Accounting Law in Armenia in 2025

The Accounting Law in Armenia (2025) regulates the organization and maintenance of accounting in the Republic of Armenia, as well as the uniform principles for preparing and presenting financial statements. The law applies to legal entities registered in the Republic of Armenia, branches and representative offices of foreign organizations.

Contents

1 What is Accounting?

2 Organization’s Economic Resources

3 Sources of Formation of Economic Resources

4 Types of Liabilities

5 Obligation to Maintain Accounting

6 Main Elements of Accounting

7 Forms of Accounting

8 Why Entrust Your Organization’s Accounting to Alpha Accounting?

What is Accounting?

Accounting is the process of measuring, processing, and communicating financial and non-financial information of economic entities, including businesses. In Armenia, relations concerning accounting, its organization and maintenance, as well as the uniform principles for preparing and presenting general-purpose financial statements, are regulated by the RA Law “On Accounting.”

According to the law, accounting is a system for collecting, recording, and summarizing monetary information on the status and movement of assets, equity, liabilities, income, and expenses of an organization, through universal and documentary registration of transactions, events, and other circumstances.

Organization’s Economic Resources

The economic resources of an organization, classified by liquidity, are divided into two groups:

Non-current (long-term) assets
Current (short-term) assets

Non-current assets are resources used for more than one year, acquired for long-term use, and expected to generate profit. They are not intended for sale. Examples include buildings, equipment, property, software, licenses, etc.

Current assets are resources sold, used, or consumed within less than 12 months. These include materials, products, goods, trade receivables, cash, etc.

Sources of Formation of Economic Resources

The sources of formation of an organization’s resources are divided into two groups:

Equity
Liabilities

Equity includes capital invested by founders, profit earned from business operations, reserves formed from profit, etc.

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Types of Liabilities

Liabilities are divided into two groups:

Non-current liabilities
Current liabilities

Non-current liabilities are obligations due in more than one year, such as long-term bank loans and borrowings.
Current liabilities are obligations incurred during operating activities, due within 12 months. Examples include short-term bank loans, accounts payable to suppliers, wage-related payables, etc.

Obligation to Maintain Accounting

All organizations (including those undergoing insolvency or liquidation) are required to maintain accounting. An organization must use computer software that allows compliance with accounting regulations if, according to the RA Tax Code, its gross income for the previous year exceeded 500 million AMD.

Main Elements of Accounting

The main elements of accounting include:

Balance sheet
Financial statements
Accounts
Double-entry method
Documentation
Inventory
Valuation

The overall accounting and preparation of financial statements in an organization are carried out by the head of the accounting service.

Forms of Accounting

Accounting is maintained:

Using the double-entry method based on the chart of accounts.
Continuously, from the date of state registration until the date of submitting an application for deregistration.

According to the RA Law “On Accounting,” all organizations registered under the established procedure are obliged to maintain accounting of their financial and economic activities, with the collected information summarized and presented in the form of financial statements.

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