In June 2002, the European Union embraced an IAS Regulation taking European companies listed in an EU securities market request, including banks and insurance companies. To prepare their consolidated financial statements in agreement with IFRSs starting with fiscal statements for the fiscal year 2005 onwards. The conception of outsourcing some actions relating to the company’s day-to-day operations has proved to be an effective system of perfecting performance in numerous countries. Latvia is an EU Member State. Accordingly, Latvian companies listed in an EU/ EEA securities market request followed IFRSs since 2005. The European Commission (EC) periodically issues a document that summarises the use of options of the IAS Regulation by European Union Member States.
The Association of Accountants of the Republic of Latvia (LRGA), is the oldest association of accountants in Latvia. The public professional association was innovated in 1994 by accounting, auditing, and fiscal specialists, as well as scientific and pedagogical staff in these specialties, to take care of their professional growth and development of creative capacities, increase the prestige of their profession and gain the most important experience. Currently, the association unites verified professional accountants and other specialists in the field of account and auditing, who laboriously share in working on different professional issues. In 2015, it combined with the Latvian Accounting Outsourcing Association (LATGRAASA) and later joined the European Federation of Accountants (Accountancy Europe) as an associate member.
The purpose of LRGA is to apply the protection of professional, profitable, and social interests of its members, as well as to promote the development of creative capacities and business rates.
LRGA is a member of several important global institutions the European Association of Accountants (EDA), the International Association of Accountants in Science and Education (IAAER), and the European Institute of Modern Management (EIASM).
On November 1, 2018, at the IFAC Council meeting in Sydney, Australia, the Latvian Association of Accountants was unanimously admitted to IFAC as a full member. IFAC is the largest and most authoritative global association of professional accountants and other professionals in the field of account and finance. IFAC brings together further than 175 full and associate members from 130 countries and authorities, representing roughly 3 million. accountants in public practice, education, the public sector, manufacturing, and trade
On December 10, 2020, the ACE Members Assembly embraced a decision on the admission of the Association of Accountants of the Republic of Latvia to the full class of the ACE, starting from 01.01.2021.
- You don’t need to produce a working place for accountants ( so you can reduce costs).
- You don’t need to pay for a holiday to an accounting company.
- You can control all information and documents which you give to the account company, so the account company will get just the necessary information and documents for accountancy.
- Decreases the necessity to take into account individual dispositions of accountants. Generally, the rotation of information in the counting company is less ( so the representative of the counting company has further information about events related to accounts and levies).
The financial year begins on 1st January and ends on 31 December in the same year.
Accounting Norms Since 1 January 2005, all consolidated accounts must be drawn up in conformity with European account norms IAS/ IFRS.
Account Regulation Bodies
Ministry of Finance, Accounting Policy.
The company’s accounts must easily reflect its operations and its financial results and give a precise and faithful picture of its fiscal situation.
Amounts are given in Latvian currency. The documents are in Latvian. However, it’s possible, with the agreement of the parties concerned, If a member of a company isn’t a natural person or a legal reality of the country ( registered company). The account documents and the supporting documents that accompany them must remain in the Latvian home. Any counting entry must be supported by an applicable document.
A company’s financial statements must contain a balance sheet, a profit and loss account, notes to the accounts, and a periodic report.
If the company exceeds two of the criteria listed below, the periodic reports must be checked by a verified auditor or by an establishment of verified( sworn) auditors, legally chosen by the shareholders;
- Total assets amounting to euro 356,0000.
- Net turn over amounting to euro 711,000.
- The average number of workers in the reporting years (25).
Also, the European Directive of 19 July 2002 obliges all European companies listed on the Stock Exchange to establish their consolidated periodic accounts based on IAS/ IFRS.
Professional Accountancy Bodies
- The Latvian Association of Certified Auditors.