I

Directive 2013 /34/EU of the European Parliament and of the Council of 26 June 2013 on annual financial statements, consolidated financial statements and other related reports of certain types of undertakings, for which amending Directive 2006 /43/EC of the European Parliament and of the Council and repealing Council Directives 78 /660/EEC and 83 /349/EEC has been drafted in order to simplify the accounting obligations of small enterprises.

With this rule, the so-called Accounting Directives (Directive 78 /660/EEC and Directive 83 /349/EEC) are recast in a single text, and a new strategy is introduced in the process of European accounting harmonisation by imposing on the Member States the obligation to adopt maximum information requirements for institutions which do not exceed the limits which currently entitle a company in Spain to follow the short model of balance and memory; those which the Directive refers to as small businesses.

The first step of this new process of accounting harmonization has been given with the approval of Law 22/2015, of July 20, of Audit of Accounts, in whose final provisions first and fourth have been collected amendments required to be made to the Trade Code and the recast text of the Capital Companies Act, respectively, to transpose the new Accounting Directive into our legal order.

This royal decree, issued in accordance with the eighth final provision of Law 22/2015, of July 20, of Audit of Accounts and the final provision of Law 16/2007, of July 4, of reform and adaptation of the commercial law on accounting matters for its international harmonization based on the European Union legislation, which confers on the government the competence to approve by Royal Decree the modifications to be introduced in the General Plan of Accounting (PGC), in the General Plan of Accounting for Small and Medium Enterprises (PGC-SMEs), in the Rules for the Form of Consolidated Annual Accounts (NFCAC) and in the Rules of Adaptation of the General Accounting Plan to non-profit entities, aims at the regulatory development of the modifications introduced in the our accounting law by Law 22/2015 of 20 July 2015 as a result of the process of transposition of Directive 2013 /34/EU of 26 June 2013.

II

The changes now approved are concentrated in three blocks. In the first place, the simplification of the accounting obligations of small enterprises which materializes in the elimination of the state of changes in the net worth and in the reduction of the indications to include in the memory of the annual accounts. As far as the criteria for registration and valuation are concerned, the only amendment which has been incorporated, for all types of companies, is that which concerns intangible assets, in particular the goodwill. Regulatory development is closed with a brief review of the NFCAC on the waiver and exclusion assumptions of the obligation to consolidate, the treatment of the consolidation trade fund and some technical improvements.

The royal decree contains four articles that affect Royal Decree 1514/2007 of 16 November, approving the General Plan of Accounting, Royal Decree 1515/2007 of 16 November, approving the Plan General Accounting for Small and Medium Enterprises and the specific accounting criteria for micro-enterprises, Royal Decree 1159/2010 of 17 September, approving the Standards for the Form of Consolidated Annual Accounts and amends the General Accounting Plan approved by Royal Decree 1514/2007 of 16 November and the General Plan of Accounting for Small and Medium-sized Enterprises approved by Royal Decree 1515/2007 of 16 November and Royal Decree 1491/2011 of 24 October, approving the rules for the adaptation of the General Accounting Plan to the non-profit-making entities and the model of the action plan of non-profit-making entities, two additional provisions governing the rights of greenhouse gas emission and aspects of comparative information, one of which is a transitional provision, which regulates aspects of the entry into force of the rule, and five provisions final, which includes an amendment to the Regulation implementing the recast of the Audit of Accounts Act, approved by Royal Decree 1517/2011 of 31 October, a regulatory clearance, the title of competition and the entry into force of the rule.

Article 1 modifies the General Accounting Plan, basically, with the aim of introducing for all types of companies a new regulation on intangible assets, especially for the goodwill, and to abolish the mandatory nature of the state of changes in net worth for small enterprises, as well as certain information to be included in the abbreviated memory model.

Article 2 amends, on the one hand, Royal Decree 1515/2007 of 16 November to extend the scope of the PGC-SMEs. To this end, for the financial years starting from 1 January 2016, the limits of total assets, net amount of turnover and number of employees are equal to those provided for in order to draw up an abbreviated model of balance sheet and memory. In this respect, it should be noted that the Directive does not require Member States to define the categories of undertakings (small, medium and large) if no significant treatment is established for medium and large enterprises in the Member States. terms of the Directive. Therefore, in the absence of a definition for accounting purposes of the category of medium-sized enterprise in the Spanish legislation, it has been considered appropriate to maintain the term of the General Plan of Accounting for small and medium-sized enterprises, for their general use and acceptance, in order to identify the accounting standard of reference of institutions not exceeding the limits of the total amount of assets, turnover and average number of workers laid down by the Directive to define the undertakings included in the the scope of the accounting simplification (small enterprises).

On the other hand, this article also modifies the PGC-Pymes in the aspects relating to annual accounts and intangible assets.

Article 3 introduces a change in the NFCAC to the exclusion and waiver of consolidation and the new regulation of the goodwill, in line with the treatment in individual annual accounts.

Article 4 amends Royal Decree 1491/2011 of 24 October 2011 approving the rules for the adaptation of the General Accounting Plan to non-profit entities and the model of the action plan of the institutions For the purpose of enabling these entities to be able to apply the PGC-SMEs on the same terms as those provided for by the companies, it is not for profit. The rules for the adaptation of the General Accounting Plan to non-profit-making entities are also amended to take account of changes in intangible fixed assets.

III

With regard to the simplification of the content of annual accounts for small businesses, the abolition of the compulsory nature of the state of changes in net worth, which is to be set up as a document, should be reviewed. voluntary, both in companies using the PGC's abbreviated model and for accounting subjects who choose to apply the PGC-Pymes model, and review the content of the memory.

Directive 2013 /34/EU of 26 June 2013 sets out the maximum level of information that may be required from a small business, with the exception of public interest entities. The incorporation into our legislation of this mandate has brought with it the modification of Articles 260 and 261 of the recast text of the Law of Companies of Capital and, in the light of the recitals of the Directive, the regulatory development It should be done in the form of the least burden on small businesses, so that the indications exceeding the maximum level laid down by the European standard are deleted. The end result is the replacement of the current memory model (abbreviated and Pymes) with lower requirements.

The Directive introduces a new accounting treatment of the intangible fixed assets in Article 12.11 and in particular the goodwill. The transfer of this criterion to our accounting law has brought with it, for the exercises initiated from 1 January 2016, a new wording of Article 39 (4) of the Code of Commerce, introduced by the final provision First, paragraph four, of Law 22/2015.

In the light of this wording, it has been deemed necessary to revise the accounting treatment in individual accounts (and in the consolidated accounts of companies that do not apply international standards) at a regulatory level. financial information adopted by the European Union) of the intangible assets and the goodwill, which since the 2008 reform were rated as life assets indefinitely.

At this point, it is appropriate to clarify the meaning of the new forecast contained in the Code of Commerce in order to write down the intangible immobilized within ten years when its useful life cannot be estimated at reliable way. This rule, which was not included in the previous accounting framework, has been incorporated with the aim of establishing a generally applicable time limit for the depreciation of intangibles, in particular those generated internally by the acquired company and which aforran as a result of a business combination, when in view of the relevant factors for estimating its useful life, the period during which the economic benefits inherent in the asset are reasonably expected to be estimated cannot be estimated produce returns for the company.

That is to say, this forecast is introduced as a general rule over the period of amortization of intangibles, which must be applied in the absence of reliability in the determination of the useful life or other legal provision or a regulatory accounting system that has a specific and different time limit at 10 years, as would be the case for the PGC itself for research and development expenditure.

In addition, in relation to the goodwill, to the extent that it is not clear that the cases in which the useful life cannot be reliably determined are exceptional, it has been considered appropriate to introduce a presumption, which allows proof to the contrary, that the acquired goodwill is recovered in a linear manner within ten years, and the company can therefore be covered by the aforementioned presumption and avoid with it the task, probably complex, to justify the useful life of this heritage element.

In any case, it is necessary to clarify that this task will always be after the obligation to recognize the identifiable intangible assets acquired in any combination of business, even though in some cases the dividing line Between identifying intangibles and estimating the useful life of the goodwill is not quite evident. Thus, it should be recalled that according to the acquisition method, once the identifiable assets and liabilities assumed are valued, the goodwill will collect all the intangible resources acquired, not identifiable, but susceptible to generating future economic benefits.

In addition, it is clear that the delimitation and definition of the resources of the trade fund will not result in anything simple, given the diversity of elements that are brought together in the trade fund and the interaction between them. In some cases, it is possible to deal with items very similar to identifiable intangible assets but which do not meet all the requirements necessary to record separately on the balance sheet, in others it is possible to speak of synergies or competitive advantages arising from the acquisition process or from situations, conditions or characteristics of the acquired entity itself, the competition or the market in which it operates, which in most cases does not seem reasonable to consider that can be maintained for an indefinite period of time.

In the light of the component components, it is evident that the estimate of the life of the goodwill will require the judgment of the administrators and the weighting of several indicators that can reach a high degree of difficulty, to a greater extent if the acquired company develops economic activities that are short-term or subject to strong competition, and continuous technological innovations. Therefore, for the sake of the desirable comparability of financial information, and with the aim of facilitating in practice the accounting treatment of the goodwill, the aforementioned presumption of its useful life and rhythm is introduced. recovery.

On the other hand, the system of valuation correction is modified with the objective of equipping the criterion to be followed in terms of deterioration of value with that applied to the rest of the immobilized, that is, at least at the closing of the exercise, the existence of signs of deterioration shall be analysed and, where appropriate, the recoverable amount shall be calculated and shall make any necessary corrections. In addition, some clarifications are needed on this aspect, given the change in the focus on the accounting of intangible immobilized.

