The amendments relate to violations of the procedure for submitting and publishing financial statements, as well as hiring a chief accountant who does not meet the qualification requirements established by law. In both cases, the head of the organization is responsible for the administrative violation.
A detailed analysis of the amendments is presented below.
Amendment 1. Failure to submit or publish financial statements (Article 169.12 as amended)
The new regulations establish a sharply increasing, three-tier system of fines.
What is considered a violation:
Failure to submit financial statements to state bodies within the established deadlines,
Failure to publish them in the manner and within the deadlines established by the legislation,
Failure to publish the link to the website for publishing reports on the official website of the RA Public Notices www.azdarar.am,
Failure to provide reports or a link to them within the established deadlines based on the application of individuals or legal entities.
Fines:
In the case of a primary violation, a fine of 150 times the minimum wage is imposed.
If the violation is not eliminated within 30 days after the decision to impose the first fine becomes final, a fine of 1,500 times the minimum wage is imposed.
If the violation is not eliminated within another 30 days after the second fine is imposed, the fine is 4,500 times the minimum wage.
Amendment 2. Hiring a Chief Accountant Who Does Not Meet the Qualifications (Newly Revised Article 169.13)
Control over the quality of an organization’s accounting has also been tightened.
Which organizations does it apply to?
Public interest, large, and medium-sized organizations
Public sector organizations established by the Government.
What is considered a violation?
Hiring a chief accountant who does not meet the qualification requirements set forth in the Law on Accounting in the above-mentioned organizations or failing to eliminate this violation within the prescribed period.
Amount of fines:
In the case of a primary violation (hiring an accountant who does not meet the requirements), a fine of 100 times the minimum wage is imposed.
If the violation is not eliminated within 30 days after the imposition of the fine, a fine of 1,000 times the minimum wage is imposed.
Key conclusions
As a result of these legislative amendments, direct liability is established for the head of the organization, and the amount of financial sanctions has been significantly increased.
The law will apply to administrative proceedings initiated after its entry into force. Therefore, organizations should review their procedures, bringing them into line with the new, more stringent requirements.