The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on the annual accounts of companies" make law "Of the annual accounts" (the Republic of Latvia Supreme Council and Government Informant, 1992, 44/45.nr.; The Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1995, no. 8; in 1996, no 24; in 1998, nr. 6, 21; 2000, no. 2; 2001, no. 9; 2004, no. 2; 2005, no. 13) the following amendments: 1. Put the name of the law as follows: "the annual report of the law".
in part 2, the terms "law": replace the term "management" in the first sentence of the explanation of the word "company" with the word "society";
replace the term "group" in the first sentence of the explanation of the name "enterprise" (fold) with the word "public" (fold);
exclude terms "related undertakings", "associate", "parent company", "Group subsidiary company" and their explanations;
replace the term "statement of changes in equity", "trading portfolio", "against the risk to ensure the item", "investment property" and "biological assets" explanation, the word "company" (the fold) with the word "public" (fold);
exclude terms "financial assets", "financial obligations", "held for trading financial assets or financial liabilities" and their explanations;
turn off the term "held-to-maturity investments" and the explanation;
turn off the term "loans and claims" and the explanation;
turn off the term "available-for-sale financial assets" and its explanation;
replace the definition of "investment property" in the interpretation of the words "land, a building or a part of it" with the words "land plots, buildings, structures, or parts of these objects" and the words "in the course of business" — with the words "in the course of an economic activity";
Add to part with the following paragraph: "the law, the terms" related "," financial assets "," financial obligations "," held-to-maturity investments "," loans and receivables "and" available-for-sale financial assets "matches in international accounting standards adopted in accordance with the European Parliament and of the Council of 19 July 2002, Regulation (EC) No 1606/2002 on the application of international accounting standards, used terms."
3. Article 1: expressions of the first and second subparagraph by the following: "(1) this Act applies to companies established in Latvia, cooperatives, individual companies, farmers and fishermen, as well as on farms in Latvia registered European economic interest groups, the European cooperative societies and European commercial companies (hereinafter, the company).
(2) this Act does not apply to individual companies, farmers and fishermen whose vanity SAIM turnover (revenue) of economic transactions in the preceding financial year exceeds 200 000 LVL. ";
to supplement the article with a fifth by the following: "(5) the company, in accordance with the financial instruments market law shall prepare annual accounts in accordance with international accounting standards adopted in accordance with the European Parliament and of the Council of 19 July 2002, Regulation (EC) No 1606/2002 on the application of international accounting standards (referred to in this article, between the folksy accounting standards): 1) by way of derogation from article 5 of this law, the requirements of balance sheet, profit and loss calculation scheme the cash flow statement and statement of changes in equity, you can hide some of the items of the financial statements, if they are not essential or not reporting it makes financial reporting more transparent, and create that report items on a different layout or include additional items, but in any case, the items reflected information should comply with international accounting standards;
2) by way of derogation from this rule 5 and 7.1 Chapter annual report items shall be in accordance with international accounting standards;
3) in addition to this law, the requirements of Chapter 6 of the annual report explanatory information provided in accordance with international accounting standards. "
4. in article 3: the first part of the expression the second sentence as follows: "a different reporting year beginning and end can only be registered in Latvia company, a cooperative society, established in Latvia for European economic interest group, the European company and the European cooperative company, if it is determined that the statutes of the company or the public.";
replace the third paragraph, the words "the company" with the words "newly formed";
replace the fourth subparagraph, the words "existing company" with the words "existing company";
replace the fifth paragraph, the words "the company reorganize or it ceases its activities" with the words "public or reorganise it ceases its activities".
5. in article 4: replace the first, third, fourth and fifth paragraphs, the word "company" (the fold) with the word "public" (fold);
off in the third paragraph, the word "it".
6. Article 5: replace the first part of the word "company" with the word "public";
to make the fourth subparagraph by the following: "(4) in exceptional cases may not apply the second paragraph of this article, if the requirements of profit or loss calculation schema changes is based on the Group's subsidiaries and the parent company of a group of affiliated societies use the same scheme."
7. Replace article 6, first paragraph, the word "company" with the word "society".
8. Make article 9 the second paragraph as follows: "(2) the company acquired own shares or part indicates the balance sheet item" shares or parts "but the participation Group subsidiary company or parent company or other subsidiaries of this group or that Group subsidiary companies a subsidiary company of the balance sheet item" indicates the company May exercise the related capital ". Public participation in the other, they substantially affect existing in the company, which is provided with not less than 20 but not more than 50 percent of the shareholders ' or members ' voting rights in that company, the balance sheet item "participation in the equity of associated companies". "
9. in article 10: (I) the items in the group to make "investment in intangible assets" item 1 by the following: "1. Development costs.";
make groups of items (I) "intangible assets" in item 4 by the following: "4. the goodwill.";
to complement the "long-term investments" with a new item (iii) and (IV) a group of items in the group as follows: "III. Investment property.
