principles:
- The enterprise shall be a going concern;
- Continuous posting;
- Comparability between income and expenses;
- Priority of content over form;
- True and fair picture;
- Materialness;
- Caution;
- Historic cost;
- Independence of the different reporting periods;
- Value linkage between the final and the initial balance sheets;
- Documentary motivation of the business transactions;
- Possible preservation of the accounting policy.
Art. 6.
- (1)
- 6 The Council of Ministers shall establish National Accounting Standards and National Chart of Accounts, in compliance with international accounting standards and this Law, which shall be obligatory for enterprises.
- (2)
- The National Chart of Accounts shall include items divided into the following sections: capital, long-term assets, inventory stock, provisions, financial funds, expenses, revenue (income) and post-balance accounts.
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