Law 30/2007, of December 20, the accounting for entrepreneurs since the General Council in its session of December 20, 2007 has approved the following: law 30/2007, of December 20, the accounting for entrepreneurs preamble constitutes an accounting information system of business activity that meets a set of functions in both the domestic to satisfy the interest of the employer to find out the status of your company and thus rational business decisions from the economic perspective, as well as in the external sphere, to satisfy the interests of creditors and of the partners with respect to knowledge of the asset and financial situation and the results of the company and also the interests of other groups and the State for the design and execution of the different economic policies.
It is clear that the functions deployed for accounting the site such as an essential element for the development of the economy of the Principality and only by this can not be delayed over the establishment of the duty of accounting for entrepreneurs such as exists in the whole of the United States located in the same geographical and cultural environment and/or, in particular, in the Member States of the European Union.
But the imperative nature of this duty is due also to the need to ensure the standardization of the content thus contributing equally to the deployment of business not only in the domestic but also and mainly in the international arena.
To meet the interest relating and achieve the purposes indicated, this law is structured in four chapters, thirty-nine articles, an additional provision, two transitional provisions and final provisions. The chapter I establishes the duty of accounting for all employers, in accordance with the definition of this concept in the law, irrespective of the nature of the economic activity deployed. Also, as a general, regulate the way of bringing the accounting, the duty and the duty of confidentiality of accounting, that can only be required by magistrates or courts and by the Ministry of finance and the INAF, in the exercise of its functions.
Chapter II covers the discipline of accounting books imposing the obligation to take, at least, two books: the book and the book of inventories and annual accounts; as essential elements to bring an orderly accounting and appropriate to the nature and size of the company and to comply with the obligation to formulate the annual accounts.
Chapter III contains the rules governing the annual accounts referred to the Andorran accounting model built on the basis of the accounting system set up in the accounting directives of the European Union and by integrating in this defining elements of the conceptual framework for the preparation and presentation of financial statements. The objective pursued with this model is to combine the legal security, which makes it necessary to regulate the structural elements of the accounting model in a rule with the rank of law and flexibility should be allowed to alter the regulatory deployments quickly and effectively, in front of the changes as a result of the dynamism of the economic reality may occur in the area of international accounting standards and international financial reporting standards (IAS and IFRS).
In the definition of the annual accounts is still the system established by the fourth Community directive on accounting matters but introduces two new international accounting standards foreseen in the financial statements: the statement of changes in equity and the cash flow statement. However, the latter are not required to formulate it entrepreneurs who can present the models of abbreviated financial statements.
In the regulation of members of the annual accounts has defined the essential content and also has incorporated the definition of its elements: assets, liabilities, equity, income and expenses, adjusting to the mentioned conceptual framework and to determine the items of equity will, on the basis of the notion of established liabilities, to the need to take into account not only the legal form but above all, the economic reality of operations. Finally, following the same accounting system, also provides for the obligation to formulate the management report, solely for the limited liability companies act and who have to submit to audit the annual accounts.
Finally, chapter IV establishes the discipline of the consolidated annual accounts that, while it is not expected to enter into force before 2010, in contrast to the diet of the individual annual accounts, it seems necessary and opportune to foresee in this Act, taking into account the general nature of the accounting for entrepreneurs. In this area include, above all, the delimitation of the scope of consolidation which, based on the system established for the seventh Community directive on accounting, introduces the obligation of consolidation, not just vertical, but also groups of horizontal packs, when control of the subsidiaries that make up the same group of companies corresponding to one or more people , natural or legal, that they act together.
Finally, it is expected that the Government develop a General Accounting plan taking into account the international accounting standards and international financial reporting standards (IAS and IFRS).
Chapter i. General provisions Section 1. Of the duty of accounting Article 1 Definition 1. Employers must carry an orderly accounting and appropriate to the nature and size of the activity, in accordance with what is established in this law and other applicable provisions.
2. For the purposes of this law, are considered employers: a) The natural persons who carry out business or professional activities.
b) companies and other legal persons, if at all.
c) other entities that, having or not legal personality, constitute an economic unit or a separate heritage, when operating business activities or professionals.
Are considered to be business or professional activities which involve the Organization for its own account of human and material factors of production or of any of these factors of production, in order to intervene in the production or distribution of goods or completion of services.
Article 2 Purpose the accounting should allow chronological monitoring of all
operations carried out by the employers in the exercise of their activities and the periodic production of the accounting documents required by these same.
Article 3 Liability the accounting should be led directly by the employer or by the people who authorize the same and without prejudice to his responsibility.