IV. Biological assets. ";
consider the current item group III "long-term financial investments for a group of items in V;
replace the words "related companies" (fold) with the words "affiliated undertaking" (the fold);
replace the words "associated companies" (fold) with the words "associated companies" (fold);
replace the words "partner" with the words "shareholders or participants";
to complement the "current assets" with a new item group II the following: "(II). Held-for long-term investments."
consider the current item group II "accounts receivable", a group of items in the "III short-term financial investments and (IV) a group of items in the" money "on items III, IV and V Group;
to exclude the item group "long-term creditors ' 13. item 13 financial year" dividends. ";
to exclude the item group "long-term creditors ' item 14., the words" previous year ";
to exclude the item group "short-term creditors ' 13. item 13 financial year" dividends. ";
to exclude the item group "short-term creditors ' item 14., the words" previous year ".
10. Express article 11 paragraph 3 by the following: "3. The long-term investment in applied (capitalised) cost."
11. Replace the 11, 12, 13 and 14, the words "associate" with the words "associated company" and the words "company" of economic activity — with the words "economic activity".
12. Article 13: replace the item "expenses" in paragraph 3 of point "b", the word "company" with the word "society";
to express the "revenue" part of paragraph 3 by the following: "3. The long-term investment in applied (capitalised) cost."
13. Express article 18, second subparagraph by the following: "(2) the costs of the Research and formation expenses should not be capitalized. Development costs may include intangible investments in the balance sheet under "development costs" only if all the following conditions are true: 1) the company intends to complete the asset to use the company's own requirements or sold;
2) public it is possible to complete this active object, and it is available in the appropriate technical, financial and other resources to complete the asset and use the company's own requirements or sold;
3) company can demonstrate that the economic benefits from the use of this asset or sales will be received in the future;
4) society can reliably assess the cost of this asset. "
14. off 20.1 in the first paragraph, the words "and current Payables" and the words "in respect of current assets (items group" Customer ") and".
15. Express article 20.2 as follows: "article 20.2 investment property, biological assets and the sale of long-term investments held by the company are presented separately from other assets in the balance sheet asset items, including a new, duly named items."

16. Replace article 21, article 22, third paragraph, and article 23, first and second paragraph, the words "company" (the fold) with the word "public" (fold).
17. Article 24: replace the first paragraph, the words "companies" with the words "companies";
replace the third paragraph, the word "company" with the word "society";
replace the words "in the fourth paragraph of the balance sheet date, the company has exceeded the" with the words "the public balance sheet date is exceeded".
18. Replace article 25, the word "company" (the fold) with the word "public" (fold).
19. Put article 35, second subparagraph by the following: "(2) If the item" goodwill "acquisition cost specified useful life it is not possible to determine this item evaluates the cost of acquisition, less any accumulated impairment losses."
20. Article 37 of the turn in the third paragraph, the word "company".
21. Replace the words "article 38 company shares or parts sold" with the words "shares or parts sold".
22. Article 42 of the expression by the following: ' article 42 (1) of the annex indicates the Group's subsidiaries and associated company name and legal address and the Group's constituent companies (of which drafted the annual report) the participation percentage of the share capital. Also indicate the Group's subsidiaries and associated society of equity and profit or loss according to each of the company's latest reply to the annual report to compare. This information may not be provided if it is not important in this law article 4 of part three of the requirements.
(2) in the first paragraph of this article, certain information may not be provided if it would seriously harm the public interest concerned, the annex indicates that this information is not available for this reason.
(3) referred to in the first paragraph of the company's capital and the amount of profit or loss may not display if the company does not publish its annual report and if part of the participation is less than 50 percent. "
23. Replace article 43, the words "business capital" with the word "capital".
24. the express article 44 the first sentence the following wording: "If a company has done the loan that can be converted to shares shall be subject to the presentation of each such amount paid on the loan, the exchange rate and the dates by which this convertible capital."
25. Article 45: make the second, third and fourth subparagraph by the following: "(2) if the company's assets are pledged or encumbered with any repayment on the loan security, it point along with information on the mortgage or other loan repayment guarantee of the security conditions and the pledged object value in the balance sheet. Separately its total accounts payable that are covered with secured šinājum provided by the related company, stating the nature and form of the security.
(3) it is necessary to specify the age pension guarantees and guarantee obligations, the discounted bills of Exchange are not reflected in the balance sheet and other financial liabilities the total amount. If the company has entered into a lease or rental agreements, which are essential for its operation, the obligations laid down in those treaties must be indicated specifically. Obligations to current and former employees for pensions and a commitment to the twin companies separately.
