(Opinion of the Ministry of Finance, No. 011-00-916/2019-16 as of 29 October 2019)
The provisions of Article 6, paragraph 1 of the Law on Accounting (“Official Gazette of the RS”, No. 73/2019 – hereinafter: the Law) stipulate that legal entities and entrepreneurs, within the meaning of this Law, shall be classified as micro, small, medium and large legal entities, depending on the average number of employees and business income in the business year and the value of total assets determined at the balance sheet date of the regular annual financial statements.
As the new classification rules take effect on 1.1.2020 and it is stipulated that from 1.1.2020 the provisions of the old Accounting Law relating to classification cease to apply, the new rules apply to classification beginning in 2020 (based on data from the 2019 Annual Financial Report).
With regard to other provisions of the Act relating to e.g. bankruptcy estate, the possibility of applying IAS / IFRS by micro-entities, the obligation to prepare and submit corporate governance reports, reports on payments to government authorities, the part related to non-financial reporting, etc. these provisions do not relate to the preparation of the financial statements for 2019, but will be applied starting with the financial statements, which are to be prepared as at 31.12.2020 (reports for 2020).