Cabinet of Ministers Regulations No. 339 (No. 60, 27) Riga, 1995 November 7, rules on company accounting and organization Issued in accordance with the law "on 1 April 1925 the law" the cabinet installation "restore" article 14 (3) (I). the terms used in the rules balance — financial report that after a certain date on debt obligations of the company assets, and equity.
Accounting balance is a table that has two parts: active and passive, are in balance. Active indicates economic resources (assets) — the real resources, money, intangible investment, financial investment and claims against the customer. Passive indicates the economic sources of funds (capital), capital stock, and long-term and short-term creditors debt (liabilities).
The key element is the balance sheet item. The balance sheet for each item in the table line. Items are combined in groups, and groups-sections.
Active is two sections — "long-term investments" and "current assets".
Passive is a three section "equity", "savings" and "Vendor".
 
Debit — accounting account left. Features tracking account debit side record companies funds opening balance and increase it. Equity and liabilities (and vendor) accounting accounts record the source of economic resources.
 
Debit — do the accounting entry on the left side of the account.
 
Customer: the company's debtors. Receivables arise:-selling produce and pay for it;
— means its lending subsidiaries, affiliated companies or other businesses;
— in cases where at the time of incorporation of the company have not paid the full amount of the subscribed capital;
-in other cases.
The balance of the receivable in the balance sheet should reflect the appropriate entries in the company's accounting records, which are consistent with the data in the customer accounting registers.
 
FIFO inventory cost of acquisition: evaluation method based on the assumption that the company is first used and written down under the first item purchased the lot price, then the price of the second batch of purchased and so on, until all the items used, but the actual use of the inventory order is not taken into account. With this method, the company carried out a periodic inventory counting to determine the inventory and assessment of the amount of the last batch of the purchase price.
 
Counting: the use of company property and the resources (long-term investment, production and cash) survey, registration lists and compare inventory with the accounting data, as well as the requirements and the amount of coordination with customers and vendors.
 
The group, (the meaning of these regulations) undertakings, which consists of several legally independent firms and that, having regard to the objectives of the Business Wire (controlled) parent company. The group consists of the parent company and its subsidiary companies.
 
Credit: loans of money or goods; accounts for the good of the party. Equity and liabilities (and vendor) tracking the credit side of the account records economic source of funds opening balance and increase it. Features inventory accounts on the credit side of the entry of these products. Accounts payable account on the right side of the entry to other legal or natural persons of the amount.
 
— Provide cash to credit or loan; make a record of the accounts to the right.
 
Vendor: any natural or legal person who lends money to the company or product (usually a later period with the cash and interest loans).
 
Parent company — the meaning of these rules, a company that owns more than 50% of the share capital of another company or by the Treaty itself provided the control of another company (owned by majority vote).
 
Subsidiary, within the meaning of this provision, the company where the parent company and/or the parent company added other subsidiaries owns more than 50% of the company's share capital or with the help of this company is control over it (owned by majority vote).
 
Equity — means that the source of members for an unlimited period without remuneration, shall be transmitted to the company, as well as the company's business, the resulting increase of sources of funds. The equity component is the most important part of the shares or capital, share capital, share premium, reserves and retained earnings.
 
Profit and loss statement, financial statement, which set out the framework law "Of the annual accounts" (the Republic of Latvia Supreme Council and Government Informant, 1992, no. 44; Latvian journal, 1995, no. 34). It reflects the company's revenue and costs, as well as for a specified period of gains or losses.
 
Attachment: explanation (annual report) on the balance sheet and the profit and loss account items. Described in detail in the annex (with numerical and descriptive information) at the balance sheet and the profit and loss statement.
 
The economic deal — the meaning of these provisions, each fact or event that caused the change in company ownership.
 
Related company: the meaning of these provisions: a plant in which another company (Investor) owns 50% of share capital and not the majority. Investor has the right to participate in decision-making on related financial policy of the undertaking, the activity and direction, moreover, strongly affecting but not setting the (non-controlling).
 
The Red reversal-error correction technique, accounting records using negative numbers regardless of the error detection time.
 
Provision, the amounts for damages, debt or expenses, if they can be attributed to the reporting year or previous years. Such expenses may provide balance sheet date, when the volume (size) and the payment period is not precisely known. Savings shall not exceed the required amount. Savings amounts may not be used to adjust the value of assets, and annual accounts must be based on the amount of each type of the created savings (savings on pensions and similar liabilities, deferred income taxes, other provisions).
 
Company Manager: a person who is entitled or authorised to make decisions on the activities of the company. The Chief Executive of the company, considered a Board or Council of the authorised person (President, Director-General, the Director of the URu.tml.); State and local businesses and organizations — legislation duly appointed officials (directors, executives URu.tml.); in the individual undertaking, the owner or his authorized person.
 
The price of the company's accounting, internal accounting and control needs calculated for special prices, the combined company's internal list system, in which each type of materials and goods up to their relatively constant — — the price.
 
Report — written information (annual report) for those conditions, which are not reflected in the balance sheet, the profit and loss account and annex, but which play an important role in the company's assets and liabilities, the financial position and financial results for the year of assessment.
 
II. General questions 1. purpose and application of the rules of procedure these rules 1 lays down the procedure for applying the law "on accounting" (the Republic of Latvia Supreme Council and Government Informant, 1992, 44/45.nr.; Latvian journal, 1994, 149. No.) and "On the annual accounts of undertakings".
2. These rules apply to all those registered in the enterprise register of businesses, companies and non-profit organizations (regardless of the form of action, and the type of property), subject to the law "on accounting" and "Of the annual accounts", as well as foreign companies and permanent representations of companies in Latvia (hereafter referred to as "the company").
3. These provisions shall not apply to: 3.1 the Latvian banks, credit institutions and insurance companies, whose sorting and organization issues, as well as the reporting procedure established by special laws;
3.2. the authorities and bodies which are financed from the State or a local government and a sort of accounting forms and reporting procedures shall be fixed, in particular Cabinet regulations;
3.3. those companies with annual revenue of economic transactions do not exceed the law "on accounting" in article 9 and who do not need to draw up a law "on the annual accounts of companies ' financial statements provided.
 
 
2. the obligation to sort accounting

4. The driver's responsibility to organize the accounting in your organization and ensure that accounts are considered to reflect the company's transactions and the economic state of the company's assets. The accounts must be organized in such a way that the head of the company with the help of a qualified third party to report accounting for all business transactions in a given period and the financial position at the end of the period in question, as well as to establish at the beginning of each financial transaction and track its progress.
5. Accounting key tasks are as follows: 5.1 to provide senior management with information on the nature of economic decision making;
5.2. to ensure control over the company's the materials, labour and financial resources and the company's property;
5.3. to provide financial statement users (investors, shareholders, suppliers, customers, vendors, banks, public institutions and other users) with true and complete information on the company's operating results and financial position.
 
 
3. Accounting keeping requirements 6. Accounting procedures should be applied, the accounting must be clear and transparent.
7. The accounts must register all transactions of the enterprise. All business transactions must be certified with the source documents and posted on the company's accounting records. All entries in the accounting records should be made on the basis of source documents and in accordance with them.
8. the accounting information provided must be timely, important, true, comparable, understandable and complete. Financial information must comply with the financial reporting requirements of the General principles.
9. Financial reports, accounting records, supporting documents, and accounting documents of the organisation must be kept systematically arranged throughout the prescribed accounting information storage.
10. the company is obliged to provide accounting information and also save all sent to the corporate business transaction under the letter of the original copies (reprints, transcripts or other types of content coverage, using identical text, image, or other type of media).
 
