The second final provision of the recast text of the Law on Companies approved by Royal Decree 1564/1989, of 22 December 1989, authorizes the Minister of Economy and Finance to, on a proposal from the Institute of Accounting and Audit of Accounts, and by Order, approve the sectoral adaptations of the General Accounting Plan, when the nature of the activity of such sectors requires a change in the structure, nomenclature and terminology of the balance sheet items and profit and loss account items.

Likewise, the final provision of Royal Decree 1643/1990 of 20 December, which approves the General Accounting Plan, provides for approval by the Minister of Economy and Finance, on a proposal from the Institute of Accounting and Audit of Accounts, and by Order, of the sectoral adaptations of the General Accounting Plan, adding that such sectoral adaptations will be drawn up taking into account the characteristics and nature of the activities of the specific sector in question, in accordance with both the rules and criteria the structure, nomenclature and terminology of the annual accounts.

In this respect it is noted that according to the article 4 of Royal Decree 557/2000, of 27 April, of restructuring of the ministerial departments, the competences until now attributed in this matter to the minister of Economy and Finance, correspond to the Minister of Economy.

The adaptation of the General Accounting Plan to companies in the air transport sector has been imposed in the light of the special characteristics and nature of certain operations carried out by these companies.

To this effect, a working group composed of representatives of the Ministries of Economy, Finance and Development, technical sector, auditors of the Ministry of Finance and Audit, was formed within the Institute of Accounting and Audit of Accounts. accounts, accounting associations, as well as representatives of the University and the Institute itself, which has analysed the issues raised. It has been very present that the possible international harmonization of accounting is currently under consideration, which is currently the subject of discussion in the European Union and the conclusions of which are contained in the Communication of the European Commission. to the Council and Parliament of 13 June 2000 "The EU's Financial Information Strategy: The Way Forward", which sets out a process for the incardination of the International Accounting Standard Board (IASB) rules, Directives of the European Union and national legislation, which must be implemented before the year 2005, that a change in national accounting rules is envisaged.

Therefore, the working group, in view of the possible reform of national accounting law, has not considered it appropriate to make full adaptation rules for the General Accounting Plan to the air transport sector, such as the The Commission has so far undertaken to carry out a study of those issues whose problems are considered urgent for the transport sector in the transport sector. air and that they cannot be delayed any longer. It was thus decided to draw up rules for the partial adaptation of the General Accounting Plan to air transport companies which include these issues, without prejudice to the development of complete adaptation rules in the future. the General Accounting Plan for companies in the air transport sector.

In this respect, it was considered that air transport companies perform their core business through the use of aircraft; these assets are usually acquired in markets with currencies other than the euro, value after being used, also in the same currency in which they were acquired, so that the market value, at all times, is referenced to that currency. An additional circumstance arising from the acquisition of these assets is that a liability in currency other than the euro which funds those assets is generally produced.

On the basis of the above, the present adaptation rules provide for a special procedure for the assessment of the exchange differences produced in loans contracted in currency other than the euro which finance the the acquisition of aircraft in the air transport sector.

This proceeding is not new in Spanish accounting law since the Order of the Ministry of Economy and Finance of March 23, 1994, for the accounting treatment of foreign exchange exchange differences (at present currency In the case of the euro, in particular, in the case of certain undertakings in the air sector and the Order of the Ministry of the Economy of 27 December 2000, on the accounting treatment of currency exchange differences other than the euro in certain undertakings in the air transport, although they affect specific companies in the air transport sector, regulate a regime for the accounting record of exchange differences, under the provisions of the 14th of the fifth part of the General Accounting Plan; these Orders were issued as a result of the request made by a group of companies in the air transport sector.

Since the peculiarities of the economic and financial relations of the companies in the sector referred to in the Orders were evident at the time they were approved, which are currently still being maintained and It is necessary to draw up a standard for the specific valuation of exchange differences in currency other than the euro which is applicable to all those in the air transport sector, which affect not only those undertakings but also all those in the air transport sector. the sector of activity indicated.

On the basis of all the above, this standard includes in the Standard of Valuation 14.a of the fifth part "Standards of Valuation" of the General Accounting Plan, specific valuation and accounting criteria with the accounting treatment of currency exchange differences other than the euro.

