Here we detail in 25 points such as preparing annual accounts and the full content of the consolidated report:

Article 42 of the Commercial Code, are regulated cases in which a company must formulate the annual accounts and consolidated management report.

The consolidated annual accounts comprise the balance sheet, the income statement and the consolidated memory; and these documents should the consolidated management report added.

The consolidated annual accounts must complete, expand and comment on the information contained in the balance sheet and the profit and loss account; established by law the minimum information to be contained therein.

However, However, the highest cost was for the planet. Only one of these wee wee pads takes approximately XNUMX years to decompose. Putting ourselves in the best of cases, a dog uses XNUMX pad daily for only XNUMX years of his life, so when he is a puppy and when he is elder he would use XNUMX soakers in total. If we take into account that only in Spain there are XNUMX million dogs, mostly of mini race, with greater tendency to use wee wee pads and assuming that at least XNUMX% use them, we are talking about a figure of XNUMX wee wee pads that are used daily. Tons and tons of waste are thrown daily to the planet so that our dog does not spoil our house. in addition to the minimum information required to be indicated any other information necessary to facilitate the understanding of the consolidated financial statements, In order that they reflect fairly the assets, liabilities, financial position and results of the assembly constituted by the companies included in the consolidation.

Article 48 of the Commercial Code the minimum information which in any case shall include establishing the annual accounts consolidated:

The criteria applied to the various items of consolidated accounts values ​​and calculation methods used in value adjustments. For items included in the consolidated, now or in origin, had been expressed in foreign currency accounts, it will indicate the procedure used to calculate the exchange rate pesetas.

The name and address of companies included in the consolidation; participation having the companies included in the consolidation or by persons acting on their own behalf but on behalf of them in the capital of other companies included in currencies other than the parent company consolidation, as well as the case of Article 42 in which It is based consolidation.

The same particulars must be referring to companies that fall outside the consolidation under the provisions of paragraph 2 43 article, stating the reasons for exclusion.

The name and address of the companies associated with a company included in the consolidation under the provisions of paragraphs 3 to 5 Article 47, indicating the proportion of their capital held by the companies included in the consolidation or by a person acting on its own behalf but on behalf of them. The same information must be provided in relation to the companies associated with the article 5 47 paragraph refers, mentioning the reason that has been applied as provided in this paragraph.

The name and address of the companies that have been subject to proportionate consolidation under the provisions of 1 and 2 paragraphs of Article 47, the elements on which joint management is based, and the proportion of their capital held companies included in the consolidation or a person acting in his own name but on behalf of them.

The name and address of other companies not included in the preceding paragraphs, in which the companies included in the consolidation and those excluded pursuant to the provisions of paragraph e) of paragraph 2 Article 43, own, directly or by a person acting in his own name but on behalf of those, a percentage not less than 5 100 by its capital. The equity will be indicated, and the amount of equity capital and the result of the last year of the company whose accounts have been approved. This information may be omitted when only present a negligible interest with respect to the faithful image that must express the consolidated accounts. The indication of own capital and the result may also be omitted when the company concerned does not publish its balance sheet and at least one 50 100 by its capital is held directly or indirectly aforementioned companies.

The total amount of debts listed in the consolidated balance whose residual duration exceeds five years and the debts listed in the consolidated balance sheet, which have real guarantees given by companies included in the consolidation, indicating their nature and form.

The total amount of guarantees to third parties, without prejudice to its recognition within the liability side of the balance sheet when it is likely that the same effective fulfillment of an obligation arising or when the indication is useful for assessing the financial situation of the group . They should be specifically mentioned existing pension commitments as well as those in relation to group companies not included in the consolidation.

The distribution of the net amount of consolidated turnover, defined in accordance with the provisions of the Law on Legal Regime of Corporations, by categories of activity and geographical markets, to the extent that, from the point of view of the organization selling products and providing for ordinary activities of the group of companies included in the consolidation services, these categories and markets differ in a meaningful way.