(4) the advance issued to management, loan or guarantee liabilities amounts indicate the breakdown of the individual position groups (Council and Board members), mentioning the interest rates, main conditions and amounts repayable. ";
turn off the fifth;
to supplement the article with the sixth part as follows: "(6) the total amount of remuneration separately for the year under review or in the public sworn auditor certified auditor company (hereinafter referred to as the sworn auditor) for: 1) annual report;
2) other audit tasks;
3) consultations in tax matters;
4) other expert tasks. "
26. Replace article 46, first paragraph, the word "company" with the word "society".
27. Article 48: replace the first paragraph, the words "company" with the word "society";
make the second paragraph as follows: "(2) the first paragraph of this article shall not apply to companies that can use the profit and loss statement in accordance with the scheme of this law article 24, first paragraph. Other companies may in the first paragraph, not to provide the information requested, if it would seriously harm the public interest concerned, the annex indicates that this information is not available for this reason. "
28. off the third subparagraph of article 49.
29. To make article 50 the second subparagraph by the following: "(2) control of the functions assigned Rewards points totals by individual position groups (Council and Board members). The same applies to pensions and similar obligations to former members of the governing bodies. "
30. Replace article 51, first paragraph, the words "enterprise" with the words "public" and the words "of his company's capital" — with the word "capital".
31. the express 54. the first paragraph by the following: "(1) If the reporting year the subsidiary has purchased or sold the parent company stock or shares of the parent company, provides information on the nominal value of the shares or the share of the parent company and in the capital, as well as purchase and sales amounts."
32. To supplement the law with article 53.1 the following: ' article 53.1 (1) society provides information about each agreement not included in the balance sheet, indicating its nature, objectives and financial impact, if the risk related to the agreement or benefits are significant and if the information about these risks and benefits is required to assess the company's financial position.
(2) provides information about its transactions with related parties, if such transactions are material and do not correspond to normal market conditions, specifying the amount of such transactions the related party relationship type, and other information about these transactions, you need to understand the company's financial position. Information about individual transactions with the related parties can be combined by this type of transactions, except when necessary to provide certain information to evaluate the effects of related party transactions on the financial position of the company.
(3) the companies which do not exceed two of this law, article 24 in the second part of these criteria, the authorised to provide information only about the first paragraph of this article of the agreement form and purpose. Companies which do not exceed two of this law, article 24 in the second part of these criteria, if they are not corporations, not to give this article the information referred to in the second subparagraph. The company provides information regarding transactions, directly or indirectly, with the major shareholders of that company and with the management of the company (the Council and members of the Executive Board). "
33. Article 54: express first and second subparagraph by the following: "(1) that the company at the balance sheet date, not more than two from this article in the second part of the criteria allowed to compose the short attachment. In short not to provide the information referred to in article 44 of this law, in article 52 and article 55.4.
(2) the first paragraph of this article, the criteria are: 1) the balance sheet total: 250 000 lats;
2) net turnover: 500 000 lats;
3) average number of employees during the year — 25. ";
replace the fourth and fifth paragraphs, the word "company" (the fold) with the word "public" (fold).
34. Article 55: make the first paragraph by the following: "(1) the management report gives clear information on community development, financial performance and financial position, as well as information about relevant risks and uncertain conditions, with which the company is facing. This information is based on a balanced and comprehensive human development, operations, financial results and financial condition analysis according to the relevant company's size and complexity. To understand the company's development, financial performance and financial position, in this analysis include: 1) financial performance indicators;
2), insofar as they are relevant, also the main company and the relevant industry raksturojošo non-financial indicators, information on the effects of environmental protection requirements and employee information (for example, in employment policy, appropriate guarantees and support staff) or other information;
3) if possible, references to the financial statement value and the additional explanations for them. These parts are not referred to in paragraph 2, the financial indicators allowed not to provide to companies that are not more than two of this law, article 24 referred to in the second subparagraph. ";
replace the second, third, fourth and fifth paragraphs, the word "company" with the word "society";
replace the second part of paragraph 5, the word "price" with the word "market".
35.55.1 article: replace the word "enterprise" (fold) with the word "public" (fold);
to make the fourth paragraph 2 and paragraph 3 as follows: "2) loans and receivables that are not held for trading;

3) participation Group subsidiary companies, associated companies and jointly manage public funds, the company's issued capital securities and other financial instruments, which under the international accounting standards adopted in accordance with the European Parliament and of the Council of 19 July 2002, Regulation (EC) No 1606/2002 on the application of international accounting standards, does not make the assessment of fair value. ";
to supplement the article with the sixth part as follows: "(6) by way of derogation from the third and fourth assessment terms envisaged in part, financial instruments should be evaluated in accordance with international accounting standards adopted by the Commission on 29 September 2003, Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with European Parliament and Council Regulation (EC) No 1606/2002 (hereinafter Regulation No 1725/2003) pursuant to the 2006 September 5 the conclusions of Regulation No 1725/2003 amendments to the annex and providing relevant information according to the requirements set in international accounting standards adopted in accordance with the European Parliament and of the Council of 19 July 2002, Regulation (EC) No 1606/2002 on the application of international accounting standards. "
36. in article 55.3: replace the word "enterprise" (fold) with the word "public" (fold);
Replace paragraph 2 of the first paragraph, the words "existing company" with the words "existing company";
to turn off the second paragraph, the words "after selecting the part of the income statement or".