Thus, in the event of a deterioration of value it has been considered appropriate to maintain the criterion of imputation and reversal of the loss regulated in the standard of registration and valuation 2. of the PGC and, in its development, in the ICAC Resolution of 18 September 2013, for which registration and valuation rules are issued and information to be included in the annual accounts on the impairment of the value of assets.

In addition, while it is true that the change in approach based on the theoretical separation between the acquired goodwill and the self-generated after the acquisition, it might have advised to eliminate the rule that prevents the reversion the value impairment of the goodwill, with the limit of the book value of the goodwill which would be recognised at the date of reversal if the impairment of value had not been recorded, is no less certain than the maintenance of the rule which prevents its reversal corresponds better with the prohibition of recognizing the generated goodwill This is because it is more than likely that, in the event of a recovery of the value of the cash-generating unit, it is the self-generated goodwill after the combination of the cause of the improvement under the financial and financial policies. exploitation that has been followed since the date of acquisition.

In order to conclude the analysis of the innovations in the field of intangibles, it is necessary to remember the importance they have in the treatment of these immobilized and, in particular of the trade fund, to include in the memory of the accounts a detailed description of the useful lives and the depreciation coefficients used, as well as the relevance of the objective of the faithful image to provide a detailed description of the factors contributing to the registration of the trade fund, the criteria for allocating that amount to each of the cash-generating units and, where applicable, the main estimates made to determine the recoverable amount of those units.

In relation to the consolidated accounts, the new Directive has maintained regulation on the obligation to consolidate on the same terms as the previous Directive. With regard to the waiver of consolidation, the European standard introduces a change in the exemption for size reason. Thus, the size of the waiver is applied to the small groups in a compulsory manner (defined on the basis of the parameters which enable balance and memory to be drawn up) and the Member States are empowered to dispense with the so-called medium-sized groups. In view of this scenario, it has been considered appropriate to maintain the current limits, which means that the option allowed by the Directive should be gradually used.

A singular question in this paragraph concerning the exemption on grounds of size is what concerns public interest entities, in respect of which the Directive provides that they are, in any event, subject to the obligation of consolidate regardless of the size of the group in which they are included as dependents. The definition of entities of public interest is contained in the Directive in an open form, that is to say that entities in any case are defined as entities of public interest but leaves open the concept to those that define the State Member in consideration of the nature of its activity, size or number of employees. At this point it has not been considered appropriate to introduce a fragmented concept of an entity of public interest, so the accounting standard forwards to the definition that is used for the purposes of the accounts audit provisions.

The sub-group exemption provided for in our legislation remains unchanged. Therefore, the only additional novelty to that described is the exemption for all dependent companies excluded from the consolidation, in addition to these exclusions. In contrast to the exemption or exemption, which implies the non-formulation of consolidated accounts, the exclusion scenarios simply entail non-integration (i.e. the failure to apply the method of global integration) in the consolidated accounts of the companies that are in such situations, but are considered to be one. The fourth case of waiver arises when for that reason all the dependent companies would have to be excluded from the consolidation.

In addition, in connection with the new treatment of the goodwill, it is clarified that the amortisation of this asset should also be considered for the purposes of making adjustments to the value of the equity stake are regulated in Article 55 (2) of the NFCAC.

Also, in Article 70 (2) of the NFCAC, an aspect related to the tax effect on consolidated accounts is qualified, in the sense that when the functional currency of the foreign branch or business differs from that of the of the currency of taxation it will also be customary for temporary differences to arise because the book value of non-cash assets will be determined from the historical exchange rate and the tax base using the exchange rate of closure. Article 72 (4) clarifies the treatment of the waiver to recognise an asset for deferred tax due to participation in a dependent, multi-group or associated company.

Finally, as a result of the depreciation of the goodwill in the consolidated accounts, it is necessary to clarify that it has not been considered appropriate to amend the criterion set out in the PGC to make the value adjustments in the holdings in group, multi-group and associated companies.

IV

The change in the accounting qualification of intangible fixed assets to stocks of the greenhouse gas emission allowances the intended destination of which is to be cancelled is regulated in the first provision. the obligation arising from the emissions to be carried out by the undertaking. Accordingly, for the exercises initiated as of 1 January 2016, all acquired rights, both those intended to cancel obligations and those that are maintained for the purpose of being sold will look in stock.

The qualification as intangible fixed assets or stocks of these rights has been a widely discussed issue in the international context, but whose practical impact is not overly relevant. Therefore, there are arguments in favour of their treatment as stocks, such as the fact that we are dealing with an asset whose permanence in the company's assets will not be long-lasting, and whose depreciation is systematic Nor is it evident that the change in its accounting status is configured as a practical solution to account for an economic fact that in the new regulatory framework of the intangible immobilized had difficult framing.

Be it as it is necessary to emphasize that this change hardly alters the regulation on this matter contained in the Resolution of 28 May 2013, of the ICAC, for which rules of registration, valuation and information are dictated to include in the memory of intangible fixed assets, which therefore remains in force with the exception of the amended amendment. In addition, note that in the new context of accounting simplification for small enterprises it is no longer mandatory for the short model of memory and for companies applying the PGC-SMEs the information that the RICAC required to include in this document on those rights.

In the second additional provision, the regulation on comparative information is established in the first annual accounts of the financial years starting from 1 January 2016.

A transitional regime for approved modifications is set out in the single transitional arrangement. Thus, it is clarified that the amortisation period of the goodwill, or any other intangible asset that to date has not been amortised, will be calculated from the first financial year beginning on 1 January 2016, and that the reserve by goodwill shall be reclassified to another reserve account and shall be available from that date on the amount exceeding the book value of the trade fund accounted for in the balance sheet asset. Without prejudice to the above, the option to adjust its value in books from reserves is also introduced.

By virtue of the final provision, a new article is incorporated into the Regulation that develops the recast text of the Audit of Accounts Law, approved by Royal Decree 1517/2011 of 31 October, which provides for the The Court of Justice has held that the Court of Justice has held that the Court of Justice has held that the Court of Justice has held a This procedure is foreseen for those cases where the date of the initiation of the procedure is or is known all the factual elements that allow to appreciate, without any complexity, the infringing behaviors, as it happens in example with audit report signatures without being legally enabled to do so or the required reporting or reporting faults.

Finally, in the remaining final provisions, in addition to an express declaration on the area of competence, the entry into force and the authorization of the Minister of Justice are collected so that through ministerial order it can demand the deposit of the information that to date was required in the memory by commercial or other provisions, except for the information requirements provided by the tax legislation, and that according to the above mentioned above is no longer a mandatory content to be included in the annual accounts of the financial years start from 1 January 2016.

This royal decree is issued in accordance with the eighth final provision of Law 22/2015, of July 20, of Audit of Accounts, and the final provision of Law 16/2007, of July 4, of reform and adaptation of the commercial law on accounting matters for international harmonisation based on European Union legislation, and after obtaining the mandatory report of the Ministry of Finance and Public Administrations, in accordance with the provisions of the in the seventh additional provision of Royal Decree 345/2012 of 10 February.

In its virtue, on the proposal of the Minister of Economy, Industry and Competitiveness, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting on December 2, 2016,

DISPONGO:

Article first. Amendment of Royal Decree 1514/2007 of 16 November approving the General Accounting Plan.

The General Accounting Plan is modified as follows:

One. The first subparagraph of paragraph 1 is amended. Annual accounts. A faithful image of the first part, the conceptual framework of the accounting, which is worded as follows:

" A company's annual accounts comprise the balance sheet, profit and loss account, status of changes in equity, cash flows and memory. These documents form a unit. However, the state of changes in net worth and the statement of cash flows shall not be mandatory for companies that can formulate short balance and memory. '

Two. Paragraph 2 of the Standard of Registration and Valuation 5. Intangible fixed assets of Part Two, Registration and Valuation Rules, which is worded as follows:

" 2. Further assessment.

Intangible assets are defined useful life assets and should therefore be subject to systematic depreciation in the period during which the economic benefits inherent in the assets produce returns for the company.

When the useful life of these assets cannot be reliably estimated, they shall be amortised within ten years, without prejudice to the time limits laid down in the particular rules on intangible fixed assets.

In any case, at least annually, the analysis should be carried out if there is evidence of a deterioration in value, if any, to check for any deterioration. "

Three. Point (c) of the Standard of Registration and Valuation 6. Special Rules on the intangible fixed assets of Part Two, Registration and Valuation Rules, which is worded as follows:

" (c) Trade Fund. It may only be included in the asset, where its value is evidenced by an onerous acquisition, in the context of a business combination.

Your amount will be determined in accordance with the business combinations standard and must be allocated from the date of acquisition between each of the Company's cash generating units, on which the benefits of the synergies of the business combination are expected to fall.

After the initial recognition, the goodwill shall be valued for its purchase price minus the accumulated amortisation and, where applicable, the cumulative amount of the impairment valuation corrections. recognized.

The goodwill will be depreciated during its lifetime. The useful life shall be determined separately for each cash generating unit to which the goodwill has been allocated.

It will be presumed, unless proof to the contrary, that the shelf life of the goodwill is ten years and that its recovery is linear.

In addition, at least annually, it shall be analysed if there are indications of the impairment of the cash-generating units to which a goodwill has been allocated, and, if any, are to be verified as possible. impairment of value in accordance with the provisions of paragraph 2.2 of the standard relating to tangible fixed assets.

Impairment value adjustments recognized in the goodwill shall not be reversed in subsequent years. "

Four. Rule 1 (1) Rules for the drawing up of the annual accounts of Part Three, Annual Accounts, which is worded as follows:

" 1. th Documents that make up the annual accounts

Annual accounts comprise the balance sheet, profit and loss account, changes in net worth, cash flow and memory status. These documents form a unit and must be drawn up in accordance with the provisions of the Trade Code, the recast of the Capital Companies Act and in this General Accounting Plan, in particular on the basis of the Framework Conceptual of the Accounting and in order to show the faithful image of the patrimony, the financial situation and the results of the company.

