What has changed in accounting law no. 82/1991 in 2015?

1) Accounting for individuals 2) Organizing accounting process 3) Micro-entities 4) Financila year 5) The audit of consolidated financial

statements 6) Signing report on payments to

governments 7) Multiple sets of financial

statements for the same financial year

8) The correction of errors

1) Accounting for individuals

According to the previous prevision, the individuals who perform activities from which it result incomes, are required to use simplified accounting based on single accounting rules according to the regulations drawn up for this purpose. The accounting documents required to be prepared were: Journal of receipts and payments and Inventory Register.

According to the new prevision, individuals engaged in order to achieve revenues, are required to lead on single entry accounting rules or, at their option, based on double entry accounting rules, according to accounting regulations issued in this respect, except that tax law provides otherwise.

According to the new prevision, the following are repealed:

Individuals who may opt for simplified accounting system are those who have registered in the previous fiscal year net turnover under the equivalent in RON of 35.000 EUR and total assets under the equivalent in RON of 35.000 EUR. This criteria is based on the basis of indicators determined from the annual financial statements comprising the balance sheet and profit and loss account simplified, signed at the end of financial year, using the exchange rate announced by National Bank of Romania as of the date of concluding the same financial year. Also, the level of the indicators may be changed by Government Decision.

2) Organizing the accounting process

In the previous prevision is stipulated that accounting is organized and usually result in distinct departments of the CFO, chief accountant or another person authorized to perform this function. These people should have a degree in economics.

In the new prevision, is clarified the notion of authorized person. In this sense, must be one employed person under the law and must have responsabilities in the management accounting.

3) Micro-entities

According to the new prevision, micro-entities are entities that, on balance sheet date do not exceed the limit of two of these three criteria:

Total assets level of 350.000 EUR

Net turnover level of 700.000 EUR

Average number of employee during the financial year of 10.

Specifically, from January the first, micro-entities who will meet at least two of the above criteria would apply the European system of simplified financial reporting which comprises simplified balance sheet and profit and loss account, including information to be disclosed under European rules.

4) Financial year

The financial year is the period for which annual financial statements must be prepared and it usually coincides with the calendar year. Financial year may be different from the calendar year for Romania branches belonging to legal entities and foreign legal entities established in Romania.

According to the new prevision, is stipulated the fact that can be used a different fiscal year from the calendar year, by all Romanian legal persons who want this and not only its affiliates of foreign legal entities. Financial institutions can not have different exercise than the calendar year.

The option for a financial year different from the calendar year will be reported to the Ministry of Finance, by notice, which shall be submitted within 30 calendar days from the date of setting up branches. Violation of this rule will be fined from 100 to 200 RON.

5) The audit of consolidated financial statements

New provision stipulates that, if the annual financial statements of the parent company are presented for approval with the consolidated financial statements and the parent company is required to audit, two audit reports may be presented as a single report.

6) Signing report on payments to governments

Members of the administrative, management and supervisory legal entities are required to provide annual financial statements and management report to be prepared and published in accordance with national legislation.

Also, is added the report on payments to governments and the consolidated report on payments to governments when their preparation is required according to applicable accounting regulations.

7) Multiple sets of financial statements for the same financial year

It is prohibited to submit to territorial units of the Ministry of Finance, several sets of annual financial

statements for the same financial year. This failure is considered an contravention.

"By providing that it will avoid situations where, by deviation from the law, could electronically submit several variants annual financial statements, which were subsequently unlawfully used to create various advantages" cited from the note substantiation of the emergency ordinance. Those who do not comply with these rules, could risk fines between 1,000 and 10,000 RON.

Also, is mentioned the fact that consolidated financial statements for the group of companies, shall be submitted within 15 days of their approval, but no later than 8 months after the end of the financial year of the company, and that the financial statements for the year 2014 will be prepared in accordance with accounting regulations already approved.

8) The correction of errors

Inserted implicitly, the default law principle of intangibility of the opening balance sheet. In this regard, accounting errors found after submission of annual financial statements are corrected at the time of their establishment, according to the regulations of error correction.