Accounting in Moldova: 7 Key Facts You Need to Know

Accounting in Moldova is more than just number crunching. It is a crucial tool for business management and a way to comply with legal requirements. In 2017, Moldova adopted the new Law on Accounting and Financial Reporting (No. 287/2017), which defines the main rules for accounting and reporting. Additionally, the Law on Audit of Financial Statements (No. 271/2017) sets the requirements for auditors and the mandatory audit for certain categories of companies.

💬 Tip:
Study the key provisions of Law No. 287/2017 to understand your company’s accounting and reporting obligations.

Companies operating in Moldova must maintain accounting records in accordance with the National Accounting Standards (NAS) or the International Financial Reporting Standards (IFRS) — depending on their category. This ensures business transparency and helps avoid fines.

📜 Excerpt from the law:
“All economic agents are required to organize and maintain accounting records based on the double-entry principle, in accordance with the legislation of the Republic of Moldova” (Law No. 287/2017, Art. 3).

Legal Framework of Accounting in Moldova

Accounting in Moldova is regulated by several key laws and government decisions. The main regulatory document is Law No. 287/2017 “On Accounting and Financial Reporting”. This law defines the rights and obligations of companies regarding accounting, preparation, and presentation of financial statements.

Another important piece of legislation is Law No. 271/2017 “On Audit of Financial Statements”. It establishes the requirements for mandatory audits, as well as the rights and obligations of auditors and audit firms.

📜 Excerpt from the law:
“Financial statements are prepared in accordance with the National Accounting Standards or International Financial Reporting Standards, approved by the government” (Law No. 287/2017, Art. 10).

In addition, the Ministry of Finance of Moldova issues regulations that clarify the application of accounting and audit standards. For companies classified as public interest entities (banks, insurance companies, large enterprises), the use of IFRS is mandatory.

💡 Tip:
Before preparing your financial statements, review the latest clarifications from the Ministry of Finance — this will help you avoid errors and penalties.

National Accounting Standards (NAS)

In Moldova, most companies are required to maintain accounting records and prepare financial statements in accordance with the National Accounting Standards (NAS). These standards are approved by the Ministry of Finance and serve as the basis for accounting if the company is not required to apply IFRS.

NAS covers all key aspects of accounting: recognition of assets and liabilities, measurement of income and expenses, and preparation of financial statements. For example, NAS provides detailed instructions on how to account for fixed assets, intangible assets, liabilities, and inventories.

📜 Excerpt from NAS:
“Fixed assets are recognized as assets if they meet the recognition criteria and are used to generate economic benefits for more than one reporting period” (NAS 3 “Fixed Assets”).

Using NAS ensures consistency in accounting policies across Moldova and simplifies the preparation of financial statements for most enterprises. However, companies that are classified as public interest entities must prepare financial statements in accordance with the International Financial Reporting Standards (IFRS).

💡 Tip:
When transitioning from NAS to IFRS, it is important to conduct a thorough inventory of all assets and liabilities to accurately reflect them in the new financial statements.

Specific Features of Accounting in Moldova

Accounting in Moldova has a number of specific features that distinguish it from the systems in other countries. It is important to consider these differences to avoid errors and ensure compliance with local legislation.

🔹 Double-entry system
In Moldova, accounting is based on the principle of double-entry bookkeeping. All transactions are recorded in the accounting ledger, and financial statements are prepared based on these accounting data.

🔹 Documented transactions
All business transactions must be supported by documentation. Documents (primary accounting documents) are prepared in Romanian or Russian and must contain mandatory details (such as date, description of the transaction, amount, signatures).

🔹 Threshold for fixed assets
According to the legislation, items are recognized as fixed assets if their cost exceeds 12,000 MDL and their useful life is more than one year. This is important to consider when determining the company’s accounting policies.

📜 Excerpt from NAS:
“Items with an initial cost of less than 12,000 lei are recognized as low-value and short-lived items, not as fixed assets” (NAS 3 “Fixed Assets”).

🔹 Depreciation
Moldovan law provides for several depreciation methods: straight-line, declining balance, and production-based. Companies can choose the method that best suits the specifics of their business.

💡 Tip:
When choosing the depreciation method, consider the specifics of your company’s operations — this can help reduce tax burden and improve the accuracy of financial reporting.

Taxation and Accounting

Accounting in Moldova is closely linked to tax accounting. The main taxation principles are established in the Tax Code of the Republic of Moldova, which defines the procedure for forming the tax base and paying taxes.