When balance and memory can be formulated in abbreviated model, the state of changes in net worth and cash flow status will not be required. "

Five. Rule 4 (1) Rules for the drawing up of the annual accounts of Part Three, Annual Accounts, which is worded as follows:

" 4. Abbreviated Annual Accounts

1. The companies identified in the previous standard may use the annual accounts abbreviated in the following cases:

(a) Short balance sheet and memory: Companies in which at least two of the following circumstances are present at the end of the financial year:

That the total of the assets of the asset does not exceed EUR 4 million. For these purposes, the total amount shown in the model of the balance sheet shall be fully understood.

That the net amount of your annual business figure does not exceed eight million euros.

The average number of workers employed during the financial year is not greater than 50.

(b) Short-term profit and loss account: companies in which at least two of the following conditions are met at the end of the financial year:

That the total assets of the asset does not exceed 11 million euros. For these purposes, the total amount shown in the model of the balance sheet shall be fully understood.

That the net amount of your annual turnover does not exceed twenty-two million euros.

That the average number of workers employed during the financial year is not greater than 250.

When a company, on the date of the end of the financial year, becomes two of the circumstances mentioned above or ceases to comply with them, such a situation will only produce effects as to what is stated in this paragraph if repeated for two consecutive exercises.

If the company is part of a group of companies in the terms described in the standard for the production of the annual accounts 13. group, multigroup and associated companies contained in this third part, for the quantification of the amounts shall be taken into account for the sum of the asset, the net amount of the turnover and the average number of workers in the group of the entities forming the group, taking into account the eliminations and additions regulated in the consolidation rules approved in the development of the principles contained in the Code of Trade. This rule shall not apply where the financial information of the undertaking is integrated into the consolidated annual accounts of the dominant company.

2. Companies with other corporate forms not mentioned in the previous standard, as well as individual entrepreneurs, shall be required to make at least the abbreviated annual accounts.

3. Entities rated as public interest entities in Article 3.5 of Law 22/2015 of 20 July of Audit of Accounts shall not be able to make abbreviated annual accounts.

4. The requirements set out in the following rules for normal models must be in line with the characteristics of the abbreviated models.

5. Where the content of the abbreviated memory contained in the section relating to abbreviated models is not sufficient to show the true picture of the assets, the financial situation and the results of the company, the accurate additional information to achieve this result. "

Six. The table for the reconciliation of accounts and items of the normal balance sheet model included in paragraph II is amended. Standard annual accounts of Part Three, Annual Accounts, according to the following criteria:

In the reconciliation column, the account (2804) is included in item 4. Goodwill, under the heading I. Intangible fixed assets, of pool A) ACTIVE NOT CURRENT.

Seven. Point 1 of paragraph 4 is amended. Rules for recording and assessing the normal model of memory included in paragraph II. Standard annual accounts of Part Three, Annual Accounts, which is worded as follows:

" 1. Intangible fixed assets; indicating the criteria used for capitalisation or activation, amortisation and valuation corrections for impairment.

Where appropriate, the valuation criterion followed to calculate the recoverable amount of the cash-generating units to which the goodwill has been allocated shall be reported in detail. "

Eight. Point 2 (p) of the General Model of Memory included in paragraph II, point 2, is amended. Standard annual accounts of Part Three, Annual Accounts, which is worded as follows:

"p) The immobilized whose useful life cannot be reliably determined, pointing out its amount, nature and the circumstances causing the lack of reliability in the estimation of such useful life, will be detailed."

Nine. Points (a) and (f) are added to point 2 of paragraph 7.2 of the Trade Fund for the normal model of memory referred to in paragraph II. Standard annual accounts of Part Three, Annual Accounts, which are drawn up as follows:

" (a) The gross amount of the same, the write-downs practiced and the cumulative impairment valuation corrections at the beginning of the financial year.

(...)

(f) The gross amount of the goodwill, the write-downs practiced and the cumulative impairment valuation corrections at the end of the financial year. '

Ten. Point 3 of Section 7.2 of the Trade Fund for the normal model of memory included in paragraph II is amended. Standard annual accounts of Part Three, Annual Accounts, which is worded as follows:

" 3. Description of the factors that have contributed to the registration of the goodwill and the justification and amount of goodwill and other intangible assets attributed to each cash-generating unit.

In particular, the estimates made to determine the useful life of the goodwill and the method of amortisation used shall be reported. "

Once. Points 6 and 7 of paragraph 23 are amended. Operations with related parts of the normal memory model included in paragraph II. Standard annual accounts of Part Three, Annual Accounts, which are drawn up as follows:

" 6. However, in any event, information on the amount of the salaries, allowances and remuneration of any class accrued in the course of the financial year by senior management staff and members of the administrative body shall be reported. its cause, as well as the obligations incurred in respect of pensions or the payment of life insurance premiums in respect of the former and current members of the management body and senior management staff. Information on eesc allowances and payments based on equity instruments shall also be included. These requirements shall also apply where the members of the administrative body are legal persons, in which case in addition to informing the administrative legal person of the remuneration, the latter shall report in its annual accounts for the specific remuneration that corresponds to the natural person representing it. This information may be given in a comprehensive manner by way of remuneration, separately collecting the information relating to the staff of senior management of the members of the administrative body.

In the event that the company has satisfied, in whole or in part, the liability insurance premium of all or any of the administrators for damages caused by acts or omissions in the exercise of the charge, it shall be expressly indicated with an indication of the amount of the premium.

The amount of advances and credits granted to senior management staff and members of the administrative bodies, with an indication of the interest rate, their essential characteristics and their essential characteristics should also be reported. the amounts eventually returned, as well as the obligations taken on behalf of them as collateral. These requirements shall also apply where the members of the administrative body are legal persons, in which case in addition to reporting the advances and credits granted to the administrative legal person, the latter shall be required to report on their annual accounts of the specific participation that corresponds to the natural person representing the person. This information may be given in a comprehensive manner for each category, separately collecting the information corresponding to the senior management staff of the members of the administrative body.

7. Undertakings which are organised under the legal form of a capital company shall be required to report situations of conflict of interest to which the administrators or persons connected with them are involved, in the terms of Article 229 of the recast text of the Capital Companies Act. "

Twelve. Point 1 is amended and a new point 7 is included in paragraph 24. Other information of the normal memory model included in paragraph II. Standard annual accounts of Part Three, Annual Accounts, which are drawn up as follows:

" 1. The average number of persons employed in the course of the financial year, expressed by category.

The distribution by gender at the end of the exercise of the company's staff, broken down into a sufficient number of categories and levels, including those of senior managers and members.

The average number of persons employed in the course of the exercise with disabilities greater than or equal to thirty-three percent, indicating the categories to which they belong. "

" 7. The conclusion, modification or early termination of any contract between a commercial company and any of its members or administrators or persons acting on behalf of them, in the case of an operation other than ordinary traffic of the company or that it is not carried out under normal conditions. "

Thirteen. The content of the abbreviated memory model included in paragraph III is amended. Abbreviated models of annual accounts for Part Three, Annual Accounts, which is worded as follows:

" ABBREVIATED MEMORY CONTENT

1. Business activity

This section describes the social object of the company and the activity or activities to which it is dedicated. In particular:

1. Domicile and legal form of the company, as well as the place where you develop the activities, if it were different from the registered office.

2. A description of the nature of the operation of the company as well as its main activities.

3. In the case of belonging to a group of companies within the meaning of Article 42 of the Trade Code, even where the dominant company is domiciled outside the Spanish territory, the name and address of the company shall be reported. a dominant company which has drawn up the consolidated accounts of the smaller group of undertakings of which the company is a subsidiary as a dependent company.

4. Where there is a functional currency other than the euro, this circumstance shall be clearly stated, indicating the criteria taken into account for its determination.

2. Basis for the presentation of the annual accounts

1. True image:

(a) The company must make an explicit statement that the annual accounts reflect the fair share of the assets, the financial situation and the results of the company, as well as in the case of cash flows, the veracity of the built-in flows.

(b) Exceptional reasons why, in order to show the true image, no legal provisions have been applied in accounting matters, with an indication of the non-applied legal provision, and qualitative and quantitative influence for each financial year for which information is presented on the assets, financial situation and results of the company.

c) Complementary information, indicating its location in memory, that it is necessary to include when the application of the legal provisions is not sufficient to show the true image.

2. Non-mandatory accounting principles applied.

3. Critical aspects of the assessment and estimation of uncertainty:

(a) Without prejudice to the above in each specific note, this section will report on the key assumptions about the future as well as other relevant data on the estimate of the uncertainty at the closing date of the exercise, provided that they bear an important risk that significant changes in the value of the assets or liabilities in the following year can be expected.

For such assets and liabilities, information on their nature and book value shall be included on the closing date.

(b) The nature and amount of any change in an accounting estimate that is significant and which affects the current financial year or which is expected to affect future financial years shall be indicated. When it is impractical to estimate the effect in future exercises, this fact will be revealed.

(c) When management is aware of the existence of significant uncertainties, relating to events or conditions that may provide significant doubt as to whether the company may continue to operate normally, proceed to reveal them in this section. In the event that the annual accounts are not drawn up under the principle of a functioning undertaking, that fact will be the subject of explicit disclosure, together with the alternative scenarios on which they have been drawn up, as well as the reasons why the company cannot be regarded as a running company.