 
4. Financial statement preparation general principles the financial statements 11. must provide a true and fair view of the company's assets, liabilities, financial position and profit or loss.
12. the annual report must be drawn up in accordance with the principle of company workers, the company will continue to operate and the foreseeable future it will not be stopped. The structure of the annual report must be clear and transparent.
13. the principle of coherence (consistency)-reference year is used used in the previous year accounting and valuation methods. These methods are not changed over the reporting period, unless there are important reasons for changing methods.
14. Accrual basis — revenue and expenditure must be specified, given the timing, not the cash receipt or issue. Regardless of the payment or the date of receipt of the invoice should indicate the reporting year associated with revenue and expenditure. The balance sheet can be provisioned liabilities, as well as the expenditure and revenue relating to future periods. Costs aligned with revenue over the relevant period.
15. The precautionary principle – revenue must be specified only when they already get or mining safe, but expected expenses (loss) should be recorded when they are to risk. To calculate and account must be taken of all depreciation and depreciation amount, whether or not the year is a loss or a profit. The precautionary principle does not reflect the symmetry, as indicating the revenue or expenses, various conditions must be observed.
16. exposure to the content of the Form principle — company business transactions must be recorded and be reflected in the financial statements, taking into account their economic content and nature, not merely the legal form.
17. the principle of Materiality-financial statements should indicate all items that impact the financial statement user evaluation or decision making. It is not advisable to specify minor items did not change significantly, but make too detailed financial statement. In this case, the balance sheet and the profit and loss account, we recommend that you specify the combined items, but to give it in annex detalizējum.
18. the cost principle — get features and services received initially must be specified according to their acquisition or production cost.
19. The lowest value principle — negotiable features (with the exception of securities which are subject to fluctuations in a stock exchange) to apply the lowest rating, comparing it to the purchase price or production cost and the lowest market price of the balance sheet date.
20. the annual report and accounts for the money and the value of units of measure to use a monetary unit of the Republic of Latvia: lats.
21. the annual report must be drawn up in Latvian language.
 
 
5. Accounting organization of work 22. company Business Manager accounting work organization can organize: 22.1. create accounts as a standalone business unit or the recruiting officer;
22.2. in accounting or other business services or accounting professional services in accordance with the agreements.
23. The individual company manager can sort the books himself.
24. the head of the company, which accounts not sort, but ask them to take another, should be concluded with the person darbuzņēmum the contract of employment or contract for accounting services. This agreement should define the obligations of both parties, right and responsibility accounting. In any case, the business manager is responsible for the accuracy of financial statements and other accounting data in compliance with the Act and this regulation.
25. Organizing accounts note that accounting is not an end in itself, but a tool company's general objectives. Accounting organization is independent of the company's economic size and type, the volume of the tasks imposed on bookkeeping, accounting, accounting of the number of employees in the technical means and financial possibilities of the company.
 
III. Business transaction disclosure accounting 1. economic transaction documentation and present 26. All company business transactions must be documented, evaluated in terms of money and posted for accounting records in a systematic order, and subject to the chronology.
27. Posted to do business day or as soon as possible, but no later than 20 days after the end of the month, when the economic transactions occurred.
28. records accounting records must be complete and accurate. It is not permissible for entries whose content or that use measures different from the source document.
29. Company business transactions must be recorded on the basis of source documents or the document summary data. To make corrective entries on the source document to be used in the preparation of accounting advice.
30. All revisions and amendments should be based on the attached documents.
 
2. Double entry accounting records 31 entries must be made using the double entry method. Using this method, one and the same economic transaction for the same amount be entered twice in the interconnected system accounts, one account and its associated (offset) other account credit, subject to the specific chart of accounts and the economic substance of the transaction under account correspondence.
 
 
3. Accounts and their corresponding 32. Accounting accounts reflected the company's resources, commitments and changes in equity for a specified period of time. Account the level of detail reflected in the accounts in the chart of accounts. Each account combines content by its economic resources, their uniform source or economic processes.
33. the account system is based on the accounting equation: features = liabilities + equity in use of the system respects the principle of accounting for each account has two parties which can make entries, debit (left side of the account) and credit (right side of the account).
34. the account balance at the beginning of the period called the opening balance and then be consistent with the balance of this item in the balance sheet or a balance report (if the balance sheet account several United amounts). Account balance amount of the increase or reduction of the period called the turnover, but the balance at the end of the period called the account closing balance.
35. the account of the mutual obligations arising from economic transactions reflects the double entry, called the account korepondenc. If the implication of economic transactions, used two accounts, using the simple account correspondence, but if a deal reflecting uses three and more accounts, use the composite account correspondence. Business transaction accounts used for posting the correspondence depends on the economic content of the transaction in question, classification, accounting chart of accounts and the accounting methods adopted.

36. An indication as to which account credited and debited to the account record of the financial transaction amount, called the posting or posting. The following instructions must be made in writing to the source document, or a document summary, homogeneous and according to be kept in appropriate accounts. Postings may be simple and compound. The compound of the posting on one side (debit or credit) must have only one account, but the other side can have two or more accounts. Non-compliance with this provision possible only if the same source document (document summary) should be more postings (such as wages and salaries, combined with the social tax calculation).
 
 
4. Justification documents 37. Justification document is a document that certifies the existence of the financial transactions of the company. Justification documents can be external or internal, depending on their origin and significance in one or several copies. On the origin of the document is considered a document drawn up for the other companies, not the company. External document considered and external document of origin, and a document drawn up for the same company for submission to other legal or natural persons. All other source document should be considered internal documents of the company. If a transaction is an external source document, it must be given priority in comparison with any internal source document.
38. Source document must indicate the following: 38.1. company name (for external documents, address, registration number of the company register and tax code);
38.2. the title of the document (invoice, voucher URu.tml.);
38.3. the preparation of the document date and the registration number;
23.9. economic description and justification of the transaction (type of goods, service type URu.tml.);
38.5. economic deal fever (quantity, unit of measure, unit price and total amount);
other economic transactions 24.0. the persons involved;
36.6. economic transaction and correctness of the information responsible person signature.
39 individual justification document types may be optional in other properties (advanced properties): 24.3. related document with the transaction date and the registration number;
24.4. the imprint of the stamp of the company;
39.3. the company name, registration number and address in the register of undertakings that submit a document;
24.5. deadlines;
24.5. in dealings with natural persons — social security number or taxpayer ID and residence.
40. the justification documents and records accounting records should be clear, understandable and so as to ensure the preservation of records so long period of time, a archiving archive established in the law "on accounting". Accounting entries is prohibited to use a simple pencil. Justification the document forms a free line necessarily barred.
41. If accounts kept using electronic computing (computers) and have adequate technical means, the justification documents and accounting records creates a text medium, providing data for a third party image legible type and, if necessary, a data printout. The following document properties can be fixed in code and symbols. Signatures of the persons responsible for supporting documents, using a computer, can be replaced with a password or other form of authorization, which allows the unmistakable signature of the person concerned to be identified.
42. The accounts of the company received external or internal documents of origin should check their form, content, and arithmetic, as well as from an economic point of view of compliance with the deal.
43. the documents that meet the justification of document requirements, to be used for the purpose of accounting records in registers and accounts to systematise the information that they contain. After document checks at the point of posting — which accounts and credited to be booked the economic transaction. To avoid repeated entry, accounting records after recording justification document should indicate the entry number.
44. May not accept incomplete ready for posting, transaction content inappropriate or erroneous documents. In this case, the document must be returned to the applicant the deficiencies mentioned.
45. Business Manager can independently choose inner justification document form in form and content, if the law does not regulate the form of relevant documents.
 
 
5. Accounting records, forms and methods of the justification documents 46. information about the company business transactions must be recorded in the accounting records. There are two types of records of business transactions: a chronological record, and systematic record. Chronological record of economic transactions are logging the day of the month in the order, but a separate days — transaction sequence number order. The systematic registration of the transaction record to the accounting accounts.
47. the Chronological and systematic organization of records and mutual relationship, called the accounting form. You can use the journal-ledger debit/credit memo form, form, žurnālorder form, as well as accounting software programs. Accounting forms differ in chronological and systematic structure of the registry and, in synthetic and analytical skills, a record in chronological and systematic relationship between the entry, as well as with the accounting techniques.
48. The records, which cover the economic content of the uniform and their source of funds balance, as well as the balance of the accounts accounting change accounts, called synthetic. Synthetic records mission is to give a general overview of the company's assets, liabilities and equity.
49. The individual company property object their source or balance, as well as the balance changes detailed records made in the analytical accounting records. Analytical record are given an overview of the specific property object, item or part of the debt balances and turnovers.
 
6. Chronological registers 50. Chronological registers or logs for all economic transactions are recorded in chronological order to of these registers might take a picture of each day, week, month, or year in transactions.
51. the journal entries must specify the following information: 51.1. economic transaction date;
51.2. economic transaction sequence number;
51.3. the reference to the source document, the date and registration number;
51.4. the account codes and credits be posted in economic transactions;
51.5. accounts and credit amounts entered.
 
