Law No. 15 Of 24 March 1994 * Fixed Capital Relating To The Depreciation Of The Consolidated Tangible And Intangible Fixed Assets

Original Language Title:  LEGE nr. 15 din 24 martie 1994 *** Republicat privind amortizarea capitalului imobilizat în active corporale şi necorporale

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Law No. 15 of 24 March 1994 (republished * *) (* updated *) concerning the depreciation of capital restrained in tangible and intangible fixed assets (updated until august 31, 2003)-PARLIAMENT ISSUING — — — — — *) Text was republished law published in MONITORUL OFICIAL nr. 242 of 31 May 1999. This is the updated form of S.C. "territorial Center of Electronic Computing" until 31 august 2003, with amendments and additions introduced by ORDINANCE No. 5 of 21 January 2000; Law No. 149 of 26 July 2000; ORDINANCE No. 81 of 28 august 2003.
— — — — — — — — — — — *) Republished pursuant to art. IV of the Government Ordinance. 54 of 28 august 1997, published in Official Gazette of Romania, part I, no. 225 august 30 1997, posing a new texts.
Law No. 15 of 24 March 1994 has been published in the Official Gazette of Romania, part I, no. 80 of 29 March 1994 and amended by Order No. 19 of august 4, 1995, published in the Official Gazette of Romania, part I, no. 188 of 18 august 1995 (approved by law No. 96 of 1 November 1995, published in the Official Gazette of Romania, part I, no. 257 of 8 November 1995), and by order No. 54 of 28 august 1997, published in Official Gazette of Romania, part I, no. 225 of 30 august 1997 (approved and amended by law No. 227 of 4 December 1998, published in the Official Gazette of Romania, part I, no. 473 of 9 December 1998).


Chapter I General provisions Article 1 the units engaged in economic activities, hereinafter referred to as traders, and immobilization in tangible capital and intangible assets subject to depreciation, through use or in time will be computed, will record in accounting and will recover the physical and moral wear them, to rebuild the capital employed.
These operations are referred to as generic immobilized capital depreciation.
Non-profit legal persons who are entitled under the law to conduct economic activities will be depreciated capital restrained only in respect of activities carried out in order to obtain profit and for which, by law, they are liable for tax on profits.
Individuals and associations having no legal personality, which carry out activities in order to achieve revenue and who under the law are bound to result in record-keeping, will cushion the goods and rights they hold, according to the present law.
— — — — — — — — — — — —-. 4 of art. 1 was introduced by section 1 of article. 1 of ORDINANCE No. 5 of 21 January 2000, published in MONITORUL OFICIAL nr. 26 of January 25, 2000.
Through goods and rights, referred to in the preceding paragraph, means the fixed assets and intangible assets, as defined in article 2. 3 (a). b), art. 7 of this law.
— — — — — — — — — — — —-. 5 of art. 1 was introduced by section 1 of article. 1 of ORDINANCE No. 5 of 21 January 2000, published in MONITORUL OFICIAL nr. 26 of January 25, 2000.


Article 2 immobilized Capital subject to depreciation is reflected in the economic entities by property and values designed to attend to the work for a period longer than one year and which is consumed incrementally.


Article 3 Assets tangible fixed capital are: a) land, including investments for their fittings;
  

b) fixed assets.
  

Are considered as fixed assets or complex objects object to be used as such and complies with the following conditions: (a) (b) cumulatively) has an input value that is greater than the limit laid down by decision of the Government. This value may be updated annually, depending on the index of inflation;
  

b) has a normal use of more than one year.
  

For objects that are used in batches, or forming a single body at their fixed assets as the value of the whole body, batch or set.