4. Comparison of information. Without prejudice to the following paragraphs regarding changes in accounting criteria and error correction, the following information shall be incorporated in this paragraph:

(a) Exceptional reasons that justify the modification of the balance sheet structure, the profit and loss account and, in the case of being made, the state of changes in the net worth and the statement of cash flows of the previous exercise.

b) Explanation of the causes that prevent the comparison of the annual accounts of the year with those of the previous one.

(c) Explanation of the adjustment of the amounts of the preceding financial year to facilitate the comparison and, if not, the exceptional reasons which have rendered the reexpression of the comparative figures impracticable.

5. Items collected under various headings. Identification of the assets, with their amount, which are recorded in two or more balance sheet items, with an indication of the balance sheet and the amount included in each balance sheet.

6. Changes in accounting criteria. Detailed explanation of adjustments for changes in accounting criteria made in the financial year, indicating the reasons why the change allows for more reliable and relevant information.

If the retroactive application is impracticable, the circumstances that explain it and from when the change in the accounting criteria has been applied will be reported.

It will not be necessary to include comparative information in this section.

7. Error correction. Detailed explanation of the correction adjustments made to the exercise, indicating the nature of the error.

If the retroactive application is impracticable, the circumstances that explain it and from when the error has been corrected will be reported.

It will not be necessary to include comparative information in this section.

3. Registration and valuation rules

The accounting criteria applied for the following items shall be indicated:

1. Intangible fixed assets; indicating the criteria used for capitalisation or activation, amortisation and valuation corrections for impairment.

2. Tangible fixed assets, indicating the criteria for depreciation, valuation corrections for deterioration and reversal of depreciation, capitalisation of financial expenses, enlargement costs, modernisation and improvements, decommissioning or withdrawal costs, as well as the costs of rehabilitation of the place where an asset is settled and the criteria for determining the cost of the work carried out by the company for its fixed assets.

In addition, the criteria for accounting for leasing contracts and other similar operations shall be specified.

3. The criterion for qualifying land and buildings as real estate investments shall be indicated, specifying for these criteria the criteria set out in the previous paragraph.

In addition, the criteria for accounting for leasing contracts and other similar operations shall be specified.

4. Permutas; indicating the criterion followed and the justification for their application, in particular the circumstances which led to the qualification of a commercial swap.

5. Financial assets and financial liabilities; shall be indicated:

(a) Criteria used for the rating and valuation of the different categories of financial assets and financial liabilities, as well as for the recognition of fair value changes; in particular, the reasons for securities issued by the company which, in accordance with the legal instrument used, should in principle have been classified as equity instruments, have been accounted for as financial liabilities.

(b) The nature of the financial assets and financial liabilities initially designated as at fair value with changes in the profit and loss account, as well as the criteria applied in that designation and an explanation of how the company has met the requirements set out in the standard of registration and valuation relating to financial instruments.

(c) The criteria applied to determine the existence of objective evidence of deterioration, as well as the recording of the correction of value and its reversal and the definitive discharge of impaired financial assets. In particular, the criteria used to calculate the valuation corrections relating to commercial debtors and other receivables shall be highlighted. The accounting criteria applied to financial assets whose conditions have been renegotiated and which otherwise would be due or impaired shall also be indicated.

d) Criteria used for the registration of financial assets and financial liabilities.

e) Investments in group, multi-group and associated companies; the criterion followed in the valuation of these investments, as well as the one applied to record impairment valuation corrections, will be reported.

(f) The criteria used in determining the income or expenses arising from the various categories of financial assets and liabilities: interest, premiums or discounts, dividends, etc.

g) Own equity instruments held by the company; indicating the criteria for employee valuation and registration.

6. Stocks; indicating the valuation criteria and, in particular, specifying those followed by valuation corrections for deterioration and capitalization of financial expenses.

7. Foreign currency transactions; indicating:

a) Criteria for valuation of foreign currency transactions and criteria for imputation of exchange differences.

b) When there has been a change in the functional currency, it will become manifest, as well as the reason for such a change.

(c) For the items contained in the annual accounts which at present or at their origin have been expressed in foreign currency, the procedure used to calculate the exchange rate shall be indicated in euro.

8. Profit taxes; indicating the criteria used for the registration and valuation of deferred tax assets and liabilities.

9. Revenue and expenditure; indicating the general criteria applied. In particular, in relation to the performance of services carried out by the undertaking, the criteria used for the determination of the income shall be indicated; in particular, the methods used to determine the percentage of performance in the provision of services and shall be reported if its application has been impracticable.

10. Provisions and contingencies; indicating the criterion of valuation, as well as, where appropriate, the treatment of compensation to be received from a third party at the time of the settlement of the obligation. In particular, a general description of the method of estimation and calculation of each of the risks shall be given in relation to the provisions.

11. Criteria used for the registration of staff expenditure, in particular the criteria for pension commitments.

12. Grants, donations and legacies; indicating the criteria used for their classification and, where applicable, their imputation to results.

13. Business combinations; indicating the criteria for employee registration and valuation.

14. Joint ventures; indicating the criteria followed by the company to integrate in its annual accounts the balances corresponding to the joint business in which it participates.

15. Criteria used in related party transactions.

4. Tangible, intangible and real estate assets

1. Analysis of the movement during the exercise of each of these items of the balance sheet and its corresponding cumulative write-downs and cumulative value impairment corrections, indicating the following:

a) Initial save.

b) Entries.

c) Outputs.

d) End Balance.

Information relating to real estate investments shall be specified, including a description of the real estate investments.

If there is a significant item, by its nature or amount, the relevant additional information will be provided.

2. Financial leases and other operations of a similar nature on non-current assets. In particular, it shall be specified in accordance with the terms of the contract: the cost of the goods at source, the duration of the contract, the years elapsed, the fees paid in previous years and the financial year, the outstanding shares and, where appropriate, the value of the purchase option.

5. Financial assets

1. For each class of non-current financial assets, an analysis of the movement during the financial year and of the value of the corrective accounts arising from the credit risk shall be submitted.

2. Where financial assets have been valued at fair value, it shall be indicated:

(a) If fair value is determined, in whole or in part, by reference to prices quoted in active markets or estimated using valuation models and techniques. In the latter case, the main assumptions on which the above models and valuation techniques are based will be identified.

(b) By category of financial assets, fair value and changes in the value recorded, if any, in the profit and loss account, as well as those entered directly in equity.

(c) With respect to derivative financial instruments, the nature of the instruments and the important conditions that may affect the amount, timing and certainty of future flows of assets will be reported. cash.

(d) A table reflecting the movements of the equity in the financial year as a result of changes in fair value of financial instruments.

3. Group, multi-group and associated companies.

Amount of the impairment valuation corrections recorded in the different units, differentiating those recognized in the exercise of the accumulated ones. In addition, where appropriate, information shall be provided on the allocations and reversions of the impairment valuation corrections charged and credited, respectively, against the net worth item that collects the valuation adjustments, in the indicated terms in the registration and valuation rule.

6. Financial liabilities

Information about:

(a) The amount of the debts that are due in each of the five years following the end of the financial year and the rest until the last maturity. These particulars shall be shown separately for each of the headings and items relating to debts, in accordance with the balance sheet model.

(b) The amount of the debt with collateral, with an indication of its form and nature.

(c) For loans outstanding at the end of the financial year, the following shall be

:

Details of any default of principal or interest that occurred during the financial year.

The book value on the date of the end of the financial year of those loans in which a default was incurred, and, where applicable,

If the default has been remedied or the terms of the loan have been renegotiated before the date of formulation of the annual accounts.

7. Own funds

Reports on:

1. In the case of limited liability companies, the amount of capital authorised by the shareholders ' meeting to be put into circulation by the directors, indicating the period to which the authorisation is extended.

2. Number, nominal value and average purchase price of the shares or units owned by the company or of a third party on behalf of the company, specifying its intended final destination.

8. Tax situation

Reports on:

1. The current profit tax expense.

2. Any other information the publication of which is required by the tax rule.

9. Related party operations

1. For the purposes of the information to be included in this paragraph, only operations carried out with:

a) Dominant entity.

b) Dependent companies.

(c) Joint business in which the company is one of the unit-holders.

d) Associated companies.

e) Companies with joint control or significant influence over the company.

f) Members of the key management and administrative bodies of the management of the company.

2. The company shall provide sufficient information to understand the related party transactions it has made and the effects thereof on its financial statements, including separately for each of those categories, between others, the following aspects:

a) Identification of persons or companies with whom the related transactions have been performed, expressing the nature of the relationship with each party involved.

b) Detail of the operation and its quantification, reporting the criteria or methods followed to determine its value.

(c) Profit or loss that the transaction has originated in the company and description of the functions and risks assumed by each related party with respect to the transaction.

(d) Amount of outstanding balances, both assets and liabilities, their terms and conditions, the nature of the consideration established for settlement, grouping the assets and liabilities in the headings that appear on the balance sheet of the company and guarantees granted or received.

e) Value adjustments for debts of doubtful collection or non-performing related to previous outstanding balances.

3. The above information may be presented in an aggregated form when referring to items of a similar nature. In any event, information of an individualised nature shall be provided on linked transactions which are significant for their size or relevant to a proper understanding of the annual accounts, as well as the financial commitments to related companies.

4. It will not be necessary to inform in the case of operations which, belonging to the ordinary traffic of the company, are carried out under normal market conditions, are of little quantitative importance and lack relevance to express the faithful image of the assets, the financial situation and the results of the company.

5. Information on the amount of advances and credits granted to senior management staff and members of the administrative bodies, with an indication of the interest rate, their essential characteristics and the amounts involved, shall be reported. returned or to which it has been waived, as well as the obligations assumed on behalf of them as a guarantee. These requirements shall also apply where the members of the administrative body are legal persons, in which case in addition to reporting the advances and credits granted to the administrative legal person, the latter shall be required to report on their annual accounts of the specific participation that corresponds to the natural person representing the person. This information may be given in a comprehensive manner for each category, separately collecting the information corresponding to the senior management staff of the members of the administrative body.

