02.02.2018

The Estonian Accounting Standards Board notified of the establishment of the ASB guidelines in annexes of a regulation of the Minister of Finance starting from 01.01.2018. The guidelines are applicable to reporting periods commencing on or after 01.01.2017. The main substantive amendments concern the guidelines ASBG 9 and ASBG 13.   

In the guideline ASBG 9 Accounting for Leases an alternative possibility was added to apply the principles of IFRS 16 in the accounts of the lessee: all leases (both finance and operating leases) are recognised as finance leases, whereby the chosen accounting policy must be applied consistently to all lease agreements. Exceptions are short-term lease agreements or lease agreements of low value items which can be recognised under the operating lease principles. The amendment can be implemented before the prescribed term, starting from the financial year that commenced on 01.01.2017 (IFRS 16 will apply to periods commencing on 01.01.2019, early application is allowed).

In the guideline ASBG 13 Liquidation and Closing Reports micro and small enterprises have been granted the possibility to use the abridged report formats applicable for their category upon the preparation of reports during an entity’s liquidation proceedings. The second important change involves the obligation to prepare a closing report instead of a closing balance sheet, the closing report must consist of a final balance sheet, income statement, statement of cash flows, statement of changes in equity, and the notes. According to the Accounting Standards Board’s assessment there is no logical explanation why the last stage of liquidation should provide less information to the user of the report than the earlier stages.   

Other guidelines include some amendments as well, but these changes are less substantive. Throughout the guidelines several changes have been made with regard to the format, including correction of definitions to bring them into conformity with the Accounting Act and SME IFRS, arrangement of numeration of paragraphs and references as well as updating of examples. More information is available here (in Estonian).

Source: Estonian Accounting Standards Board