Short answer
SKK 15 is the micro-entity standard, i.e., that of the overwhelming majority of Albanian businesses. It allows measurement only at historical cost, abbreviated statements, and minimal notes. It does not require a cash flow statement and does not recognize financial leasing at all.
| Who enforces it? | Every unit classified as a micro-unit by Law No. 25/2018 |
| Thresholds in effect, 2025 to 2027 | 35,000,000 lek in assets, 70,000,000 lek in revenue, 10 employees |
| Measurement base | Only historical cost. No fair value, no revaluation. |
| Recitation | Each rental is treated as ordinary. The payment is expensed. |
| Mandatory inspections | Condensed financial position, revenues and expenses, notes |
| Cash flow | Not required. Allowed if the unit wants it. |
| Inventories | Specific identification, FIFO, or weighted average cost |
Verified on November 8, 2026 by Andi Haxhillari, Certified Accountant. Compared with the consolidated version of IFRS 15, including the December 2022 amendments, paragraphs 5, 29 to 33, 40 to 59, and with Law No. 25/2018, Articles 4, 5, 8, 9, 13 and 23, together with Annex 1.
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SKK 15 provides the concepts, principles, and rules for the presentation of economic events in the financial statements of micro-entities. It is not a summary of other standards; it is a shorter, simpler set of rules designed specifically for small entities.
Its purpose is for the reports to provide useful information for business management and for external parties, without burdening the unit with requests that serve no one.
The standard applies to every economic unit classified as a microenterprise under Law No. 25/2018. The standard itself no longer contains the criteria, because paragraph 12, which once set the thresholds, has been repealed. Therefore, the thresholds are derived solely from Article 4 of the law and its Annex 1.
For the 2025–2027 reporting periods, a microenterprise is an entity that does not exceed at least two of the following three thresholds: assets of up to 35,000,000 lek, revenue from operations of up to 70,000,000 lek, and an average of up to 10 employees.
You only need to stay within two of the three limits. And the category doesn't change with a single year outside the threshold; you have to exceed it for two consecutive periods.
The microentity may voluntarily adopt more comprehensive standards, but is not required to do so.
This is the biggest difference from full standards. The initial measurement of assets and liabilities is made only using the historical cost model. There is no fair value and no revaluation.
The cost of a long-term asset includes the purchase price, obligations and non-refundable taxes, as well as other direct costs up to commissioning. On the balance sheet, the asset is presented at cost less accumulated depreciation.
Depreciation has no prescribed method. The straight-line method is the simplest, but any method that allocates the cost fairly over the useful life is allowed. Land is not depreciated; buildings are.
Inventories are measured at cost, which includes the purchase price plus costs of bringing them to the location and into condition, such as transportation. They are tracked with specific identification when possible; otherwise, they are valued at FIFO or at weighted average cost.
Revenue from the sale of goods is recognized when the risks and rewards of ownership transfer to the buyer. Revenue from services is recognized at the completion stage.
Foreign currency items are converted on a current basis. Monetary items, such as cash and accounts receivable, are converted at the closing rate. Nonmonetary items, such as an asset purchased abroad, are converted at the transaction date rate.
At the micro-level, every lease is treated as a operating lease. There is no financial lease accounting at all.
This means that the leased asset is not recognized on the balance sheet by either the lessee or the lessor. Lease payments are recognized as expense when paid. If future payments are material, they are disclosed in the notes.
So a long-term leased bakery, under terms that in a small unit would require recognizing revenue and liabilities, remains simply a monthly expense in a micro-unit.
Three are mandatory: the condensed statement of financial position, the condensed statement of income and expenses, and the condensed explanatory notes.
The statement of monetary funds flow and the statement of capital movement are allowed but not required. Many microentities do not prepare them at all.
Each set of statements bears the unit's name and identifying information, the date or period, the currency in lek, and the rounding level. The presentation is made at least once a year, with comparative figures for the previous year.
