The more consolidated role and independence of financial insiiiuiions within conditions of market economy and their effort to apply international experience and practice at national level have determined the transition of the internal accounting system towards international accepted accounting standards for bookkeeping and analvsis of conducted transactions.
The Chart of Accounts for banks and other financial institutions of the Republic of Moldova (hereinafter - the Chart of Accounts) and the description of accounts have been developed with the view to reorganising the internal accounting system.
The Chart of Accounts is aimed at organising bookkeeping procedures, informing the public about any economic and administrative information needed, as well as elaborating financial statements and other established reports.
The Chart of Accounts is worked out based on international accounting standards, norms, rules, regulations and practice.
The Chan of Accounts has following structure:
1. Accounts are grouped in classes: Class I - Assets.
Class 2 - Liabilities.
Class 3 - Equity capital and reserves.
Class 4 - Incomes.
Class 5 - Expenses.
Class 6 - Contingent accounts.
Class 7 - Memorandum accounts.
2. Accounts within classes "Assets" and "Expenses" are assets; accounts within classes "Liabilities", "Equity capital and reserves", "Incomes" are liabilities.
3. Within each class, accounts are incorporated into groups as in accordance with their economic purpose.
4. Accounts within "Assets" are distributed following decreasing liquidity principle.
5. The hierarchical principle is used to allocate groups of accounts within classes and separate accounts within groups.
6. The hierarchy of classes, groups and accounts is reflected by means of the digital designations system.
7. The four-digit number is used to designate the accounts.
The first digit of the account number reflects the class of account, specifying the belonging of the relevant account to Assets, Liabilities, Equity capital and reserves, Incomes, Expenses, Contingent accounts or Memorandum accounts.
The second and third digits reflect the group of account, which groups the accounts with homogeneous economic belonging.
The fourth digit reflects the concrete object of bookkeeping.