Article 4 Are also considered assets subject to depreciation of investments: means) fixed taken rent;
  

b) capacities brought into use partly, for which there were drawn up registration forms as fixed assets. These include the groups intended to register, the resulting amount by summing up the actual expenditure incurred as a result of their realization;
  

c) investments for descoperta, in order to exploit the useful mineral substances, with coal and other natural resources: what is operated on the surface, as well as to enable underground mining to open deposits;
  

d) investments in fixed assets, in order to improve the original technical parameters, by increasing the value of the asset.
  


Article 5 are considered to be tangible, but are not subject to depreciation: fixed assets owned public Lakes, ponds, and lakes, that are not the result of an investment, as well as forested land, including.


Article 6 shall not be deemed to be fixed assets: a) engines, appliances and other parts of the fixed assets purchased to replace worn components in connection with the repair of any kind which does not alter the original technical parameters you asset;
  

b) tools, instruments and special equipment to be used either in the manufacture of certain products in the series, either in the execution of certain orders, regardless of the amount and duration of their normal operation;
  

c) construction and provisional installations;
  

d) animals not to have met the conditions for being passed from adult animals, fattening animals, birds and colonies of bees;
  

e) forests;
  

f) investments for mining works outside the perimeters of exploitation, as well as those for drilling, for geological and exploration geophysics, prospecting, drilling for water supplies, which have not yielded, probes located in gas-head of some deposits of crude oil, as well as probes of geological research, which have obvious accumulations of hydrocarbons, but reasons geologico-technical and economic objectives can not be exploited;
  

g) prototypes, as long as the cat serves as the model for the execution of the serial production, including zero or series are subject to type-approval test from the manufacturer;
  

h) safety equipment and working, special clothing, and accessories, regardless of the amount and duration of use.
  


Article 7 intangible assets capital restrained shall include: a) the formation expenses: fees and other expenses of enrollment and registration, the expenses relating to the issuance and sale of shares, market prospecting costs and advertising and other expenses of this nature relating to the establishment and development of the work of the economic unit;
  

b) research and development costs;
  

(c) expenditure on discovery) reserves of minerals, unclear in fixed assets, deposits made at operation;
  

d intangible assets concessions, imobilizarile) from superficiei and for nature, patents and other rights and equivalents;
  

(e) intangible fixed assets), including computer software created by operators or purchased from third parties.
  


Article 8 normal operating Times, and clasificatia fixed assets shall be approved by decision of the Government. At their determination will take into account the technical and economic parameters set by the designers and producers through the books or the technical documentation of the respective fixed assets, as well as the effects of obsolescence.
These durations will be reviewed periodically, but not later than 5 years.


Chapter II calculation of depreciation Depreciation is established in article 9, by applying the depreciation allowance on the value of fixed assets and is included in operating expenses.


Article 10 the input value of fixed assets means: a) the input value corresponding to each asset, reevaluata according to the provisions laid down by law;
  

b) costs of purchase for fixed assets acquired for valuable consideration;
  

c) production cost for fixed assets constructed or produced by heritage drive;
  

(d) the current value) for fixed assets acquired free of charge, estimated to be enrolled in Active based on the report of experts and with the approval of the Board of Directors of the economic agent, the person responsible for the management of property in the case of non-profit legal persons, or of the authorising officer, in the case of public institutions;
  

e) amount of contribution accepted by Parties for fixed assets entered into in connection with the Heritage Association, merger, etc., in accordance with the statutes or contracts, determined through expertise.
  


Article 11 depreciation of fixed assets is calculated with effect from next month is placed into operation, until the full recovery of the input value, in accordance with the normal terms.
Depreciation of fixed assets leased, rented or given in discharge location is calculated by the operator that he owns.
Depreciation of investments made in fixed assets leased, rented or management location shall be recovered from the operator who has carried out the investment, leasing period.

Depreciation of buildings and special constructions of mines, mines with extraction solution through wells, quarries, for the day, solid minerals, whose duration of use is limited to the duration of reserves and which you cannot get other uses after depletion, as well as investments for descoperta will be calculated per unit of the product, according to the exploatabila reserve of mineral substance.
Depreciation per unit of product shall be calculated as follows: a) of 5 in 5 years in mines, quarries, and investment costs for descoperta;
  

b) every 10 years in saline.
  

