of April 27, 2007 No. 113-XVI
About financial accounting
The parliament adopts this organic law.
The purpose of this law consists in establishment of the legal base, single requirements and the mechanism of regulation of financial accounting and the financial reporting in the Republic of Moldova.
Provisions of this law extend to all legal entities and physical persons performing business activity on non-profit organizations, including public organizations, on notaries, lawyers, mediators, the authorized managing directors and the bureaus founded by them, legal executives, and also on representations and branches of the companies (organizations) - the nonresidents registered in the Republic of Moldova (further - subjects), irrespective of the sphere of their activities, type of property and form of business.
internal audit - the independent assessment of all aspects of activities of the subject performed in it and directed to assurance of management of the subject that accounting systems and internal control are adequate and effective;
The ledger - the register generalizing synthetic accounts, constituted for the purpose of control of correctness of reflection of business accounts and creation of financial statements;
financial accounting - complex system of collection, identification, group, processing, reflection and generalization of elements of financial accounting and the financial reporting;
method of charges - accounting basis according to which elements of financial accounting are recognized in process of their origin irrespective of the moment of obtaining/payment of money or compensation other form;
cash method of accounting - accounting basis according to which elements of financial accounting are recognized in process of obtaining/payment of money or compensation other form;
managerial accounting - system of collection, processing, preparation and transfer of accounting information for planning, cost accounting, check and the analysis of budget implementation for the purpose of creation of internal reports for acceptance of management decisions;
financial accounting - system of collection, group, processing and systematization of information on availability and movement of assets, equity, obligations, income and expenses in terms of money for the purpose of creation of financial statements;
the source document - the documentary confirmation (on paper or electronically) certifying the making of economic activity granting the right to its carrying out or proving making of event;
element (object) of accounting - assets, equity, obligations, costs, expenses, the income, financial results and the economic facts of the subject;
the subject of public interest - the subject which is important for society in view of the sphere (type) of activities and being financial institution, the organization of collective investment into securities, the insurance company, commercial society which shares are quoted on the stock exchange;
the subject with the limited liability - subject which authorized capital is divided into shares, shares according to the foundation agreement and which obligation are guaranteed by net assets of the subject;
the subject with the unlimited liability - subject which members perform activities according to the foundation agreement on behalf of the subject and answer for the obligations all the property, except for property which according to the legislation is not subject to prosecution;
assessment - method of determination of the cost size of elements of financial accounting for date of their initial recognition and creation of financial statements;
the economic fact - the transaction, transaction, event which changed or can change assets, the rights and obligations, costs, expenses, the income, financial results of the subject;
inventory count - control method and documentary establishment of availability of the elements of financial accounting belonging and/or being at the interim order of the subject;
double record - method of reflection of the economic fact in the debit of one account and on credit other account in the same amount;
the chart of accounts of financial accounting - the regulation establishing the systematized list of accounts of financial accounting and methodological regulations of their application;
accounting policies - set of the fundamental principles, quality characteristics, rules, methods and methods approved by the subject's management for financial accounting and creation of financial statements;
the importance threshold - the quality and quantity characteristic of information of financial accounting, omission or misstatement of which influences the economic decisions made by users based on the provided information;
the annual statement - the annual financial report, the report of management and the audit certificate if audit is obligatory;
the financial statement - the systematized set of the indicators characterizing property and financial condition, availability and movement of equity and money of the subject for the accounting period;
accounting registers - the registers intended for group, systematization, reflection and generalization of information on availability and movement of the elements of financial accounting reflected in source and summary documents;
system of financial accounting by double record - the accounting system providing reflection of the economic facts on the basis of double record using the chart of accounts of financial accounting, accounting registers and financial statements;
simple system of financial accounting - the accounting system providing unilateral reflection of the economic facts with use of registration by simple record by the receipt expense method;
internal control system - set the politician and the procedures adopted by the subject's management for the purpose of ensuring organized and effective implementation of economic activity, including strict observance of integrity of assets, the prevention and disclosure of the reasons of deception and mistakes, accuracy and completeness of accounting entries, and also timely preparation of adequate financial information;
accounting standards - the International Accounting Standards (IAS), the National Accounting Standards (NAS) and National accounting standards in the public sector (NSBUPS);
International Financial Reporting Standards - the standards and comments published by Council for International accounting standards which become effective in the Republic of Moldova after acceptance by their Government of the Republic of Moldova;
National accounting standards - the standards and comments based on European Union directives and IFRS, developed and approved by the Ministry of Finance of the Republic of Moldova, establishing general obligatory rules of financial accounting and creation of financial statements;
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