The revised Estonian accounting standards apply to reporting periods beginning on or after 1 January 2027. The changes may affect how companies record financing, software development, customer returns and acquisitions, as well as information disclosed in their annual accounts. Their practical effect depends on the transactions a business undertakes.
According to the Estonian Accounting Standards Board information published by the Ministry of Finance, the revised guidelines were approved by the Minister of Finance on 17 July 2026. For a company whose financial year follows the calendar year, the first affected reporting period is 2027. A financial year beginning during 2026 remains under the earlier guidelines.
Owners and directors of an Estonian limited liability company, or OÜ, should review relevant arrangements with their accountant. Some will need policy adjustments or additional records; others may see little practical difference.
At a glance: Focus on unusual financing, internally developed software, customer returns, bespoke production and long-term service contracts, acquisitions and annual-report disclosures. The 2027 annual accounts may also need adjusted 2026 comparative figures, subject to transition exceptions. These are financial reporting changes; tax treatment requires a separate assessment.
What changes in Estonian accounting from 2027?
The changes update the Accounting Standards Board guidelines, known as RTJs, within the Estonian Financial Reporting Standard. This remains Estonia’s existing financial reporting framework. Companies already reporting under full IFRS should assess their requirements under that framework separately.
The international background is the third edition of the IFRS for SMEs Accounting Standard, issued in February 2025. It informs the Estonian framework, but the Estonian requirements are set out in the RTJs.
The Ministry’s final September 2026 summary of RTJ amendments puts the scope in perspective: RTJs 6, 8, 12 and 16 have no substantive changes; RTJs 13 and 14 are unchanged. RTJs 1 and 2 contain limited clarifications rather than significant substantive amendments.
As at publication, the Ministry separately lists proposals for RTJ 17 on share-based payments and associated further RTJ 15 amendments. Those consultation drafts should not be confused with the adopted guidelines discussed here.
Which 2027 accounting changes matter most for companies?
Interest-free and below-market loans
The revised RTJ 3 on financial instruments, paragraph 38, clarifies discounting for long-term financial liabilities, including interest-free or non-market-rate financing. Discounting means calculating the present value of future payments using a market rate for comparable financing.
The liability can initially be lower than the amount repayable. Interest expense then increases its recorded value towards the repayment amount, even if no contractual interest is paid. Short-term liabilities are generally recorded at the amount payable.
For illustration, €100,000 payable in three years has a present value of approximately €86,384 at an illustrative 5% annual discount rate. The actual rate and accounting for the initial difference depend on the arrangement, including whether the lender acts as an owner.
Review shareholder loans, group financing and extended payment arrangements. Give the accountant signed agreements, repayment dates and amendment history; a bank-transfer description alone does not establish the terms. The clarification also warrants checking whether existing treatment was already appropriate under earlier requirements.
Software and development costs
Under RTJ 5 on tangible and intangible fixed assets, paragraphs 39–43, software development follows the same principles as other development expenditure.
A company chooses a consistent policy: expense development expenditure as incurred, or capitalise qualifying expenditure as an intangible asset. Capitalisation requires technical and financial capacity and intent to complete the project, ability to use or sell the asset, assessable future benefits and reliably measurable costs.
Research costs remain expenses. If research and development cannot be distinguished, the costs are treated as research. The guideline’s example also expenses training, routine operation and data-entry costs.
For management, the useful preparation is to separate project exploration, development and ongoing operation in budgets and records. Review existing software assets alongside the policy for other development projects. A successful project does not itself justify later capitalisation of previously expensed costs: paragraph 43 distinguishes normal treatment from retrospective policy changes and correction of material errors.
Revenue recognition and customer returns
Revenue deserves particular attention for retailers, manufacturers and businesses delivering projects over time. The updated IFRS for SMEs revenue model draws on IFRS 15, but Estonia has retained its RTJ approach with targeted amendments; this is not wholesale adoption of IFRS 15. The Ministry’s final summary explains that distinction.
Under revised RTJ 10 on revenue recognition, paragraph 21, sales with reliably estimable returns require three elements:
- revenue for goods expected to remain sold;
- a refund liability for expected repayments;
- an asset for expected returned goods, based on their previous carrying amount less expected recovery costs and loss of value.
For an online retailer, this makes returns information part of the reporting process. Keep return histories by relevant product group and identify damaged or unsaleable returns. Recording a sale in full and dealing with refunds only when customers return goods may not produce the required result at year end.
For bespoke goods, revenue is recognised during production where the goods have no alternative use to the seller and the customer must pay for work already performed. A deposit alone does not establish those conditions. Paragraph 18 also expressly includes customer acceptance among the conditions for recognising goods revenue.
The Ministry’s amendment summary highlights a further clarification: when measuring service completion through costs, compare actual costs with budgeted costs of the same nature. Management should therefore check that project budgets and recorded expenditure use compatible categories.
Contract-signing costs are expensed when incurred unless another RTJ requires inclusion in an asset’s cost. Costs incurred in fulfilling a contract need separate assessment: unused materials and subcontractor advances can initially remain assets and are excluded from current contract costs, as paragraphs 45–46 explain.
Before year end, provide the accountant with acceptance evidence, current project budgets and contract terms. Review whether the invoice schedule reflects work performed; billing milestones alone are an unreliable basis for assessing completion.
