Cabinet of Ministers Regulations No. 585 in Riga in 2003 (October 21. No 55 32 §) rules on accounting and the Organization Issued in accordance with the law "on accounting" in article 15, first subparagraph, (I) a. economic transactions are posted and the keeping of records of accounting rule 1 determine the commercial register record companies and foreign merchant affiliates, registered in the companies register of company, also in the form of non-profit organization founded company (company), a company registered in the register of a foreign company (the company) permanent missions (branches, divisions) in Latvia, authorities and organisations They also, which is financed from the State budget or local budgets, State or local government agencies, civic organizations, social organizations, associations, religious organisations and trade unions, individual merchants and other natural persons carrying out economic activity (hereinafter referred to as the company), sorting and organization of accounting requirements.
2. all economic transactions of the company certified with documents about company business transaction (hereinafter referred to as the source document), valued in money terms and, subject to the chronology, the systematic order entered in the company's accounting records.
3. Legislation in the cases of movable or immovable property, you can register and enumerate the kind.
4. the Justification of document can be external or internal, and depending on the document meaning it can be drawn up in writing (in one or more copies) or electronically.
5. Justification document drawn up around it during storage do not lose the information contained in it and ensure its legal force, as well as the possibility to make a copy of this document. The document must not be an excuse to make records using pencil or making other technical pārlabojam or easily physically unsustainable way.
6. If the source document is produced and stored electronically, must be able, if necessary, issue a copy of this document, copy or statement in paper form.
7. the head of the company, subject to the justification documents law, independently choose this form and document preparation, except where the relevant justification document design or content shall be governed by the specific legislative instrument.
8. the documents that match the source documents, use the entries in the accounting records to systematise the information contained in those documents about the company's financial transactions. After the source document it points out on bookings (posting) or this entry (posting) when the transcript of the recording made by electronic means. To prevent the chance of making repeated entries, after the source document recording the relevant accounting document in the registry specifies the sequence number of the record.
9. accounting records, sort records on value measure used in the monetary unit of the Republic of Latvia: lats. If the source document is the value of foreign currency, the amount is posted in LCY conversion by Bank of Latvia, the foreign exchange rate in force on the date of the financial transaction (cash receipt or payment day, purchase goods or services, or the day of the sale, as well as on any other day, which actually had been a change in the company's position). Credit institutions shall document the justification for providing financial services to the customer for the amount of foreign currency can be posted in the relevant currency of accounting records, if this sort of register electronically by a computer and separate accounts for economic transactions in lats and foreign currencies (by type), as well as provide foreign currency posting amount (total) recalculation in dollars after the Bank of Latvia the relevant foreign exchange rate at least once each working day.
10. All entries made to the accounting records or financial transaction as soon as possible, but not later than 15 days after the end of the month in which economic transactions occurred. Entries must be the double entry system, based on source documents or document summary of homogeneous data. In the cases specified in the law, the records can be done in simple entry system.
11. Using the double-entry system, the same amount for the same type of economic transaction accounts accounts and credit under the company used accounting chart of accounts and the economic substance of the transaction for the account of the accounting relationship (account correspondence).
12. Accounting chart of accounts is the Manager of the company approved for long-term use for verification of account according to the list of assigned accounts.
13. Each accounting account accumulates for the preparation of the financial statements the accounting information required in money terms on this account name appropriate to the company's assets, liabilities, equity and revenue or expense items for a specified period of time.
14. If the business transaction is posted using two accounts, using the simple account correspondence, but if you do this three or more accounts, compounding account correspondence.
15. An indication as to which credit accounts and that account in an economic transaction amount entered (bookings), be made in writing to the source document, or a document summary or homogeneous support this entry if the entry of the transcript shall be carried out electronically, and according to this entry to make entries in the relevant accounts.
16. The main book specifies the account codes and the names of the accounts in the chart of accounts in the order provided. Making bookings justification documents and making records accounting records, specify the account codes.
17. Accounting records are broken down into chronological and systematic registers. In these registers, respectively, in chronological order (chronological entry), or by economic content (systematic entry) make the records of each financial transaction. If certain kinds of economic transactions often repeats, each such economic transaction type, you can plant a single chronological register.
