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) the following amendments: 1. To supplement part "terms used in the law" with terms and their explanations in the following wording: "investment property is land, a building or a portion thereof by the company there (as the owner or the lessee under a finance lease) to obtain a lease (rental) charge or the expected price rise (increase in value), rather than for use in the manufacture of goods, provision of services, for administrative purposes or sale in the ordinary course of business.
Biological assets are animals or plants that the company there for agricultural products for sale or additional biological assets. Agriculture within the meaning of this law are also forestry, fisheries or other such activities that include animal or plant — the biological transformation of growth, degeneration, production, and reproduction process: management.
Held-for long-term investments long-term investments are the objects that the book value will be recovered in sales rather than continuing to use and which meet both of the following criteria for classification: 1) these objects in their current state, are available for immediate sale and are subject only to normal sales of such objects;
2) sales is reliable (based on management decisions about the sale of these items, the sale process has been launched and has confidence in its completion during the year from the date of initiation of this process).
Deferred tax assets are corporate income tax amounts to be recovered in future years and the report refers to the deductible temporary differences.
Deferred tax liabilities are the corporate income tax amount due over the next few years and the report refers to these temporary differences, which are subject to this tax. "
2. Express article 1, first and second subparagraph by the following: "(1) this law applies to businesses established in Latvia, cooperatives, individual companies, farmers and fishermen, as well as on farms in Latvia registered European economic interest groups and the European commercial companies (hereinafter, the company).
(2) this Act does not apply to individual economic operators, individual companies, farmers and fishermen, that revenue from commercial transactions the previous year does not exceed 45000lat. "
3. To make article 3 first paragraph, second sentence the following wording: "a different reporting year beginning and end can only be registered in Latvia company, a cooperative society, Latvia registered the slow-down Chem group and the interests of the European company, if it nosakaattiecīg the company's articles of association or partnership agreement."
4. Turn off the article 4, second paragraph, the words "on the cash flow statement and statement of changes in equity of dialing arrangements as well."
5. Supplement article 5 with the sixth part as follows: "(6) the cash flow statement and statement of changes in equity shall be prepared in accordance with Cabinet of Ministers certain mandatory applicable Latvian accounting standards."
6. To make article 7, the first paragraph by the following: "(1) the annual report of each balance sheet, income statement, cash flow statement and statement of changes in equity line shows where the previous year's figures. If the reporting year previous year found errors or a change in the accounting policy, the previous table of adjusted items. On each occasion when the data have not been mutually comparable or carried out the previous year adjustment of data, provide an explanation in the annex of the annual report. "
7. Express article 19 the first part as follows: "(1) the provisions are intended to cover certain types of obligations relating to the financial year or previous years and the annual report are expected or known, but where obligations or specific or settlement date is not clearly known."
8. To complement the chapter 3 with 20.1 and 20.2 of the article as follows: "article 20.1 (1) deferred tax liabilities amount (if any) are shown in the balance sheet, long-term and short-term creditors creditors consist of adding a new item" deferred tax liability ", but deferred tax asset amount (if any), working capital (items group" Customer ") and long-term financial investment, adding a new item" deferred tax assets ".
(2) With deferred tax liabilities and deferred tax assets related revenues and costs (if any) shown in the profit and loss statement, adding a new item named respectively the order number order by item "corporate income tax for the financial year".
20.2 article companies who choose to evaluate investment property, biological assets and the sale of long-term investments held, based on fair value, it shall be shown separately in the balance sheet assets, including new items named respectively. "
9. Replace article 25, first paragraph, point 3 of the "b" words "in the annual report of the day" with the words "day, when the annual report is signed this law, article 61 of the persons referred to in the second subparagraph or administrative organ".
10. Replace article 27, the words "use period" (the fold) with the words "useful life" (fold).
11.28. Article: make the first paragraph by the following: "(1) where a long-term investment value at the balance sheet date is lower than the value calculated in accordance with this law, article 26 and 27 to satisfy you, and it is expected that there will be a lasting reduction in value, the object is to be assessed according to the lowest value.";
turn off the fourth paragraph, the words "in a separate balance sheet item.
in article 12.29: make the first part of the first sentence by the following: "long-term investment object whose value is significantly greater than the purchase price or production cost, or the assessment of the previous year's balance sheet may be revalued to a higher value if it can be assumed that the value of the platform will be sustained."