The average number of employees during the exercise by the companies included in the consolidation broken down by categories and, if they are not disclosed separately in the profit and loss account, the staff costs relating to the exercise.

It is indicated separately the average number of persons employed during the year by the companies to which the provisions of Article 1 2 47 and paragraphs apply.

The difference that might occur between the calculation of the consolidated income for the year and that it would have made a valuation of the items with fiscal criteria, not to match these with the accounting principles of mandatory application. When such a valuation substantially influence future tax burden on the group of companies included in the consolidation, there shall be signs in this regard.

The difference between the tax charged to the consolidated income statement and losses and prior years and the tax already paid or will be payable under these exercises, to the extent that this difference is of interest true with regard to future tax burden. This amount may also be cumulatively in the balance in a particular heading, the corresponding title.

The amount of the salaries, allowances and payments of any kind accrued during the exercise by members of the board in the companies included in the consolidation, whatever their cause, as well as the obligations for pensions or payment of life insurance premium in respect of current and former members of governing bodies. This information will be given globally by type of remuneration.

The amount of advances and credits granted to members of the governing bodies of the parent company, by it or by a dominated society, indicating the interest rate, their essential characteristics and any amounts returned and assumed obligations on their behalf by way of guarantees of any. Also advances and loans granted to directors of the parent company by companies outside the group referred to paragraphs 1 3 47 Article shall be indicated. This information will be given globally for each category.

(*) When financial instruments have been valued at fair value, indicating:

The main assumptions underlying the valuation models and techniques are based, if the fair value is determined by applying valuation models and techniques.

By category of financial instruments, fair value, changes in value included directly in the profit and loss account as well as changes included, where appropriate, in the fair value reserve.

With respect to each class of derivative financial instruments, information about the extent and nature of the instruments, including significant terms and conditions that may affect the amount, the timing and certainty of future cash flows.

A table showing the movements of the reserve reflect fair value during the year.

(*) When financial instruments have not been valued at fair value for each class of derivative financial instrument shall indicate:

The fair value of the instruments, if that can be determined by any of the methods provided for in paragraph three of Article 9ª rule 46.

Information about the extent and nature of the instruments.

(*) For the consolidated financial statements for the periods beginning from 1 January 2005 shall apply annual accounts as amended by Article 106.5 from 62 / 2003 Act of 30 December, which added these two new indications.

"Standards for the Preparation of Consolidated Financial Statements" complement the contents of the General Accounting Plan, expanding the regulatory development made in the text of mercantile accounting legislation and expressly provided, the same as the content of the consolidated annual report shall contain in any case:

  1. subsidiaries.

Identification of the subsidiaries included in the consolidation with mention of:

  • Name and address.
  • Amount of participation and nominal percentage of their capital held by group companies or persons acting on their own behalf but on behalf of them, stating the company shareholder in both cases.
  • Article 2 course of these rules that determines its configuration as a subsidiary.
  • Activities performed.
  • If any, reason for exclusion from the application of global integration method, justifying the decision and indicating the impact that produces the application of the procedure equity on the equity, financial position and results of all the companies included in consolidation.
  • financial year and the closing date of the last annual accounts and, where appropriate, of the interim accounts prepared for consolidation.

Identification of the subsidiaries are excluded from the scope of consolidation, with mention of:

  • Name and address.
  • Amount and percentage of share capital owned by Group companies or persons acting on their own behalf but on behalf of them, stating the company shareholder in both cases.
  • Of course that determines its configuration as a subsidiary.
  • Activities carried out.
  • Reason for exclusion and justification.
  • Capital, reserves and results of the last known exercise.
  1. associated and multi societies.

Identification of associates and jointly controlled entities with mention of:

  • Name and address.
  • Amount of participation and nominal percentage of their capital held by group companies or persons acting on their own behalf but on behalf of them, stating the company shareholder in both cases.
  • Of course that determines its configuration as an associate or jointly controlled company.
  • Activities performed.
  • In the case of jointly controlled entities: identification of persons or entities managed jointly with the group as well as the consolidation method used, justifying the use, where appropriate, the equity method.