 
7. systematic registers 52. systematic registers transactions codified, summarizing the content of the uniform by economic groups. Systematic registers is the main book and analytical accounting registers. The main book transactions shall be recorded in money terms by accounting accounts. Analytical accounting transactions are recorded in the registers by analytical accounting accounts in money terms, but for individual property items and inventory unit — also the natural expression.
 
 
8. the accounting register of the accounting registers to be 53. round of Latvian language. If the financial transaction involves a foreign legal or natural person, by agreement of the parties may also use second-person and Auditors – acceptable language. Accounting registers may use codes, abbreviations or symbols.
54. Companies that deal and the economic justification document number is small, the main accounting record of the journal, you can use the General Ledger. Journal-Ledger can be reflected in each financial transaction, indicating the total amount and when the relevant accounts and credit. If the business is more comprehensive and specific economic transactions often persist, these transactions can be recorded in separate stock records. At the end of each month, the total amount of economic transactions from these registry entries to the journal, General Ledger. Additional journal — and savings for the Ledger records that companies need the analytical accounting installation registers the property object, inventory, billing, balance and turnover.
55. Companies with a wide range of activities and a large number of transactions required for the Accounting Division of labour to the accounts at the same time could keep more staff. These establishments must plant a variety of logs and records of stocks, but the main book record in these magazines and stock registers the data collected on business transactions. Also must be provided analytical accounting registers.
56. At the end of each month as a synthetic and analytical accounts to calculate the debit and credit turnover and balance (balance) as well as to draw up a separate account turnover and synthetic and analytical accounts the amount of mutual reconciliation. Before the financial reporting of these data have to be compared. Note that the synthetic and analytical accounting is reflection of economic transactions in two ways that are related to each other and complement each other.

57. After their form of accounting registers are books, cards, loose pages URu.tml., adapted to the economic content of the uniform economic transaction. Computer technology conditions accounting records shall draw up and keep a special accounting computer program.
58. the head of the company, subject to the legislation of the general methodological principles, you can independently choose the sort of accounting methods and forms, accounting records, the number of construction and accounting techniques, depending on the structure of the company in question, the nature of the economic activity, the economic transaction frequency (number), and information.
 
 
9. Accounting record corrections to 59. If the entry in the accounting records and documents are correct, you should see the original content and each amendment must be specified (specify, when and why to edit) and approved by the signature of the person who made the correction. May not be correct so that it is not clear when and why it's done. May not be correct, delete (destroy) the original entry.
60. the corrections can be done with a new record, with which the right or reference the previous record. Following corrective entries must contain the date of the correction and the reference to adjustment document (accounting statement).
61. The Red reverse error correction can only be used if the book in his hand. If the book of sorts, using computers, edits made with new (opposite) record.
62. To make a new record, remedial, must draw up a certificate of accounting of where document should indicate the date, the name of the person who authorized the correction, correction and repair (original) record number of chronological case. The editable (original) source document to write when prepared corrective document and when done fix.
 
 
10. Books and records storage 63. Each company all source document, accounting records, inventory, and inventory lists, annual reports, as well as the accounting documents of the organisation must be accrued, systematically sorted and stored in the archives of the national archives establishment of Directorates-General. Their storage life in accordance with the law "on accounting" is the following: 39.2. the main book, as well as annual reports and their attachments — 10 years. Then they are transferred to the national archives;
39.3. the inventory lists, the accounting records and accounting documents of the Organization (account plans, codes, etc.) — 10 years;
63.3. source documents for employees estimated monthly salary (wages), with a breakdown by year and month, 75 years;
63.4. other accounting source documents — five years (if complete audit). The dispute, controversy, investigation and court case, those documents are stored until a final decision is taken.
64. the companies where accounts are kept using special accounting computer programs systematically sorted and stored in the archives of the company source document and prints of the accounting records.
65. the source documents, the accounting records and other accounting documents to their placement in enterprise archive must be stored in the accounts of the responsible person. Manually processed during the current month's justification documents relating to a specific set of accounting records, the record number order and bound or stitched into folders stored in dedicated storage areas.
66. the company's archive documents, natural and legal persons should not be removed from the company, it can be used only with the consent of the head of the company. An exception is provided for by the legislation of the specific cases when after coordination with the Chief Executive of the national archives Directorate in order to produce copies of documents that the document left the original site.
67. the company's liquidation or reorganization of the company in the event of subsequent storage of the archive after coordination with the Directorate-General of the national archives established a liquidation Commission, which organizes documents and put them next to the national archives storing or reorganization resulting from the company's archives.
68. Concerning justification document, accounting records, accounting and other documents of the Organization of the company's accounting and the information placed in the archive conservation and protection against destruction or loss is responsible business manager.
 
IV. Organization of accounting rules 1.69. accounting documents of the organization. The plant must have a company approved by the supervisor in the accounting documents of the organization which procedure is documented in the company's financial dealings, made long term investments and stock records and inventories, organized document circulation, sorted in accounting records. Organization of accounting documents is also part of the company's accounting of accounts, this plan, as well as code and symbol usage rules, long-term investment and working capital classification criteria, accounting records, document and record retention regulations and the annual report and other financial reporting rules.
70. the accounting documents of the Organization to organize and store business Archives 10 years after committing those changes or their substitution with other accounting documents of the organization.
 
 
2. the cycle of economic transactions and systems 71. to the company's executives to confirm the company's accounting documents of the Organization, they must be for business transactions.
72. There are three main economic business cycles: 72.1. building of revenue (sales of goods and services) cycle — the transactions relating to the company's operating income and cash, including invoicing and accounting, delivery and collection of cash proceeds;
72.2. the acquisition of goods and services — business cycles relating to the ordering of goods and services, receipts and payments therefrom (including salary accounting and payments);
72.3. production cycle — the transactions relating to the production and supply of services, the value of goods and materials circulation, cost accounting and cost calculation.
73. every economic transaction cycle involves a system of economic transactions, the number and structure of which are independent of the specific economic activities of the company.
74. the revenue building (sales of goods and services) cycle includes three economic business system: 74.1. sale of goods and services;
74.2. payment receipt for goods sold and services rendered;
46.2. trade receivables claims acceptance and sales back.
75. The sale of goods and services process includes the following steps: 75.1. order acceptance (orally, by telephone, mail, URu.tml.) and reliability (order book or the previously numbered forms);
75.2. the loan term and delivery terms (price, delivery in URu.tml);
75.3. the harmonisation of the conditions of the order with customers (buyers);
75.4. document delivery of goods (trade demand, packaging and delivery documents or one combined document that combined the above data) or delivery order (production request or demand of goods suppliers) preparation;
75.5. the supply of goods or execution of the present order book (based on the trustee company approved invoices, accompanied by documents certifying delivery of goods or performance of the order).
76. in the receipt of payment for goods sold and services provided include the following: 76.1. receiving and depositing money in the bank (cash acceptance, by cheque, by post, with a broker or bank money orders and cash deposits in the bank);
76.2. the amount paid to the comparison with iereģistrētaj due invoice (accounts receivable) amount;
76.3. trade discount and discount other discovery (invoiced amount shall pay reductions, depending on the quantity of goods purchased or the actual payment date);
76.4. cash receipts and discount recognition accounting.
77. Trade receivables and claims back the received goods include the following: 77.1. receiving goods and claims;
77.2. receipt of reports (on the above numbered forms, in which the far in processing the record further with case-related information);
77.3. examination of claims;
77.4. the preparation of the credit memo (sequence number sequence, including data on returned goods quantities, prices and totals) and dispatch;
77.5. claim and return the goods received in inventory accounting (according to memos).
78. the acquisition of goods and services includes five business cycle system: 78.1. procurement of goods and services;
78.2. payments for goods and services received;
78.3. claim and return the goods back to the vendor;
78.4. wage calculation.
78.5. wage payments.
79. the acquisition of goods and services process includes the following steps:

79.1. the required goods and services;
79.2. ordering of goods and services;
79.3. in the receipt of goods and services, testing and acceptance (name of goods received, quality checking of quantity compared to the accompanying documents and the order, the actual data recording the delivery of the goods in the document or the value of goods and material receipt and proof of this data plotted with signature);
49.3. storage of goods or use of the goods or services;
49.4. the presentation of the goods and services accounts (according to the supplier's invoices, which matched with supply accompanying documents and documents relating to the goods or services received should be checked before posting amounts are correct).
80. Wage accounting (calculation) process includes the following: 80.1. permanent data-employee pay and deduction —;
80.2. working time worked or unit of production records;
49.9. salary, bonus, bonus URu.tml. calculation (based on constant data and data on actual environmental performance);
80.4. calculation of the amount of the deduction.
81. Salary payments can be done when the check depositing money directly into the bank account of the employee or the paying out of the company's cash in cash. About unpaid salaries and a list should be drawn up of the persons contained therein should be compared with the records. That list included amounts should be recorded in a specific order.
82. The industrial production cycle includes three financial transaction system: 82.1. production of goods for sale;
raw materials of 82.2., exhibit and storage of finished products;
82.3. supply of goods produced for customers (buyers and subscribers).
Analog determines the production cycle in the construction, trade and other sectors.
83. the production process includes the following steps: 83.1. identification of needs and planning;
51.7. production of goods;
83.3. production cost accounting in accounting (need exact production costs accounting and disclosure accounting records, as well as the cost calculation according to the specific characteristics of the production process and procedures of the company);
83.4. unfinished product balance accounts (balance, determination of the amount of the natural expression and calculation of their value in accounting).
84. raw material, materials, consumables and finished product storage system includes the continuous records of the receipt of the materials to the production of finished goods delivery to the buyer. Essential components of this inventory is inventory.
 
 
3. Description of the circulation of documents (schema) 85. company business transactions With associated justification document prepared or received from other companies, making accounting, processing and transfer of archives is governed by the document or schema, the description approved by the head of the company.
86. the document or schema, the description must include the preparation, inspection of documents and the processing order, specifying the relationship between the activities to, execution deadlines, artist, number of copies, the storage location and duration.
87. the document circulation description is used when transactions are carried out in a uniform manner, in other cases, the use of the document that shows the document flow systems of economic transactions.
 
 
4. General principles of record keeping of accounting records are 88. operational documentation and working with documents. Management of the company is governed by a manager of an undertaking approved filing instructions.
89. the filing process includes: 89.1. document preparation and presentation;
89.2. the document circulation;
89.3. document registration;
89.4. execution of documents control;
89.5. rain and nomenclature of things forming;
the archive work. the company's 55.7.
90. the records documents grouped by the following signs: 90.1. by document type (it shows);
90.2. the document tasks (organizational documents, order documents, accounting documents URu.tml.);
90.3. the guidance document (received, sent or internal documents);
90.4. by document transactions and storage;
90.5. the other characteristic.
91. document properties are the elements of the document: 91.1. give legal documents;
91.2. harmonization of document design, promote the preparation and execution of documents;
91.3. system and ensure efficiency in the processing of documents, guidance, control, use, and storage below.
92. All documents of legal importance are the following properties: 57.2. document author;
document preparation or 92.2. the date of issue;
92.3. the text of the document;
92.4. signature;
92.5. document preparation or a picking location.
93. the author of the document itself must provide the following information: 93.1. legal person: full official name of the company according to the company's founding or creation, registration document, indicating the body to which the company is subject or, in the absence thereof, — the company's territorial affiliation. Together with the company's full name, you can specify it in symbolic or abbreviated names;
93.2. natural person: first name and last name (if not stated otherwise on the form), as well as in accordance with the content of the document and to whom and for what purpose a document addressed to the author should provide one of the following additional messages: 93.2.1. personal code;
93.2.2. residence address;
93.2.3. jobs, indicating the position;
93.2.4. school, faculty and courses, in which the author learns;
93.2.5. identity document data.
94. with regard to the signing of the document, the following conditions must be fulfilled: 94.1. natural persons signing the document directly within her. Legal identity document signed by officials who have the regulations certain rights to do so;
94.2. If company name is specified in the form, write the full name of the post (it should be written before the name of the company);
58.6. the Commission document is signed, the first document signed by the President of the Commission, the other signatures must be placed in alphabetical order;
94.4. company Manager may request that a draft document before signing it endorsed the content of the document of the person responsible.
95. Document preparation or picking location must be specified according to the corresponding administrative and territorial unit of the geographical name. If, in accordance with the content of the document needs to specify a mailing address (name of the institution and departments up to the room number or other specific place signs), the text of the document.
96. The documents can have different properties with legal palīgfunkcij and the significance of the document, as well as in the towards the internal control — distribution, news about your company, the title, the words annex, reconciliation, trademark, codes, reference to the received document, document holder, resolution, page, page number, control mark, receiving, exercise URu.tml.
97. The list of transactions is a correspondence between the legal persons, between individuals or between individuals and legal entities on a (usually legal) relationship building, change or termination of it, or about a mutual (usually commercial). For the list of transactions to be considered letters (including guarantees and sureties), fax, telegram URu.tml.
98. the Registration Document is the process of recording the particulars of the document (the document author, date, type, number, content presentation), noted its registration date and assign it a registration number. Received documents record the date of receipt, sending and internal use documents on the day of signing or approval. Received, and which documents are recorded separately. The order number on the documents after the turn of the calendar year.
99. in order to ensure the registration of all transactions fully accounting for their occurrence order transactions as they occur should be assigned sequential number; all transactions should be accounted for according to their serial number.
100. the Justification of document number is usually recorded in the document preparation process, however, the books form the previous sequential numbering, it is advisable to include this form already in the preparatory process, thereby reducing the opportunity to deliberately or inadvertently make mistakes justification document numbering process.
101. the Justification of document numbering is an accounting document record management method, which allows you to check all documents submitted justification are numbered sequentially, or missing a document or multiple documents and not assigned the same order number.
 
 
5. Accounting chart of accounts, codes and abbreviations 102. Accounting chart of accounts is the Manager of the company approved a more synthetic account list. Accounting chart of accounts of the company in the long-term use, on the basis of the law of companies, businesses and organisations the uniform accounting plan account (called a "unified accounts plan") and their respective companies detailing the characteristics, the economic activities as well as, if necessary, the possibility of the company accounts in the plan to introduce additional accounts (specific economic transactions).

103. where the company is based in the need to use a different accounting chart of accounts, use it only with the procedure laid down in the legislation, ensuring the preparation of the annual accounts according to the law "on the annual accounts of companies ' and tax information required for the calculation.
104. account number (code) system facilitates the placement of accounts in the main book in which account names necessary to record the number (code). Account numbers used in the justification documents and accounting records of the financial reference amount for the recording of transactions in the accounts.
105. the unified accounting chart of accounts has been created according to the balance sheet and the profit and loss calculation schemes in accordance with the law "about the company". Each company after this account, you can create your individual, specific chart of accounts in accordance with their respective industries and structural characteristics.
106. the account codes are built in decimal encoding system. The code has four characters. The first two characters are mandatory in all cases. The third draws without a single accounting chart of accounts, the following codes are left not busy spare codes that the company, if necessary, you can use a different account for encoding. Fourth mark to use freely, at the discretion of the company's accountant for more detailed accounts are created. If necessary, you can also add code to the fifth, sixth and consecutively — the next sign.
107. all single accounts plan contains codes are divided into several economically homogenous groups. They United into two large sections: balance accounts and operations accounts. The code first sign indicates a group of accounts.
108. the balance account groups are the following: 108.1. "long-term investments";
108.2. "current assets";
108.3. "equity";
108.4. "savings";
108.5. "Vendor."
109. the operation of the account groups are: 109.1. "operating income";
109.2. "operating expenses";
109.3. "miscellaneous revenue and expenditure, profit and loss".
110. The single accounts plan only applies to financial accounting. Management accounting (cost grouping for distribution and redistribution, as well as cost estimates and other calculations) company's accounting chart of accounts may provide specific account names and account numbers (codes), which starts with the code "9".
111. If the nature of the item, the cost items of ingredients or other tracking object detailed classification company introduced a special code system (digital or letter code), symbol or abbreviation, the company must be a company driver (entrepreneur, owner) approved the system descriptions (codes), as well as symbols and abbreviations terms of use.
 