Leases and property arrangements
The lease amendments are targeted. Businesses with building rights or unusual land arrangements should review their substance with their accountant. Revised RTJ 5, paragraph 7, explains that building rights and usufruct arrangements generally represent land or property leases and directs their treatment to RTJ 9.
An ordinary office tenant should check whether an amended provision affects its contract before changing its accounting policy.
Business acquisitions and investments in other companies
Companies planning acquisitions should review RTJ 11 on business combinations, subsidiaries and associates. Direct acquisition expenditure, such as advisory and notarial fees, is expensed under paragraph 30. Financing and equity-issue costs follow separate RTJ 3 rules.
For contingent consideration, such as a payment dependent on future performance, paragraph 31 allows the most likely payable amount where fair value cannot reliably be measured without undue cost or effort.
Subsequent purchase-price adjustments generally affect profit or loss, or equity for equity instruments issued as consideration. The exception concerns adjustments to initial provisional values within 12 months, under paragraphs 33 and 42; it is not an exemption for every price change during that period.
Subsidiary and associate investments measured at cost refer to these acquisition-cost principles. Other share investments may fall under RTJ 3, so a significant shareholding should be classified before applying acquisition rules.
For an upcoming transaction, separate the purchase price, adviser fees, financing costs and future payments in the deal records. Companies with no acquisitions or relevant investments can give this topic lower priority.
Annual report disclosures
The revised RTJ 15 on information disclosed in the notes expands certain disclosures. For companies preparing full accounts, relevant additions include:
- financial-asset values before and after impairment, with impairment amounts;
- related-party contingent liabilities, guarantees and other binding off-balance-sheet commitments;
- the amount of assets relating to expected product returns;
- dividends declared after year end but not recognised as liabilities, and their associated income tax.
The former disclosure of hypothetical tax on distributing all retained earnings is removed from paragraph 43.
These full-account requirements do not automatically apply to every small business. RTJ 15 separates full accounts from small-company and micro-company abbreviated accounts. Small-company accounts specifically disclose related-party off-balance-sheet and contingent commitments separately under paragraph 59(i); micro-company accounts have their own minimum requirements.
Confirm the applicable reporting category before revising the disclosure checklist. Collect guarantees, commitments and shareholder decisions alongside ledger balances: the accountant may otherwise have no record of them. A disclosure about dividend tax should not be read as introducing a new tax rule.
Will 2026 comparative figures need to change?
They may need adjustment where a relevant accounting policy changes. Under RTJ 1, paragraphs 70–73, retrospective application generally means presenting comparative figures as though the new policy had always been used. Earlier effects can also change opening retained earnings.
For a calendar-year company, this can mean adjusting the 2026 figures displayed in its 2027 annual accounts. That is a comparative presentation within the new report; it does not, by itself, mean reopening or resubmitting the already filed 2026 annual report. A separate material error requires separate assessment.
The Ministry’s transition guidance identifies two important exceptions:
- RTJ 10: prospective application is allowed where retrospective application is not possible without unreasonable cost and effort.
- RTJ 11: the changes apply to business combinations occurring in periods beginning on or after 1 January 2027; earlier combinations retain the rules applicable when they occurred.
RTJ 1 also addresses situations where earlier effects cannot be reliably determined. This is not a blanket option to leave comparatives unchanged. Discuss the affected balances, available historical evidence and any applicable exception before preparing adjustments.
What should an Estonian company review before 2027?
Start with the company’s actual transactions. Ask the accountant to identify which amended provisions affect them, estimate whether the effects are material and agree what supporting information management must supply.
- Review financing agreements. Identify interest-free, below-market and unusually long payment terms. Confirm repayment rights and dates before assessing discounting.
- Review development projects. Reconcile software treatment with the policy for other development expenditure. Retain project approvals, budgets, cost records and evidence supporting expected benefits.
- Prepare revenue evidence. Bring together returns data, customer acceptance terms, bespoke-production contracts and project forecasts. Agree how sales and operations teams will supply updates to accounting.
- Review acquisitions and property arrangements where relevant. Flag contingent purchase prices, transaction fees, building rights and unusual leases early enough for assessment.
- Plan disclosures and comparatives. Confirm the annual-report category, collect commitments and shareholder decisions, and preserve 2026 records needed for any restatement.
Turn the review into a short implementation record: affected policy, required adjustment, supporting evidence, responsible person and completion date. This gives management something concrete to monitor and avoids discovering missing information during annual reporting in Estonia.
Does every Estonian company need to change its accounting?
No. The effect depends on business activities, financing, contracts, investments and existing accounting policies. A small service company with straightforward transactions may need few practical adjustments. A retailer with returns, a software developer or a company making acquisitions may need more preparation.
Assess the applicable changes before commissioning extensive revisions to accounting systems or procedures. Existing records may already support much of the required work.
Accounting and annual reporting support in Estonia
BBCTallinn provides accounting services in Estonia, including financial statement preparation and annual reporting support. We can help companies assess how the revised requirements apply to their circumstances, review relevant accounting policies and identify information needed for their next Estonian annual report.
Bring existing financing agreements, development records and significant customer or acquisition contracts to the discussion. An early review helps establish what needs attention before the first affected reporting period.
Information notice
This article was published on 2 October 2026 and is based on the legislation, official guidance and Accounting Standards Board materials available on that date. Accounting requirements and related guidance may be amended or clarified after publication. Companies should therefore check the latest information from the Estonian Ministry of Finance and Riigi Teataja and rely on the current legislation applicable to their reporting period.