This Order also contains an additional provision governing the application of the different rules for the adaptation of the General Accounting Plan if the company carries out several activities, a final provision containing the date of entry into force as well as the enforcement of these rules of adaptation to the General Accounting Plan and a derogation which repeals the Order of the Ministry of Economic Affairs and Finance of 23 March 1994, accounting treatment of foreign exchange exchange differences in certain companies of the Air sector and the Order of the Ministry of Economic Affairs of 27 December 2000 on the accounting treatment of differences in currency exchange rates other than the euro in certain undertakings in the air transport sector.

For all the above, on the proposal of the Accounting and Audit Institute of Accounts and in agreement with the State Council, this Ministry has agreed:

First. Approval.-To approve the rules for the partial adaptation of the General Accounting Plan to undertakings in the air transport sector in respect of the processing of the currency other than the euro, the text of which is inserted in the third paragraph of this Article. Order.

Second. Application and enforcement. -1. The rules referred to in the preceding paragraph shall apply to all undertakings, irrespective of their legal, individual or corporate form, which must be kept in accordance with the Code of Trade. activity which, according to the name contained in Royal Decree 1560/1992 of 18 December 1992, approving the National Classification of Economic Activities, is set out in the following headings:

62.1 Regular Air Transport Service: Regular air transport comprising air transport of passengers, correspondence and goods according to a regular route and schedule.

62.2 Discretionary air transport service: Discretionary air transport comprising the non-regular air transport of passengers and goods, aircraft-taxi and the hire of aircraft with crew.

2. The General Accounting Plan will be implemented in all the unmodified terms in the terms of Royal Decree 1643/1990 of 20 December 1990, as well as the resolutions issued by the Accounting and Audit Institute of Accounts of the fifth final provision of the said standard.

Third. Differences in currency exchange rates other than the euro. -The fourteenth valuation standard "Currency exchange differences other than the euro" included in the fifth part of the General Accounting Plan, approved by Royal Decree 1643/1990 of 20 December 1990. December, it shall be written for undertakings in the air transport sector, in the following terms:

" Valuation Standard 14.a Currency Exchange Differences Other than the Euro.

1. Tangible and intangible fixed assets: As a general rule, their conversion into euro shall be made by applying to the purchase price or production cost the exchange rate in force on the date on which the assets were incorporated into the assets.

Depreciation and depreciation provisions should be calculated, as a general rule, on the amount resulting from the application of the preceding paragraph.

2. Stocks: Your conversion into euro will be made by applying the exchange rate prevailing at the date of each acquisition to the purchase price or production cost, and this valuation will be used for the purposes of the method of specific identification for the valuation of stocks, as if the weighted average price methods, FIFO, LIFO or other analogues apply.

Provision should be made when the valuation thus obtained exceeds the price that stocks have on the market at the date of the closing of the accounts. If that market price is fixed in currency other than the euro, the exchange rate in force at that date shall be applied for conversion into euro.

3. Variable income securities: Your conversion into euro shall be made by applying to the acquisition price the exchange rate in force on the date on which those securities were incorporated into the equity. The valuation thus obtained may not exceed the value of the exchange rate in force at the closing date, at the value of the securities on the market.

4. Treasury: The conversion into euro of the currency other than this and other liquid assets held by the company shall be made by applying the exchange rate in force at the date of incorporation into the assets. At the end of the financial year they shall appear in the balance sheet at the exchange rate in force at that time.

If, as a result of this assessment, a negative or positive change difference is found, the result of the exercise will be charged or paid respectively.

5. Fixed income, credit and debt securities: The euro conversion of fixed income securities as well as of credits and debits in currency other than the euro shall be made by applying the exchange rate in force at the date of the transaction. At the end of the financial year, the exchange rate shall be valued at that time. In cases of change coverage (change insurance or similar coverage) the risk portion shall be considered as not covered only.

The positive or negative exchange differences of each value, debit or credit shall be classified according to the maturity and currency. For these purposes, those currencies which, although different, will be officially converted into the euro will be grouped together.

(a) Unrealized positive differences occurring in each group, as a general rule, will not be integrated into the results and will be collected in the balance sheet liability as "Income to be distributed in various exercises".

b) On the contrary, the negative differences that occur in each group, as a general rule, will be attributed to results.

However, unrealised positive differences may be achieved when for each homogeneous group results have been attributed to results in previous years or in the exercise itself negative differences of change, and by the amount that would result from undermining those negative differences due to the positive differences recognised in the results of previous years.

Positive differences deferred in previous years will be attributed to results in the exercise that sell or cancel in advance the corresponding fixed income, credit and debt securities, or to the extent that They shall recognise differences of negative change equally or higher in each homogeneous group.

