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:
- Joint stock companies and limited partnerships with shares;
- Companies that are issuers under the meaning of the Public Offering of Securities Act;
- Credit institutions, insurance and investment businesses, companies for supplementary social insurance and the funds managed by them;
- Enterprises for which this requirement is established by law;
- 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.
- book value of assets at 31 December – BGN 1,5 million;
- net sales revenue for the year – BGN 2.5 million;
- average number of employees for the year – 50 people.