Accountancy
In
According to the
Accountancy Law, all legal and moral persons who are authorized to develop independent
activities have the obligation to organize and conduct their own accountancy in Romanian
and in the Romanian currency. In order to inform themselves at the internal level,
entities can elaborate statements in other currency as well. Commercial entities, national
entities/companies, autonomous administrations, national research /development
institutions, cooperative entities and other legal persons have the obligation to organize
and conduct their own accounting, namely their financial accounting according to the
present law and the management accounting adapted to their specific activities;
Public institutions,
associations and other legal persons with or without patrimonial purpose, as well as moral
persons who develop revenue producing activities have, as well, the obligation to organize
and conduct their own accounting, namely their financial accounting and, as the case may
be, their management accounting. Sub/units without juridical personality, located abroad,
which belong to persons described here above, located or having their headquarters in
Romania, as well as those with permanent headquarters in Romania belonging to some legal
persons located or with this headquarters abroad have the obligation to organize and
conduct their own accounting, according to the Accountancy Law.
Legal or moral
persons have the obligation to keep the evidence of all transactions made and register
these transactions in their accounting registers. The mandatory accounting registers
according to the Accountancy Law are: the Journal-Register, the Inventory-Register (based
on the annual inventory of assets and liabilities) and the Ledger (based on accounting
information taken from source/documents or from the Journal-Registers). Registers and
accounting registrations can be kept on paper or electronically and can be used as proofs
in justice and they can be the subjected to controls of the tax and judicial authorities.
Accountants will have to make annual verification balances based on information from the
Ledger, this constituting the base for periodical financial statements.
Financial reporting
The financial
reporting in
Starting with
2006, all entities described in the Accountancy Law apply the accounting regulation
complying with the fourth and seventh Directives approved by the Order of the Ministry of
Public Finances No 1752/2005; for entities with a turnout below 7.3 million Euro, the
total of assets below 3.65 million Euro and less than 50 employees there is a simplified
system of financial reporting.
credit
institutions;
insurance
insurance-reinsurance and reinsurance entities;
entities regulated
and overseen by the National Commission for Securities;
commercial
entities with securities admitted for transactions on a regulated market;
national companies
and entities;
legal persons belonging to a group which
enters the consolidation area of a parent society which applies the International
Financial Reporting Standards;
legal persons, other than those described here
above, which benefit from non-reimbursable loans or guaranteed by the state.
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