Section 2a. The way to bring accounting Article 4 The accounting documents should lead with clarity, in order of time, without blank spaces or interpolations. Errors and omissions in the accounting entries are saved then immediately that irregularities.
Article 5 Abbreviations In the accounting documents cannot use abbreviations or symbols, the meaning of which is not accurate in accordance with this law, other applicable provisions or the accounting practice of general application.
Article 6 The Currency value of the accounting entries and the components of the annual accounts must be necessarily expressed in euros.
Section 3a. The duty to preserve Article 7 Duration employers should keep and safeguard order and for a period of six years, counting from the date of the last annual closure, all accounting documents and correspondence, documents and receipts relating to their activity.
Article 8 special circumstances the duty of maintenance is required entrepreneurs individuals even though they no longer hold its activity and in case of transfer corresponds to their heirs the compliance. In the event of dissolution of the company corresponds to the liquidators to accomplish the duty of conservation.
Section 4a. The duty of confidentiality Article 9 The Principle accounting for entrepreneurs is confidential, without prejudice to the have the laws.
Article 10 the general or particular display Display of the accounting documents, correspondence, documentation and accounting receipts can only be required to: a) the mayor or corresponding court, ex officio or at the request of a party.
b) the Ministry of finance and the INAF, for the exercise of functions that are attributed to it.
Article 11 and is in any case, the display of accounting must be made in the establishment of the entrepreneur and his presence or that of the people who created and adopted the necessary measures to ensure the conservation and safekeeping.
Article 12 of the probative value of the accounting documents is appreciated by the batlle in accordance with the General rules of law.
Chapter II. Of the accounting books Article 13 required mandatory accounting books Books that necessarily need to bring entrepreneurs are the book and the book of inventories and annual accounts.
Article 14 The daily book book journal must collect in the form of settlements and in chronological order each and every one of the operations carried out every day by the employers in the exercise of their activity. However, they are valid global settlements of operations for periods not exceeding one month, provided that the details of these settlements in proof in other books.
Article 15 of Book inventories and annual accounts the book inventories and annual accounts must start with the transcript of the initial balance, also must be transcribed with quarterly balance sheets of sums and balances and at the end of the year the inventory and the annual accounts.
Chapter III. Of the annual accounts Section 1a. The wording of Article 16 Definition With closing date of the financial year, and within a maximum period of six months to that date, employers have to formulate and sign the annual accounts comprise the balance sheet, unit that forming a profit and loss account, the statement of changes in equity, cash flow statement and the memory.
Article 17 Structure 1. The structure and the content of the documents that make up the annual accounts must conform to regimented models by the Government and only exceptionally and leaving evidence and justification in the memory can be changed from one year to the other.
2. The regulation of the Government referred to in the previous section should establish abbreviated models of annual accounts that can formulate all the entrepreneurs who for two consecutive exercises together, at least two of the following circumstances: a) the total of the assets does not exceed three million six hundred thousand euros.
b) That the amount of the annual turnover of the business does not exceed six million euros.
c) That the number of workers during the year does not exceed twenty-five.
3. Employers who, in accordance with the provisions of the preceding paragraph, can formulate the abbreviated models of annual accounts, are not required to make the cash flow statement.
4. In the documents that make up the annual accounts, the games included in the models approved by regulation of the Government there must appear separately and in the order that they appear.
5. As long as they respect the structure of the models approved by regulation of the Government can be made a more detailed subdivision of the games provided and also add new ones when your content is not included in any of the previews.
6. Equally, can be grouped certain games when only represent an amount that is irrelevant to show the true picture that must provide the annual accounts and submissions are differentiated form in memory.
7. In each of the games of the documents that make up the annual accounts must include the figures of the financial year to which they refer and the corresponding to the financial year immediately prior. When these figures are not comparable, for parameters, you need to adjust the amounts of the previous year.
Article 18 guiding principles 1. The annual accounts have to write with clarity and show the true picture of the assets, financial situation and results of the entrepreneurs in the exercise of their activity, in accordance with the provisions applicable in the field of accounting.
2. In the event that the application of the provisions in the field of accounting is not enough to show the true picture, must be supplied to the memory the additional information required to achieve this result.
3. Exceptionally, do not have to apply the provisions in the area of accounting that are incompatible with the result to show the true picture. In this case, the memory must be noted and sufficiently motivated the lack of application of the corresponding provision in the area of accounting and its influence on the assets, the financial situation and results.
