Concept of annual accounts
The annual accounts are the documents that collect financial information and aim to meet the needs of users in a process of making economic decisions.
The information contained in the annual accounts is addressed to all those people who, for any reason, have a relationship with the company that deposits them and therefore have an interest in knowing the situation and progress of the same.
Documents that make up the annual accounts
The annual accounts of small and medium-sized companies include the balance sheet, the profit and loss account, the statement of changes in equity, and the memory. These documents form a unit and must be drafted in accordance with the provisions of the Commercial Code, in the Consolidated Text of the Law on Corporations, in the Law on Limited Liability Companies and in this General Accounting Plan for Small and Medium-sized Companies. Companies.
Notwithstanding the foregoing, these companies may include a statement of cash flows in their annual accounts, which will be prepared and presented in accordance with the provisions of the General Accounting Plan.
General Identification data page
The balance
The Profit and Loss Account.
The memory.
Statement of Changes in Net Equity.
Cash Flows (in certain cases).
In addition, without forming part of the annual accounts, in some cases, the Management Report made by the Directors and the Audit report made by the Company’s auditors must be presented, as well as the Treasury Stock Report (movements on own shares) and the Page of Environmental impact.
Types of annual accounts
We can distinguish the following classes of annual accounts:
Abbreviated Annual Accounts.
Normal Annual Accounts.
SME Annual Accounts.
Consolidated annual accounts
Companies that carry out their accounting under the rules of the Accounting Plan for SMEs do not have to prepare the statement of cash flows. The limits to benefit from the SME Plan are indicated in the following table
The annual accounts are listed in the first section of the Conceptual Framework and are developed in the third part of the Accounting Plans.
The annual accounts have to be formulated under a certain format, since the regulations establish the mandatory models that depend on the General Plan used by the company. Within the Accounting Plan 2007, normal and abbreviated account models are established that can be used according to the economic dimension of the company. The limits are indicated in the following table:
In order to use the abbreviated format, two of the three previous limits cannot be exceeded during two consecutive exercises. If the company is recently created, it will apply the abbreviated format if it does not exceed two of the three previous limits at the end of the financial year.
The PGC 2007 must necessarily apply, and the following entities cannot apply the SME Plan:
– Listed companies
– Companies that belong to a group that has to publish consolidated accounts
– Companies whose functional currency is not the euro
– Financial institutions
– Insurance entities
Formulation of the annual accounts
The annual accounts will be drawn up every twelve months, except in cases of incorporation, modification of the closing date of the financial year or dissolution.
The annual accounts must be formulated by the employer or administrators, who will be responsible for their veracity, within a maximum period of three months, counting from the end of the financial year. For these purposes, the annual accounts will express the date on which they were drawn up and must be signed by the employer, by all the partners who are unlimitedly liable for company debts, or by all the administrators of the company; If the signature of any of them is missing, an express indication of the cause will be made in each of the documents in which it is missing.
The balance sheet, the profit and loss account, the statement of changes in equity and the memory must be identified; indicating clearly and in each of these documents their name, the company to which they correspond and the year to which they refer.
The annual accounts will be drawn up expressing their values in euros
Deadlines and legal requirements
The preparation of the annual accounts is carried out every 12 months, except in the cases of incorporation, modification of the closing date or dissolution in which it will be less.
The annual accounts must be prepared and signed by all the administrators in the SA and SL.
Thus, for a company whose financial year ends on December 31 of each year, the deadlines would be:
03/31 Formulation of the annual accounts by the directors of the entity
04/30 Legalization of the mandatory accounting books: the Daily Book and the Book of Inventories and Annual Accounts.
06/30 Approval of the annual accounts by the Entity’s General Meeting
07/30 Deposit of the annual accounts in the Mercantile Registry
Facebook Comments
Disqus