 
6. the classification criteria and the certification of the company features 112. depending on their circulation time is classified in long-term investments and current assets.
113. Current assets the company's products, which are to be converted to cash, sell or use the nearest 12 months or the company's normal operating cycle, if it is longer than one year (such as building companies). Operating cycle is the period of time between the issuance of funds at the time of the purchase of goods or services and the sale of goods or services while customers (customers) to get money.
114. Long-term investments are the company's products, which are intended for use in long-term (over one year) or invested in durable property (fixed assets, intangible assets, long-term financial investments).
115. to the company's accounting features to classify correctly, you need to develop and approve the operator of conduct company business constantly the means used in the classification.
116. the company must have documents proving the legal acquisition of property object (such as a court order, deeds, contracts, invoices).
Čpašum rights to real property (land, buildings, constructions) in the land of the entry is prohibited, which also marked the news of the restrictions of this right (due to the property burden or debt). In accordance with the law "On 22 December 1937 the land registry law and the entry into force of the order" (Republic of Latvia Supreme Council and Government Informant, 1993, no. 14; Latvian journal, 1995, 34, 72, 144. No.) the location of the real estate company's balance sheet by itself does not create property rights.
 
 
7. Asset depreciation (amortisation) and accounting arrangements 117. assets is the company's materials into the long-term investments that use period is longer than one year and which: 117.1. intended for use in production, provision of services, leasing or hiring, company administration, as well as other asset preservation or repair;
117.2. not intended for sale in accordance with the company's core business.
118. the asset objects or similar groups of fixed assets useful economic time is limited, their acquisition or production cost or revaluation of the resulting increase in value should be gradually written off (amortized) in the expected useful economic life. Asset useful life of company financial and economic needs determined by the company Manager (owner), on the basis of experience on similar types of actual utilization of fixed time or other factors that characterize the wear of fixed assets (working hours, product quantity, mileage URu.tml kilometres.).
119. the head of the company's consideration of the item of property or a similar asset depreciating the value of the group, duration of use and the valid depreciation method should include the fixed assets depreciation (amortisation) plan, to be approved by the company. As part of this plan may also include asset object or a group of similar asset depreciable value breakdown by years, during which it will be used.
120. the head of the company you can select the asset depreciation calculation method and period (month, quarter or year round) and just a little of value object (inventory), and delete the values agenda.
121. fixed asset depreciation object runs with the first date of the month following its commissioning and ends with the first date of the month following the asset object off of the asset depreciable or after inclusion of value of total costs. Asset maintenance, repair and reconstruction of time depreciation is not interrupted.
122. An item of property, the total amount of the depreciation calculated shall not exceed the depreciable value.
123. the main items of property depreciable or groups valid life periodically inspected and, if it turns out that it is very different than previous estimates, the depreciation rate must be adjusted for the current period and future periods. The effects of changes to explain its annual accounts for the period in which the change occurred.
124. The selected depreciation method of calculation must be suitable for permanent, unless the circumstances do not justify the change method. In the reporting period in which the change method must be calculated and specified methods, as well as the effects of the change in annual accounts to explain the cause of the change.
125. the depreciable value of the asset, less the value of the potential revenue that could get fully depreciated asset salvage (salvage value URu.tml.). If this value is not relevant or cannot be calculated, fixed assets and depreciation the depreciable value calculations it can be disregarded. If you anticipate a high scrap value, depreciation should be fixed taking into account the expected value, as well as asset disposal (salvage).
126. Asset depreciation should be calculated in each reporting period according to the posted value of fixed assets during the year and to the same extent you must specify in the calculation of gain or loss, whether or not the year is a loss or a profit.
127. for each undertaking, on the basis of the law, generally accepted principles and methods adopted, approve your company's asset tracking and depreciation of fixed assets accounting policy.
128. in calculating taxable income, the company business asset depreciation to be used is determined by the law "on enterprise income tax" in article 13.
Take into account that the law applies only to income tax calculation and determine fixed assets and their depreciation accounting financial accounting. Therefore, the income tax purposes calculated asset depreciation amount may differ from the calculated the company's financial and operating needs for fixed assets useful economic time and included in the annual report of the company's profit and loss account.
 
 
8. The inventory order

129. The stock is the company's current assets: 129.1. What is the meaning of their own raw materials or materials intended for use in the production of goods or the provision of services;
129.2. intended for sale in accordance with the company's core business;
129.3. located in the production and processing process prior to their sale.
130. stocks initially to be assessed according to their acquisition cost or production cost.
131. the item of the balance of the purchase price shall be calculated by adding to the costs directly related to the purchase, e.g. transport and handling fees, customs duties and other taxes associated with the purchase (minus the amount of the tax that should be received back).
132. Production, unfinished product and order the production costs calculated, the materials used in the production cost of the purchase plus other expenses directly related to production (direct costs and, where appropriate, to pay social tax deductions, as well as direct costs for production work and services carried out by other companies, organizations or individuals). The production cost may also include a certain percentage of the costs that are not directly related to the production of the product in question, if those costs cover the same period (direct control of production and service workers, technicians, engineers, maintenance guy and another employee wages with social tax deductions, repair of fixed and operating costs, production space heating, lighting URu.tml. costs, asset depreciation, rent and insurance payments , general-purpose consumables and other expenses related to production).
133. Stock acquisition cost or production cost is not to be included in the following costs: 133.1. the General administration costs (indirect costs incurred by company management, control and administration process, such as directors, secretarial, accountant and other employees ' wages and social tax deduction, the management functions of buildings and equipment used for depreciation, repair and maintenance costs, including lease or rent, lighting, security, handling URu.tml., Office, mail and other expenses);
133.2. cost of sales;
133.3. storage (warehouse) (except those arising in production processes, storage unfinished products until the next processing stage of the production process).
These costs to be included in financial statements of the period in question the Administration's cost or sales cost.
134. The finished product unit, which items are not updated or replaced with the same type of production units, as well as special order goods produced (or service) the remainder value is to be determined using one of the assumed unit cost calculation methods. In all other cases, the value of the inventory must be determined using the weighted average of the prices (cost) method or the FIFO method.
135. the annual accounts balance sheet items (raw materials and materials, work in progress, finished goods, merchandise and other items) must be specified according to their actual acquisition or production cost or lower market price on the last day of the year (if this is sufficient to justify a permanent conditions and if the relevant documents). It is imperative to use the lowest rating. Prohibited items on the higher rate of acquisition or production cost. Lowest market price on the date of the balance sheet reflects the raw materials purchased, the replacement of materials and goods required, as well as own work in progress and finished products of the expected sales revenue net worth.
136. Inventory turnover and inventory in the accounts of the company for the changes reflect, using one of the following inventory methods: 136.1. inventory turnover (including the use of the materials purchased and sold on the value of the goods) regularly (every month) recorded accounting accounts and determines the value of the inventory at the end of each month that you specify during the accounting year (at the end of the year), on the basis of the inventory results (the inventory continuous counting method);
136.2. accounting year the accounting accounts does not track inventory changes not, not the use made of it, but at the end of the year, on the basis of the inventory results, determine the value of the inventory, as well as the calculation and post inventory changes and their use (the inventory periodic inventory method).
137. Inventory turnover records complement the regular partial counting of inventory system, including the items unit regularly check to ensure that the items stored in the warehouse corresponds to the units data warehouse accounting records and inventory accounting records, as well as the adjustment of the register according to the perceived differences in inventory.
138. at the end of the year (three months before the end of the year or the month following its) closing inventory report. The items that are updated regularly, but that amount has changed little, balances may be appropriate accounting data on the date of the statement (if a company is made of permanent records and inventory work item scheduled partial counting system). But not less frequently than every three years, the inventory must be made continuous inventory, the quantity and value of the test runs.
139. For the control of raw materials, materials, semi-finished products, finished products, as well as for sale to purchase company stock, to create the inventory control system, which is controlled by demand and supply, as well as inventory turnover is made permanent records storage and continuous checking accounts (accounts, or accounting prices). Enterprise accounting registers for this purpose made records that are in accordance with the entries in the warehouse accounting records (cards), but in addition also contains information about received and issued, the value of goods and materials costs of acquisition or production cost.
140. Each operator of the basis law, general principles and methods adopted, approve their company's stock.
 