🔹 Connection between accounting and tax accounting
Although accounting and tax accounting have their own specifics, they must be reconciled with each other. For example, corporate income tax is calculated based on accounting data, taking into account adjustments provided by tax legislation.

🔹 Expense deduction
For tax purposes, a company can deduct only those expenses that are properly documented and economically justified.

📜 Excerpt from the Tax Code:
“Expenses are deductible if they are incurred for business activities and supported by primary accounting documents” (Tax Code, Art. 24).

🔹 Loan interest limitations
In Moldova, there are limitations on the deductibility of loan interest: for example, the maximum deductible amount depends on the ratio of borrowed to own capital.

🔹 Tax treatment of charitable donations
Charitable donations can be deducted when calculating corporate income tax, but only within established limits (no more than 10% of taxable profit).

💡 Tip:
When preparing financial statements, consider tax adjustments to avoid discrepancies between accounting and tax reporting.

Audit and Reporting

In Moldova, the audit of financial statements is mandatory for certain categories of companies, while for others it is optional.

🔹 Who is required to undergo an audit?
According to Law No. 271/2017, mandatory audit applies to:

• public interest entities (such as banks and insurance companies);

• joint-stock companies that exceed certain financial thresholds (e.g., revenue or assets above limits set by the government).

🔹 Frequency and requirements
Mandatory audit is conducted annually. A company’s financial statements must be reviewed by an independent auditor who issues an opinion on the accuracy and fairness of the financial information.

📜 Excerpt from the law:
“The audit report shall include the auditor’s opinion on whether the financial statements, in all material respects, present a true and fair view of the company’s financial position in accordance with the applicable standards” (Law No. 271/2017, Art. 15).

🔹 The role of auditors
Auditors must be registered and licensed. They are responsible for the objectivity and reliability of their opinions.

💡 Tip:
If your company is subject to mandatory audit, prepare all necessary documents in advance and ensure access to accounting records for the auditor — this will help avoid delays and errors.

Practical Tips for Accounting in Moldova

To ensure your company’s accounting complies with legal requirements and provides a reliable foundation for management decisions, it’s important to consider several practical points.

🔹 Choosing between NAS and IFRS
If your company is not required to apply IFRS (for example, it’s not a bank or insurance company), it’s generally easier to use NAS. They are simpler to implement and more familiar to most businesses in Moldova.

🔹 Preparing for an audit
Even if an audit is not mandatory for your company, it’s recommended to periodically engage auditors to review your financial statements. This helps identify errors, increase transparency, and prepare for possible tax inspections.

🔹 Avoid common mistakes
The most frequent accounting mistakes in Moldova include:

• missing or improperly prepared primary documents;
• incorrect application of depreciation rates;
• discrepancies between accounting and tax records;
• errors when transitioning from NAS to IFRS.

💡 Tip:
Regularly review and update your accounting policies in line with the latest legal changes. This will help minimize risks and make accounting easier.

Comparison with Accounting Practices in Other Countries

Accounting in Moldova has unique characteristics that distinguish it from accounting systems in other countries. These differences are particularly important for companies operating in international markets or with foreign investments.

🔹 Key Differences
For example, countries like France, Germany, Spain, and Romania often base their accounting on International Financial Reporting Standards (IFRS) or national regulations aligned with IFRS. In Moldova, however, most enterprises apply the National Accounting Standards (NAS), which have their own features, including the classification of assets and liabilities.

🔹 Recognition of Assets and Liabilities
In some countries, more flexible rules for asset recognition are applied, while in Moldova, a clear threshold for fixed assets is defined (12,000 MDL).

🔹 Reporting and Audit
In the EU, audits are often mandatory even for small companies, whereas in Moldova, audits are required only for enterprises that meet certain criteria.

💬 Tip:
When working with foreign partners or investors, consider these differences to ensure the accuracy and comparability of financial indicators.

Conclusion

Accounting in Moldova is an essential component of effective business management and legal compliance. The National Accounting Standards (NAS) ensure transparent and accurate accounting, while the application of IFRS opens access to international markets and investors. It’s important to remember that accounting is closely linked to tax accounting, and for some companies, an audit is mandatory.

Comparing Moldova’s accounting practices with those of other countries (France, Germany, Spain, Romania) highlights that Moldova has its own distinctive features. To avoid errors, penalties, and misunderstandings with foreign partners, it’s crucial to adapt your accounting policies and stay up-to-date with legislative changes.

💡 Tip:
If you don’t have the time or resources to learn all the requirements on your own, trust professional accountants — it will save you time and money.

The experts at Intelcont are ready to help you manage your accounting in compliance with all local requirements. Contact us to discuss your needs and get professional support!