New Accounting Law: From Financial to Corporate Reporting
The Ministry of Finance of the Republic of Serbia has opened for public consultation, until May 15, the Draft of the new Accounting Law, which significantly aligns the domestic regulatory framework with modern European standards of corporate reporting.
One of the most significant novelties is the introduction of the obligation to report on sustainability, thereby extending the scope of accounting to include non-financial information relating to a business entity’s impact on the environment, society, and corporate governance (ESG standards). In this way, the accounting system will no longer serve exclusively for recording and presenting a company’s financial position and business performance, but will also become an instrument of broader corporate accountability and transparency.
In addition, the Draft introduces reporting on corporate income tax information, further strengthening the tax transparency of large business systems, particularly those operating within international groups. This novelty increases the availability of data relevant for assessing the tax policy and tax burden of large business entities.
Another significant innovation concerns accounting service providers. The Draft prescribes the obligation to conclude professional liability insurance contracts covering damages that a company or entrepreneur licensed to provide accounting services may cause to legal entities and entrepreneurs to whom such services are provided. This obligation must be fulfilled no later than one day before the commencement of accounting service provision, while the minimum insured amount is determined based on the total value of accounting service contracts concluded in the previous year. In this way, professional accountability and legal certainty for users of accounting services are further strengthened, although it will also increase operating costs, which may ultimately lead to higher service prices.
Compliance with the new rules will require additional adjustments to internal procedures, the development of systems for collecting and processing non-financial data, as well as strengthened cooperation between accounting, legal, tax, and management functions within companies.
At the same time, more transparent reporting may contribute to strengthening the confidence of investors, business partners, and creditors, especially given that business sustainability and tax responsibility are becoming increasingly important criteria in assessing the reliability and long-term stability of business entities.
The Draft of the new law therefore represents more than a regulatory amendment – it announces the transition of accounting from a system of financial record-keeping into a mechanism of comprehensive corporate reporting, aimed at transparency, accountability, and sustainable business operations.
For additional information or consultations, the Tasić & Partners team is at your disposal.