Identification of associated companies and joint ventures excluded from the scope of consolidation, indicating the same information indicated in the previous 1 note to the case of exclusion of subsidiaries.

  1. Basis of presentation of the consolidated annual accounts.
  1. Faithful image:
  • exceptional reasons that, to show the true picture, have not been applied legal provisions on accounting and influence of such action on heritage matters, financial position and results of the group.
  • Additional information as is necessary to include when the application of laws is not sufficient to show the true picture.

accounting principles:

  • exceptional reasons for the lack of implementation of a mandatory accounting principle, indicating the impact on the equity, financial position and results of the group.

Comparative information:

  • exceptional reasons for modifying the structure of the balance sheet and the consolidated income statement for the previous year.
  • Explanation of the causes preventing the comparison of current period consolidated with those of the previous financial statements.
  • Explanation of adaptation of the amounts for the previous year to facilitate comparison, and otherwise unable to perform this adaptation.
  • In the period in which a change occurs in the scope of consolidation or the consolidation group will be informed about this event, by mentioning the name and address of the companies that produced these changes and globally indicating the effect that such change has occurred on equity, financial position and consolidated results in the current period compared to the previous group.

Information on significant transactions carried out between companies in the scope of consolidation, when the fiscal year ends one at an earlier date in no more than three months after the closing date of the consolidated accounts.

  1. Valuation rules.

the accounting principles applied in relation to the following items shall be indicated:

Goodwill on consolidation; indicating the criteria used in their calculation and amortization.

Justification, if any, of the amortization of goodwill from consolidation in a period exceeding five years.

negative consolidation difference; indicating the criteria used in its calculation and imputation, where appropriate, to the consolidated income statement.

Transactions between companies included in the scope of consolidation; indicating the criteria applied in the elimination of results and reciprocal receivables and payables, for internal operations.

Uniformity of items of individual accounts of the companies included in the scope of consolidation; indicating the criteria used to make such homogenisation.

Conversion of financial statements of foreign companies included in the scope of consolidation; indicating the method applied, chosen among those permitted in paragraph b) option article 55 or c) of 56 and treatment of differences arising.

Start-up expenses; indicating the criteria for capitalization and amortization.

Intangible; indicating the criteria for capitalization, amortization, provisioning, and where appropriate sanitation.

Justification, if applicable, amortization of goodwill on a period exceeding five years.

In addition it will be informed of the accounting criteria of finance leases.

Inmobilized material; indicating the criteria:

  • Depreciation and provisioning.
  • Capitalization of interest and exchange rate differences.
  • Accounting costs of expansion, modernization and improvements.
  • Determining the cost of the work done by the group for its fixed assets.
  • Items of tangible fixed assets contained in the asset for a fixed amount.
  • Value updates practiced under law.

securities to short and long term; indicating the assessment criteria, in particular specifying the row on valuation adjustments.

trade receivables short and long term; indicating the assessment criteria, particularly specifying those followed in the valuation adjustments.

stocks; indicating the assessment criteria, in particular specifying the row on valuation adjustments.

In addition the valuation of items shown in the asset for a fixed amount will be needed.

Shares of the parent company; indicating the evaluation criteria.

subsidies; indicating the criteria for allocation to results.

Provisions for pensions and similar obligations; indicating the accounting criteria and conducting a general description of the estimation method and calculation of each of the risks covered.

Other provisions for contingencies and expenses; indicating the accounting criteria and conducting a general description of the estimation method and calculation of the risks or costs included in these provisions.

Debts in the short and long term; indicating the evaluation criteria; as well as those in charge to income of interest expenses or deferred premiums.

Imposition over benefits; indicating the criteria used for accounting.

Foreign currency transactions; stating the following:

  • Endpoints of foreign currency balances.
  • The procedure used to calculate the exchange rate in pesetas of assets that currently or had been originally denominated in foreign currency.
  • Basis of accounting for exchange differences

Income and expenses.