Add to the second part of the sentence by the following:
"If the revaluation gains occurred fully or partially compensates for the same long-term investment value reduction of the object, which in previous years the report was included in the income statement as cost, the amount of such increase in value not exceeding the costs mentioned, include in the statement of income as revenue in the reference year, when it was found."
13. Express article 32 second subparagraph by the following: "(2) the inventory valued at acquisition or production cost or lower market prices at the balance sheet date, depending on which of these figures is lower. In special cases, if the item is damaged, the unit partially or completely stale or significant increase in the completion of production or sales costs — the inventory unit assessed according to the net sales value. "
14. Replace article 35, first paragraph, the word "period" with the word "during".
15. Express article 37 the fourth and fifth by the following: "(4) long-term accounts payable items include the amounts, terms of payment which occurs later than 12 months after the end of the reporting year and made to finance long-term investments and current assets or to cover obligations that do not fall in the short term the vendor items.
(5) the short-term vendor items include amounts liquidated in the next 12 months after the end of the reporting year, and other obligations arising from the company's normal operation cycle. "
16. off article 39.
17. Replace article 40 in numbers and the words "in article 54 and 55.4" with numbers and the words "and article 54, 55.4 55.7".
18. the supplement to Chapter 7.1, 57.5 55.5 and 55.7 article as follows: "article 55.5 (1) by way of derogation from article 27 of this law, in article 28 and 29 would NASA rules laid down, investment property after the initial accounting costs allowed to estimate the fair value, if they comply with one of the following conditions: 1) all investment property items are constantly available prices in active markets for similar investment property for objects in the same location or condition, or under a similar lease and other contracts (if closed);
2) all investment property items, the fair value is determined by evaluating each individual plot of land, a building or part of it. The value is determined by a certified real estate appraiser.
(2) By way of derogation from this law, 26, 27, 28, 29, 30 and 32. the assessment provided for in article terms, biological assets the original records and further allowed to estimate fair value less selling costs (for example, fees, payments, stock settlement-related taxes and fees), if they comply with one of the following conditions: 1) biological active object is active in the market and constantly available market prices;
2) biological assets might object to other recognized methods to determine a reliable fair value for its present location and condition.
(3) By way of derogation from article 27 of this law, in article 28 and 29 the valuation rules provided for held-for long-term investment, as long as they meet the criteria for classification, it allowed to evaluate the lower of the values of these assets compared to the carrying amount and fair value less selling costs. If the facts or events points to held-for long term investment impairment, the impairment test performed and determine the damage caused by this investment.
Article subject to Amortisation 57.5 investment property, biological assets or held-for-trading are long-term investments, which the undertaking shall be assessed by reference to the fair value. Changes in the value of those assets that originates during the evaluation of the fair value or fair value less selling costs, or the value of the test, included in the income statement.
Article 55.7 (1) If an investment property, biological assets or held-for long-term investment are estimated respectively at fair value or fair value less selling costs, separately for each group of items referred to shall include at least the following information: 1) items included in the Group of active;
2) the methods applied, and the main assumptions on which the widespread awareness of the body, to determine the fair value of these assets;
3) balance sheet value according to the previous year's balance šēj;
4) increases (if any) in the financial year, showing separately those additions resulting from acquisitions;
5) disposal (if any) in the reporting year;
6) profit or loss on value adjustments in respect of the financial year;
7) any relocation (if any) to other groups of items in the reference year.
(2) For held-for long-term investments measured at fair value, less the cost of sales, in addition to providing the following information: 1) this contribution provided for forfeiture and disposal;
2) If is a breakdown of units (operating way, branch or other clearly distinguishable component of an enterprise), the Department to which the information relates. "
19. Article 61 of the expression as follows: "article 61 (1) the annual report shall show the following: 1) company name (merchant business) and legal address and the registration number in the trade register or the register of enterprises;
2 individual enterprise, farmer) and fisherman's farm, owner's name, surname, personal code and residence;
3 individual traders also) merchant name, surname, personal code and residence;
4) partnership, its way personally responsible companion and NUW appear jointly in the name, surname, personal code and residence, but a legal person — name, registration number and registered office;
5) Corporation, its way, the members of the Executive Board members (if you have created a Council) and the auditor's name and position. This information is also provided for those individuals who, in the year of the release of these posts;
6) cooperative society, its way, Board members and Board members (if you have created a Council) name, surname and title. This information is also provided for those individuals who report a year from these posts freed.
