The Croatian Parliament adopted the Law on Financial Operations and Accountancy of Non-Profit Organisations

The Act regulates the framework of financial operations and elements of the accounting system of non-profit organisations, the principles of financial management system, creating and executing financial plans, reporting on budgetary funds spending, accounting principles and activities, books and accounting statements, list of assets and liabilities, principles for showing assets, commitments and private funds and the recognition of revenues , expenditures, receipts and expenses, financial reporting, revision of annual financial reports, public declaration of annual financial statements, supervision of financial transactions and accounting and other areas related to financial operations and accountancy of non-profit organisations.

 

The Law encompasses domestic and foreign associations and their unions, foundations, funds, institutions, artistic organisations, chambers, trade unions, employers' associations and all other legal entities that do not regard profit as the fundamental objective of their establishment and functioning and which are non-profit according to special regulations.

The law responds to the requirements of the application of the principle of publicity and transparency, especially concerning the obligation of financial reporting and public disclosure of financial statements in accordance with the National Strategy for the Creation of an Enabling Environment for Civil Society Development from 2012 to 2016 and the Open Government Partnership Initiative Action Plan from 2012 to 2013. It is foreseen that non-profit organisations will have an obligation to publicly disclose their financial reports through the Register of Non-profit Organisations, which will be available, in accordance with the provisions of the new Law on Associations, through the Register of Associations.