Accounting In Serbia - Law overview

Accounting in Serbia is governed by Law on Accounting (”Off. Gazette of RS”, no. 62/2013 and 30/2018, hereinafter: Law). On the day of entry into force of this law, the Law on Accounting and Auditing (”Off. Gazette of RS”, no. 46/06, 111/09 and 99/11 - other law) is cease to be valid.

The law regulates the following areas of accounting in Serbia:

  • Applications of Law,
  • Classification of legal persons,
  • Organization of accounting and accounting documents,
  • Conditions and manner of bookkeeping,
  • Recognition and valuation of positions in the financial statements,
  • Drafting, submission and publication of financial statements and annual report on operations,
  • Register of financial reports,
  • National Commission for Accounting,
  • Supervision over the implementation of the provisions of Law.

Assignment of accounting services in Serbia

Business entities in Serbia can independently perform accounting and bookkeeping tasks, through their employees performing accounting tasks delegated, and must by rulebook regulate the general degree, work experience and other requirements for these employees.
However, business entities in Serbia can by contract assign accounting services under provisions of the Law, to other registered business entity in Serbia who have a registered predominant activity in providing accounting services.

Amendments to the Law from April 2018 brought that founder, i.e. an owner, as well as a member of a management body of a company whose registered dominant activity is provision of accounting service in Serbia, may not be a legal person convicted for a crime by a final judgment in terms of the law governing the liability of legal persons for crimes, i.e. a natural person who has been finally convicted for crimes against work related rights, commerce, property, judiciary, money laundering, financing of terrorism, public order, legal traffic and official duty

This option does not apply to banks and other financial institutions, insurance companies, financial leasing providers, pension funds, companies for management of voluntary pension funds, investment funds, companies for management of investment funds, stock exchanges, broker-dealers companies and factoring companies.

Classification of Legal Entities in Serbia

Legal entities in Serbia are classified as micro, small, medium and large-sized, depending on the average number of their employees, annual income and value of assets as on the date of compilation of financial statements in a financial year.

Micro entities in Serbia

The micro entities shall be classified as legal persons that do not exceed two of the following criteria:

1) The average number of employees 10;

2) Operating income of 700,000 EUR in dinars equivalent;

3) The average value of operating assets (calculated as the arithmetic mean of the values at the beginning and at the end of the financial year) 350,000 EUR in dinars equivalent.

Small entities in Serbia

Small entities shall be classified as legal persons that exceed two criteria for Micro entities, but do not exceed two of the following criteria:

1) The average number of employees 50;

2) Operating income of 8,800,000 EUR in dinars equivalent;

3) The average value of operating assets (calculated as the arithmetic mean of the values at the beginning and at the end of the financial year) 4,400,000 EUR in dinars equivalent.

Medium entities in Serbia

Medium entities shall be classified as legal persons that exceed two criteria referred for medium entities, but do not exceed two of the following criteria:

1) The average number of employees 250;

2) Operating income of 35,000,000 EUR in dinars equivalent;

3) The average value of operating assets (calculated as the arithmetic mean of the values at the beginning and at the end of the financial year) 17,500,000 EUR in dinars equivalent.

Large entities in Serbia

Large entities shall be classified as legal persons that exceed two criteria for medium entities.

It is prescribed that Sole Proprietor shall be considered as micro entities in Serbia.

The obligation to apply IFRS in Serbia

The obligation to apply IFRS in Serbia are prescribed for the following entities:

  • large entities,
  • legal persons that have an obligation to submit up consolidated financial statements (parent legal persons),
  • public companies, or companies that prepare to become public, in accordance with the law governing the capital market, regardless of their size.