Article 19 accounting principles
1. The settlements and the assessment of the elements that make up the games of each of the documents that make up the annual accounts have been made by applying the following accounting principles: a) the beginning of company operation: If there is no proof to the contrary, you should presume that the company is still in operation.
b) principle of registration: the economic facts must be registered when born the rights and obligations that they originate.
c) principle of uniformity: no need to vary the assessment criteria of the elements that make up the games of the documents that make up the annual accounts of an exercise on the other.
d) principle of prudence: you only have to count the benefits obtained up to the date of closing of the exercise. However, we have to take into account all the risks with origins in the exercise or on another front and the depreciation and value corrections of the elements of the asset.
e) principle of accrual basis: expenses and revenues must be allocated to the year to which they refer are annual accounts, regardless of the date of payment or collection. This principle is not applicable to the formulation of the cash flow statement.
f) principle of separate valuation: the elements that make up the games of the documents that make up the annual accounts must be assessed separately.
g) the principle of purchase price or production cost: the assets must be taken into account for the price of acquisition or production cost and liabilities by the value of the consideration received in Exchange for incurring the obligation, plus the accrued interest pending payment. The Government by Decree should set the assets that have been valued for its fair value, in accordance with the criteria established by the international accounting standards.
h) principle of non-compensation: they cannot compensate for the items of the assets and the liabilities or expenses and income.
and income and expense correlation Principle): the result of the exercise is made up of income from this period less the expenses incurred during the said period for the obtaining of that, as well as for the profits and losses are not directly related to the business activity.
j) principle of relative importance: in exceptional cases and provided that alter the true picture that must provide the annual accounts, supported the non-application of certain principles. In these cases, the memory must be noted and sufficiently motivated the lack of application of the principle and explain the influence on the assets, the financial situation and results.
2. In cases where a matter is not expressly regulated in the provisions in force in Andorra in accounting, you must take into account the criteria set out in the international accounting standards and international financial reporting standards (IAS and IFRS).
Article 20 Signature 1. The annual accounts of the employer physical person must be signed by himself, the societies in which the partners are responsible for the social debts indefinitely, for all of these, and of the limited liability companies act and designated by the administrators.
2. Except in the case of the employer physical person, when at all, any or some of the documents that make up the annual accounts lack the signature of any of the persons indicated in the previous section, you must state this is missing in the corresponding documents and indicate the cause.
3. In the antefirma has to express the date on which the annual accounts have been formulated.
Section 2a. Article 21 of the balance sheet contained in the balance sheet should appear separately the assets, liabilities and net worth. The initial balance of a financial year must correspond to the closing balance of the previous year.
Article 22 Active 1. The assets comprise assets, rights and other resources economically controlled by the employer, resulting from past events, of which it is likely that the employer you get benefits and that have been classified separately and depending on their involvement as fixed assets or not running as an active working capital or current.
2. The circulating assets comprises the goods, rights and other resources that are expected to be sold, consumed or made as a result of the normal operation of the company, as well as his maturity, disposal or realization is expected to occur within a maximum period of one year from the date of closing of the exercise.
3. other assets, rights and other non-financial resources referred to in the previous section must be classified as fixed assets.
Article 23 Depreciation and correction of value 1. The elements of the fixed assets useful life of which has a time limit must be rational and systematic way to amortize during the time of use.
2. However, in the case of a deterioration of the items of fixed assets or working capital are to carry out the necessary value corrections in order to determine the value that corresponds on the date of closing of the exercise.
Article 24 the Update value 1. The limited liability companies act and can update the accounting value of the assets provided that the update is in the application of accounting principles, IAS and IFRS.
2. In the case of update of the value of assets should be obliged to set up a backup and this should be stated in the balance sheet as a game of the net.
3. The reassessment referred to in the previous section, you have to make up for the amount corresponding to the difference between the value by which the asset figure in the last annual accounts were approved and the result of the application of accounting principles. The revaluation reserve is unavailable for a period of 10 years, after which, only can be used to offset losses or to increase capital. In no case can be used to distribute benefits, unless the capital gain has been effectively carried out.
Article 25 Liabilities 1. The liabilities includes the obligations of the employer, arising from past events, the extinction of which is likely to produce a decrease in resources that can produce economic benefits and that have been classified separately as liabilities not running or as liabilities working capital or current.
2. Liabilities current assets or current liabilities includes the expiration of which is expected to occur within a maximum period of one year from the date of closing of the exercise.
3. The remaining obligations not referred in the previous section should be classified as non-current liabilities.
4. The obligations on which there is uncertainty with respect to their amount or due date must appear separately.
Article 26 net equity are the assets that remain once deducted all liabilities and includes the contributions made by the owners or by partners who do not have the consideration of liabilities as well as the results accumulated and other variations that affect them, and you have to differentiate the equity of the other games you make.
