Bulgaria’s government has approved a draft Accountancy Act envisaging anti-red tape provisions.

The bill complies with the EU Directive on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, according to a media statement of Bulgaria’s Council of Ministers.

The bill will reduce the administrative burden and allow businesses to cut costs, as well as introduce create clear accounting rules and procedures.

The bill eliminates the requirement to translate into Bulgarian all accounting documents entering a company.

Most of the changes apply to reports of small companies and companies in the sphere of the extractive industry, which are the focal point of the new accounting directive.

Companies extracting oil, gas, mineral resources, and timber will have to disclose information about the projects on which they are working, as well as the amount of money they are paying to the state and municipal institutions.

In the case of payments of EUR 100 000, the companies will have to provide detailed breakdowns of the transactions.

As regards small companies, the new rules envisage a reduction of the amount of information published in the supplements to the annual financial statements.

A large part of them are to be exempt from mandatory audits by registered auditors.

Only large companies will be required to provide additional information, which will be published together with their annual financial statements.