Romania: Business Environment
Several laws are governing accounting principles and standards in Romania:
- The Ministry of Economy and Finance: Order No. 907/2005; Order No. 1752/2005; Order No. 1121/2006; Order No. 2001/2006, Order No. 3055/2009, Orders No .1286/2012 and No. 881/2012 on the Application of the IFRS
- National Ethics Code for the accounting profession
- Regulation No. 1606/2002 by the European Parliament Assembly of 19 June 2002 on the Application of International Accounting Standards
- The National Bank of Romania : Order 27/2010 on the Application of the IFRS
All domestic companies whose securities trade in a regulated market are required to use IFRS standards as adopted by the EU in their consolidated financial statements.
In case of listings by foreign companies, IFRS Standards are required in the consolidated financial statements, but if the standards of the foreign company's home jurisdiction are deemed by the EU to be equivalent to IFRS Standards, the company may use its home standards.
IFRS Standards as adopted by the EU are required for all credit institutions (National Bank of Romania Order no. 27/2010) and all insurance companies (CSA Bulletin no. 202/2012), including those whose securities do not trade in public markets.
The results give emphasis to the overall production and classifies expenses by type.
SMEs have to prepare a simplified balance sheet, income statement and notes explaining the details of the financial report.
Companies which have exceeded the criteria included in law no. 1752/2005 over two consecutive years or more must prepare a comprehensive annual financial report (balance chart, income statement, account statements, changes in shareholders, explanatory notes to accompany the financial report).
The parent company is exempt from consolidating financial reports if, on the date of the financial statement, the entities that must be consolidated do not exceed two of the three following criteria:
- Total balance: EUR 17,250,000
- Sales figures: EUR 35,040,000
- Average number of employees during the accounting year: 250
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Latest Update: May 2024