Introduction of the Draft Law
In 2025, Republika Srpska introduced a draft Accounting and Auditing Law aimed at modernizing the accounting system and raising professional standards. The law is currently under public consultation, meaning its final provisions may still be updated before adoption.
Scope and Objectives of the Reform
The draft law sets out rules for bookkeeping, preparation of financial statements, licensing of accountants and auditors, oversight of their work, and quality control of services. Its main goals are professionalization, accountability, and increased transparency in financial reporting.
New Company Size Classification
A key element of the proposal is the classification of companies by size, which will define the accounting obligations for micro, small, medium, and large enterprises. This aims to simplify the application of accounting standards and reduce administrative complexity.
Role of Certified Accountants
The draft also maintains the ability of certified accountants with intermediate qualifications to certify financial statements, particularly for micro and small businesses. The framework introduces oversight mechanisms of accounting and auditing firms will be strengthened to ensure service quality and professional responsibility.
Industry Reactions and Key Concerns
The business community has responded with a mix of interest and concern, particularly regarding potential additional obligations for medium-sized enterprises. Experts note that effective implementation should balance transparency with practical business capacities.
Expected Impact and Next Steps
Despite these concerns, the draft law has the potential to significantly improve the quality of financial reporting quality, enhance reliability, and boost investor confidence. Next steps include public consultations and possible amendments before final adoption. Businesses, accountants, and auditors are advised to follow developments closely to prepare for the new requirements.