  1. Consolidation goodwill.

5.1. Motion analysis of the consolidated balance sheet headings included in this group, indicating:

  • beginning balance
  • additions
  • reductions
  • amortization
  • final balance

Synthetically it must describe the operations that have led to additions and reductions when they are significant.

5.2. Breakdown of the final balance in terms of units that have generated goodwill consolidation.

  1. Negative consolidation differences.

6.1. Motion analysis of the consolidated balance sheet headings included in this group, indicating:

  • beginning balance
  • additions
  • reductions
  • amortization
  • final balance

It should describe, synthetically, operations that have led to the additions, reductions and imputations to results when they are significant.

6.2. Breakdown of the final balance in terms of units that have generated negative consolidation differences.

  1. Shares in equity affiliates.

Breakdown of this heading, by equity method, indicating the movement of the exercise and the causes that have given rise.

  1. Start-up expenses.

Analysis of movement in this consolidated balance sheet heading during the year; stating the following:

  • beginning balance
  • additions
  • reductions
  • amortization
  • final balance

If there is any significant item, by its nature or amount, additional relevant information shall be provided.

  1. intangible assets.

Analysis of the movement during exercise, this consolidated balance sheet caption and related accumulated depreciation and amortization; stating the following:

  • beginning balance
  • or Charge
  • increased by transfers or transfer from another account
  • Disposals or reductions
  • Decreases by transfers or transfer to another account
  • final balance

will be informed of the assets held under finance leases: cost well in origin, excluding the value of the purchase option, contract duration, after years, met quotas in previous years and during the year, outstanding contributions and value option.

significant elements that may exist in this section and additional information on their use (patents, licenses, etc.), expiration date and repayment period facilitate be detailed.

  1. Inmobilized material.

10.1 Analysis of the movement during the exercise, each item in the consolidated balance sheet included under this heading and related accumulated depreciation and amortization; stating the following:

  • beginning balance
  • or Charge
  • increased by transfers or transfer from another account
  • Disposals or reductions
  • Decreases by transfers or transfer to another account
  • final balance

When updates are made value, shall be indicated:

  • Law that authorizes it.
  • Consolidable Group companies that have benefited from the Law of renovation and percentage representing the assets of the revaluation of the total amount corresponding to the same category of goods consolidated assets.
  • Equity accounted companies that have benefited from the Act update.
  • Amount of the revaluation on each, as well as the increase in accumulated depreciation.
  • Effect of the restatement on the depreciation charge and therefore on the consolidated results of next year.

10.2 Information:

  • Amount of net revaluations accrued, alcierre exercise, carried out under the law and the effect of these revaluations on the depreciation and amortization and provisions during the year.
  • Depreciation rates used by groups of elements.
  • Characteristics and amount of investments in tangible fixed assets acquired from group companies and jointly controlled entities or associates excluded from the scope of consolidation and associated companies.
  • Features of investments in tangible fixed assets located outside Spanish territory, indicating their book value and accumulated depreciation.
  • Amount of interest and capitalized exchange differences during the year.
  • Features fixed assets not linked directly to the farm indicating their book value and accumulated depreciation.
  • Amount and characteristics of fully depreciated property, technically obsolete or unused.
  • Property pertaining to guarantees and reversion.
  • Grants and donations received related to tangible fixed assets.
  • firm purchase commitments and predictable sources of funding and firm sales commitments.
  • Any other circumstance of a substantive nature affecting tangible assets such as leases, insurance, litigation, foreclosures and similar situations.
  1. Securities.

Breakdown 11.1 securities by maturity (short and long term), type of security (and fixed income) and emitters (equity method, and other debtors), indicating the corresponding provisions.

