On 27 December 2022, Accounting and Auditing Regulator (ACAR) issued Notification 078 on reminder of implementation on accounting and auditing obligations and obligation of submission of 2022 financial statement to ACAR.

In accordance with 2016 Law of Accounting and Auditing, enterprises and non-profit entities shall implement three obligations as followed:

1. Maintain proper accounting records
2. Prepare financial statements in accordance with existing accounting standards within 3 months from accounting closing date
3. Submit audit financial statements by having audit work completed and audit opinion issued within 6 months from accounting closing date

Read more here about 2016 Law Accounting and Auditing.

To successfully fulfill accounting and auditing obligations, enterprises and non-profit entities must follow instructions as followed:

1. Enterprises.

1.1. Enterprises not subjected to independent audit

• Must submit financial statements not more than 3 month and 15 days from accounting closing date
• Must submit letter of changing Reporting Identification Number (FIN) from non-audited enterprise to audited enterprise to ACAR not more than 60 days accounting closing date if the enterprise is subjected to audit criteria for 2022 fiscal year.

1.2. Enterprises subjected to independent audit

• Must submit financial statements not more than 6 month and 15 days from accounting closing date
• Must submit letter of changing Reporting Identification Number (FIN) from non-audited enterprise to audited enterprise to ACAR not more than 60 days from accounting closing date for the enterprise is volunteered to submit audited financial statement to ACAR in accordance with forms and procedures as audited enterprises.

2. Non-profit entities (NPEs)

2.1. NPEs not subjected to independent audit

• Must submit financial statements not more than 3 month and 15 days from accounting closing date
• Must submit letter of changing Reporting Identification Number (FIN) from non-audited NPE to audited NPE to ACAR not more than 60 days from accounting closing date if the NPE is subjected to audit criteria for 2022 fiscal year.

2.2. Audited NPEs

• Must submit financial statements not more than 6 month and 15 days from accounting closing date
• Must submit letter of changing Reporting Identification Number (FIN) from non-audited enterprise to audited enterprise to ACAR not more than 60 days from accounting closing date for the NPE is volunteered to submit audited financial statement to ACAR in accordance with forms and procedures as audited NPEs.

3. Online submission of financial statements

Enterprises or NPEs must use E-Filing System of ACAR to submit annual financial statements to ACAR.

Enterprises or NPEs which fail to implement above obligation are subjected to penalties laid out in Sub-Decree 79 dated 1 June 2020 on Provisional fines for the violation of the Law on Accounting and Auditing.

In addition, enterprises or NPEs who fail to implement above obligation for two consecutive years are considered to commit same instances of disobedience.