Amendments to the Accounting Act: What Do the Changes Bring?

The Croatian Parliament recently adopted amendments to the Accounting Act, which came into effect on December 14, 2024. These changes introduce legal provisions for handling adjustments to classification indicators during the financial year, representing a significant step toward standardizing financial reporting.

Under the new provisions, if there is a change in classification indicators during the financial year that impacts the application of financial reporting standards or the preparation of annual financial statements, the standards in force immediately prior to the change will apply. This ensures continuity and clarity in financial reporting, which is essential for all business entities.

In addition to these amendments, the Act introduces further adjustments in terminology and provides more precise definitions of obligations related to sustainability reporting. This is particularly relevant for companies subject to the reporting requirements under new EU directives.

The implementation of these changes requires the adaptation of processes and systems within accounting departments. For businesses facing challenges in implementation, collaboration with accounting professionals is critical to ensuring compliance with the new legal framework.