Given the long-term development plan arising from the National Tax Policy Framework for 2018–2021 and the short-term strategy for 2017–2019 drawn up by the Ministry of Finance, a set of proposals have been drafted for amending the Annual Financial Statements and Consolidated Financial Statements Act. The proposals aim to promote a positive investment climate and to make Latvia’s business environment more competitive internationally. This article explores the aims and ideas underpinning the current rules and the proposed amendments.