 
9. Cash accounting procedure 141. Funds are cash company cash, non-cash funds in company accounts in banks and other credit institutions, as well as cash.
142. the storage of funds need to choose a safe storage location, the obligation to keep the money and handle it to ask a trusted and responsible persons. In accordance with the law "on accounting" and other laws and procedures of the company's accounts every day must record cash balances, shall be recorded and received and payments made.
143. the company's cash on hand should be recorded, shall be recorded and shall be controlled in accordance with the specific terms of the Cabinet of Ministers.
144. Non-cash funds in company accounts in banks and other credit institutions should be treated and monitored on the basis of the Bank of Latvia and the credit institutions concerned documentation. That means accounting to implement appropriate accounting records.
145. The funds (money transfers on the company's accounts in banks, inkasēt in cash revenue URu.tml.), as well as cheques received from customers and vendors issued checks shall be recorded and shall be controlled in accordance with the procedure laid down in the undertaking.
146. The companies their funds can hold all currencies without quantity limitation. Each foreign currency in the cash receipts or payments (spending) should be translated for the Latvian National currency — lats, by the Bank of Latvia the rate in force on the day of the transaction. Annual report balance sheet funds indicates LCY after conversion of the Latvian Bank rate on the last day of the reporting year.
 
 
10. The counting of the order on the inventory of the company 147. is responsible to the head of the company, who perform in the company inventory counting Commission creates a separate object (Department, warehouse URu.tml) inventory.
148. In the individual undertaking the business owner can take a physical inventory.
149. The counting Commission of the composition of the staff, and the completion of the counting periods shall be determined by the Chief Executive's written order. The inventory should be included in the composition of the Commission staff who are able in a short time to determine the types of material value, quantity, and the evaluation units of currency. The specific object of the counting Commission recommended to create groups of at least three people.
150. the inventory of materials is to be responsible, or other duly authorized person's presence. In exceptional cases, the head of the company shall decide on the conduct of physical inventory without the presence of the person responsible for the material, inventory carrying by the company's Audit Commission (Auditor) or sworn auditor.

151. the inventory date must be completed all the source document (for the reception and transmission of values), the processing of entries in the analytical accounting records (cards, books, URu.tml.) and the calculated residuals.
152. Before the material value of the actual situation in the counting Commission: 152.1. consult the inventoriable object and counting the instructions, as well as to draw up a plan for conducting the physical inventory;
152.2. Verify that all weighing and measuring devices are accurate and working order;
152.3. Verify that to the moment the last inventory receipts and issues documents on material goods and money movements are recorded in the inventory cards, books, URu.tml. and transferred to accounting. If it is not already, should be given time to carry out the activities in question and the counting should be initiated only after they are made. The persons responsible for the conservation of material value, with the caption stating that by the start of counting all the material goods receipt and issue of documents recorded and transferred to accounting. The signatures must be received from persons who issued the advance amount for the purchase of material value or the value of the token.
153. If the material value of the inventory is not complete in one day, rooms that are stored in the material values, after exiting the counting Commission be sealed.
154. The inventory reflects the inventory lists shall be drawn up in at least two copies, one of which remains with the materials of the person responsible.
155. the inventory list shall be subject to the following requirements: 155.1. indicate the mandatory testamentary document properties: the company and the related entities inventoriable name, document name and number, date of composition, reasoning, goodwill and object codes (numbers) and the name, unit of measure, quantity, price, and other indicators of amount (depending on the type of object the inventoriable);
155.2. the inventory shall be drawn up clearly and understandable by computer or by hand;
155.3. inventory list shall be signed by all the members of the Commission and inventory the materials of the person responsible;
155.4. If the value of the actual position in check due to a material change, the person in charge of the inventory shall be drawn up in triplicate, and the person who accepts the material value, sign inventory list on it, but the person who passed, — for;
If the physical inventory lists 155.5. entries are correct, you should see the original content;
155.6. error correction to be made in all copies of the inventory list: delete the wrong records, write the correct records, as well as specify what and when and why edit corrected;
155.7. the corrections must be signed by all the members of the Commission and of counting the materially liable persons;
155.8. inventory lists are not permitted to leave blank lines. Inventory list last pages blank lines barred.
156. The counting process in the company is governed by counting instructions that are designed in accordance with the law and which are approved by the company's ceo. These instructions must provide for the accounting year closing inventory preparation, conducting and documenting the date and the agenda. The company may also provide additional inventory, periodic inventories, sudden inventory (if the theft, damage to material goods, fire, natural disaster or if counting URu.tml. by virtue of a contract of employment or collective agreement provisions on employee's material responsibility).
157. Audit Committee (Auditor), sworn auditor or auditor of State control in accordance with the requirements of the Act must be given the opportunity to participate in the counting, watch it, see and verify all company property, check out the inventory instructions. If necessary, they can call in experts and are responsible for their work. For persons outside the Audit Commission (Auditor), sworn auditor or auditor of State audit report management of company law.
158. After the object or BSI counting completed the counting Commission or that the counting team in present inventory lists, add those documents obtained or prepared in the course of the inventory, as well as explanations and proposals and submit them to the Chief Executive.
159. the company Manager (or to another person in accordance with the obligations of the company) should look into submission and check: 159.1. or inventory list is submitted for all order inventoriable items laid down and balance sheet items;
159.2. or inventory list are presented according to the prescribed procedure;
159.3. or inventory the results obtained under the instruction of counting;
159.4. or the explanations submitted and proposals are supported;
159.5. all physical inventory lists or given calculations are correct.
Prices and calculation errors found should be corrected in accordance with the provisions of paragraph 59-62. Each inventory list on the last page of the makes the grade for the price and the final result of the calculations. This mark must be certified by the signatures of the persons who did the check.
160. the company manager organized cross-checks on the accuracy of the counting exercise, and if necessary (serious counting irregularities URu.tml.), ask to make repeated the full inventory.
161. in order to clarify the entries balance accounts in accordance with the results of the inventory, the accounts of the company shall be drawn up in the relevant list of comparison. Comparison lists reflected the difference between the accounting data and inventory data. The inventory you can use the design a single registry that combines inventory list and the comparison list. Comparison lists may be drawn up only for those values for which the identified differences of accounting data.
162. The difference between the accounting data and inventory data-evaluation, value surpluses, shortages, losses (damage, moral ageing URu.tml.) must reflect the relevant accounting records in the accounts in accordance with the instructions of the head of the company.
163. The counting of the results should be recorded in the accounting records of the company as quickly as possible, but no later than 20 days after the end of the month in which a physical inventory was taken. Closing the report inventory results to be posted with the review on the last day of the date (even if the counting actually took place or the results obtained by the last day of the year).
 
V. the company internal control 1. the company's internal control system the company 164. the driver must provide a company's internal control system design and implementation. The system of internal control includes administrative control and accounting control.
165. administrative control aims to reduce losses. The means of achieving this is the organisational plan, methods and techniques to achieve effective economic activity and its relevance to the aim pursued.
166. the accounting control methods and techniques, which help control the enterprise, financial transaction compliance, the company statutes and internal rules of procedure, as well as ensure the accuracy of accounting information.
167. in order to ensure the internal control system functions, the operator of company's employees should be determined the allocation of responsibilities and accountabilities by separating the functions of general accounting functions. Accounting control responsibilities must be asked to make Accountants (Division of responsibilities, so that each transaction in progress of economic control of two or more persons) or the internal auditors of the company.
 
 
2. Allocation of responsibilities and accountability for 168. To ensure that the system of internal control operates effectively, your organization must meet the following prerequisites: 168.1. employees must be qualified;
168.2. There must be specific to the distribution of responsibilities between the employees, determining the degree of responsibility of each employee;
168.3. the plant must have a developed organisational in nature (for example, the accounting documents of the organisation). In all cases, you need to act differently than those set out in the documents, obtain the permission of the Manager of an undertaking;
168.4. accounting functions must be separated from the rest of the company's operational functions.
 
