What accounting requirements are there in Romania?
Companies in Romania are required to organize and conduct their own accounting which also includes the preparation of interim and annual financial statements.
Companies that meet the following criteria are required to prepare financial statements:
Cumulated value of total assets of EUR 3.650.000
Annual turnover of EUR 7.300.000
Average number of employees throughout the financial year of 50
When a company exceeds two of these three criteria at the balance sheet date it has to prepare all the financial statements which include the balance sheet, income statement, cash flow statement, owners’ equity statement and explanatory notes to the financial statements. In any other case, companies are required to prepare only the balance sheet, income statement and the explanatory notes to the financial statements. The latter called the simplified annual financial statements.
Legal entities that meet at least two of the following criteria are required to prepare consolidated financial statements:
Cumulated value of total assets of EUR 17.520.000
Annual turnover of EUR 35.040.000
Average number of employees throughout the financial year of 250
For these companies it is mandatory to appoint one or more statutory auditors.
All companies, regardless of size, need to prepare the following next to their financial statements:
A written declaration of the responsibility for entity management for annual financial statements
An administrator(s) report on operations which should provide comment on the current year’s activities of the entity, the financial position, a description of the main risks and uncertainties facing the entity and a disclosure of financial and nonfinancial ratios.
International Financial Reporting Standards (IFRS) is adopted when companies meet the following criteria on the balance sheet date:
When securities are accepted for trading on the regulated market
When companies are required to prepare consolidated financial statements.
Accounting records must be kept in the Romanian language and in the national currency (RON). The accounting for foreign currency operations is kept both in the national and foreign currency. Companies may opt for drawing up the financial statements in another currency as well, however, this may be only used for their own information needs.
Annual financial statements needs to be submitted by trading companies, national societies/companies, autonomous regies, research and development institutes within 150 days as of the end of the financial calendar year. Any other company is required to submit it within 120 days as of the end of the financial calendar year. For entities with no activity during the year a 60 days time limit applies. (The timing for submission of consolidated financial statements is 31st August following the reporting year end.)
Do it by yourself
Please refer to the list of Auditing and Accounting programs available on the Internet for free (or cheap) services.