18. The chronological registers all economic transactions are recorded in chronological order and for each financial transaction specifies the following information: 18.1. record date;
18.2. the record sequence number;
18.3. the reference to the source document: document author (name of legal entity or physical person's name), the name of the document or the economic description of the transactions, the document date and the registration number. If the book of sorts, using accounting software (accounting information systems software), the information referred to in this site may be a unique characteristic of the source document (for example, number, with an excuse of document registered accounting program), which allows this justification document clearly identified;
18.4. economic assessment of the transaction in cash;
18.5. the economic transaction accounting account name or code and instruction, or record to do this account or credit (if the book sort uses the double entry system, their account number, debit and credit in which economic transactions to be booked).
19. The systematic economic business registers compiled by the economic content of the uniform groups. Systematic registers is the main book and analytical accounting registers. The main book economic transactions are recorded in terms of money through the accounts. Analytical accounting records economic transactions are recorded through the analytical accounting accounts in money terms, but in terms of fixed assets and inventory unit, also in kind.
20. Enterprises can use Journal-Ledger. In this case, in addition to the journal, Ledger records the chronological apparatus of certain types of economic transactions and the analytical accounting records, inventory, fixed assets, current balance and turnover accounting or other analytical accounting account records.
21. the nature of the item and the cost of materials or other items of accounting object detailed classification may introduce specific code systems (digital or letter codes), symbols or abbreviations. The code system of symbols and abbreviations terms of use company approved by the head of the company.
22. the sorting of simple accounting records in the system, the company's accounting records reflect the cash flow, its formation and utilization, as well as any company property state changes incurred cash revenue or expense.

23. If a public body, a public association, religious organization or a Trade Union that proceeds from economic transactions in the year does not exceed 25000 dollars, sort of a simple bookkeeping entry system, the facility cash flow tracking log that records the cash and non-cash income and expenditure, or two separate journals: the cash book and the credit account book. Cash book, take the cash income and expenditure accounts, but accounts of credit institutions in the company's accounting books and deposit accounts with credit institutions existing non-cash income and expense tracking. To a fixed tax for calculation of the required data, as well as the company's assets and payment control, in addition to the analytical accounting installation also registers.
24. If a sole proprietor, individual (family) business, farmers or fishermen holding that income from financial transactions in the preceding financial year not exceeding 45000 lats, or other physical person conducting economic activity, accounting for just the sort of record system, it sorts the operating income and expenditure accounting log, in accordance with the Cabinet on July 31, 2001, Regulation No 338 of "order, the revenue and expenditure accounts income tax calculation purposes".
25. at the end of each month, the chronological registers (also operating income and expenditure accounting) calculates the total amount of economic transactions, but in the main book, journal, General Ledger, cash flow accounting journals and analytical accounting records, accounting respectively for analytical accounting account or the account in the debit and credit activity and the account balances, as well as the mutual match that sum.
26. each report at the end of year accounts and accounting records, the switch when the account closing entries and transfer the account balances to the new next year — — accounting records.
27. the head of the company can independently choose the way the accounting register of the content, number and type of training (in the form of a sort of accounting), taking into account the structure of the company in question, the nature of economic activities and the amount of information to be processed. Exceptions are cases where the accounting registry form, content and presentation is governed by a specific legislative act.
28. If the source document is corrected or accounting records, corrections shall be made by a new entry, or reference to the previous record. Accounting records can be edited, using negative numbers (reversed). Books and records must not be deleted. The content change (edit, add to) may be only in accordance with the procedure laid down in these provisions.
29. If the corrections are made in the form of a paper document prepared justification documents and accounting records, each correction disclaimer stating that, when and why, as well as with the correct signature confirms the person making the correction.
30. the justification for the modification of documents can use accounting statement, which contains information about which registry or justification of accounting document is editable. Accounting certificate shall indicate the date, the reason, the person authorized to fix and repair (original) record number of chronological case. The editable (original) source document to make a mark on the accounting inquiry and specify the date.
31. the companies that organise the accounting using accounting software (accounting information system software) support all accounting information publishing company archive media or systematically sorted and stored in the company's archives and accounting source document register prints. Together with the prepared or received by electronic source document company also stores data that allows you to control the electronic document's origin or destination, as well as sending or receiving.
32. Source document, accounting registers and other accounting documents to their placement in the company archive stored in accounts held by a responsible person. Paper document prepared for the current month's justification documents relating to a specific set of accounting records, the record number order and bound or cauršūt into folders stored in dedicated storage areas. Justification documents related to accounting software made records, assembled, broken down by the record date.
33. The accounts of the company and archive accounting documents on natural and legal persons may only be used with the permission of the head of the company. These documents may be removed from the company's only special laws or other legislation the cases and order.
34. If the company removes or reorganize, after coordination with the Directorate-General of the national archives the archives of the company further down the order of storage liquidation Commission (liquidator). The winding-up Commission (liquidator) documents arranged and put future national archives storing or after the reorganization of the company's archives.
35. the head of the company is responsible for the source document, accounting records, accounting and other documents of the Organization of the enterprise accounting information and to protect against destruction or loss.
II. Accounting computer programs, 36. If the accounting registers are maintained only by electronic means, the accounting software (accounting information system software) must be such as to ensure: 36.1. entry in the registry (System log) the information on each entry, or entry of the correction, the type, date and time, the record number, as well as concerning the offender;
36.2. accounting (accounting information systems) data recording formats, MS Excel, dBASE/FoxPro, text report files, flat files vaiODBC data sources, legal or statutory audit (the audit) or inspection — to make it possible by various criteria to select records and bookings, to track financial transactions and to verify the accuracy of accounting information;
36.3. the ability to electronically prepare justification documents and accounting records to select continuous or persistent storage, record the relevant media and store electronic documents act and other legislation for the electronic storage of documents in accordance with the procedure laid down in the rules, preserving their authenticity of content and legibility of the law "on accounting" prescribed retention period;
36.4. electronically prepared document or excuse the accounting registry data image and prints;
22.7. the electronic source document and prepared the accounting register of reserve copying.
37. The accounting registers used only for accounting software that rights under the copyright laws of the relevant license or license agreement.
38. Business Manager can independently choose accounting software (accounting information systems software), taking into account the activities of the company in question or the required functional, technical, and data security requirements, except where a specific computer program or the requirements governing the adoption of a specific measure.
39. where special laws or other legislation provides otherwise, company manager determines the general accounting information systems security rules and accounting data protection required technical and organisational requirements, as well as the establishment of these provisions and ensure compliance.
40. the Person making the legal or statutory audit (the audit) or check, are entitled to consult the company used accounting software user documentation, as well as information on codes, abbreviations, signs or other marks that use accounting software accounting records.
III. Organization of accounting documents 41. Organization of accounting documents shall determine any documented, evaluated and listed company in economic transactions, assets and liabilities, inventory, report on cash advances, as well as inventory of raw materials and other inputs, organizes the source document circulation and maintain accounting records. Organization of accounting document is also the company's accounting of accounts, this plan, as well as code and symbol usage rules, long-term investment, working capital, liabilities and equity instruments classification criteria, accounting records, documents and records retention policies and annual report, as well as other accounting reporting.
42. where special laws or other regulations with respect to a specific accounting documents of the organization does not provide otherwise, the accounting documents of the organisation develop, approve and reply for their content business manager.

43. With the company's financial transactions related to the source document preparation, registration, circulation and other record-keeping issues in accounting documents circulation description or diagram. This description or diagram includes justification document flow systems of economic transactions, the document verification and processing order, due dates, artists, business justification document prepared for the number of copies, storage location, duration and other information.
44. This provision 43 referred to the financial transaction system is the business of the enterprise allocation (classification) in following economic content and nature related directions: 44.1. the procurement of goods and services;
44.2. dealings with suppliers, service providers and corporate users;
44.3. the production, provision of services and relevant cost accounting;
27.6. raw material, materials, WIP and finished goods and storage of goods;
27.7. the finished products, sales of goods and services;
27.7. dealings with buyers and customers for goods sold and services rendered;
27.8. the financing of activities of the enterprise;
27.8. financial investments;
27.9. other business transaction in which direction and structure is independent of the particular enterprise's normal operating revenues and financial resources.
45. Preparing the justification documents and accounting records, as well as the accounting records of the sort, apply accordingly Cabinet of 23 April 1996, Regulation No 154 of document design and design rules "third and fourth division.
46. to ensure all accounting prepared source document tracking, documents by type, number and the sequence number of the document is generally given to it.
47. in order to prevent the possibility of deliberately or inadvertently make mistakes in giving accounts ready source document number, the kind of economic transaction documentation uses the previously numbered in sequence source document forms (invoices, bills, receipts and other forms).
IV. the counting procedures 48. The inventory shall be carried out by setting the property of the company or use the volume and nature of objects compared to customers and vendors and the amount of the claim. Credit institutions may make deposits resulting from the accepted creditors compare random order after materiality principle.
49. use of company property or object in nature include the determination of the amount of this item quantity, service life and wholesomeness (quality, validity) with the General evaluation used techniques (view, add, weighing, measurement), or, if necessary, by special techniques (for example, geodetic measurements, making technical calculations, chemical analysis of samples in laboratories, external expert assessment). This assessment applies to the company, owned, held or storage in the ķermeniskaj things (long-term investment and working capital funds, as well as off-balance-sheet assets), including those that the company has been placed in storage or responsible organization is processing or repair (repair) process.
50. Intangible assets and other intangible property, as well as the claims and debts (including off-balance-sheet items) amount, the Phys. Invt checking in accordance with the relevant documents.
51. the head of the company is responsible for the inventory of the company. Company Manager creates inventory Commission inventory of individual objects. Individual (family) business, farmers or fishermen, the owner of another natural person carrying on economic activities and individual trader can take inventory of yourself.
52. The counting Commission personnel and counting starting and completion date of the head of the company is determined by written order. The operator of this order may also contain documentation inventory.
53. take inventory of materials in the presence of the person responsible (if any). In exceptional cases, the company's ceo makes a decision on the conduct of physical inventory without the material presence of the person responsible.
54. the company invites the head of the company's auditing Commission (Auditor), internal audit (audit) service employees (company Inspector) or certified auditor to observe the closing inventory for the year.
55. the inventory date must be completed all the source document (the materials into the reception and transmission of values), for the treatment of the analytical accounting entries in registers and calculated balances.
56. before the materials into the actual position values start counting the Inspection Commission: 56.1. consult the inventoriable object and counting the instructions, as well as to draw up the inventory plan;
56.2. check that all weighing and measuring devices are accurate and working order;
56.3. check whether all documents (including the last source document for the material into the value of receipts and issues) is recorded in the relevant registers. If this is not done, provide time to perform these operations and the counting begins only after these steps have been carried out. About the material value of the person in charge of maintenance with the signature certifies that all justification for taking a physical inventory documents for the materials into the value of receipts and issues are recorded and presented in the accounts (except in situations where the emergency because the counting is conducted without the presence of that person). A similar proof must be received from persons who provided the money in advance materials into the acquisition or the value of their powers.
57. If the materials into the value of the inventory is not complete in one day, the room in which they are stored by the counting Commission of the completion of the work of the Commission on the day in question in the presence of this seal.
58. The inventory records inventory lists. This list shall be drawn up in at least two copies. One copy of the inventory list will remain with the persons responsible for the material, but the second copy is submitted to the company's accounting.
59. the inventory list shall be subject to the following requirements: 59.1 points in the document drawn up by mandatory properties, the company and the entities name, inventoriable document name and number, the date on which it was made, the justification, the particulars of the persons who participate in the counting, the materials into the value of a unit name and tracking code (number) of (if any), unit of measure, quantity, and other properties (prices, amount), taking into account the inventoriable item type and company inventory manual procedures;
59.2. the inventory shall be drawn up in a clear and understandable, using the computer, or making posts in prepared physical inventory list on the form;
59.3. inventory list of all counting the members of the Commission and the person responsible for the material;
59.4. If the inventory shall be carried out so that the person responsible for the material in the other person, physical inventory list shall be drawn up in triplicate. The person who accepts the material things or money, sign inventory list on it, but the person who passed, — for (except in situations where the emergency because the counting is conducted without the presence of that person);
59.5. If inventory list entry right must comply with the rules for the correction of the accounting records;
59.6. all copies of the inventory error is corrected as follows: delete the wrong records, make the correct entry and indicate what and when and why edit corrected;
37.1. the correction counting all the members of the Commission and the person responsible for the material;
59.8. making records prepared by hand counting in list form, must not be left blank. Inventory list on the last page blank lines barred.
60. the inventory of the company are carried out in accordance with the company's approved counting instructions. Counting instructions determined by the closing of the accounts inventory preparation, conducting and documenting terms and procedures. The company may also provide additional inventory, periodic inventories, exceptional inventory (if the theft, damage to material goods, fire, flood or other natural disaster or if the inventory shall be carried out according to the terms of the contract or collective agreement provisions on employee's material responsibility), preparing the appropriate counting instructions.
61. After the completion of the counting of objects in a counting Commission company Manager prepare inventory lists, together with the relevant explanations, proposals and other documents obtained or prepared in the course of the inventory.
62. Business Manager or other person (in accordance with the obligations of the company) examine the inventory submitted documents and check that: 62.1. it is submitted to the inventory list for all order inventoriable items laid down;

62.2. inventory list is presented in accordance with established procedure;
38.7. counting the results obtained according to the instructions of the physical inventory;
38.8. explanations and submitted proposals are supported;
62.5. all counting lists specify calculations are correct.
63. the price and calculation errors detected right that rule 28, paragraph 29 and 30. Each inventory list on the last page of the makes the grade for the price and the final result of the calculations. Such mark with a caption stating those who have taken the test.
64. the head of the company can organize the counting results cross-check and, if necessary, ask to take inventory.
65. The accounts of the company shall be drawn up in the comparison lists that specify the inventory accounting and inventory data, in accordance with the difference between the inventory results to clarify the accounting records.
66. the evaluation found in the physical inventory differences, materials into the value of the difference between the number of units or their loss, moral deterioration of aging or other reasons are recorded in accordance with the instructions of the head of the company.
67. If the physical inventory actually took place or the results obtained by the last day of the year, closing the year counting results posted to the accounting entry will be included in the financial statements for the reporting year.
V. accounting control 68. Accounting control includes methods and techniques that are used to control the property of the company, registration of economic transactions in the accounting system according to the requirements of the laws and internal regulations, as well as to ensure that the accounting information provided, timeliness and accuracy. Accounting control within check calculations, the annexes and the calculations contained in the summaries and postings, specify whether each transaction is posted to the economic right and on time and that the amount is correct, or all economic transactions that relate to the period specified in this reporting period the accounting records and financial statements.
69. in order to ensure the effective operation of accounting control, operator of the accounting work organization subject to the following conditions: 69.1. job responsibilities carried out by qualified staff;
EB 69.2. are divided into job responsibilities, identifying the specific tasks of each employee and his or her level of responsibility;
69.3. employee responsibilities are divided so that each economic progress of the transaction control number of employees;
69.4. are prepared of high quality working documents and compliance with the condition that in all cases where the need to act otherwise than as described in the documents below, you need the permission of the Manager of an undertaking;
69.5. accounting function is separated from the rest of the company's operational functions.
70. the company Manager provides enterprise accounting control system development, deployment, and maintenance. The company systematically the accounting control system of the effectiveness of the test. The company's ceo is responsible for the accounting control system of the effectiveness of the inspection and control of accounting system effectiveness. The Chief Executive may determine that, in accordance with the company's internal control system of accounting control system effectiveness check out the company's internal audit (audit) service employees (company Inspector).
Vi. Accounting cycle 71. Accounting cycle involves several sequential steps in accounting work carried out to obtain the financial statements for the reporting period (month, quarter or year). The full accounting cycle refers to the financial year, and has the following main accounting jobs: 71.1. account opening;
71.2. company business transaction analysis and posting;
71.3. account balance calculation.
71.4. account turnover and balance report;
71.5. corrective entry is posted;
71.6. closing entries are posted;
71.7. financial reporting.
72. At the beginning of the accounting year the accounting machine company registers and open accounts in the main book or journal, General Ledger, and also records the account balances at the beginning of the accounting year: 72.1. the company, which started operations on the basis of the inventory lists, statutes, contracts or other documents contained information (sākumbilanc data);
72.2. the company, which continues to be based on the previous reporting year closing balance sheet data.
73. During the accounting year on the basis of source documents, made records accounting records, calculate totals and accounts not less frequently than once a month, the main record book or journal-ledger.
74. the account turnover and balance report shall be drawn up in the form of a work table. Work table rows record account names or codes for the company's accounting of accounts order according to the main book or journal, ledger, but according to the installation box for reporting purposes.
75. turnover and balances of the Accounts report shall be completed in the following order: records started with the account balances as at the last day of the reporting year, enter the additional amount of clarification and dispatched, as well as the closing of accounts concerning the amount and calculates the new account balances. Using these data, fill in the appropriate box in the income statement or the revenue and expenditure account and balance sheet, as well as the calculation of the profit or loss, or the difference between revenue and expenses.
76. Using the account turnover and balance report data, accounting, do the following: 76.1. preparing accounting inquiries and make corrective entries in chronological and systematic registers (also in the main book or journal, General Ledger);
76.2. post account closing entries;
76.3. prepare financial statements.
VII. Closing questions 77. If the date of entry into force of the provisions has purchased accounting software (accounting information system software) that does not satisfy this provision in paragraph 36 of the said requirements, the company is entitled to use it until 31 December 2004.
78. Be declared unenforceable in the Cabinet of 25 July 2000, the provisions of no. 243 "rules on accounting and organisation" (Latvian journal, 2000, 272./274.nr.).
Prime Minister e. Repše Finance Minister v. dombrovsky Editorial Note: the entry into force of the provisions by 30 October 2003.