37. the express article 55.4 of the following: "2) fair value of financial instruments and the changes that are included in the income statement or the balance sheet item" financial instruments revaluation reserve "in the breakdown of the categories of financial instruments according to the distribution as laid down in international accounting standards adopted in accordance with the European Parliament and of the Council of 19 July 2002, Regulation (EC) No 1606/2002 on the application of international accounting standards;".
38. Replace 55.5 of the first paragraph of article 2, the words "or part of" with the words "building or the relevant part of this object".
39. Replace article 57.5, the word "company" with the word "company".
40. Replace the title of Chapter 9, the words "company" with the words "annual report".
41. Article 61: replace the first and second paragraph, the words "company" (the fold) with the words "annual report" (fold);
turn off the first part of paragraph 3;
turn off the second part of paragraph 2.
42. Article 62: make the first paragraph by the following: "(1) If a corporation, cooperative society, established in Latvia in the European cooperative society and the European commercial companies above two of this law, article 54, second paragraph, the said criteria, they prepared the annual report examines the sworn auditor according to the law" on sworn auditors '. ";
adding to the third paragraph after the word "Corporation" with the words "cooperative society, established in Latvia in the European cooperative society and the European company.
43. Article 63: make the first paragraph by the following: "(1) the examination of the annual report also includes accounting check to see whether accounts comply with accounting rules. The investigation also ascertained that the preparation of the annual report of the regulatory requirements and the laws and statutes of public rules. ";
Add to the second and third after the word "Corporation" with the words "cooperative society, established in Latvia in the European cooperative society and the European company;
off in the fourth paragraph, the word "company".
44. Article 66: make the first paragraph by the following: "(1) the company shall no later than one month after the approval of the annual report and not later than four months after the end of the year, but companies whose activity is more than two of this law, in the second paragraph of article 24, the criteria listed in, and the company which is the parent company of the group, which is preparing the consolidated annual report, no later than seven months after the end of the reporting year presented (by post or by courier) to the State revenue service territorial authority on company registration the site and the Registrar of companies, as well as the annual report sworn auditor's report (if applicable) a copy, together with an explanation of when the annual report approved. These documents may be submitted electronically, adding the written proof of their compliance with the original document. The company is responsible for the mail or sent by courier or electronically filed documents are received. ';
replace the second paragraph, the words "which are" with the words "of company";
make the third paragraph as follows: "(3) the society shall comply with the second subparagraph of this article or of this Act, the provisions of article 54, submitted the annual report of the Executive Board signed added explanation that article 54 of this law in the second, fourth and fifth parts of the rules are fulfilled.";
replace the fourth subparagraph, the words "whose operations are larger than the" with the words "companies operating more than two";
off in the fifth subparagraph, the word "company".
45. off 67 and 68 in the article the word "enterprise".
46. the transitional provisions be supplemented with 6, 7 and 8 of the following: "6. The amendments to this law, article 1, second paragraph, and article 54, second paragraph shall enter into force on 1 January 2007 and apply to reporting periods that begin on or after this date.
7. individual companies, farmers and fishermen holding turnover (revenue) of economic transactions in the year 2005 or 2006. the year under review ranges from 45 000 lats to 200 000 lats or registered in the State revenue service as corporate income tax, may continue to apply the provisions of this law up to the change of the legal form or to the reorganization, but no longer than up to 2013.
8. Article 45 of this law, sixth paragraph and article 53.1 shall enter into force on January 1, 2008. "
47. Add to the informative reference to directives of the European Union with 12 and 13 the following paragraph: "12") of the European Parliament and of the Council of 17 May 2006, Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC;
13) of the European Parliament and of the Council of 14 June 2006, Directive 2006/46/EC, amending Council Directives 78/660/EEC concerning the annual accounts of certain types of companies, 83/349/EEC concerning consolidated accounts, 86/635/EEC on banks and other financial institutions the annual accounts and consolidated accounts and 91/674/EEC on the annual accounts and consolidated accounts of insurance undertakings. ' The law adopted by the Parliament in 2006 on October 19. State v. President Vaira Vīķe-Freiberga in Riga in 2006 on November 8.