Beginning with this year the accounting regulations comply with the European directives
Author:
PhD Georgeta PETRE
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Abstract:
Starting with the fiscal year 2006, entities of any of the types which, under the law, organise and conduct their own accounting, shall apply accounting regulations in compliance with the European directives.\r\n\r\nFor the use of the business operators, the Ministry of Public Finance has developed the Accounting Rules in Compliance with the European Directives, approved by the Order of the Minister of Public Finance No. 1.752/2005, published in the Official Journal of Romania, Part I, no. 1.080 bis on 30 November 2005.\r\n\r\nThese rules consist of two parts, namely:\r\n– The Accounting Rules Complying with the Fourth Directive of the Economic European Communities, which comprise provisions on the individual annual financial statements of the companies; and\r\n– The Accounting Rules Complying with the Seventh Directive of the Economic European Communities, which comprise provisions on drafting consolidated annual financial statements.\r\n\r\nSimilarly, the financial and credit institutions, the insurance, insurance-reinsurance, and reinsurance companies, and the entities regulated and supervised by the National Securities Commission, were issued by the regulatory and supervising institutions for such entities – namely the National Bank of Romania, the Insurance Supervisory Commission and the National Securities Commission issues, with the endorsement of the Ministry of Public Finances – accounting rules, which transpose in the national legislation specifically for their fields the provisions of the European directives that apply to such entities.\r\n\r\nThe accounting regulations in compliance of the European directives shall repeal the accounting regulations in force until 31 December 2005, namely the Simplified Accounting Rules, harmonised with the European directives, approved by the Order of the Minster of Public Finance No. 306/2002, with its subsequent amendments and the Accounting Rules, harmonised with the Fourth Directive of the EEC and with the International Accounting Standards, approved by the Order of the Minster of Public Finance No. 94/2001, with its subsequent amendments.\r\n\r\nAccording to the accounting regulations in force as of 1 January 2006, starting this year, all the types of entities have to develop a set of accounting statements complying with the European directives.\r\nAs an exceptional case, because of the information they need to provide to stakeholders, the credit institutions must also develop a second set of financial statements, complying with International Financial Reporting Standards (IFRS). These financial statements shall be obtained by reprocessing the financial statements complying with the European directives and shall not be a database for the purpose of determining the tax obligations.\r\n\r\nOptionally, any other entity may develop a separate set of financial statements complying with the IFRS, for the benefit of information users that are not state institutions.\r\nThe Accounting Rules Complying with the 4th EEC, applicable to business operators provide the criteria determining whether entities develop annual financial statements consisting of five or three components. The criteria of size included in the Regulations are:\r\n– total assets: 3,650,000 Euros;\r\n– net turnover: 7,300,000 Euros;\r\n– average number of employees during the fiscal year: 50\r\n\r\nEntities which on the date of the balance sheet are above two of the size criteria shall develop annual financial statements incorporating five components, namely balance sheet, profit and loss account, statement on the changes of their equity capital, the status of their treasury flows and explanatory notes to their annual financial statements.\r\n\r\nEntities which on the date of the balance sheet fail to meet two of the three size criteria, shall develop accounting annual financial statements, consisting of a abridged balance sheet, account of profit and loss and explanatory notes to the annual financial statements.\r\n\r\nAs an exception, the companies the securities of which are allowed for transactions on a regulated market may not develop simplified financial statements.\r\nFor the financial statements for 2006, developed according to the Accounting Rules complying with the 4th.