The recalculation shall be made annually where major changes (not less than 10%) in the volume of exploitable reserves.
Depreciation of fixed assets that are subject to an operating lease contract shall be calculated by the financier, depreciation of asset values as a whole minus the residual value stated in the contract, during the term of the contract, but not less than 3 years.
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Alin. 7 of art. 11 was chosen as the sole article of law No. 149 of 26 July 2000, published in MONITORUL OFICIAL nr. 354 of 28 July 2000.


Article 12 formation expenses, and research and development costs are amortized over a period not exceeding 5 years.


Article 13 patents, licenses, know-how, trade marks of factory, trade and service, and other industrial property rights and similar trade underwritten as intake, acquired from other horses, pays off for the duration provided for their use by the operator.
Imobilizarile intangible nature of the concession, superficiei and pays off for the duration of the contract.


Article 14 software created by trader or purchased from third-party pays off depending on the probable duration of use, which may not exceed a period of five years.


Article 15 Grounds shall be recorded in the General ledger entry in the heritage value, depending on the quality, class, location, and/or other legal criteria, the acquisition cost or the value of the contribution in kind, as appropriate.


Article 16 In justified circumstances, economic agents are exempt from the calculation of depreciation, with the opinion of the General Directorate of public finance and financial control by the State, for the following tangible: a) the mines or permanently removed from service, as well as oil and gas wells that are not in production, on a proposal from the National Agency for mineral resources;
  

b) fixed assets of economic agents in preservation for a period exceeding 30 days;
  

c) reclamation works and water management, general service, intended for defence against flooding and to remove excess moisture, namely: dams and canals, drainage, and works to combat soil erosion, flood waters spill on hillsides and correction of torenţilor, intended for agricultural and forestry land defence and socio-economic objectives from conservation area senalele, tunnels, waterways, railways, infrastructure, roads, bridges, aqueducts, and other ways of communication.
  


Article 17 In case nerecuperarii integral, damping, the value of the fixed asset entry decommissioned, operators ensure that the value of unredeemed amounts resulting from the valorization. The difference of remaining uncovered is included in tax deductible expenses, for a period not exceeding 5 years, or diminish the company's capital, in compliance with legal provisions.
The length of recovery and annuities of unredeemed value shall be determined by the Board of Directors of an entity or person responsible for the management of assets and liabilities, in the case of non-profit legal persons, as defined in art. 1 (1). 3. Chapter III depreciation schemes article 18 businesses is being depreciated fixed assets according to the provisions of this law, by using one of the following procedures: a. depreciation depreciation of linear-is achieved by the inclusion of uniform in the running costs of the fixed amounts established in proportion to the number of years of the duration of the normal use of the asset.
Linear depreciation shall be calculated by applying the annual share of depreciation in value of fixed assets.
B. degresiva Depreciation-lay in the multiplicity of linear depreciation rates with one of the following coefficients: a) 1.5 If the normal use of the asset depreciation is between 2 and 5 years;
  

b) when the length of 2.0, the normal use of the asset is depreciated by between 5 and 10 years;
  

c) 2.5, if during the normal use of the asset depreciation is greater than 10 years.
  

These coefficients can be modified only by decision of the Government on the proposal of the Ministry of finance.
C. accelerated Depreciation-consists in the inclusion, in the first year of operation, the operating costs of a depreciation of up to 50% of the value of the asset in question.
The annual depreciation for subsequent financial years shall be aggregated to the salvage value after depreciation, straight-line arrangements, by reference to the number of years of use left.


Article 19 Skills for use of linear depreciation or degresiva incumbent Board of Directors of the economic operator, namely management of heritage officer, in the case of non-profit legal persons to the final art. 1 (1). 3. Use of accelerated depreciation shall be approved by the General Directorate of public finance and financial control by the State, on a proposal from the Board of Directors of an entity or person responsible for the management of the patrimony.