The formats of Annex 1 for the financial position and of Annex 2 for income by nature are mandatory. The main items cannot be reduced, but additional items may be added when they are material.
A store with one owner and two employees closes the year with these figures. Opening inventory: 800,000 lek; purchases during the year: 4,200,000 lek; closing inventory: 950,000 lek.
The material expenditure is calculated as 800,000 plus 4,200,000 minus 950,000, so 4,050,000 lek. This is the structure required by the standard itself, not our calculation.
Annual revenue is 6,500,000 lek. Wages and contributions are 900,000 lek. Depreciation of display cases and the refrigerator is 180,000 lek. Rent, energy, and telephone are 520,000 lek. Bank commissions are 30,000 lek.
Total expenses amount to 5,680,000 lek. The profit before tax is 6,500,000 minus 5,680,000, which is 820,000 lek. Tax on the profit is then deducted to yield the net profit.
Note that the lease was recorded entirely as an expense of the year. If it had been a small finance lease, the treatment would have been completely different.
The standard requires little, but it requires it precisely. For each group of long-term assets, the opening and closing carrying amounts are provided, plus the year's movements: additions, retirements, depreciation, and other adjustments.
Alongside them are provided a description of the operation and its primary activity, references to the accounting standards used, inventory accounting policies, explanations of contingent assets and liabilities, and any other information necessary to understand the statements.
If future rent payments are material, they are also disclosed.
The standard itself acknowledges that it does not cover all cases. For a material transaction or for a treatment it does not provide for, the explanations of other enhanced national standards may be used.
In practice, this happens most often with provisions, business combinations, and more complex financial instruments.
The first mistake is using fair value. An owner revalues equipment or premises and increases the value on the balance sheet. At the micro-level this is not allowed; measurement remains at historical cost.
The second mistake is recognizing an asset for a long-term lease. In the micro-entity, rent never produces an asset on the balance sheet.
The third mistake is preparing the cash flow statement under the belief that it's required. It isn't required, and your time is better spent on the notes.
The fourth mistake is failing to update the category. Thresholds change with each reporting period and the business grows. Reviewing the category once a year, before year-end, prevents surprises.
The fifth error is blank notes. The movement of long-term assets is explicitly required, and its absence is the most common deficiency we find in the micro-entity statements.
Yes. The standard allows for the voluntary implementation of more comprehensive standards. This is usually done when a business expects to grow quickly or when a bank or partner requires it.
Ten years after the end of the reporting period, in accordance with Article 8 of Law No. 25/2018. This deadline has not been relaxed for microentities and was not affected by Law No. 87/2026.
Yes. The deadline is within seven months from the reporting date, i.e., July 31 for the year ending December 31, in accordance with Article 22 of Law No. 25/2018.
The legal representative of the unit and the person responsible for their preparation, in accordance with Article 23 of the law. The responsible person may be an employee, a certified accountant, a statutory auditor, or a service company.
No. Exceeding the thresholds for two consecutive reporting periods is required. A single exceptional year does not change the category.
No. The standard does not provide numerical examples. The above example is our illustration, built on the calculation structure required by the standard itself.
Paragraph 60 of the consolidated version, the one that sets the entry into force of the amendments, simultaneously provides the dates January 1, 2022 and January 1, 2028 for the same amendments. The discrepancy is in the published text itself. Until it is resolved by the official source, we do not assert any effective date for the April 2022 amendments.
SSAP 15 “On Accounting and Financial Reporting of Economic Microentities,” consolidated version including the December 2022 amendments, approved by the National Accounting Council. Paragraph 12, which set forth the criteria for a microentity, has been repealed.
Law No. 25/2018 “On Accounting and Financial Statements,” Article 4 and Annex 1 on categories and thresholds, Article 5 on the applicable standard, Article 8 on 10-year retention, Article 9 on the reporting period, Article 13(3) and (4) on abbreviated financial statements, Article 22 on filing, and Article 23 on signing.