11.2 exercise movement analysis of fixed income securities and long-term variable; and its related provisions, stating:

  • beginning balance
  • or Charge
  • outputs or reductions
  • transfers to short-term
  • final balance

11.3 The name and address of other companies not included in the 1 and 2 notes, in which the companies forming the consolidated group and those to which referred to in paragraph e) the number 2 the article 11, hold directly or through a person acting in his own name but on behalf of them, a percentage not less than 5 100 by its capital. the equity the amount of equity capital and profit for the year to look in the latest approved accounts of the company shall also be indicated, as well. This information may be omitted when only present a negligible interest with respect to the faithful image that must express the consolidated accounts. The indication of own capital and the result may also be omitted when the company concerned does not publish its balance sheet and at least one 50 100 by its capital is held directly or indirectly aforementioned companies.

11.4 information, distinguishing between short and long term, on:

  • Transferable delivered or values ​​subject to guarantees.
  • Corrections carried out in compliance with article 86 of Consolidated Companies Law, investee, companies directly or indirectly, more than 10%.
  • firm purchase commitments and predictable sources of funding and firm sales commitments.
  • Amount of fixed income securities, maturing in each of the five years following the end of the year, and the rest until final maturity.
  • Breakdown of securities by type of currency in which they are implemented and, where appropriate, existing differences coverage change.
  • Accrued interest receivable.
  • average rate of return on fixed income securities, homogeneous groups.
  • Any other circumstance of a substantive nature affecting securities such as lawsuits, liens, etc.
  1. trade receivables.

12.1 Breakdown of non-commercial loans distinguishing by maturity term (short and long term) and debtor (companies accounted for by the equity method and other debtors).

12.2 Analysis of the movement of the non-commercial long-term credits exercise, and of its corresponding provisions, indicating:

  • beginning balance
  • or Charge
  • outputs or reductions
  • transfers to short-term
  • final balance
  • Information, distinguishing between short and long term, on:
  • Amount of foreign currency loans by type of currency in which they are hired and, where appropriate, coverage differences of change.
  • Appropriations maturing in each of the five years following the end of the year, and the rest until canceled.
  • Loans subject to guarantees.
  • Characteristics and amount of any guarantees received in connection with loans granted by the company (sureties, guarantees, pledges, reservations of title, repurchase agreements, etc.).
  • Amounts accrued interest receivable.
  • Any other circumstance of a substantive nature affecting ownership, availability or valuation of loans, such as litigation and the like.
  1. Stock.

13.1 Breakdown of inventories by homogeneous groups of activities and degree of termination with indication of the corresponding provisions.

13.2 Information on:

  • firm commitments for buying and selling, and futures contracts relating to stocks.
  • Limitations on the availability of stocks for guarantees, pledges, bonds and other similar reasons, indicating the items they affect and their temporal projection.
  • Amount of stocks listed on the asset for a fixed amount.
  • Any other circumstance of a substantive nature affecting ownership, availability or valuation of stocks, such as litigation, insurance, liens, etc.
  1. equity.

14.1 Analysis of the movement of the exercise in the items included in this grouping, indicating the origins of the increases and the causes of the decreases.

14.2 Breakdown, by companies included in the scope of consolidation, of the headings "reserves in companies consolidated by global or proportional integration", "reserves in companies accounted for by the equity method" and "translation differences".

  • Information about:
  • Number of shares of the parent company and nominal value each, distinguishing by classes of shares and the rights granted to them and the restrictions they may have. Also, if applicable, indicate for each class of shares outstanding disbursements as well as the due date. This latter information will also include the subsidiaries.
  • Capital increases in course of the group companies, indicating the time allowed for subscription, the number of shares to be subscribed, face value, the premium, the initial outlay, the rights included and restrictions that will as well as the existence or not of preferential subscription rights for shareholders or bondholders.
  • Amount of capital authorized by the shareholders' meetings of the companies in the group, indicating the period covered by the authorization extends.
  • Rights attached to the founders' shares, bonds, convertible debentures and similar securities or rights of group companies, indicating their number and extent of the rights conferred.
  • Specific circumstances that restrict the availability of reserves.
  • Number, nominal value and average acquisition price of the shares of the parent company held by group companies or a third party acting on behalf of them, specifying their intended final destination and amount of reserves for acquisition of shares parent company.
  • Indication of the non-group companies or related thereto, in accordance with the provisions of 22 note that, directly or through subsidiaries, having an interest equal to or higher than 10% stake in a group company.
  • Shares in group companies admitted to trading.
  1. Minority interests.

