OUR MOTIVATION

Year 1998 was remarkable by the initiation of comprehensive and thorough reforms in the sphere of accounting, with the aim of implementing the internationally accepted accounting standards in the Republic of Armenia. The main objective of reforms was to develop an appropriate financial information basis compliant with the requirements of the market economy, which would supply all groups of users with reliable financial information on enterprises.

In order to make the financial accounting legislation more practicable, additional methodological materials, sample forms of primary accounting documents and registers/ledgers were developed to support the application of accounting standards.

At the same time, in line with the implementation of the new financial accounting system, appropriate amendments were also made to the tax legislation. In particular, financial accounting principles and treatments were taken as a basis for calculation of Profits Tax (Corporate Income Tax).

However, frequent amendments and additions made to the tax legislation in recent years, which were aimed at regulating certain tax and budgetary issues, seemed to have deepened the existing differences between financial and tax accounting.

It is obvious that current differences between financial and tax accounting requires additional resources and efforts from organizations from the point of view of effective maintenance and control of internal accounting systems.

Starting from 2009 all entities having a turnover and/or assets above AMD 1 billion, are required by law to have their financial statements audited to enhance transparency and credibility of financial information. In addition, starting from 2011 all entities should prepare and present their financial statements in accordance with IFRS, which is a new reporting framework for Armenian entities. Recent tightening public procurement legislation disables entities subject to audit to participate to public procurements if the audit report is modified. In this standpoint, we share our thorough knowledge of the local regulatory, legislative and financial reporting environment with our clients to ensure that they are able to fulfill their statutory obligations and file audited accounts as appropriate and in a timely manner.Recent reforms in Public Financial Management and Public Internal Financial Control systems defined new challeges for public sector entities. Engagement of PHP in Public Financial Management projects such as accrual basis public sector accounting standards and internal auditing has assured PHP’s presence at macroeconomic level making PHP a responsible corporate citizen by briniging its knowledge and experience for the benefit of wide community.