Section 3a. Profit and loss account Article 27 Content The profit and loss account must collect the results of the exercise, configuring them separately the income and expenses of the said exercise and distinguishing the results caused by the ordinary activity of not having this origin.
Article 28 Items 1. The income consists of net increments produced during the year to which they refer to the annual accounts as a result of an increase in the value of assets or a decrease in the value of liabilities, as long as they do not have their origin in contributions from the owners or partners.
2. The expenses comprise the decrements of equity during the financial year to which they refer to the annual accounts as a result of a decrease in value of assets or an increase in the value of liabilities, as long as they do not have their origin in distributions are owners or partners.
Section 4a. The statement of changes in equity Article 29 contained in the statement of changes in equity should be the result of the exercise, changes to changes in accounting principles, the bug fixes and other tweaks and changes in value you have to impute to the net, such as those derived from the criteria of reasonable value.
Section 5a. Cash flow statement of the Article 30 content in the cash flow statement should be sorted and grouped by categories or types of activities, all collections and payments made during the year to which they refer to the annual accounts, and in order to report on the movements of cash produced during the exercise.
Section 6a. Of the memory memory Content Article 31 must complete, enlarge and comment on the information provided by other documents that make up the annual accounts and at least must contain the indications that the Government determined by the regulations.
Section 7a. Article 32 management report Content entrepreneurs who have to submit to audit the annual accounts have to formulate the management report which must contain, in the terms that the Government reglamenti, an exhibition true about the evolution of the business and the situation of the society, with a description of the main risks and uncertainties to which faces, and must also report the major events that can alter the closure next year.
Chapter IV. Of the consolidated annual accounts Article 33 Defining The consolidated annual accounts form a unit which comprises the consolidated balance sheet, the consolidated profit and loss account, the statement of changes in equity consolidated cash flow statement the consolidated and the memory.
Article 34 Formulation 1. With closing date of the financial year, and within a maximum period of six months to that date, the administrative body of the matrices of the groups of companies must formulate and sign the annual financial statements and consolidated management report including these, all the subsidiaries that belong to the same group of companies and also any subsidiary of such , regardless of their legal form and its registered office and in accordance with what is established in this chapter.
2. When it is not possible to identify the parent company of a group of companies or when control of the subsidiaries that make up the same group of companies corresponding to one or several persons, natural or legal, that they act together, the obligation set out in the previous section corresponds to the administrative organ of the Group company, the assets of which, have a higher amount on the date of the first consolidation.
3. For the purposes of this chapter, belong to the same group of companies constitute a decision because a company, the parent company, controls or can control directly or indirectly, one or more companies, the subsidiaries, or because this control corresponds to one or several persons, natural or legal, that they act jointly under statutory clauses or agreements.
4. For the purposes of this chapter, a society considers parent company of a group of companies when in relation to one or several companies, which for the purposes of this Act are deemed to be subsidiaries and, that's why make up the same group of companies, is located in one of the following situations: a) Holds the majority of voting rights.
b) Has the disposal of a majority of the voting rights by virtue of agreements celebrated with other partners.
c) Have the right to appoint or cease the majority of administrators.
most of the managers) has appointed exclusively with their votes and they display your position in the time in which they must comply with the obligation set out in the first section of this article and during the two exercises immediately prior.
e) when most of the managers are also managers or senior executives of the parent company or a subsidiary of it.
5. For the purposes of the preceding paragraph, the voting rights of the parent company have been to add voting rights holding through any of its subsidiaries, or any person acting on their own behalf but on behalf of the parent company or any subsidiary of that or those who have concertadament with anyone.
6. The obligation set out in the first and second paragraphs of this article does not apply when on the closing date of the financial year of the company required to consolidate, the set of the companies included in the consolidation does not exceed two of the three thresholds established in article 72 of the law on public limited companies and limited liability for the purpose of submitting the annual accounts to the assessment of a person who has the legal status of auditor of accounts.
Article 35 Audit 1. The General meeting of the company, the administrators of which are required to formulate the annual accounts, shall appoint the auditor of accounts that must verify the annual accounts and the consolidated management report. The agreement of the General meeting must fix the duration of the appointment and the criteria for the calculation
the remuneration of the auditor of accounts, and it has to adopt before the end of the year subject to the audit.
2. The auditor should check the concordance of the management report with the consolidated annual accounts and that these show the true picture of the assets, financial situation and results of the companies included in the consolidation, in accordance with the applicable accounting standards. You should also write, within a maximum period of three months from the receipt by the company of the annual accounts, formulated and signed by the administrators, a detailed audit report on its performance, in which expresses the observations, and/or relevant reservations.