10. Other information

Information about:

1. The average number of persons employed in the course of the financial year.

2. The nature and purpose of the business of the agreements of the undertaking that do not appear on balance sheet and on which no information has been incorporated in another note of the memory, provided that this information is significant and of assistance for the determination of the company's financial position.

3. The amount and nature of certain items of revenue or expenditure whose amount or impact is exceptional. In particular, the grants, donations or legacies received shall be reported, indicating for the first public entity that grants them, specifying whether the granting of such grants is the local, regional, state or international administration.

4. The overall amount of financial commitments, guarantees or contingencies not included in the balance sheet, with an indication of the nature and form of the collateral provided; the existing pension commitments shall be to be reported separately.

5. The nature and financial consequences of circumstances of significant relative importance occurring after the balance sheet date and which are not reflected in the profit and loss account or the balance sheet, and the financial effect of the balance sheet. such circumstances.

6. Any other information which, in the opinion of those responsible for drawing up the annual accounts, should be provided to enable them as a whole to show the true picture of the assets, the results and the financial situation of the company, as well as any other information that the company deems it appropriate to provide on a voluntary basis. "

Fourteen. The table of accounts for subgroup 28 is amended. CUMULATIVE DEPRECIATION OF FIXED ASSETS included in Part Four, Table of Accounts, as follows:

Account 2804 is incorporated. Accumulated amortisation of goodwill.

Article 2. Amendment of Royal Decree 1515/2007 of 16 November approving the General Plan for the Accounting of Small and Medium-sized Enterprises and the specific accounting criteria for micro-enterprises.

One. Article 2 (1) and (2) are amended. Scope of the General Plan for the Accounting of Small and Medium-sized Enterprises, which are drawn up as follows:

" 1. This General Plan of Accounting of SMEs may apply all companies, whatever their legal, individual or corporate form, that during two consecutive exercises meet, at the closing date of each of them, at least two of the following circumstances:

(a) that the total of the assets of the asset does not exceed EUR 4 million.

b) That the net amount of its annual turnover does not exceed EUR 8 million.

c) That the average number of employees employed during the financial year is not more than fifty.

Companies will lose the ability to apply the General Plan of Accounting for SMEs if they fail to meet, for two consecutive years, the closing date for each of them, two of the circumstances referred to in the previous paragraph.

In the social exercise of its constitution, companies may apply this General Plan of Accounting for SMEs if they meet, at the end of that financial year, at least two of the three circumstances expressed in this paragraph.

If the company is part of a group of companies in the terms described in the standard of drawing up the annual accounts 11. Group, multigroup and associated companies contained in the third part of the General Plan of For the quantification of the amounts, account shall be taken of the sum of the assets, the net amount of the turnover and the average number of employees of the group of the entities forming the group, taking into account the (a) the rules for the consolidation of the laws of the Member States; principles contained in the Trade Code.

The accounting measures referred to in this paragraph shall be those arising from accounting rules that have resulted from implementation in the last financial year and in the absence thereof, those of the General Accounting Plan SMEs.

The record of the operations must be conditional upon the foreseeable compliance with those requirements.

2. Under no circumstances will they be able to apply this General Plan of Accounting for SMEs, companies that are in any of the following circumstances:

(a) That meets the definition of an entity of public interest as regulated in Article 3.5 of Law 22/2015, of July 20, of Audit of Accounts.

b) That is part of a group of companies that formulates or should have formulated consolidated annual accounts.

c) That your functional currency is different from the euro.

(d) in the case of financial institutions that capture funds from the public by taking on obligations with respect to those entities and entities that assume the management of the former. "

Two. The first subparagraph of paragraph 1. Annual accounts is amended. A faithful image of the first part, the conceptual framework of the accounting of the General Plan of Small and Medium Enterprises Accounting, which is worded as follows:

" 1. Annual Accounts. True image.

The annual accounts of small and medium-sized enterprises include the balance sheet, profit and loss account and memory. These documents form a unit. Without prejudice to the foregoing, these companies may incorporate into their annual accounts a state of net worth changes, and a statement of cash flows to be drawn up in accordance with the General Accounting Plan. "

Three. Paragraph 2 of the Standard of Registration and Valuation 5. Intangible fixed assets of Part Two is amended, Rules of Registration and Valuation for Small and Medium-sized Enterprises of the General Plan for the Accounting of Small and Medium-sized Enterprises, which is hereby approved. worded as follows:

" 2. Further assessment.

Intangible assets are defined useful life assets and should therefore be subject to systematic depreciation in the period during which the economic benefits inherent in the assets produce returns for the company.

When the useful life of these assets cannot be reliably estimated, they shall be amortised within ten years, without prejudice to the time limits laid down in the particular rules on intangible fixed assets.

In any case, at least annually, the analysis should be carried out if there is evidence of a deterioration in value, if any, to check for any deterioration. "

Four. Rule 1 (1) Rules for drawing up the annual accounts of the third party, annual accounts of the General Plan for the Accounting of Small and Medium-sized Enterprises, which is worded as follows:

"1." 1 " Documents that make up the annual accounts. The annual accounts of small and medium-sized enterprises comprise the balance sheet, profit and loss account and memory. These documents form a unit and must be written in accordance with the provisions of the Code of Commerce and the recast of the Capital Companies Act and in this General Plan of Accounting for Small and Medium-sized Enterprises; in In particular, on the basis of the Conceptual Framework of Accounting and in order to show the true image of the assets, the financial situation and the results of the company.

Without prejudice to the foregoing, these companies may incorporate into their annual accounts a state of net worth changes, and a statement of cash flows to be drawn up and presented in accordance with the provisions of the Plan. General Accounting. "

Five. Point 2 of Rule 3 (3) is amended as follows: Rules for drawing up the annual accounts of the third party, annual accounts, the General Plan for the Accounting of Small and Medium-sized Enterprises, which is drawn up as follows:

" 2. When the content of the memory included in this third part of the General Plan of Accounting for Small and Medium Enterprises, is not enough to show the true image of the patrimony, the financial situation and the results of the company, the additional information required to achieve this result will be provided. "

Six. The content of the memory model included in paragraph II is amended. Models of annual accounts of small and medium-sized enterprises in Part Three, Annual Accounts, of the General Plan for Small and Medium Enterprises Accounting, which is worded as follows:

" SMB MEMORY CONTENT

1. Business activity

This section describes the social object of the company and the activity or activities to which it is dedicated and its identification in the Commercial Registry.

2. Basis for the presentation of the annual accounts

1. True image:

(a) The company must make an explicit statement that the annual accounts reflect the fair share of the assets, the financial situation and the results of the company, as well as in the case of cash flows, the veracity of the built-in flows.

(b) Exceptional reasons why, in order to show the true image, no legal provisions have been applied in accounting matters with an indication of the non-applied legal provision, and qualitative and quantitative influence for each financial year for which information is presented on the assets, financial situation and results of the company.

c) Complementary information, indicating its location in memory, that it is necessary to include when the application of the legal provisions is not sufficient to show the true image.

2. Non-mandatory accounting principles applied.

3. Critical aspects of the assessment and estimation of uncertainty:

(a) The nature and amount of any change in an accounting estimate that is significant and which affects the current financial year or which is expected to affect future financial years shall be indicated. When it is impractical to estimate the effect in future exercises, this fact will be revealed.

(b) Where management is aware of the existence of significant uncertainties, relating to events or conditions which may provide significant doubt as to whether the undertaking may continue to operate normally, proceed to reveal them in this section. In the event that the annual accounts are not drawn up under the principle of a functioning undertaking, that fact will be the subject of explicit disclosure, together with the alternative scenarios on which they have been drawn up, as well as the reasons why the company cannot be regarded as a running company.

4. Comparison of information. Without prejudice to the following paragraphs regarding changes in accounting criteria and error correction, the following information shall be incorporated in this paragraph:

(a) Exceptional reasons that justify the modification of the balance sheet structure, the profit and loss account, and, in the case of being made, the state of changes in net worth and the statement of cash flows of the previous exercise.

b) Explanation of the causes that prevent the comparison of the annual accounts of the year with those of the previous one.

(c) Explanation of the adjustment of the amounts of the preceding financial year to facilitate the comparison and, if not, the exceptional reasons which have rendered the reexpression of the comparative figures impracticable.

5. Items collected under various headings. Identification of the assets, with their amount, which are recorded in two or more balance sheet items, with an indication of the balance sheet and the amount included in each balance sheet.

6. Changes in accounting criteria. Detailed explanation of adjustments for changes in accounting criteria made in the financial year, indicating the reasons why the change allows for more reliable and relevant information.

If the retroactive application is impracticable, the circumstances that explain it and from when the change in the accounting criteria has been applied will be reported.

It will not be necessary to include comparative information in this section.

7. Error correction. Detailed explanation of the correction adjustments made to the exercise, indicating the nature of the error.

If the retroactive application is impracticable, the circumstances that explain it and from when the error has been corrected will be reported.

It will not be necessary to include comparative information in this section.

3. Registration and valuation rules

The accounting criteria applied for the following items shall be indicated:

1. Intangible fixed assets; indicating the criteria used for capitalisation or activation, amortisation and valuation corrections for impairment.

2. Tangible fixed assets, indicating the criteria for depreciation, valuation corrections for deterioration and reversal of depreciation, capitalisation of financial expenses, enlargement costs, modernisation and improvements, decommissioning or withdrawal costs, as well as the costs of rehabilitation of the place where an asset is settled and the criteria for determining the cost of the work carried out by the company for its fixed assets.

In addition, the criteria for accounting for leasing contracts and other similar operations shall be specified.

