The Reflection of the Governmental Subsidies According to IAS 20 in Accountancy

The governmental subsidies refer to the assistance given to a company by the government in exchange of respecting some conditions regarding the operation activities. They can be: afferent to the assets, incomes or unredeemable loans. The regulation of the subsidies by IAS 20 Standard contains the recognition norms of the subsidies, except the cases of: price changes, periods of exemption from the profit tax, value reductions regarding the accelerated depreciation or the governmental involvement in the company’s leadership.governmental assistance, subsidies, unredeemable loans, depreciable assets, delayed income.

Accounting and Taxation Issues Concerning the Activity of Forest Exploitation in Romania

The activity of exploitation represents a main sector in the production process of the forest economy. This activity contains works of cropping, collection, transportation and processing of raw wood, by using production means, manuals and mechanized. The Romanian forest fund is managed by the National Department of Forests, by the forestry districts, public and private companies with legal personality, which draw up check balance, balance sheet and their own budget of incomes and expenses. The registering in accounting of the operations in the forest exploitation activity presents numerous features, given by the profile of this activity: specific documents, specific valuation and specific costs of processing. The Fiscal Code stipulates also special taxes for the forest exploitation activity, related to the fact that, there are exploited natural resources, and the activity has a major impact on the environment. In the other hand, the acquisitions and sellings of wood are placed under a special regime of taxation

New Approaches in Accountancy of the Romanian Equine Growth Sector

The activity of equine growth puts many problems regarding the way of recognition, registration and valuation of equines as biological assets, but also regarding the way of calculation for the auction prices. Taking into consideration the ascendant trend of this sector, and also the diversification of its activities, accountancy faces new situations, which require to be solved in the conditions of the existent International Accounting Standards. In this respect, Romania came with certain improvements, which allow the separate registration of biological assets, their valuation at the fair value and the separate registration of the economic benefits brought by the biological assets to the entity. This paper presents a part of these aspects, in the context of the new settlements adopted in accounting by the Romanian legislation

Transfer Pricing Documentation - A Current Issue

Rather quick development of the business environment has led to the implementation of legislative measures to meet the requirements and amendments thereto. With the adoption of the Fiscal Procedure Code and Order no. 442/2016 were founded transfer pricing procedures, denoting a means of making taxable transfer of a high tax country to a low tax country. These laws have laid down conditions that must be met and materiality thresholds that must take into account the taxpayer to draft transfer pricing documentation file. The aim of these measures is to reduce the differences between the prices charged by the related parts and the market value and also to actual results of company taxation. The tax authorities are entitled to apply price adjustments when it is not the principle of market value, which entail economic double taxation. Application and dossier preparation of transfer pricing contribute to a collective vision on the market in which the company operates, understanding how business development and, not least, the creation of an appropriate fiscal planning

FRAUD- BETWEEN DELINQUENCY AND CREATIVE ACCOUNTING

Nowadays, society continually changes, great technological transformations taking place and priorities changing without cease. Setting up new companies and quickly taking them into bankruptcy represents an actual tendency. Consequently, the contemporary economic environment becomes extremely competitive. Thus, economic operators have to face some choices which are not exactly within the law, in order to obtain additional advantages compared to the others, but also to keep their business going. The phenomenon of fraud is frequently encountered and it is present in any field of activity

Critical Study Regarding the Evolution of Incomes and Expenses of the Romanian Healthcare System in the Context of Budgetary Decentralization

The healthcare system in Romania is continuously under a reform process, in order to make more efficient the medical care and to allow a wide access for the population to the healthcare services. The incomes of the healthcare system mainly come from the contribution to the social healthcare insurance, but also from other taxes, the system also benefits from subsidies from the state budget. The public healthcare expenses have a relatively low percentage from the total public expenses, being mainly oriented towards hospitals, subsidized drugs and primary medical assistance. The integration of Romania into the EU brought for the healthcare system opportunities as well as threats: the increase of the competence and quality of the medical act, the favourable context of decentralization but also the increase of the costs for medical services, the mobility of the patients and the pronounced migration of the qualified medical staff to other countries of the EU. The paper wants to analyse the incomes and expenses from the healthcare, taking into account all these aspects