6. Special rules:

6.1 Currency exchange differences other than the euro, in the acquisition or production of fixed assets: By application of the principle of the purchase price, exchange differences in currency other than the euro should not be considered as corrections to the purchase price or the cost of production of the fixed assets.

However, where exchange differences occur in euro-denominated debt other than the term of more than one year and are intended for the specific financing of the fixed assets, it may be possible to incorporate the loss or gain potential as higher or lower cost of the corresponding assets, provided that each and every one of the following conditions is met:

The debt-generating debt of the differences has been used unequivocally to acquire a specific and perfectly identifiable fixed asset; whereas the period of installation of such fixed assets is over 12 months; That the change in the exchange rate occurs before the fixed asset is in operating conditions; that the amount resulting from the incorporation at the cost does not in any case exceed the market value or the replacement value of the fixed assets.

Capitalised amounts in accordance with this option will be considered to be one more element of the cost of tangible fixed assets and will therefore be subject to amortization and provision, if any.

6.2 Currency exchange differences other than the euro produced by debt to finance aircraft:

6.2.1 Incorporation of currency exchange differences other than the euro: The net amount of exchange differences in currency other than the euro that occur in each financial year and corresponding to the debts incurred by the euro to finance the purchase of aircraft which have been incorporated into the heritage in the same financial year or in the previous four immediate years shall be counted as greater or less value.

In cases of change coverage (change insurance or similar coverage), only the portion of the risk not covered shall be considered.

6.2.2 Quantification of currency exchange differences other than the euro to be incorporated in the value of aircraft:

a) The value of the aircraft shall be counted as greater or less:

The differences in exchange produced by the euro-denominated debt which has been specifically agreed to finance the corresponding aircraft.

The differences in exchange produced by the euro-denominated debt, which is a long-term agreement on the origin of the euro, which does not specifically finance any asset, in the proportion that results from comparing the value the accounting officer of the aircraft with the book value of the set of assets and after deduction of the amount of the specific financing that corresponds to them.

(b) For the purposes of paragraph (a), existing balances shall be considered at the end of the net financial year of the corresponding write-downs.

(c) In no case shall the accounting value of the net depreciation aircraft, once the corresponding exchange differences have been charged, exceed the lower value between the market value or the replacement value.

6.2.3 Depreciation of aircraft: The allocation to the depreciation of the aircraft exercise will be adjusted on the new value, after the incorporation of the exchange differences in currency other than the euro according to the The above rule shall include in more or less the depreciation part of previous years which would have been in accordance with that new value, which requires adjustment of the depreciation from the application of the criterion set out in this Standard 6.2.

6.2.4 Memory information: Companies to which this 6.2 standard applies. must explain in memory:

The use of the criterion followed for the capitalization of the exchange differences established in that rule.

The amount of exchange differences produced in the exercise, pointing out those that have been imputed to the asset.

Amount capitalized on previous exercises.

Effect on currency exchange differences other than the euro to the amortisation envelope. '

Single additional disposition. Multiactivity.

For companies that perform the activity of the air transport sector in conjunction with another or other ordinary activities, the adjustment rules for each activity shall apply. In any case, the following applies:

1. The valuation rules that correspond to each of the activities.

2. The annual accounts shall be drawn up:

In the balance sheet and profit and loss account models, all items corresponding to the various activities shall appear, according to the normal or abbreviated model, provided that they are significant, in terms of business or in the amount of expenditure, without prejudice to the provisions on grouping, subdivision and the addition of items.

In the memory, all the information corresponding to each of the activities must be included, breaking down, where appropriate, the corresponding material and intangible fixed assets, stocks, credits and debits for traffic operations, operating expenses and operating income, as well as the turnover corresponding to each activity.

Single repeal provision.

At the entry into force of this Order, the Order of the Ministry of Economy and Finance of 23 March 1994 and the Order of the Ministry of the Economy of 27 December 2000, both on the accounting treatment of differences in currency exchange rates other than the euro in certain undertakings in the air sector.

Single end disposition. Entry into force.

This Order shall enter into force on the day following that of its publication in the "Official State Gazette".

The rules for the partial adaptation of the General Accounting Plan to companies in the air transport sector in respect of the treatment of the currency other than the euro will be mandatory, as provided for in the the second paragraph of this Order, for the annual accounts which are issued after the date of entry into force of this Order.

Madrid, 18 December 2001.

HANGING OUT AND FIGAREDO

Ilmos. Mr Undersecretary for Economic Affairs and President of the Accounting and Audit Institute.