In Romania, commercial companies, national autonomous administrations, national institutes of research and development, cooperative societies and other legal persons operating for profit shall be bound to double entry bookkeeping to prepare annual financial statements.
For organizations and trade unions, as well as for other non-profit organizations, which carry out economic activities, the Romanian Ministry of Finance approved a simplified financial reporting, considering the requirements of European organizations in the field.
In Romania, the financial statements are submitted in different conditions for legal entities, in accordance to the economic indicators, as regulated by the Directive IV of the European Economic Community.
There are three size criteria set out by the regulations: the value of total assets, the net turnover, the average number of employees.
For legal entities for which the balance sheet date exceed the limits of two of the three size criteria set out by the regulations (total assets in value of 3,650,000 Euros, net turnover of 7,300,000 Euros and the average number of employees equals or exceed 50) the annual financial statements must include: stock declaration (form code 10), profit and loss account (form code 20), statement of changes in equity, cash flow statement, notes for the annual financial statements.
This documentation must be accompanied by the form named “Informative Data" (code 30) and by the "Statement of fixed assets" (code 40).
The abridged annual financial statements must be deposited by legal entities with a balance sheet that does not exceed the limits of two of the size criteria set out above.
Their financial statements must include: the abridged balance sheet (form code 10), profit and loss account (form code 20) and explanatory notes to the condensed financial statements.
Optionally, they can provide the statement of changes in equity and / or cash flow statement. This will be accompanied by the form " Informative Data" (code 30) and the "Statement of fixed assets" (code 40) .
The procedure of simplified annual financial statements is valid for the legal entities that have recorded in the previous financial year a maximum net turnover of 35,000 Euro, equivalent in RON and maximum total assets of 35,000 Euro, equivalent in RON.
The procedure of depositing simplified annual financial statements is regulated by the Order no. 2.239/2011 issued by the Romanian Minister of Finance.
The legal entities eligible for the simplified procedure must deposit a simplified balance sheet (form code 10), profit and loss account (form code 20). These statements must be accompanied by the form "Informative Data" and by the "Statement of fixed assets".
The Informative Data for all types of financial statements must present the distribution of profits or the cover the loss, depending on the existing situation.
Depending on the type of legal entity there must be also presented an internal or external auditor report.
The Romanian law sets the deadlines for depositing financial statements as following:
- within 150 days of the end of 2013 for companies, autonomous administrations, national companies and research and developing institutes;
- within 120 days of the end of 2013 for non-profit organizations, cooperative societies, branches of foreign persons performing activities in Romania;
- within 90 days of the end of 2013 for legal entities in liquidation situation s
- within 60 days of the end of 2013 for entities that have never conducted business since the formation.
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