Annual financial statements for micro-entities

According to point 576 of the MoF Order no. 1802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements, the micro-entities do not have the obligation to elaborate the explanatory notes to the annual financial statements, provided in points 468 and 469.

According to Article 28 (7) of Law 82/1991, the annual financial statements constitute a unitary whole and are accompanied by the report of the administrators, the audit report or the report of the audit committee, as the case may be, the report on payments to governments, if the regulations applicable accounting provisions provide for the obligation to prepare it, as well as the proposal for the distribution of the profit or to cover the accounting loss.

Thus, according to OMFP 1802/2014, the micro-entities present the information provided in point 468 letter a), d) and e) and point 491 paragraph. (2) point (c):

  • the accounting policies adopted, including:

– the evaluation bases applied to the different elements;

– compliance of the adopted accounting policies with the accounting principles provided by the present regulations;

– any significant changes in the accounting policies adopted;

  • the total value of any financial liabilities, guarantees or assets and contingent liabilities not included in the balance sheet, indicating the nature and form of any collateral that has been granted; separately from these, any commitments regarding pensions and affiliated or associated entities are presented;
  • the amount of advances and loans granted to the members of the administrative, management and supervisory bodies, indicating the interest rates, the main conditions and any amounts repaid, amortized or waived, as well as the commitments assumed on their behalf in the form of guarantees any kind, indicating the total for each category;
  • information on the acquisitions of own shares, namely:

– the reasons for the acquisitions made during the financial year;

– the number and nominal value or, in its absence, the accounting equivalent of the shares acquired and alienated during the financial year and the proportion of the subscribed capital that they represent;

– in case of acquisition and alienation for consideration, the value of the shares;

– the number and nominal value or, in its absence, the accounting equivalent of all the shares acquired and held by the entity and the proportion of the subscribed capital that they represent;

Micro-entities shall prepare abbreviated profit and loss accounts showing separately:

– net turnover;

– other income;

– the cost of raw materials and consumables;

– staff costs;

– value adjustments;

– other expenses;

– taxes;

– profit or loss.

Important mention!

According to point 9 of OMFP 1802/2014, micro-entities are entities that, at the balance sheet date, do not exceed the limits of at least two of the following three criteria:

  1. a) total assets: 1,500,000 lei (equivalent to 338,310 euros);
  2. b) net turnover: 3,000,000 lei (equivalent to 676,620 euros);

Point 3.5, paragraph (3) of OMFP 85/2022 states that the annual financial statements shall be accompanied by a written declaration of the persons referred to in Article 10 paragraph (1) of Law no. 82/1991, republished, as amended and supplemented, assuming responsibility for the preparation of the annual financial statements and confirming that:

  1. a) the accounting policies used in the preparation of the annual financial statements are in accordance with the applicable accounting regulations;
  2. b) the annual financial statements give a true and fair view of the financial position, financial performance and other information relating to the business;

(c) the legal entity carries on its business on a going concern basis.

According to point 3.5 paragraph .(1) of Order 85/2022, according to article 28 and article 30 of Law no. 82/1991, republished, as amended and supplemented, the annual financial statements shall be accompanied by the directors’ report, the auditors’ report or the report of the auditors’ committee, as the case may be, and the proposal for the distribution of profits or the coverage of accounting losses.

Therefore, the annual financial statements of micro-entities shall be accompanied by the following documents:

– the manager’s statement of compliance with applicable accounting regulations;

– the administrator’s report;

– the proposal for profit distribution/coverage of loss;

– a presentation (extract of explanatory notes) including relevant accounting policies, presentation of off-balance sheet items, information on the acquisition of own shares).

Please note that the electronic format of the annual financial statements as at 31 December 2021, generated by the assistance programs, consists of a PDF file with an xml file attached (containing the forms code 10, code 20, code 30 and code 40), to which a zip file extension must be attached.

The zip file extension will contain the documents required by law scanned in black and white, legible, and with a resolution that allows the 10 MB limit of the PDF file to which the zip file is attached. The zip file attached to the annual financial statements will not contain a password.

Please note that the last update of the smart PDF for the financial statements (micro-entities) was on 16 March 2022 (version S1003_A1.0.0):

https://static.anaf.ro/static/10/Anaf/Declaratii_R/1002_5_2021.html

Legal basis:

 – www.anaf.ro

– Order MF 85/2022 on the main aspects related to the preparation and submission of annual financial statements and annual accounting reports of economic operators to the territorial units of the Ministry of Finance, as well as for the regulation of certain accounting aspects;

– Law 82/1991 on accounting – Republishing, with subsequent amendments and completions;

– MFP Order 1802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements.