Amendments To The Law "on The Annual Accounts Of Companies"

Original Language Title: Grozījumi likumā "Par uzņēmumu gada pārskatiem"

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Cabinet of Ministers Regulations No. 292 Riga, July 30, 1996 (URprot.nr. 39. § 19) the amendments to the law "on the annual accounts of companies" Issued by the constitutional order laid down in article 81 to make the law "Of the annual accounts" (the Republic of Latvia Supreme Council and Government Informant, 1992, 44/45.nr.; Latvian journal, 1995, nr. 34.) the following amendments: l. The chapter "the terms used in the law": 1.1. make the term "control" as follows: "for the purposes of this law, the management is the management of those undertakings, the Executive Body, in which such a body exists. Individual enterprises on management considered the owner. All other types of enterprises on management considered to be persons entitled to make decisions concerning the activities of the company. ";
1.2. to complement the chapter with the following content: "Affiliated companies are companies such as against the company, for which the annual accounts are drawn up, is either a subsidiary or parent company or parent company's other subsidiaries.
Cash-flow statements, within the meaning of this law is the financial report, which provides data on the cash income and expenditure during the reporting period and drawn up in accordance with the Republic of Latvia accounting standards. "
2. Deletion of the fourth paragraph of article 1.
3. To make article 3 and 4 by the following: ' article 3 (1) the Annual Report must cover 12 months, and usually coincides with the calendar year. The company can review the beginning and the end of the year, as determined by the relevant company (the company) or a limited partnership Statute. One company in the group have the same reporting year.
(2) you can change the year. Change the accounting year should be justified and appropriate to explain in an annex to the annual report.
(3) the company the first reporting year may cover a shorter or longer period of time, but not more than 18 months.
(4) If you change an existing enterprise reporting year, the reporting year can not be longer than 12 months.
(5) the year in which the business ceases its activities, as well as the year in which the home is changed, it can be shorter than 12 months.
Article 4 (1) the annual report as a single whole consisting of balance sheet, profit and loss statements, cash flow statements, and report of the annex.
(2) the annual report must be drawn up in a clear and transparent manner, according to the Republic of Latvia established accounting principles.
(3) the annual report should provide a true and fair view of the company's assets, liabilities, the financial position and profit or loss.
(4) the Republic of Latvia established accounting principles are laid down by the law "on accounting" (the Republic of Latvia Supreme Council and Government Informant, 1992, 44 – 45 no; Latvian journal, 1994, no. 149; 1995, 159. no), this law, the provisions of the Cabinet of Ministers, as well as with the Association of Latvian certified auditor for specific Latvian accounting standards. "
4. Delete the third paragraph of article 5.
5. Express article 10 by the following: ' article 10 balance sheet accounts active in long-term investments i. intangible investments: l. research and business development costs.
2. Concessions, patents, licenses, trademarks and similar rights.
3. other intangible assets.
4. the company's goodwill.
5. Advance payments for intangible investments.
II. assets: 1. Land, buildings and structures and permanent plantations.
2. Technological equipment and machines.
3. other fixed assets and inventory.
4. create the fixed asset under construction object.
III. Long-term financial investments: 1. Investments in the capital of undertakings.
2. Loans to affiliated companies.
3. Participation in the capital of the related companies.
4. Loans to related companies.
5. other securities and investments.
6. Other loans.
7. Own shares.
8. Loan to the company's shareholders and management. Current assets i. stocks: 1. Raw materials and consumables.
2. Work in progress.
3. Finished goods and goods for sale.
4. Incomplete orders.
5. Advance payments for goods.
6. Working animals and productive animals.
II. customers: 1. Trade receivables.
2. Affiliated companies.
3. Associated companies.
4. Other debtors.
5. Not paid in shares in the company.
6. short term loans the company's shareholders and management.
7. deferred costs.
III. Securities and participating interests kapitālo: 1. Participation in the equity of the subsidiary.
2. Own shares.
3. other securities and participation kapitālo.
Iv. Money.
Liabilities to equity: 1. Shares or capital (share capital).
2. Share premium.
3. the long term investment revaluation reserve.
4. Reserve: a) the legal reserve;
b) reserve own shares or shares;
c) statutory reserve;
d) other reserves.
5. Retained earnings: a) previous years retained earnings;
(b)) for the year retained earnings. Savings: 1. Provisions for pensions and similar obligations.
2. Deferred income taxes.
3. Other provisions.
Accounts payable (short-term and long-term): 1. Borrowing against bonds.
2. loans convertible into shares.
3. Loans from credit institutions.
4. Other loans.
5. advance payments received From customers.
6. Payables to suppliers and contractors.
7. bills of Exchange Payable.
8. Debt to affiliated companies.
9. show related companies.
10. taxes and social security.
11. Other creditors.
12. Deferred income.
13. dividends for the year.
14. Previous years not paid dividends. "
6. Replace the 11, 12, 13 and 14, the words "tax for the year under review" by the words "corporate income tax for the financial year".
7. Express article 17, the second subparagraph by the following: "(2) the costs relating to the financial year, but to be made at the balance sheet date should be shown as liabilities."
8. Express article 18 as follows: "article 18 Only for payment of rights may be show intangible investment item" concessions, patents, licenses, trademarks and similar rights "."
9. Replace article 21, the words "turnover tax" with the words "value added tax".
10. Express article 24, second and third subparagraphs by the following: "(2) the first paragraph of this article, the criteria are: 1) the balance sheet total: 1000000 dollars;
2) net turnover: 2400000 lats;
3 year) average number of employees: 250. (3) the second part of the balance sheet total referred to in article 10 of this law contains the active items in total. Average number of employees is calculated by adding the company workers (with tax or tax card) staff review on the last day of each month and dividing the sum by the number of months in the year. "
11. Article 25:11.1 to replace in the first paragraph, the word "General" with the word "accounting";
11.2. to make the first part of paragraph 4 by the following: "4) account should be taken of the reference year for the related revenue and costs regardless of the date of payment and receipt of invoice or date. Costs should be matched with the revenue the relevant reporting periods; "
11.3. to supplement the first part with point 7 and 8 as follows: "7) indicate all items, which significantly affects the user evaluation or decision making. It is not advisable to specify minor items that did not change significantly, but make too detailed annual reports. In this case, the balance sheet and the profit and loss statement should specify United items, but it detalizējum to give in the annex;
8) company business transactions must be recorded and must be reflected in the annual report, taking into account their economic content and nature, not merely the legal form. ";
11.4. to make the first sentence of the second paragraph the following wording: "in exceptional cases derogate from the first paragraph of this article accounting principles."
12. Article 27 of the expression as follows: "article 27 such long-term investment object usage period is limited, the original value should be gradually written off (amortized) intended usage period. The plot of the original value should not be exposed to be scrapped (depreciation). "
Article: 13.29 13.1. express the first part of the third sentence by the following: "land value may be increased above their original values."
13.2. the deletion of the second sentence of the second paragraph, the words "and the fourth".
14. Express article 35, the first paragraph by the following: "(1) the costs associated with this law article 10 under the heading" i. intangible assets "l. — 4. item that intangible investments, are systematically written off useful life."
15. Express article 37 first paragraph by the following:

"(1) customer and vendor debt balances in the balance sheet should display the appropriate source documents and records in the accounting records, and must be consistent with the same customer and vendor records balance sheet date. In cases of dispute the balances in the balance sheet should be presented according to the accounting data. Accounts receivable, the receipt of which options are called into question, the amount of questionable may create unsafe stockpiles. The balance of the receivable in the balance sheet must show the net value, calculated from the gross book value of debt according to the accounting data to report unsafe debts generated accrual transactions. Annual accounts must give the reasons for the non-secure debts generated savings. If the debt is considered to be bad (lost without hope of ever recovering), this provision should be scrapped from unsafe debts or losses must be included. "
16. Article 39 be expressed by the following: ' article 39 of this Act regardless of the 26, 28 and 29 of the provisions of article parent company initially presented its own participation in the share capital of a subsidiary company, the acquisition cost, but at the end of the accounting year shall be adjusted according to the parent company's share in the equity of subsidiaries. For this purpose, you need to use a subsidiary company to the general meeting of the owners approved the annual report information. The increase or decrease in value of the subsidiary's profit or loss (according to the proportion of the capital) must indicate the profit and loss account items "income from investments in subsidiaries and affiliates kapitālo" or "long-term financial investments and the value of securities". A subsidiary of the calculated amount of dividends must be reduced in the balance sheet item "investments in the capital of undertakings" and increase the balance sheet item "receivables subsidiary" balance. Participation in the annual accounts of the company's equity in associated undertakings must point similar to the way you specify a participation in the capital of the subsidiary, subject to the conditions regarding participation in the share capital of the subsidiaries. "
17. Article 40 of the expression as follows: "article 40 (1) of the annex, a specially designed information can provide explanatory notes to the calculated items to which it applies, or with a balance sheet or profit and loss statement in the substantive items.
(2) debts due later than one year following the accounting year should be treated as long-term debt, and the customer must be entered individually in each of the identified by an Arabic numeral in the balance sheet item.
(3) Debt due in a year's time, is short-term debt. Debt due within a year, is long-term debt. Both of these types of debts are debts to creditors, and they must be entered individually in each of the identified by an Arabic numeral in the balance sheet item. To show the short-and long-term debt totals.
(4) trade receivables advance to record the relevant balance sheet items liabilities. If there are requirements or obligations to the parent company, a subsidiary of these items must be entered separately in the balance sheet. "
18. Article 45:18.1 express the second part of the first sentence the following wording: "If a company's assets are pledged or encumbered with any other loan repayment, it must be presented together with the information on the mortgage and other loan repayment guarantee security conditions and pledged to balance the value of object. The total burden of spin-off companies and the rest of the total burden of the Group companies must be shown separately in the annex. ";
18.2. make the second sentence of the third paragraph the following wording: "If a company has entered into a lease or rental agreements, which are essential for its operation, the obligations laid down in those treaties should be mentioned in particular.";
18.3. to make the fourth paragraph as follows: "(4) the company or its parent company's owners, the Board and management of the Council members issued a loan, mortgage or the amount of the guarantee must be presented separately for each category along with the interest rate, the most important terms and repayable amounts. ';
18.4. to make the fifth subparagraph, the first sentence as follows: "the loan and mortgage amounts, guarantees or guarantees issued or given for the company's members, except for the parent company and the parent company of actors, must be presented separately, indicating the amounts to be repaid."
19. Make the second subparagraph of article 48, the first sentence as follows: "the provisions of this article shall not apply to companies that can use the profit and loss account, in accordance with the scheme of this law article 24, first paragraph."
20. the express article 49 of the first and the second part as follows: "(1) Is to be presented in the year the amount of tax paid, by type of tax.
(2) should appear in the annual report of the corporate income tax amount that applies to the extraordinary income and cost difference. "
21. Supplement article 50 the second part of the sentence by the following: ' Council and Board members receive remuneration (excluding salaries) should be shown separately. "
22. Article 54:22.1. make the second paragraph as follows: "(2) the first paragraph of this article, the criteria are: 1) the balance sheet total: LVL 100000;
2) net turnover: 200000 dollars;
3 year) average number of employees: 25. ";
22.2. to make the fourth paragraph as follows: "(4) the balance sheet total according to the second paragraph of this article, the requirements from this law referred to in article 10 for all active items in total. Average number of employees is calculated by adding the company workers (with tax or tax card) staff review on the last day of each month and dividing the sum by the number of months in the year. "
23. Article 55:23.1. replace in the fifth subparagraph, the word "investment" by the word "investment";
23.2. to supplement the article with the sixth part as follows: "(6) companies the shares of which are listed on Riga Stock Exchange, annual reports must be presented: 1) the profit or loss for the financial year compared to the previous period and the causes of fluctuations;
2), the Council and the Board of management members and management functions to other Latvian register of enterprises registered establishments, other than participation or management functions in subsidiaries in which the company owns all the shares in the hair or shares. "
24. the express 54. article as follows: "article 56 annual report of the group includes the parent company and the subsidiary company, which combined with the consolidation methods (hereinafter ' participating in the consolidation" or "consolidated"). The Group's annual report provides information about the entire group as a whole as a single economic unit, regardless of combined company in the report of the legal boundaries of the relationship. "
25. in article 58:25.1. to complement the second part of the sentence the following wording: "the annual report of the group in the process of preparation of the financial statements of the parent company must be combined with a subsidiary company financial reports, adding similar items in the annual accounts, the funds, equity, revenue and expense amounts. ';
25.2. to complement the text of the third part with the following: "To the Group's report would be prepared as a single economic unit's annual report consolidation, review the following sequence of procedures: 1) cross off the parent company's investment in the original value in each subsidiary and the corresponding value of shares of each subsidiary of the company's equity. Consolidation of subsidiaries involved in the shares or the original value should be calculated as a pro rata of the companies involved in the consolidation of the equity part. The calculation must be carried out, taking into account the initial value on the date on which they were first involved in the consolidation. Amounts resulting from the difference between the post directly below those subsidiaries consolidated balance sheet items (in so far as it is possible), the value of which is higher or lower than the original value. The remaining amount of the difference to be noted the Group's balance sheet as a separate item under the name of "goodwill". The following procedures do not apply to the parent company's equity shares or parts, located in the same parent undertaking or a subsidiary involved in the consolidation of the property;
2) completely off the Group's business transactions and relationships between current account balances, including sales, expenses, and dividends;
3) completely off for not yet (not implemented) profits resulting from intragroup transactions between companies included in the value of the funds, such as inventory and asset tracking value;
4) turn off not yet existing (not carried out) losses resulting from intragroup transactions between the company and the amount is reduced the carrying amount of the funds, unless the costs are not reimbursed if (cover);
5) to minority interests in consolidated subsidiaries net income during the reporting period and take the Group's total business income required adjustments to get the net income amounts that relate to the investment of the parent company. The amount of revenue and expenditure resulting from consolidated subsidiaries and applies to shares or parts, as well as other people's property, who is not related to the Group's businesses

should be shown in the profit and loss account as a separate item with an explanation that it relates to minority interests;
6) to minority interests in consolidated subsidiaries, and the Group's balance sheet, it should be noted separately from liabilities and the parent shareholders ' equity. Shares in the subsidiary companies and belong to other people, you must specify the Group's balance sheet as a separate item entitled "minority interests (minority interests)";
7) the parent company and the Group's annual report to be included in the financial statements of subsidiaries of dates must be the same. ";
15.7. to supplement the article with the fourth, fifth and sixth the following: "(4) in preparing the annual report, the group within the group must use the same accounting methods to reflect similar conditions occurred in similar economic transactions. If the subsidiary used different accounting methods than those taken to the Group's annual report reflect similar conditions occurred in similar economic transactions, the company shall be adjusted accordingly when it is used in the Group's annual report. When you calculate the amount of such adjustment is practically impossible, to explain this fact, together with the information about the departments of the Group's annual report, which used different accounting methods.
(5) a subsidiary company operating results include the Group's annual report from the date of acquisition of the subsidiaries, i.e. the date when the parent undertaking actually acquired the property or rights of control over a subsidiary.
(6) Remove the (sales) of the subsidiary company to be included in the Group's profit and loss statement up to dissolution of subsidiary (sales) to date, i.e. the date to cease with the parent company's control over the subsidiary. The difference between the proceeds of the liquidation of the subsidiary company and eliminate the company's resources in the carrying amount, less its liabilities, by the State to salvage the day is specified in the Group's profit and loss statement as profit or loss on liquidation of subsidiaries. "
26. Express article 61 the first part as follows: "(1) the company must specify: 1) the full name and address and the registration number of the enterprise register of the Republic of Latvia, and the Group's annual report should list all subsidiary and associated company name and address. Subsidiary in your report should indicate the parent company name and address, as well as the percentage of the parent company's participation in the equity of the subsidiary;
2) individual company — also the owner's name and address, as well as personal code;
3) State and local government business with the Ministry or other administrative bodies in charge of which it is located;
4) limited partnership, also data on persons with full responsibility and the administrative institutions members (legal persons – including the registration number of the enterprise register of the Republic of Latvia, but the natural persons — with the personal code);
5) all types of incorporated companies and other types of companies — all members of the Management Board and the Council name and title. This news must be provided for the persons who during the reference year from these posts have gone. "
27. Express article 62, the first paragraph by the following: "(1) any company annual reports and the reports are subject to compulsory auditor check. The verification shall be carried out pursuant to the Republic of Latvia established audit standards. The company, which the above two of this law, the second subparagraph of article 54, the checks are carried out by a sworn auditor. Other companies may make this company (the company) the Audit Commission or the Auditor, who appointed or elected in accordance with the law on the form of business and company statutes. "
28. Article 64 of the expression as follows: "article 64 the auditor for inspection results to prepare a written opinion, in which he especially must specify: 1) or the company's annual report, and the report of the Group's annual report and the report is prepared in accordance with the requirements of this law and established the Republic of Latvia accounting standards;
2) or the annual report gives a true and fair view of the company's assets, liabilities and financial position at the end of the year, as well as profits and losses during the year under review;
3) or the legal representatives of the company have provided the auditor requested and clarification. "
29. Make 65. the second part of the first sentence as follows: "If the auditor's objections are relevant, he may refuse to issue the audit opinion."
30. Article 66:30.1. to make the first part of the first sentence by the following: "the company 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 that exceed the scope of article 24 of this law referred to in the second subparagraph the criteria, and the parent company, not later than seven months after the end of the year — submitted (by post or by courier) the State Revenue Service Department at the company and the location of the enterprise register of the Republic of Latvia. verified annual report copy of the report and the opinion of the Auditor, if any, together with an explanation of when the annual report approved. ';
30.2. to make the fourth and fifth by the following: "(4) the company and the group, which exceeds the scope of this law, article 24 referred to in the second subparagraph, the balance sheet and profit and loss account at its own expense, to be published in the enterprise register of the Republic of Latvia in the specified publication.
(5) the enterprise register of the Republic of Latvia on annual reports received and reports must be publicly available to everyone, paid the State fee, may be consulted. ";
30.3. to delete the sixth.
31. the express article 67, second subparagraph by the following: "(2) if the annual report and other reporting documents are not published in full, clearly indicates that it is published in abridged annual report and that the complete annual report is available in the enterprise register of the Republic of Latvia. Auditor's opinion shall be published in full. "
32. Article 68 of the expression as follows: "article 68 if the company's management is not sending in documents in accordance with this law, article 66 and article 67, first paragraph, the requirements of the State revenue service officials and the enterprise register of the Republic of Latvia shall be affixed to the fine prescribed by law."
Prime Minister a. slice the Finance Minister will Kreitus A.G.

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