(2) Annual report of the company shall be signed:
1 individual enterprise, farmer) and fisherman's farm's annual report — owner or other official, who registered in the register of companies entitled to represent the individual business, farmers and fishermen;
2) annual report the individual merchant, merchant or other person who has a notarized authorization to sign the report;
3) partnerships annual report: all the members of this society whether they are members of society who are specifically authorized to represent the company;
4) a corporation's annual report, the Management Board;
5 cooperative society) annual report — Executive Board.
(3) If a member of a partnership, Corporation or cooperative society Board Member believes that the annual report is not approved, or raise objections, he noted the different views in particular. "
20. off 62. and article 63, the word "(incorporated companies)."
21. Article 67 of the expression as follows: "article 67 (1) If a company's annual report is published in full, it must be in a form and the version in which it was audited. Where, under this law, the requirements of article 62 annual report have been checked by sworn auditors, the annual report shall be published together with the sworn auditor's report in full text.
(2) If the company does not publish annual accounts fully, clearly indicates that it is published in a shortened and is fully available in the register of enterprises. In this case, rather than sworn auditors published the full text of the report, but a sworn auditor preparing the information published on the appropriate search the auditor's report. It shall inform, or sworn auditor's report opinion without objection, the num to the objection or negative opinion or also include refusal to provide an opinion or advice on the conditions in which the sworn auditor wants to pay attention. "
22. transitional provisions be supplemented with paragraph 5 by the following: "5. the Cabinet of Ministers until new rules into force, but no longer than up to January 1, 2006, apply to the Cabinet of Ministers of 24 august 2004 rules no provision on mandatory 728" applicable Latvian accounting standards and procedures for the preparation of the cash flow statement and statement of changes in equity "to the extent they do not conflict with this Act."
23. Make the informative reference to European Union directives as follows: "Informative reference to European Union directives, the law includes provisions resulting from: 1) Council of 25 July 1978 on the Fourth Directive 78/660/EEC based on article 54 of the Treaty, paragraph 3 of the" g "and refers to the annual accounts of certain types of companies;
2) Council 13 June 1983, the seventh Directive 83/349/EEC based on article 54 of the Treaty, paragraph 3 of the "g" at the bottom point and refers to consolidated accounts;
3) Council of 27 November 1984 by Directive 84/569/EEC of Directive 78/660/EEC the amounts expressed in ECU in the review;
4) Council of 21 December 1989 on the eleventh Directive 89/666/EEC concerning disclosure requirements in respect of branches opened in a Member State by certain types of company governed by the law of another State;
5) Council of 8 November 1990 directive 90/604/EEC Directive 78/660/EEC on annual accounts and Directive 83/349/EEC on consolidated accounts amending concerns the exemptions for small and medium-sized companies and the publication of accounts in ECUs;
6) Council of 8 November 1990 directive 90/605/EEC, as regards the scope of amending Directive 78/660/EEC on annual accounts and Directive 83/349/EEC on consolidated accounts;
7) Council of 21 March 1994, Directive 94/8/EC amending Directive 78/660/EEC as regards the revision of amounts expressed in ECUs;
8) Council of 17 June 1999, Directive 1999/60/EC, amending Directive 78/660/EEC as regards amounts expressed in ECUs;
9) the European Parliament and of the Council of 27 September 2001 by Directive 2001/65/EC, amending Directives 78/660/EEC, 83/349/EEC and 86/635/EEC as regards the valuation rules that apply to certain types of companies, as well as of banks and other financial institutions the annual accounts and consolidated accounts;
10) Council 13 May 2003 Directive 2003/38/EC as regards amounts expressed in euro amending Directive 78/660/EEC concerning the annual accounts of certain types of companies;
11) of the European Parliament and of the Council of 18 June 2003 of Directive 2003/51/EC in respect of certain types of companies, banks and other financial institutions and insurance undertakings annual and consolidated accounts, amending Directives 78/660/EEC, 83/349/EEC, 86/635/EEC and 91/674/EEC. "
The Parliament adopted the law of 26 May 2005.
The President of the Parliament instead of the President i. Otter Riga 10 June 2005 editorial Note: the law shall enter into force with 24 June 2005.