Accounting reporting system on 30 June 2023

In the Official Gazette (Part I) no. 677 of 24 July 2023 was published Order no. 2195/2023 of the Minister of Finance for the approval of the Accounting Reporting System as of 30 June 2023 of economic operators.

The accounting reports as at 30 June 2023 shall be submitted to the territorial units of the Ministry of Finance by 16 August 2023 at the latest.

 The recently approved document stipulates that the accounting reporting system as of 30 June 2023 applies to economic operators that in the previous financial year recorded a net turnover greater than the equivalent in lei of 1,000,000 euro.

For the preparation of the accounting reports as at 30 June 2023, the above-mentioned criterion is based on the indicators determined from the annual financial statements of the previous financial year, respectively on the trial balance closed at the end of the previous financial year, using the exchange rate communicated by the National Bank of Romania, valid at the closing date of the previous financial year.

In the Approval Report of the normative act, it is specified that entities that have not carried out activity from the date of establishment until 30 June 2023, those that were temporarily inactive during the first half of 2023, those established during 2023, as well as legal entities that are in the process of liquidation, according to the law, do not prepare accounting reports as of 30 June 2023.

 It is important to note that the information contained in the accounting reports is based on the accounting regulations applicable to each category of economic operators, namely the Accounting Regulations approved by OMFP no. 1802/2014, as amended and supplemented, or the Accounting Regulations approved by OMFP no. 2844/2016, as amended and supplemented.

The normative act is structured in such a way as to result which is the information content of the accounting reporting forms as at 30 June 2023, prepared by entities according to the applicable accounting regulations.

According to MF representatives, for the accounting reports as at 30 June some accounting rules, such as mandatory inventory and valuation of all balance sheet items, are not applicable and the level of detail of the information presented is lower compared to the annual financial statements. As the data contained in the accounting reports as at 30 June are mainly intended for state institutions, the information to be reported according to the new act has been established after consultation with institutions using the Ministry of Finance database.

We stress that this information is similar to that reported as at 30 June 2022.

Specifically, the accounting reports as of 30 June 2023 are mandatory, first of all, for taxpayers to whom the Accounting Regulations on individual annual financial statements and consolidated annual financial statements (MF Order 1802/2014) apply, who in the previous financial year recorded a net turnover of more than one million euros. These entities prepare and submit accounting reports that include the following forms:

– Statement of assets, liabilities and equity (code 10);

– Profit and loss account (code 20) and abbreviated profit and loss account (code 20);

– Information data (code 30).

 The obligation to draw up and submit half-yearly balance sheets also applies to sub-units in Romania belonging to legal entities with headquarters abroad, and to permanent establishments in Romania belonging to legal entities with headquarters abroad.

Also, the balance sheets are mandatory for taxpayers to whom the Accounting Regulations in accordance with the International Financial Reporting Standards (MF Order 2.844/2016) are applicable, which in the previous financial year recorded a net turnover of more than one million euro. These entities prepare and submit accounting reports comprising the following forms:

 

– Statement of assets, liabilities and equity (code 10);

– Statement of income and expenditure (code 20);

– Information data (code 30).

According to the MF Order, the Statement of Assets, Liabilities and Equity must present in summary form the items of assets, liabilities and equity – grouped by nature and liquidity, respectively by nature and due date. This form shall be drawn up on the basis of the trial balance of the summary accounts as at 30 June 2023, reconciled with the balances in the balance of the analytical accounts, drawn up after recording all the documents in which the financial-accounting operations for the reporting period were recorded.

As regards the Profit and Loss Account, the abbreviated Profit and Loss Account and the Income and Expenditure Statement, these comprise the net turnover, the revenue earned and expenditure incurred and the financial results obtained (profit or loss) – taken from the income and expenditure accounts included in the trial balance as at 30 June 2023. The data reported on these forms must be aggregated from the beginning of the year to the end of the reporting period.

 

Other important clarifications in Order no. 2195/2023:

  • companies with a financial year different from the calendar year complete the Statement of Assets, Liabilities and Equity with information for the period 1 January – 30 June 2023;
  • companies with a financial year other than the calendar year complete the Profit and Loss Account, the Abridged Profit and Loss Account and the Income and Expenditure Statement with the information for the periods 1 January – 30 June 2022 and 1 January – 30 June 2023 respectively;
  • the indicator “Other taxes not shown in the above items (account 698)”, on line 71 of the Profit and Loss Account, shall be filled in only by the micro tax payers – with the amount representing the income tax of the micro enterprise;
  • on line 25 “Wages and salaries” of the Profit and Loss Account, on line 05 “Staff costs” of the abbreviated Profit and Loss Account and on line 31 “Wages and salaries” of the Income and Expenditure Account, all expenditure on wages and salaries and the value of vouchers granted to employees. The value of vouchers granted to employees should also be shown in rows 40 and 41 of the Information Data;
  • in the Information Data, in rows 01, 02 and 03, column 1, entities which have sub-units should enter the figure 1, regardless of their number;
  • row 03 column 1 of the Information Data is only to be completed by entities that in the current reporting period have recorded neither profit nor loss (zero financial result);
  • in the rows on overdue payments in the Information Data, the amounts at the end of the reporting period that have exceeded the payment deadlines laid down in contracts or legal acts are entered.

 

Legal basis:

– www.anaf.ro;

– MF Order 2195/2023 for the approval of the Accounting Reporting System as at 30 June 2023 of economic operators.