Application of Standards in Financial Reporting

In accordance with the provisions of the Law on Accounting, large entities, parent legal entities, public companies, or companies that prepare to become public, in accordance with the Law on the Capital Market, shall apply International Financial Reporting Standards (IFRS), whereas small and middle entities shall apply International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs).

Micro and other legal entities, regardless of their size, shall apply Rules on the Manner of Recognition, Valuation, Presentation and Disclosure of positions in the individual financial statements of Micro and Other Legal Persons.

The law provides the possibility of choice in some cases, as shown in the following table:

Standards must be applied continuously. Thus, should a medium-sized legal entity decide to apply IFRS, it must apply IFRS until it becomes a small legal entity.

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