Developed Model for Debts Relief Decision Based on Financial and Accounting Reports Applied on PORT TRANS EUROPE SA

Business agents are today facing with a dynamic economic environment transformed by the direct effects of the economic crisis. In these circumstances the managers of the entities are forced to adapt to the economic activities by various types of decisions. A special attention is paid to financial decisions. Financial issues touch all aspects of economic life of an agent. In this context are fitting the management of debts. Management of debts problem can be addressed through a decision-making model. In this paper we propose the development of a multidimensional decision to be strengthened the management of debts of PORT TRANS EUROPE SA, in order to reduce them

Features of VAT Accounting and Fiscality – History, Practices and Prospects

The value-added tax (VAT) is an indirect tax, supported by the final consumer of the good/service that it is applied. During the productive and commercial cycle, the companies pay VAT according to the value added on the good/service. Quite recently appeared in the fiscal system of different states, VAT has a big spreading area. The taxation rates are different from a country to another, according to the economic conditions and the fiscal law (in EU, from 15% for Cyprus and Luxembourg to 27% for Hungary, and outside EU, from 3% for Iran, to 25% for Norway). In Romania, the rates are: the standard rate of 24% and the reduced rates of 9% and 5%, the payment term being monthly or quarterly, according to the company turnover. In the accounting and fiscality area, VAT presents special features, conditioned by the type of activity and the company size. In order to support the small companies, starting with 01.01.2013 the “VAT Encashment System” was introduced, that relates the VAT payability to the encashment moment of the invoice. The VAT impact on the profitability is an aspect that must be considered when we discuss about: costs, cash-flow, results, liquidity, solvency or efficiency rates

REMARKS ON THE ACCOUNTING TREATMENT OF GOODWILL AT THE LEVEL OF BLOCKS OF TRADING COMPANIES

This paper presents the accounting treatment of goodwill, namely, its recognition, assessment and accounting, as part of the patrimonial assets of an economic entity. Specific, due to its structure, to any blocks of companies, the goodwill represents the cost surplus of an active block to the market value of the net purchased assets. Why would anyone pay for a company more than its actual accounting worth? Because the extra price is usually attributed to those intangible elements that cannot be assessed separately but whose horizon of expectation is usually related to prospective economic advantages such as the clientele, the top commercial location, the employees' level of training, market shares, good relationships with the employees, the suppliers, the banks etc. Many of the Romanian economic entities were sold at a price that was inferior to their accounting value because, following their assessment, the experts were able to ascertain the following: the existence of fixed assets that needed to be scrapped; the existence of stocks that were either depreciated or difficult to sell; the existence of outstanding debts that were either uncertain of lost for good; the existence of major debts carrying interest. The effect of such assessments led to a reduced marked value of all assets and an increased market value of the debts, or in other words, the possibility of a badwill occurrence. The relationship goodwill – badwill, specific to the blocks of trading companies, represents a current challenge in the recognition and evaluation of the goodwill in compliance with the current Romanian legislation as harmonized with the international accountancy standards

THE APPLICABILITY OF THE PRUDENCE PRINCIPLE TO BANK COMPANIES IN THE VISION OF IAS 37

The general accounting principles are presented in section 7 of annex to OMFP 3055/2009 (as amended and supplemented). Thus, the effects of transactions and other events are recognized when the transactions and the events occur and are recorded in the accounts and reported in the financial statements of the periods involved. In this paper we propose to deal with specific aspects regarding the application of the general accounting principles to the banking companies with particular reference to the principle of prudence, which will be combined with the current provisions of IAS 37 and the issues regarding the identification and the management of the banking risks