In State Gazette No. 17 of 28.02.2025, an Act amending the Accountancy Act was promulgated, postponing by one year the introduction of the new requirements for non-financial reporting of companies, introduced with the amendments to the Accountancy Act (SG, No. 72/2024, entered into force on 06.07.2024). The main reasons for the adoption of the Act amending the Accountancy Act are:
- As of today, Directive (EU) 2022/2464 of the European Parliament and of the Council of 14.12.2022 has been transposed by 18 Member States, while 11 others are still in the process of transposition.
- There is insufficient practical experience in implementing the new sustainability standards at both the European and global levels.
- The European Commission and the EFRAG consortium, responsible for preparing the regulations, were delayed in presenting some standards, such as the voluntary reporting of SMEs, along with sectoral standards. Additionally, several key guidelines essential for the implementation of sustainability reporting standards have not yet been published.
- Member States are currently developing projects under the Transition Promotion Instrument, focusing on the creation of data collection formats. Work on these projects is set to begin next year.
- Bulgarian companies still lack the necessary capacity, resources and expertise to meet the new non-financial reporting requirements.
- The European Commission is expected to review and potentially ease the sustainability reporting requirements and its scope later this year.
The one-year postponement will facilitate a smoother transition and adaptation for Bulgarian companies. Moreover, it will reduce costs and allow businesses to allocate their resources more efficiently.
The Act shall enter into force on the day of its promulgation in the State Gazette, i.e., as of 28.02.2025.