(P) Tax Flash: Accounting regulations amendments

13 January 2014

Order of the Minister of Public Finance no. 1898/2013 amending and completing certain accounting regulations – published in the Official Gazette no. 6/ 7 January 2014

The order was issued on 24 December 2013 and becomes enforceable starting with the annual financial statements, respectively the accounting reports related to the financial year 2013.

The main provisions of the order include the following:

Amendments of the Accounting Regulations conformant with the Fourth Directive of the European Economic Communities, approved by the Order of the Minister of Public Finance no. 3055/2009

Bookkeeping of green certificates

The treatment provided for recording in the accounting books the receipt, the periodical revaluation and sale of green certificates by the producers of electricity from renewable sources was amended and new accounts were added for the green certificates.

Bookkeeping of the operations regarding the connection of users to the utilities networks

The costs incurred by users for the connection to the electricity grid, or the water, gas or other utilities networks, if the connection agreements provide the payment of compensations for the connection to the respective distribution networks, represent intangible fixed assets with the nature of utilization rights.

These are amortized over the period where the entity has the right to use the respective networks, if this period is mentioned in the agreements concluded, or, if no such period is agreed, over the useful life of the equipment installed at the place of consumption.

General chart of accounts and function of accounts

Five new accounts were added to the General chart of accounts, respectively the accounts 1491 “Reorganization losses resulting from the cancellation of titles held”, 1495 “Other losses related to own equity instruments”, 266 “Deferred green certificates”, 507 “Granted green certificates” and 6455 “Entity’s contribution to life insurance”. The chapter of the regulations regarding the function of accounts was updated accordingly.

Amendments of the Accounting Regulations conformant with the International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market, approved by the Order of the Minister of Public Finance no. 1286/2012

Application of the accounting regulations by companies whose securities have been admitted to trading during the financial year 2013

The accounting regulations conformant with the International Financial Reporting Standards were supplemented with provisions regarding the preparation of financial statements for the first year and keeping the accounting books by companies whose securities wave been admitted to trading during the financial year 2013.

Chart of accounts and function of accounts

The chart of accounts and function of accounts have been updated, similarly with the amendments brought to the Accounting regulations conformant with the Fourth Directive of the European Economic Communities, presented above.

For additional information, please contact:

Venkatesh Srinivasan, Partner – Head of Tax and Legal

Ernst & Young SRL and E. Platis, C. Bazilescu LLLP

15-17 Ion Mihalache Blvd.

Bucharest Tower Center Building, 22nd Floor

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

(p) - this article is an advertorial

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(P) Tax Flash: Accounting regulations amendments

13 January 2014

Order of the Minister of Public Finance no. 1898/2013 amending and completing certain accounting regulations – published in the Official Gazette no. 6/ 7 January 2014

The order was issued on 24 December 2013 and becomes enforceable starting with the annual financial statements, respectively the accounting reports related to the financial year 2013.

The main provisions of the order include the following:

Amendments of the Accounting Regulations conformant with the Fourth Directive of the European Economic Communities, approved by the Order of the Minister of Public Finance no. 3055/2009

Bookkeeping of green certificates

The treatment provided for recording in the accounting books the receipt, the periodical revaluation and sale of green certificates by the producers of electricity from renewable sources was amended and new accounts were added for the green certificates.

Bookkeeping of the operations regarding the connection of users to the utilities networks

The costs incurred by users for the connection to the electricity grid, or the water, gas or other utilities networks, if the connection agreements provide the payment of compensations for the connection to the respective distribution networks, represent intangible fixed assets with the nature of utilization rights.

These are amortized over the period where the entity has the right to use the respective networks, if this period is mentioned in the agreements concluded, or, if no such period is agreed, over the useful life of the equipment installed at the place of consumption.

General chart of accounts and function of accounts

Five new accounts were added to the General chart of accounts, respectively the accounts 1491 “Reorganization losses resulting from the cancellation of titles held”, 1495 “Other losses related to own equity instruments”, 266 “Deferred green certificates”, 507 “Granted green certificates” and 6455 “Entity’s contribution to life insurance”. The chapter of the regulations regarding the function of accounts was updated accordingly.

Amendments of the Accounting Regulations conformant with the International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market, approved by the Order of the Minister of Public Finance no. 1286/2012

Application of the accounting regulations by companies whose securities have been admitted to trading during the financial year 2013

The accounting regulations conformant with the International Financial Reporting Standards were supplemented with provisions regarding the preparation of financial statements for the first year and keeping the accounting books by companies whose securities wave been admitted to trading during the financial year 2013.

Chart of accounts and function of accounts

The chart of accounts and function of accounts have been updated, similarly with the amendments brought to the Accounting regulations conformant with the Fourth Directive of the European Economic Communities, presented above.

For additional information, please contact:

Venkatesh Srinivasan, Partner – Head of Tax and Legal

Ernst & Young SRL and E. Platis, C. Bazilescu LLLP

15-17 Ion Mihalache Blvd.

Bucharest Tower Center Building, 22nd Floor

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

(p) - this article is an advertorial

Normal
 

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