 
3. the accounting function from the other functions of the divorce 169. Accounting function in divorce from other functions must respect the following principles:

169.1. the obligation to carry out an economic activity or transaction must be separated from the obligation to list these activities or results of the transactions (for example, the finished product inventory may not sort employee who even these products are manufactured and for those receiving the salary. Accounting obligations must be carried out by an employee whose company Manager specifically empowered to manage and sort finished products.);
169.2. for storage and management of funds obligation must be separated from the accounting of funds obligation (for example, to minimize the risk of misappropriation of funds and options, the accounting officer may not handle cash (know that), but the cashier can not sort the cash accounting accounting. This same reason employees responsible for storage warehouses, not to sort this inventory in the accounts);
169.3. obligation to give a permission to do business with the funds to be separate from the obligation to keep and manage the funds (for example, an employee who charged a fee (payment accepted), should not be obliged to ask the sort of bad customer debt accounts and write-offs, and employee permission to pay the Bills, not to ask the same sort of responsibilities those billing records.).
170. The accounting obligations of employees should be allocated to the economic progress of each transaction to control the number of employees (for example, the employee who calculates the salary may not be the sort that payment of salaries or wages received. Computer technology in the circumstances of the employee who enters data, may not be the sort of computer software or be familiar with the operation of your computer.).
 
 
4. economic transaction compliance control 171. to ensure compliance with the law of economic transactions, the company statutes and internal regulations, accountants or auditors should verify that the correct application of the law and the company's internal regulations set the rates, tariffs, limits URu.tml. permanent data (for example, or applied the correct tax rates, wage rates, buyers pay the credit granted or material usage limits).
172. before the record of the transactions of the enterprise, as well as making an excuse of the audit, the data contained in the documents to be checked in various ways to ensure that transactions are in accordance with the company's business activities and has actually taken place. Even the simplest financial transaction compliance control method is instructions to those employees who, in accordance with the procedure laid down in the company are responsible for the transactions concerned, with your signature, the documents confirm the justification for the existence of the financial transaction and compliance. Control of conformity of transactions more complex techniques are related to rules and limits. In this case the staff responsible must be specially controlled only those deviations from the criteria set out above.
173. in order to ensure that there are bogus (not actually occurred), the allocation of responsibilities should be carried out: the obligation to make a financial transaction and the obligation to communicate with the parties to the transaction to third parties (business partners) to ask for different employees (contact is mutual settlement collation, correspondence with customers URu.tml.).
174. an important economic transactions, compliance control techniques are associated with these transactions, the justification of the mutual comparison (for example, compare the supplier invoices with the acceptance of the documents specified trade names, quality and quantity).
175. Widely used economic transaction compliance control method is responsible for certain types of transactions or specific transactions asking specific individuals or departments. It can be a general authorisation (for example, to make all business purchases under the specified limit) or the mandate to carry out a specific transaction (such as specific materials to buy for the execution of the order).
176. in order to ensure that the entries on the economic transactions are not changed and are not recorded in the bogus transactions, must be restricted to persons who are not authorised, access to records (for example, computer technology is to restrict access to the registry data, programs, URu.tml., introducing passwords and encryption).
 
5. conservation of resources control 177. to ensure the maintenance of company assets and protect them from unauthorised use or embezzlement, the company must implement the agenda that features are available only to those individuals whose company Manager specifically empowered to act with them.
178. in General, the same procedure shall apply to funds, securities, stocks and other proprietary objects, which easily converted to cash or can be used for personal use. However, this procedure should also apply to accounting records, blank document forms and stamps, for the ability to change the records, or use the blank form unauthorized records.
179. conservation of resources control techniques is also part of the company assets, as well as the accounting records of the physical protection of nature damage, destruction or loss.
180. in order to prevent unjustified use of funds, accounting record retention control is especially important if your accounts sorted by computer.
 
 
6. accuracy of accounting information control 181. to ensure that accounting records provided to the accuracy of the information, to verify whether each transaction is posted to the economic right and in a timely manner and that the amount is correct. The amount and accuracy of the posting control, usually by checking the calculation, and the summaries contained in the annexes to the calculations and postings. Controlling economic transactions have been posted, the timeliness, specify whether all transactions relating to the reference period, this period reflected in the accounting records and financial statements.
182. in order to ensure the completeness of accounting information, accuracy and compliance with the justification documents or the information provided in the summaries, various accounting registers mutual comparison and harmonisation. Data comparison and reconciliation aims to detect the occurrence of accounting registers become established, whether or not under fiktīvo records (for example, compare the records in the main book with stock records and journals of the data contained within the data totals for cash receipts with the register of the account receivable data, making it a check for payment, compare the inventory account data with the inventory results. Comparing the inventory account and the inventory data would reveal that not counting the difference arose).
 
Vi. Accounting cycle and year end report 1.183. Accounting cycle accounting cycle is a process that involves several sequential steps in accounting work which lead to financial statements for the financial period.
The reporting period can be any period (month, quarter, year) which includes the full accounting cycle. Usually the term "accounting cycle" is attributed to the 12-month period for the reporting year.
184. The accounting cycle includes the following: 184.1. opening of account;
184.2. transactional analysis and posting;
184.3. account balance calculation.
184.4. balance report;
184.5. financial statement preparation;
184.6. corrective entry is posted;
184.7. closing entries are posted.
185. at the beginning of the year the company accounting records must be provided and must open account in the main book or journal, General Ledger, as well as the type of account opening balance (account balance at the beginning of the year): 185.1. the company, which launched the action on the basis of the inventory lists, statutes, treaties URu.tml. the information contained in the documents (sākumbilanc data);
185.2. companies continue operation on the basis of the previous accounting year closing balance sheet data.
186. during the reporting year to analyse transactions of the enterprise. On the basis of source documents, records must be made to the accounting records, to calculate totals and accounts not less frequently than once a month, they must be entered in the main book.
 
 
2. Balance statement, adjusting entries and account closing balance statement or 187. account balance report is a work table (work sheet) prepared to based on its data, to draw up financial reports. Balance report be prepared and used to facilitate financial reporting process and ensure data consistency review entries in the main book. Sweet review appropriate equipment as a working table whose rows record account numbers in the chart of accounts of the company garāmatvedīb in sequence according to the main book, but it is recommended that the installation of the box the following: Account numbers, account balances and additional clarifications concerning the closing entry the new account balance in the profit and loss account balance calculation D-ts ts ts K – D – K – D – ts ts ts K – D – D – ts ts ts K-K-K-D-ts ts ts

 188. The sweet review must be executed in sequence: start with the account balances as at the last day of the reporting year; record additional clarification concerning the amounts and amounts; type the account closing of operations concerning the amount and calculate the new account balance. Using these data, you can fill out a financial statement for the aisle, as well as to calculate net profits.
189. with a filled sweet report data, accounting performs the following actions: 189.1. prepare financial statements;
189.2. preparing accounting inquiries and make corrective entries in chronological and systematic registers and the main book;
189.2. post account closing entries. The account is deleted as a result of the closing operation, as well as privātkont account balances.
190. The accounts shall be closed, making the following postings: 190.1. accounting of revenue accounts with account records, korespondēj to the profit and loss account;
190.2. the cost accounting accounts closed entry korespondēj with the credit, the profit and loss account;
190.4. profit or loss account closed by entry account or credit (depending on whether the financial result for the year is profit or loss), korespondēj with the use of an account of profits (in some cases, with the equity accounting accounts);
use the account of profit 190.5. switch to equity accounting accounts;
privātkont to record with 190.6. account or credit (depending on whether the funds invested or withdrawn), with a share capital of korespondēj inventory accounts.
 
