The Saeima adopts a new Accounting Law, which includes a provision on the licensing procedure for outsourced accountants

On June 10 of this year, the Saeima adopted a new Accounting Law (GL), which will replace the previous one.  Law "On Accounting" , which has been in force since 1993, informs the Saeima Press Service.

The new GL was adopted so that the regulatory framework in the field of accounting would meet the requirements of legal technique, including a broader explanation of the terms used in the law, the purpose and scope of the law, as well as to improve the subordinate Cabinet regulations.

The new regulation has also been adopted taking into account the development of information technology and the development of accounting computer programs and information computer systems software and their increasingly widespread use in corporate accounting. It is important that today the practice of preparing, circulating and storing accounting supporting documents, as well as maintaining accounting registers and preparing financial statements, has changed.

The GL improves and expands the current regulation for the preparation of accounting supporting documents and the maintenance and storage of accounting registers electronically, which is planned as a priority compared to the maintenance and storage of documents in paper form. The current requirements for inventory taking and preparation of financial statements, as well as the duties and rights of company managers, have been clarified.

The new GL also includes the requirements of the regulation on the free movement of data, and it is envisaged that accounting documents will be able to be stored electronically in the territory of Latvia or another European Union member state.

The GL also includes the licensing procedure for outsourced accountants, as well as the maintenance of a public register of outsourced accountants, which will be carried out by the State Revenue Service (SRS).

Administrative liability for violations in the field of accounting is also provided for, and administrative penalties will be applied by the SRS and the Corruption Prevention and Combating Bureau, as before.

The new GL will enter into force on January 1, 2022, and will apply to all companies, legal entities and individuals carrying out economic activities, as well as state and local government institutions.