Article 36 Adoption and deposit 1. The annual accounts and the consolidated annual report must be submitted to the approval of the General meeting of the company, the administrators of which are required to formulate consolidated annual accounts, simultaneously with the annual accounts of the company.
2. The members of each of the companies included in the consolidation are entitled to obtain from the company obliged to formulate consolidated annual accounts, the documents that form, as well as the consolidated management report and audit report.
3. The certification of the agreement approves the annual accounts, together with a copy of the consolidated annual accounts and the Auditors ' report, if applicable, must be presented for deposit into the registry of companies within a maximum period of one month, counter from the date of adoption of the resolutions. The Government, by regulation, has to modulate the kinds of information and documentation to be deposited in the register of companies depending on the magnitude of the same.
4. Failure to comply with this obligation is subject of annotation in the register of companies and advertising for part of this. The manner and the procedure for compliance with this obligation and the annotation of any breach thereof will be determined by the regulations.
Article 37 applicable accounting standards 1. For the formulation of consolidated annual accounts have to apply the international accounting standards and articles 33 and 34 when on the closing date of the exercise of any of the companies included in the consolidation have issued securities that are admitted to trading on a regulated market of any Member State of the European Union.
2. Out of the case provided for in the preceding paragraph, the consolidated annual accounts have been made by applying, or accounting rules provided for in this law and in the provisions that develop, or international accounting standards. In the latter case, the consolidated annual accounts have been made continuously applying these rules and articles 33 and 34 of this law.
Article 38 Rules the structure and content of the consolidated financial statements has been adjusted to the regulations approved by the Government models and, with the necessary adaptations, in accordance with the provisions of articles 21 to 32 of this law.
2. In the event that the closing date of the financial year of a company included in the consolidation to be above in more than three months to the date corresponding to the consolidated accounts, inclusion in these has to do with the formulation of specific annual accounts relating to the date of formulation of the statements.
3. In the report should include information on the variations during the year have been produced with respect to the companies included in the consolidation, in order to make comparable to the successive consolidated annual accounts.
4. The elements that make up the assets, liabilities, income and expenses have been valued in accordance with the principles established in this law and applying the same principles used to formulate the annual accounts of the company required to consolidate.
5. Part of the assets, liabilities, income and expenses of the annual accounts of a company included in the consolidation have been valued in accordance with principles other than those applicable to the formulation of consolidated annual accounts have to be evaluated again in accordance with the latter.
Article 39 methods 1. The assets, liabilities, income and expenses set out in the annual accounts of the companies included in the consolidation have been together and add in the consolidated annual accounts by applying the method of global integration.
2. The companies jointly managed by one or several companies included in the consolidation and for one or several companies not included in the consolidation must be integrated into the consolidated accounts using either the proportional integration method, or the equivalent startup procedure or method of participation.
3. Companies not included in the consolidation but in which a company included in the consolidation has a stake of 20 to 100 or more of the voting rights, should be integrated into the consolidated financial statements using the equity accounting procedure or method of participation.
4. The Government should regulate about homogenization, adjustments and eliminations for the application of various methods of consolidation.
Additional disposal all employers are required to deposit their annual accounts in the record of deposit of accounts pursuant to the regulation approved by the Government. Employers that have the form of a public limited company or limited liability company shall be governed by the special legislation.
Employers who have an annual turnover of business less than 100,000 euros are excluded from this obligation.
It entrusts to the Government the adoption of a regulation that establishes a simplified accounting scheme for entrepreneurs who have an annual turnover of business less than 100,000 euros.
Transitional provisions First for the first accounting year of application of the law, the presentation of the annual accounts may not make up the figures of the previous year.
Second, employers who at the time of entry into force of this law shall comply with the requirements for the presentation of the summary of the annual accounts models can submit the annual accounts and, where appropriate, the consolidated annual accounts, in accordance with these models abbreviation.
Final provisions First for the purpose of developing the forecasts of this law, the Government, by Decree and within a maximum period of one month, counter from the entry into force of this law, must approve the General Accounting Plan, taking into account the international accounting standards and international financial reporting standards (IAS and IFRS).
The Government by regulation has approved before December 31, 2010, the rules for the formulation of consolidated annual accounts, taking into account the international accounting standards.
Third, the law of general budget may update or modify the monetary thresholds set out in this law.
Fourth this law enters into force on the first day of the calendar year following their publication and will apply in respect of the accounting exercises that start from this date.
Casa de la Vall, December 20, 2007 Joan Gabriel i Estany Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.
Joan Enric Vives Sicília Nicolas Sarkozy President of the French Republic and the Bishop of Urgell Co-prince of Andorra Co-prince of Andorra