On 06.07.2022. e-Public consultation regarding changes and additions to the Croatian Financial Reporting Standards has been opened. The most important part of the mentioned changes and additions are the provisions of Article 1, which removes ambiguities about whether small entrepreneurs are obliged to apply those provisions on disclosures for which CFRS 1 imposes an obligation on them, and some other CFRSs exempt them from applying the same disclosure obligation.

In such cases, it is necessary to apply the interpretation based on the relevant mandatory provision contained in Article 16 of Directive 2013/34/EU, which prescribes mandatory disclosures in the financial statements of small and micro-entrepreneurs. However, given that this obligation was not clearly prescribed anywhere, the Committee decided that the appropriate amendment of CFRS 1 can contribute to greater clarity of the provisions of CFRS related to the disclosure of small and micro entrepreneurs.

Article 1.

In the Decision on the publication of Croatian financial reporting standards ("Official Gazette", no. 86/15, 105/20 and 9/21 - correction) in Croatian financial reporting standard 1 - Financial statements, point 1.46.a is added, which reads:

"1.46.a Exemptions from the application of the provisions on mandatory disclosures that are prescribed for micro and small entrepreneurs in other Croatian financial reporting standards do not affect the provisions on mandatory disclosures for micro and small entrepreneurs from this Standard."

Current item 1.48. becomes point 1.49. and the previous point 1.49. becomes point 1.48.

Article 2.

In the Croatian financial reporting standard 6 - Long-term tangible assets in point 6.63, the words "CFRS 14 - Income and CFRS 15 - Expenses" are changed to "CFRS - Income and CFRS 16 Expenses".

Article 3.

In the Croatian financial reporting standard 7 - Investments in real estate, in point 7.32. the words "in point 6.71." are replaced by the words "in point 6.70".

Article 4.

This Decision enters into force on the eighth day from the day of its publication in the Official Gazette.

Chairman of the Standards Committee

financial reporting

Ivica Smiljan