3. The criterion for qualifying land and buildings as real estate investments shall be indicated, specifying for these criteria the criteria set out in the previous paragraph.

In addition, the criteria for accounting for leasing contracts and other similar operations shall be specified.

4. Permutas; indicating the criterion followed and the justification for their application, in particular the circumstances which led to the qualification of a commercial swap.

5. Financial assets and financial liabilities; shall be indicated:

(a) Criteria used for the rating and valuation of the different categories of financial assets and financial liabilities, as well as for the recognition of fair value changes; in particular, the reasons for the securities issued by the undertaking which, in accordance with the legal instrument used, should in principle have been classified as equity instruments, have been accounted for as financial liabilities.

(b) The criteria applied to determine the existence of objective evidence of deterioration, as well as the recording of the correction of value and its reversal and the definitive discharge of impaired financial assets. In particular, the criteria used to calculate the valuation corrections relating to commercial debtors and other receivables shall be highlighted. The accounting criteria applied to financial assets whose conditions have been renegotiated and which otherwise would be due or impaired shall also be indicated.

c) Criteria used for the registration of financial assets and financial liabilities.

d) Investments in group, multi-group and associated companies; the criterion followed in the valuation of these investments, as well as the one applied to record impairment valuation corrections, will be reported.

e) The criteria used in determining the income or expenses arising from the various categories of financial assets and liabilities: interest, premiums or discounts, dividends, etc.

6. Own equity instruments held by the company; indicating the criteria for the valuation and registration of employees.

7. Stocks; indicating the valuation criteria and, in particular, specifying those followed by valuation corrections for deterioration and capitalization of financial expenses.

8. Foreign currency transactions; indicating the criteria for valuation of foreign currency transactions and criteria for imputation of exchange differences.

9. Profit taxes; indicating the criteria used for the registration and valuation of deferred tax assets and liabilities.

10. Revenue and expenditure; indicating the general criteria applied. In particular, in relation to the performance of services carried out by the undertaking, the criteria used for the determination of the income shall be indicated; in particular, the methods used to determine the percentage of performance in the provision of services and shall be reported if its application has been impracticable.

11. Provisions and contingencies; indicating the criterion of valuation, as well as, where appropriate, the treatment of compensation to be received from a third party at the time of the settlement of the obligation. In particular, a general description of the method of estimation and calculation of each of the risks shall be given in relation to the provisions.

12. Grants, donations and legacies; indicating the criteria used for their classification and, where applicable, their imputation to results.

13. Joint ventures; indicating the criteria followed by the company to integrate in its annual accounts the balances corresponding to the joint business in which it participates.

14. Criteria used in related party transactions.

4. Tangible, intangible and real estate assets

1. Analysis of the movement during the exercise of each of these items of the balance sheet and its corresponding cumulative write-downs and cumulative value impairment corrections, indicating the following:

a) Initial save.

b) Entries.

c) Outputs.

d) End Balance.

Information relating to real estate investments shall be specified, including a description of the real estate investments.

If there is a significant item, by its nature or amount, the relevant additional information will be provided.

2. Financial leases and other operations of a similar nature on non-current assets. In particular, specifying in accordance with the terms of the contract: the cost of the goods at source, the duration of the contract, years elapsed, the fees paid in previous years and the financial year, the outstanding shares and, where appropriate, the value of the purchase.

5. Financial assets

1. For each class of non-current financial assets, an analysis of the movement during the financial year and of the value corrective accounts originated by credit risk shall be submitted.

2. Where financial assets have been valued at fair value, it shall be indicated:

(a) If fair value is determined, in whole or in part, by reference to prices quoted in active markets or estimated using valuation models and techniques. In the latter case, the main assumptions on which the above models and valuation techniques are based will be identified.

b) By category of financial assets, fair value and changes in value recorded in profit and loss account.

(c) With respect to derivative financial instruments, the nature of the instruments and the important conditions that may affect the amount, timing and certainty of future flows of assets will be reported. cash.

3. Group, multi-group and associated companies. Amount of the impairment valuation corrections recorded in the different units, differentiating those recognised in the exercise of the accumulated shares.

6. Financial liabilities

Information about:

(a) The amount of the debts that are due in each of the five years following the end of the financial year and the rest until the last maturity. These particulars shall be shown separately for each of the headings and items relating to debts, in accordance with the balance sheet model.

(b) The amount of the debt with collateral, with an indication of its form and nature.

(c) For loans outstanding at the end of the financial year, the following shall be

:

Details of any default of principal or interest that occurred during the financial year.

The book value on the date of the end of the financial year of those loans in which a default was incurred, and

If the default has been remedied or the terms of the loan have been renegotiated, before the date of formulation of the annual accounts.

7. Own funds

Reports on:

1. In the case of limited liability companies, the amount of capital authorised by the shareholders ' meeting to be put into circulation by the directors, indicating the period to which the authorisation is extended.

2. Number, nominal value and average purchase price of the shares or units owned by the company or of a third party on behalf of the company, specifying its intended final destination.

8. Tax situation

Reports on:

1. The current profit tax expense.

2. Any other information the publication of which is required by the tax rule.

9. Related party operations

1. For the purposes of the information to be included in this paragraph, only operations carried out with:

a) Dominant entity.

b) Dependent companies.

(c) Joint business in which the company is one of the unit-holders.

d) Associated companies.

e) Companies with joint control or significant influence over the company.

f) Members of the key management and administrative bodies of the management of the company.

2. The company shall provide sufficient information to understand the related party transactions it has made and the effects thereof on its financial statements, including separately for each of those categories, between others, the following aspects:

a) Identification of persons or companies with whom the related transactions have been performed, expressing the nature of the relationship with each party involved.

b) Detail of the operation and its quantification, reporting the criteria or methods followed to determine its value.

(c) Profit or loss that the transaction has originated in the company and description of the functions and risks assumed by each related party with respect to the transaction.

(d) Amount of outstanding balances, both assets and liabilities, their terms and conditions, the nature of the consideration established for settlement, grouping the assets and liabilities in the headings that appear on the balance sheet of the company and guarantees granted or received.

e) Value adjustments for debts of doubtful collection or non-performing related to previous outstanding balances.

3. The above information may be presented in an aggregated form when referring to items of a similar nature. In any event, information of an individualised nature shall be provided on linked transactions which are significant for their size or relevant to a proper understanding of the annual accounts, as well as the financial commitments to related companies.

4. It will not be necessary to inform in the case of operations which, belonging to the ordinary traffic of the company, are carried out under normal market conditions, are of little quantitative importance and lack relevance to express the faithful image of the assets, the financial situation and the results of the company.

5. Information on the amount of advances and credits granted to senior management staff and members of the administrative body, with an indication of the interest rate, its essential characteristics and the amounts involved, shall be reported. returned or to which it has been waived, as well as the obligations assumed on behalf of them as a guarantee. These requirements shall also apply where the members of the administrative body are legal persons, in which case in addition to reporting the advances and credits granted to the administrative legal person, the latter shall be required to report on their annual accounts of the specific participation that corresponds to the natural person representing the person. This information may be given in a comprehensive manner for each category, separately collecting the information corresponding to the senior management staff of the members of the administrative body.

10. Other information

Information about:

1. The average number of persons employed in the course of the financial year.

2. The nature and purpose of the business of the agreements of the undertaking that do not appear on balance sheet and on which no information has been incorporated in another note of the memory, provided that this information is significant and of assistance for the determination of the company's financial position.

3. The amount and nature of certain items of revenue or expenditure whose amount or impact is exceptional. In particular, the grants, donations or legacies received shall be reported, indicating for the first public Ente that grants them, specifying whether the grant of the grants is the local, regional, state or international administration.

4. The overall amount of financial commitments, guarantees or contingencies not included in the balance sheet, with an indication of the nature and form of the collateral provided; the existing pension commitments shall be to be reported separately.

5. The nature and financial consequences of circumstances of significant relative importance occurring after the balance sheet date and which are not reflected in the profit and loss account or the balance sheet, and the financial effect of the balance sheet. such circumstances.

6. Any other information which, in the opinion of those responsible for drawing up the annual accounts, should be provided to enable them as a whole to show the true image of the assets, the results and the financial situation of the company, as well as any other information that the company deems it appropriate to provide on a voluntary basis. "

Article 3. Modification of Royal Decree 1159/2010 of 17 September, approving the Rules for the Form of Consolidated Annual Accounts and amending the General Accounting Plan approved by Royal Decree 1514/2007, 16 of November 16, and the General Plan for Accounting for Small and Medium-sized Enterprises approved by Royal Decree 1515/2007 of 16 November.

The Rules for the Form of Consolidated Annual Accounts are amended as follows:

One. Article 7.1 is amended, which is worded as follows:

" Article 7. Waiver of the obligation to consolidate.

1. By way of derogation from the foregoing Article, the companies in the abovementioned Article shall not be required to consolidate in the following cases:

(a) Where the group or sub-group as a whole does not exceed the dimensions referred to in Article 8 of these rules, unless one of the companies in the group has the consideration of an entity of public interest according to the definition set out in Article 3.5 of Law 22/2015, of 20 July, of Audit of Accounts.

(b) Where the company required to consolidate under Spanish law is itself dependent on another company governed by that legislation or by that of another Member State of the European Union and the provisions of the Article 9 of these rules, unless the company has issued securities admitted to trading on a regulated market of any Member State of the European Union.

(c) When the company is obliged to consolidate its participation exclusively in dependent companies which do not have a significant, individual and overall interest in the true image of the assets, the financial situation and the the results of the companies in the group.

