I heard there are new legal provisions regarding the submission of annual financial statements for 2016. Is this true? If so, what do these provisions refer to?
Indeed, Order no. 23 / 28.01.2016 published in the Official Gazette refers to the main aspects of preparing and submitting annual financial statements and annual accounting reports of economic operators.
According to the provisions of this order, its provisions are enforced by entities to which the accounting Regulations relating to the annual individual financial statements and the consolidated annual financial statements apply, as well as those entities which are under the accounting Regulations in accordance with the International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market.
Entities under the accounting Regulations on individual annual financial statements and the consolidated annual financial statements are required to prepare and submit annual financial statements to the territorial units belonging to the Ministry of Finance.
Regarding 2015, companies whose securities are admitted to trading during this taxable year must prepare individual annual financial statements under IFRS by restating information from accounts held under accounting Regulations relating to the individual and consolidated annual financial statements, following that in 2016, companies whose securities are admitted to trading during the financial year of 2015 to keep accounts under the provisions of IFRS.
It is useful to know that entities may choose a financial year different from the calendar year pursuant to art. 27 of Law no. 82/1991.
For companies that operate in Romania through multiple PEs, annual financial statements and accounting reports will be drawn up by the permanent establishment fulfilling tax obligations. Moreover, the law stipulates that permanent headquarters in Romania which belong to legal entities domiciled abroad are required to prepare annual financial statements and accounting reports.
What are the legal deadlines for the submission of financial statements and accounting reports in Romania?
Regarding the deadlines for submitting financial statements and accounting reports, the Order provides that:
- authorized entities, regulated and supervised by the National Bank of Romania or FSA (The Financial Supervision Authority), prepare annual financial statements on December 31st, considering also the general provisions of the section. I.1.4 and I.1.5 of Annex no. 1 of the Minister of Finance Order No. 123/2016;
- non-profit legal persons prepare closed annual financial statements on December 31st, considering, alongside regulations applicable to them, the general provisions of the section. I.1.3 of Annex. 1 of the Minister of Public Finance Order no. 123/2016;
- companies, societies or national companies, autonomous administrations, national institutes of research and development, within 150 days after the financial year end;
- The other persons who are mentioned in art. 1 para. (1) - (3) of Law no. 82/1991, as amended and supplemented, like public institutions, associations and other legal persons with or without patrimonial purpose, within 120 days after the financial year end;
- Subunits in Romania belonging to legal persons established or residing abroad shall submit annual financial statements to the territorial units of the Ministry of Finance within 150 days of the financial year end.
- Legal entities that are in liquidation shall submit an annual accounting reporting, during the liquidation, within 90 days from the end of the calendar year, to the territorial units of the Ministry of Finance.
Also, entities opting for a financial year different from the calendar year, as well as subunits opened in Romania by companies resident in countries belonging to the European Economic Area, have the obligation to file annual accounting reports within 150 days after the financial year end.
Annual financial statements and documents required by law, shall be submitted on paper and in electronic form at the registry of the territorial units of the Ministry of Finance or to the post offices, through letters with declared value, or only in electronic form on the portal www.e-guvernare.ro, attaching an electronic signature.
For further information and legal advice in respect of deposits of financial statements in 2016, do not hesitate to contact one of the lawyers specialized in commercial law within the law firm Darie, Manea & associates. Our team of lawyers is dedicated to provide our customers with complete and updated information, legal advice and representation before the competent authorities if required.