Chapter IV accounting and fixed asset depreciation destination Article 20 operators, regardless of the form of organization and type of property, as well as non-profit legal persons are required to reveal to the General Ledger, accounts, fixed assets and their depreciation.
— — — — — — — — — — — —-. 2 of art. 20 was repealed by lit. b) art. 26 of ORDINANCE No. 81 of 28 august 2003, published in Official Gazette No. 624 of 31 august 2003.


Chapter V removal from service of fixed assets Article 21 withdrawal from service of fixed assets is made with the approval of the Board of Directors of the economic entity, namely the management of heritage officer, in the case of non-profit legal persons specified in art. 1 (1). 3. — — — — — — — — — — — —-. 2 of art. 21 c was repealed. b) art. 26 of ORDINANCE No. 81 of 28 august 2003, published in Official Gazette No. 624 of 31 august 2003.
Public institutions whose leader rank for loan originator tertiary budgeting, removal of fixed assets will be made with the approval of budgetary appropriations originator secondary.
— — — — — — — — — — — —-. 3 of art. 21 was introduced by section 2 of art. 1 of ORDINANCE No. 5 of 21 January 2000, published in MONITORUL OFICIAL nr. 26 of January 25, 2000.


Article 22 withdrawal of fixed assets which have not been completely written off businesses as well as non-profit legal persons shall proceed in accordance with the provisions of art. 17 and 21.


Article 23 The removal from service of fixed assets belonging to economic operators on which the State owns more than 50% of the share capital will follow the capitalization of assemblies, sub-assemblies and parts through the execution of new fixed assets, as spare parts within the unit in question or by sale, auction-based, organised according to the law.


Chapter VI transitional and final Provisions article 24 shall constitute contraventions to the rules for calculating and recording depreciation of capital restrained in tangible or intangible assets the following facts, if they are not committed in such circumstances that, according to the criminal law, be considered offences: the recording of capital assets) as some objects which, according to this law, do not fall into this category;
  

(b) calculating and recording) accounting of depreciation of fixed assets exempted by article 1. 5;
  

c) applying normal durations to fixed assets other than those established in accordance with the legal provisions;
  

d) recording input values of fixed assets other than those established in accordance with the legal provisions;
  

e) modification, during the normal life of the operation of the asset, the amortization and the scheme, established in accordance with article 4. 8, 18 and 19.
  


Article 25 Offences under article 4. 24 shall be imposed as follows: (a) point (b)). c) and (d)), with fine from 3,000,000 lei to 10,000,000 lei;
  

b) the white and rosé wines. a), b) and e), with fine of 5,000,000 lei la 15,000,000 lei.
  

The amount of these expenditures will be upgraded by the Government, according to the index of inflation.


Article 26 Offences provided for in this law shall be subject to the provisions of law No. 32/68 on the establishment and sanctioning of offences, with the exception of art. 25-27. The finding of violations and sanctions are carried out by specialized bodies of the Ministry of finance.


Article 27 the downgrading of property and destruction of materials other than fixed assets, the competence of the Board of Directors of the economic operators concerned to heritage management officer.

Downgrading and cracking some assets, other than fixed assets, belonging to public institutions, within the competence of the authorising officer.


Article 28 the Government will approve clasificatia normal operating times and fixed assets within 60 days of its publication in the Official Gazette of the present law.
The Ministry of finance will develop, within the time limit referred to in paragraph 1. 1 detailed rules for the application of this law.


Article 29 this law shall apply with effect from 1 January 1994).
On the same day the law is repealed. 62/68, as amended, H.C.M. nr. 139/1969, Decree nr. 49/82, Decree-Law No. 50/1990, and any other provisions to the contrary.
— — — — — — — — — — *) see and dates of entry into force of the normative acts modifying.
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