(d) Where all subsidiary companies may be excluded from the application of the global integration method in accordance with Article 10.2. "

Two. Article 10.2 is amended as follows:

" 2. The method of global integration shall apply to dependent companies, except in the cases listed below:

(a) In the extremely rare cases where the information necessary to prepare the consolidated financial statements cannot be obtained without incurring disproportionate costs or excessive delays.

(b) Where the holding of the shares or units of the company is solely for the purpose of its subsequent disposal, as referred to in Article 14 (4

.

c) When severe and long-lasting restrictions substantially impede the exercise of the control of the matrix over this dependent. "

Three. Article 26.5 is amended, which is worded as follows:

" 5. After the initial recognition, the goodwill shall be valued for its purchase price minus the accumulated amortisation and, where applicable, the cumulative amount of the impairment valuation corrections recognised in accordance with the criteria included in the standard of registration and valuation 6. Special rules on the intangible fixed assets of the General Accounting Plan, considering the following rules.

For the purpose of checking the deterioration of the cash-generating units in which external partners participate, the carrying amount of that unit shall be in theory adjusted before it is compared to its recoverable amount. This adjustment shall be made, by adding to the book amount of the trade fund allocated to the unit, the goodwill attributable to the external partners at the time of the takeover, minus the corresponding amortisation accumulated since that date. date.

The amount in theoretically adjusted books of the cash-generating unit will be compared to its recoverable amount to determine if that unit has deteriorated. If this is the case, the entity shall distribute the impairment loss in accordance with the provisions of the General Accounting Plan, by reducing the amount in books of the trade fund allocated to the unit in the first place.

However, because the goodwill is recognized only up to the limit of the parent's share of the acquisition date, any impairment loss related to the goodwill is split between the one assigned to the parent and the one assigned to the external partners; but only the first one will be recognised as a loss of goodwill impairment.

If the impairment loss of the cash generating unit exceeds the amount of the goodwill, including the theoretically adjusted amount, the difference shall be allocated to the other assets of the same, as provided in the standard Record and valuation 2. Tangible Fixed Assets 2.2 Impairment of the General Accounting Plan.

Where appropriate, the impairment loss, as calculated, shall be charged to the companies of the group and to the external partners, having regard to the provisions of Article 29 (1) (d) of the trade fund attributed to the the latter. "

Four. Article 55.2 is amended, which is worded as follows:

" 2. The higher value, if any, attributed to the holding as a result of the adjustments provided for in Article 25, and the amount of the implied goodwill, shall be reduced in subsequent years, with the result of the consolidated results or another item of net worth that corresponds, as it depreciates, causes the corresponding property elements to be lowered or to be disposed of to third parties. Similarly, consolidated results shall be carried out when losses are incurred due to the deterioration of the previously recognised value of the assets of the participating company, with the limit of the capital gain allocated to them in the date of first entry into equivalence. '

Five. The last paragraph of Article 70.2 is amended, which is worded as follows:

" The consolidation of companies with a functional currency other than that of taxation will be realized taking into account the differences that arise from the variation of the exchange rate. Such differences shall arise because the book value of non-cash assets and liabilities is accounted for at the historical exchange rate, while its tax base shall relate to the exchange rate of closure. The tax effect of these differences must be incorporated by means of homogenisation adjustments in the event that it has not been collected in the individual annual accounts. "

Six. Article 72.4 is amended, which is worded as follows:

" 4. The temporary differences regulated in this article shall not be recognised in the following cases:

a) In the case of taxable differences, if the investor can control the timing of the difference reversal and in addition it is likely that such a difference will not be reversed for the foreseeable future.

(b) In the case of deductible differences, it is expected that such a difference will not be reversed for the foreseeable future or that the company will not be likely to have sufficient future tax revenues. "

Seven. Point 4 of paragraph 4 is amended. Rules for the registration and valuation of the consolidated model of memory included in the Annex, which is worded as follows:

" 4. Intangible fixed assets; indicating the criteria used for capitalisation or activation, amortisation and valuation corrections for impairment.

In particular, the criterion used in the calculation and deterioration of the trade fund accounted for in the individual annual accounts of the companies included in the consolidation, as well as in the other intangible immobilized. "

Eight. Points 2 and 3 of paragraph 6.1 of the consolidation trade fund, of the consolidated model of memory included in the Annex, are amended as follows:

" 2. The company shall make a reconciliation between the carrying amount of the goodwill at the beginning and end of the year, showing separately:

(a) The gross amount of the same, the amount of the accumulated write-downs and the cumulative impairment valuation corrections at the beginning of the financial year.

(b) The additional goodwill recognised during the period, differentiating the trading fund included in a qualifying group of items that has been classified as held for sale, in accordance with the rules of registration and valuation. It shall also be reported on the low trading fund during the period without previously being included in any qualifying group of items classified as held for sale.

(c) Adjustments arising from the subsequent recognition of deferred tax assets made during the interim valuation period.

(d) The amortisation of the financial year and, where applicable, the impairment valuation corrections recognised during the financial year. In particular, the estimates made to determine the useful life of the goodwill and the method of depreciation used shall be reported.

e) Any other changes to the amount in books during the exercise, and

(f) The gross amount of the goodwill, the amount of the accumulated write-downs, and the cumulative impairment valuation corrections at the end of the financial year.

3. A description of the factors which have contributed to the trade fund registration as well as, shall be justified and shall indicate the amount of goodwill and other intangible fixed assets, attributed to each cash generating unit. '

Nine. Point 2 (o) of paragraph 14 is amended. Intangible fixed assets of the consolidated memory model included in the Annex, which is worded as follows:

"(o) The immobilized whose useful life cannot be reliably determined shall be detailed, indicating the amount, nature and circumstances of the lack of reliability in the estimation of such useful life."

Ten. Point 7 of paragraph 28 is amended. Transactions with related parts of the consolidated memory model included in the Annex, which is worded as follows:

" 7. For undertakings which are organised under the legal form of a capital company, the situations of conflict of interest incurred by the administrators of the dominant company or persons connected with them shall be reported in the terms of the regulated in Article 229 of the recast text of the Capital Companies Act. "

Article 4. Modification of Royal Decree 1491/2011 of 24 October, approving the rules for the adaptation of the General Accounting Plan to non-profit entities and the model of the action plan of the non-profit entities lucrative.

One. Article 6 (1) is amended as amended. Scope of the rules for the registration and valuation of the General Plan for Small and Medium Enterprises (SMBs) Accounting, which is worded as follows:

" 1. All non-profit-making entities, irrespective of their legal form, may be applied by the General SME Accounting Plan, for two consecutive financial years, to the closing date of each of them, at least two of the following circumstances:

(a) that the total of the assets of the asset does not exceed EUR 4 million.

(b) The net amount of its annual revenue volume does not exceed EUR 8 million. For these purposes, the sum of items 1 shall be understood as a net amount of the annual volume of revenue. 'entity's income from its own activity' and, where appropriate, from the net amount of the annual turnover of the business.

c) That the average number of employees employed during the financial year is not more than fifty.

Entities will lose the ability to implement the General Plan of SME Accounting if they fail to meet, for two consecutive years, the closing date for each of them, two of the circumstances referred to in the previous paragraph.

In the economic exercise of their constitution, institutions may apply the General Plan of SME Accounting if they meet at least two of the three circumstances expressed in this paragraph at the close of that financial year.

If the entity is part of a group of entities in the terms described in the standard for the production of the annual accounts 11. Group, multigroup and associated entities contained in the third part of the Adaptation included in Annex I, the above limits shall apply to the sum of the asset, the net amount of its annual volume of revenue and the average number of employees of the group of entities forming the group, taking into account the eliminations and additions covered by the consolidation rules adopted under the development of the principles contained in the Trade Code.

The accounting measures referred to in this paragraph shall be those arising from accounting rules that have resulted from implementation in the last financial year and in the absence thereof, those of the General Accounting Plan SMB.

The registration of the operations must be conditional upon the foreseeable fulfilment of these requirements. "

Two. Paragraph 2 of Rule 3 (3) is amended. Rules for drawing up the annual accounts of Part Three, Annual Accounts, of the Rules of Adaptation of the General Accounting Plan to non-profit-making entities, which are hereby amended worded as follows:

" 3. th Structure of annual accounts

2. Non-profit-making entities may use the annual accounts abbreviated in the following cases:

(a) Short balance sheet and memory: institutions where, at the end of the financial year, at least two of the following conditions are met:

That the total of the assets of the asset does not exceed EUR 4 million. For these purposes, the total amount shown in the model of the balance sheet shall be fully understood.

The net amount of its annual revenue volume does not exceed eight million euros. For these purposes, the sum of items 1 shall be understood as a net amount of the annual volume of revenue. 'entity's income from its own activity' and, where appropriate, from the net amount of the annual turnover of the business.

The average number of workers employed during the financial year is not greater than 50.

(b) Short-term account: institutions where at least two of the following circumstances are met at the end of the financial year:

That the total assets of the asset does not exceed 11 million euros. For these purposes, the total amount shown in the model of the balance sheet shall be fully understood.

That the net amount of its annual volume of revenue does not exceed twenty-two billion euros. For these purposes, the sum of items 1 shall be understood as a net amount of the annual volume of revenue. 'entity's income from its own activity' and, where appropriate, from the net amount of the annual turnover of the business.

That the average number of workers employed during the financial year is not greater than 250.

When an entity, on the date of the end of the financial year, becomes two of the above circumstances or ceases to comply with them, such a situation will only produce effects as to what is stated in this paragraph if repeated for two consecutive exercises.