 
3. the preparation of the annual accounts the rules for all companies register 191. registered companies, host societies and non-profit organizations irrespective of their form of business and property type, covered by the law on annual accounts ", submitted to the rule mentioned in paragraph 194 institutions annual report containing the company balance sheet, profit and loss statements, the annex and the message.
192. all annual reports of companies subject to a mandatory Auditors ' review.
193. for the accounting year (General case) must cover 12 months and usually must coincide with the calendar year.
194. An annual report no later than four months after the end of the reporting year must submit: 194.1. State Revenue Service District (municipal) Department;
194.2. statistical authority at the company location;
194.3. the Ministry or other government body (if the company is in its custody);
194.4. bank (if provided for in the Treaty).
195. The annual report of the data should be rounded to whole numbers.
196. the annual report data should be based on the law "on accounting" in the order made in the inventory results.
197. the address part of the annual report should indicate the company's full name, registration number, address and other properties according to the Statute. Businesses in the Ministry or other administrative bodies, the authorities concerned must be indicated.
198. In drawing up the balance sheet, it should be noted that: 198.1. intangible assets and fixed assets in the balance sheet must specify the remainder (net) value calculated on the initial value at the beginning of the year plus the magnification, and subtracting the reductions and write-downs during the reference year and subtracting depreciation (amortisation) balance at the end of the accounting year;
198.2. cash and cash accounts receivable and accounts payable in foreign currencies be included in the balance sheet conversion of these funds by the Bank of Latvia the rate on the last day of the reporting year;
198.3. balance sheet item "shares or capital (share capital)": 198.3.1. State and municipal enterprises, a national (local) property in a delimited part of the separated business (may differ from the amount of the issued share capital specified in the statutes, if the increase or decrease is consistent in the Ministry or other government body, responsible company is located);
198.3.2. limited liability companies – subscribed capital whose size is fixed in the register of shareholders;
198.3.3. limited-liability companies (including cooperatives, joint stock companies URu.tml) — all part of society values the total amount fixed in the statutes of the company;
198.3.4. individual companies, farmers or fishermen's holdings, with yearly revenue from economic transactions exceeding 45000 dollars (at the beginning of the year), and other single-member companies (excluding State and local organizations), where they are not established as limited liability corporations — separate business equity capital share (may also be the only component of equity; the equity can also be specified without a division into parts).
199. in the profit and loss account, note that the items "of finished products and work in progress inventory change" (if the company is drawn from the period of calculation cost method) and "cost of sales", "sales", "administration costs" (if the company makes a profit and loss calculation by the accruals method) indicate amounts determined in accordance with the nature of the business of the relevant cost calculation. This calculation, the cost of extending the content order and indirect (overhead) costs principles cost calculations for instructions that are approved by the company's ceo.
200. the company's annual report, figures, numbers and text in the form of a table to explain the annual accounts. Annual accounts of companies must provide an explanation, in accordance with the law on annual accounts "within the business form, the company's size and volume of business.
201. The report should include information about conditions that are not reflected in the balance sheet, the profit and loss account and annex but are important to the company's assets and liabilities, as well as the company's financial situation and financial results for the year of assessment.
 
 
4. the annual accounts of the Group dialing arrangements 202. annual report of the group includes the parent company and subsidiaries annual reports, which combined with the consolidation methods adopted (hereafter referred to as "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, not taking into account the report of the joint undertaking legal relationships. On the basis of the Group's annual report, financial statement users can get the picture on the picture of the financial situation of the group.
203. The annual report must include both abroad and in Latvia existing subsidiaries in which the parent company's shares directly or indirectly (through other subsidiary companies) exceeded 50%, or in which the parent company has a majority (in accordance with the agreement concluded with the rest of the capital investors).
204. The consolidation should not be involved in the subsidiary companies: 204.1. over which provided only temporary control of the parent company because it is part of participation acquired and held only for the next 12 months, they sold a away;
204.2. operating limit of long-term conditions, which greatly reduces their ability to transfer funds to the parent company (such as political instability, war or the threat of seizures in the country in which the subsidiary is located, a subsidiary of liquidation or bankruptcy).
The parent company, as well as the Group's participation in the annual report that the equity of the subsidiary must be a long-term financial investment assets of the balance sheet under "participation in the equity of subsidiaries" under the lowest value to report the last day of the year.
205. The Group may draw up annual accounts as the Group's message, if it determines the composition of the group or other special circumstances. To avoid misleading or incorrect picture of the group as a whole, the Group's message may be made in the following cases: 205.1. If a subsidiary affects the whole picture of the financial situation of the group, because their scores compared to the whole group, is a minor;
205.2. If one or more of the activities of the subsidiaries is too different from the rest of the Group's business activities (such as banks and insurance companies).
Compose the reason should explain in detail.
206. the annual report of the group is the Group of components of the balance sheet, profit and loss account and annex.
207. the preparation of the annual report of the group in the process of the parent company's financial statements must be combined with the financial statements of subsidiaries, adding together similar items of the report means, liability, equity, revenue, and payment amounts.
208. to the Group's annual report should be prepared as a single economic unit's annual report consolidation, review the following sequence of procedures: 208.1. the cross off the parent company's investment, the carrying amount of each subsidiary, and then the corresponding value of shares of each subsidiary of the company's equity;
208.2. completely turn off the Group's business transactions and relationships between current account balances, including sales, expenses, and dividends;

208.3. not yet get off completely (not implemented) profits resulting from intragroup transactions between companies included in the value of the funds, such as inventory and asset tracking value;
208.4. turn off not existing yet (no dump) 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);
208.5. minority interests in consolidated subsidiaries net income during the reporting period and take the Group's total business income required adjustments to arrive at the net income amount that applies to the parent company of the investment share;
208.6. to minority interests in consolidated subsidiaries and the Group's balance sheet, it should be noted separately from liabilities and the parent shareholders ' equity;
208.7. parent company and the Group's annual report for the subsidiary to be financial report dates must be the same.
209. in drawing up the annual accounts of 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.
210. 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 got the property or rights of control over a subsidiary.
211. Liquidation (selling) a subsidiary of the company's performance should 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 from the liquidation of a subsidiary company.
212. the Consolidation of the shares or the company posting a value must be calculated in proportion to the companies involved in the consolidation of the equity part. The calculation must be carried out, taking into account the value of the accounts on the date on which they were first included in the consolidation. Amounts resulting from the difference between the post directly below them in the consolidated balance sheet items (in so far as it is possible), the value of which is higher or lower than the posted value. Amount difference should 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 shares in the parent company of the same or any other company involved in the consolidation.
213. the shares in the subsidiary companies and belong to other people, as well as amounts held by the companies involved in the consolidation, you must specify the Group's balance sheet as a separate item with an appropriate heading "minority interests (minority interests)".
214. the 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 must be shown in the profit and loss account as a separate item with an explanation that it relates to minority interests.
215. the annual report of the parent company must be associated with the Group's annual report. The parent company's participation in the equity of the subsidiary initially indicate the purchasing cost, but at the end of the accounting year should be adjusted according to the parent company's shares to the value of the subsidiary's equity. For this purpose, you need to use a subsidiary company information. The financial contribution referred to changes in the value of the parent company's annual report should reflect the following: 215.1. increase or decrease in value due to the subsidiary's profit or loss (according to the proportion of the capital) to be shown in the profit and loss account items in the "income from investments in subsidiaries and affiliates kapitālo" or "long-term financial investments and the value of the securities ';
215.2. increase or decrease in value due to subsidiaries balances equity items "long term investment revaluation reserve," or other such changes in the balance of the reserves that have been created from the subsidiary's profit, you must specify the parent company's balance sheet, increasing or reducing accordingly the item "fixed assets revaluation reserve balance";
215.3. subsidiaries calculated the dividend amount to be reduced in the balance sheet item "participation in the equity of the subsidiary" and increase the balance sheet item "cash" or "subsidiary" of the debt balance;
215.4. If revenue from participation in the equity of a subsidiary company are higher than for the year in subsidiaries of the parent company to calculate the amount of dividends, then the profit distribution (the distribution of profits), the difference should be confined to the item "fixed assets revaluation reserve".
216. The parent company, as well as other companies ' participation in the annual accounts the associated enterprises indicate similar to the way you specify a participation in the capital of the subsidiaries subject to this provision under section 215. The annual report of the Group of related companies capital participation must be specified with the entry of the same name in one balance sheet item.
217. Other long-term financial investments are initially evaluated its acquisition cost, but then it can be revalued according to the lowest or highest value, the report on the last day of the year. If the parent company, as well as other companies ' annual accounts revaluation caused long-term financial investments increase in value must be indicated in the balance sheet item "fixed assets revaluation reserve". The value of the revalued investment reduction must be scrapped from this reserve, but if the impairment is greater than this margin, the difference should be attributed to the costs, indicating the item "long-term financial investments and the value of securities". Dividends received, interest and other payments to be shown in the profit and loss statement under "income from securities and loans forming long-term investments".
The annual report of the Group of long-term financial investments are those that are not part of the consolidation of participation involved subsidiaries must be shown in the balance sheet accordingly named long-term financial investment items.
Prime Minister m. cock Finance Minister i.-Sāmīt