In compliance with Art. 38., para 1 from the Bulgarian Law on Accounting :
Unless the law provides otherwise, subject to an independent financial audit by certified auditors shall be the annual financial statements of the following legal entities:

  1. Joint stock companies and limited partnerships with shares;
  2. Companies that are issuers under the meaning of the Public Offering of Securities Act;
  3. Credit institutions, insurance and investment businesses, companies for supplementary social insurance and the funds managed by them;
  4. Enterprises for which this requirement is established by law;
  5. All businesses not listed in paragraph 1-4, with the exception of enterprises applying simplified form of financial reporting and budget-funded entities.

In compliance with Paragraph 15 from the Additional Provisions of the Bulgarian Law on Accounting:
Enterprises applying simplified form of financial reporting are enterprises which in the current or the previous year does not exceed the performance of two of the following three criteria:
In determining the status of a newly formed legal entity, applying the simplified form of financial reporting, the values of these criteria shall be taken only for the year of occurrence.

  1. book value of assets at 31 December – BGN 1,5 million;
  2. net sales revenue for the year – BGN 2.5 million;
  3. average number of employees for the year – 50 people.