If the entity is part of a group of companies in the terms described in the standard for the production of the annual accounts 11. Group entities, multigroup and associated in this third part, for quantification the amounts shall be taken into account the sum of the asset, the net amount of the annual volume of revenue and the average number of workers in the group of the entities forming the group, taking into account the eliminations and additions regulated in the consolidation rules adopted in the development of the principles contained in the Code Trade. "

Three. Point 1 of paragraph 4 is amended. Rules for the registration and valuation of the simplified memory included in Annex I of the Rules of Adaptation of the General Accounting Plan to non-profit-making entities, which is worded as follows:

" 1. Intangible fixed assets; indicating the criteria for determining the nature of non-cash flow generating assets, those used for capitalisation or activation, amortisation and valuation corrections for impairment, as well as for the disposal of these assets. "

Four. Point 1 of paragraph 5 is amended. Fixed assets, intangible assets and real estate investments of the simplified memory included in Annex I of the Rules of Adaptation of the General Accounting Plan to non-profit-making entities, which is worded as follows: form:

" 1. The time limit and the method of depreciation of intangible fixed assets shall be detailed.

Information relating to real estate investments will also be specified, including a description of real estate investments.

If there is any significant item, by its nature or amount, the relevant additional information shall be provided. In particular, the restrictions on the provision that exist in relation to these goods and rights shall be reported.

The properties transferred to the entity and the ceded by the entity shall be reported, specifying the terms of the respective disposals. "

Additional disposition first. Rights of greenhouse gas emission.

At the beginning of the first exercise in which this royal decree applies, the value in books of the greenhouse gas emission rights accounted for as intangible fixed assets will be reclassified to the stocks.

In the event that the company considers to consume part of these rights within a period of more than one year, the item " 2. Raw materials and other supplies " under heading B. II of the balance sheet asset shall be broken down to collect separately those which are considered to be consumed before and after that period.

Additional Disposition Second. Application of the royal decree to the exercises starting from January 1, 2016.

1. This royal decree shall be applicable for the financial years starting from 1 January 2016.

2. The individual and consolidated annual accounts for the first financial year starting from 1 January 2016 shall be submitted including comparative information adjusted to the following criteria:

(a) The amortisation of the goodwill and the assets of the fixed assets that would have been classified as indefinite useful life intangibles will only have an effect on comparative information if the entity chooses to follow the criterion set out in the single transitional provision, paragraph 2. Without prejudice to the foregoing, the estimate of the useful life of these assets to apply the prospective treatment to the value of the remaining books must be carried out on the date of commencement the first exercise in which this royal decree is applicable and which, in general, will be on 1 January 2016.

b) New information entered in the normal memory model will not be mandatory for comparative information.

c) Companies that develop the short memory model or follow the Small and Medium Business Accounting Plan may exclude from memory comparative information on the indications that are removed by this royal decree.

Single transient disposition. Trade Fund, other intangibles and reserve by goodwill.

1. From the beginning of the first financial year in which this royal decree is applied, the book value of the existing trade fund at the end of the preceding period and the assets of the fixed assets which would have been classified as intangible Indefinite useful life will be amortized in a prospective way according to the new criteria approved by this royal decree. Amortization fees will be counted in the profit and loss account.

The reserve by goodwill shall be reclassified to the Company's voluntary reserves in the amount that exceeds the trading fund accounted for in the balance sheet asset.

2. By way of derogation from the preceding paragraph, it may be chosen to write down these assets from reserves, including the reserve by goodwill, following a linear recovery criterion and a useful life of ten years from the the date of acquisition, or from the beginning of the year in which the current General Accounting Plan was applied for the first time, if the date of acquisition was earlier.

The amortisation charge resulting from applying this criterion to the initial value of the asset must be reduced by the impairment loss that the company has recognised since the date of the start of the ten years.

The value in the subsidiary books will be depreciated in a forward-looking manner according to the new criteria approved by this royal decree. To this end, unless otherwise proved, the life of the goodwill shall be presumed to be the period of time until the end of the ten-year period referred to in the first subparagraph of this paragraph. Amortization fees will be counted in the profit and loss account.

3. These rules shall be applied in a uniform manner, in the formulation of the individual annual accounts, to the goodwill and to the assets of the fixed assets which would have been classified as intangible life intangibles.

4. The dominant company required to consolidate apply these rules in a uniform manner in order to account for the consolidation trade fund and the assets of the fixed assets which would have been classified as indefinite useful life intangibles. This is evident in the integration of the companies in the consolidated set, and in applying the equivalence procedure. However, the criterion followed by the companies included in the consolidation when formulating their individual annual accounts shall be kept in the consolidated accounts.

Final Disposition first. Modification of Royal Decree 1517/2011, of 31 October, approving the regulation that develops the recast text of the Law of Audit of Accounts, approved by the Royal Legislative Decree 1/2011, of July 1.

A new Article 95a is added to the Regulation implementing the recast of the Audit of Accounts Act, approved by Royal Decree 1517/2011 of 31 October, which will include a new section 4. V. Of the infringements and penalties and the sanctioning procedure of the said Regulation, with the following wording:

" Section 4. Short Procedure

Article 95a. Abbreviated procedure.

1. In the event of the circumstances provided for in Article 69.5 of Law 22/2015 of 20 July of the Audit of Accounts, the processing of the sanctioning procedure may be agreed in abridged form in the case of infringements. referred to in Article 72,b), in respect of non-compliance with the maximum duration of procurement required by Articles 40.1, 72,f), 72,j), 72,k), 73,c), as regards non-compliance with the provisions of Articles 40.2, 73,d), 73.i), first type, 73.j), first and second types, 73.ll) and 74 of the said Act.

2. In such cases, the processing shall comply with the following formalities:

(a) The initiation agreement expressly states that the procedure is abbreviated and the time limit for resolving and notifying the resolution.

In addition to the indications provided for in Article 91, the body responsible for issuing the agreement shall incorporate in this the motion for a resolution, with the content provided for in Article 93.

Furthermore, it shall be indicated to the parties concerned that the file is made manifest, to which effect a list of the working documents in the file shall be accompanied by the notification, so that they may obtain copies of the documents The Commission considers that, in the light of the information provided by the Commission, the Commission considers that the aid granted by the State aid to the State aid to the State in question is not the same as that of the Commission. The parties concerned shall be expressly advised that, in the absence of any arguments or of any new documents or evidence, a decision may be made in the terms contained in the motion for a resolution incorporated in the initiation.

(b) The time limit for claims has not been made by the persons concerned, the instructor, stating in a reasoned manner, shall submit the file to the President of the Accounting Institute and Audit of Accounts, which may dictate resolution in accordance with the proposal incorporated into the initiation agreement.

For the purposes of the foregoing paragraph, no arguments shall be considered when the persons concerned merely acknowledge their responsibility or manifest their conformity with the facts set out in the agreement initiation, or where appropriate, with the proposed sanction.

(c) In the event that allegations are made by the interested parties, in which their disagreement with the motion for a resolution incorporated in the initiation agreement is expressed, the instructor must make a new proposal to a resolution, whether or not reiterating, the initially notified in accordance with the provisions of point (a) of this paragraph, the fulfilment of the provisions of Article 93 shall be verified in any event.

The motion for a resolution to be made shall be notified to the parties concerned, the hearing procedure agreed, and a period of 15 days shall be granted for the submission of claims and the submission of the documents which they consider to be relevant.

Pending the hearing, the instructor will raise the corresponding motion for a resolution, along with all the actions, to the President of the Accounting and Audit Institute, which will dictate resolution.

(d) In the resolution, facts other than those determined in the course of the proceedings may not be accepted, irrespective of their different legal assessment. Where the President of the Accounting and Audit Office finds that the infringement or the sanction is more serious than the one determined in the motion for a resolution, that circumstance shall be notified to the defendant in order to provide how many claims it deems appropriate within 15 days, continuing the processing of the sanctioning procedure in an ordinary manner.

3. The power to issue the initiation agreement to which the motion for a resolution is incorporated shall correspond to the units which have carried out verification activities or have detected the facts of the opening, in accordance with the provisions laid down in Article 4 (1) of Regulation (EC) Article 6 of Royal Decree 302/1989 of 17 March, approving the Statute and the Organic Structure of the Accounting and Audit Institute of Accounts.

4. The time limit for resolving and notifying the resolution in the sanctioning procedures dealt with in accordance with this section shall be six months.

5. At any time in the procedure before its resolution, the body responsible for resolving may agree to continue the processing of the sanctioning procedure in an ordinary manner, with the time being to resolve and notify one year, count from the procedure initiation agreement. "

Final Disposition Second. Accounting treatment of the "Enabling Titles" of the State Lotteries and Betting Society, S.A.

In consideration of its special characteristics, and taking into account the provisions of Article 34 (4) of the Code of Commerce, the enabling titles of the State Lotteries and Betting Society, S.A. which reflect the the right of that company to exploit the games whose exploitation was transferred to it by the State, shall not be subject to depreciation in the terms provided for in paragraph 2 of the Standard of Registration and Valuation 5. be subject to analysis at least annually for any deterioration.

Final disposition third. Enabling.

The Minister of Justice is enabled to establish the standardized and separate content of the information which, apart from the annual accounts, must be presented in the Trade Register by means of a ministerial order. (a) employers who are obliged to deposit their annual accounts, where the provision of information which has so far been required in memory is compulsory or appropriate when, by law or other appropriate reasons of legislative policy, it is mandatory or appropriate commercial or other provisions.

Final disposition fourth. Competential title.

This royal decree is dictated by the provisions of article 149.1.6. of the Spanish Constitution, which attributes exclusive competence to the State in matters of commercial law.

Final disposition fifth. Entry into effect.

This royal decree shall enter into force on the day following that of its publication in the "Official Gazette of the State" and shall have effect from 1 January 2016 on the terms laid down in the second provision.

Given in Madrid, on December 2, 2016.

FELIPE R.

The Minister of Economy, Industry and Competitiveness,

LUIS DE GUINDOS JURADO