Breakdown of this group indicating for each subsidiary:

  • It occurred in the exercise movement and the causes that have given rise and
  • The balance at year end by concepts (capital, reserves, revaluation reserves, results, etc ...).
  1. Grants.
  • Information on the amount and characteristics of the subsidies received.
  • Information on compliance or noncompliance with the conditions imposed for perception and enjoyment of subsidies.
  1. Provisions for contingencies and expenses.

17.1 Breakdown of the various items included in this grouping.

17.2 Analysis of the movement of the exercise of provisions for pensions and similar obligations, corresponding to active and passive personnel; indicating:

  • beginning balance
  • endowments, distinguishing by origin (financial expenses, personnel expenses, ...)
  • applications
  • final balance

In addition the risks covered and the capitalization rate used shall be indicated.

  • Motion analysis exercise the rest of the items included in this group, indicating:
  • beginning balance
  • endowments
  • applications
  • final balance.

In addition the risks and expenses covered shall be indicated.

  1. non-commercial debts.

Information, distinguishing between short and long term, on:

  • Amount of debt maturing in each of the five years following the end of the year and the rest until canceled. These shall be given separately for each of the items relating to debts, according to the pattern of the consolidated balance sheet.
  • Amount of debts secured.
  • Breakdown of foreign currency debt by type of currency in which they are employed and, where appropriate, existing differences coverage change.
  • Amount available in discount lines as well as credit facilities granted to the group with their respective limits.
  • Accrued and unpaid interest expenses.
  • Debentures and bonds outstanding at year end, with separation of the principal of each (interest, maturity, guarantees, conditions convertibility, etc.) characteristics.
  1. fiscal situation.

Explained exists between book income and taxable income (as contained in Royal Decree 1815 / 91, 20 of December, laying down rules for the preparation of Consolidated Financial Statements are approved scheme) difference.

In addition, the following information must be indicated:

  • Application of consolidated taxation, indicating the group companies that are affected.
  • Balance and movement in the exercise of the accounts and anticipated benefits Deferred tax credit and offset losses.
  • tax losses from previous years pending tax offset indicating the time and conditions to be able to do.
  • Information on the nature and amount of the tax incentives applied during the year, such as tax credits and deductions for investment, job creation, etc., as well as pending deduction.
  • Commitments regarding tax incentives.
  • Any other circumstance of a substantive nature regarding the fiscal situation.
  1. Guarantees to third parties and other contingent liabilities.
  • Overall amount of the guarantee commitments to third parties and the amount of those included in the liabilities. This information is broken down by type of collateral.
  • Nature of contingencies, assessment system estimation and factors on which it depends, indicating the possible effects on the equity and results; where appropriate, the reasons preventing this evaluation as well as existing maximum and minimum risks are indicated.
  1. Income and expenses.

Information about:

  • Transactions with group companies and joint ventures excluded from the consolidated group and associated companies, detailing the following:
  • Purchases made and return of purchases and «rappels»
  • sales made and sales returns and «rappels»
  • services received and rendered
  • interest paid and charged
  • dividends and other benefits
  • Transactions in foreign currency, with separate purchases, sales and services received and provided indication disaggregating corresponding to foreign companies forming part of the consolidated group information.
  • The distribution of net turnover corresponding to the ordinary activities of the group, by categories of activity and geographical markets business. It must justify the omission of the information required at this point, when nature can cause serious harm to society, reporting in this case on the net amount of the turnover for each company that is part of the consolidated group business.
  • average number of persons employed during the year in the group companies, by category.
  • Extraordinary expenses and income, including income and expenditure for previous years.
  • Breakdown by foreign companies of positive or negative results of conversion.
  • Contribution of each company included in the scope of consolidation to consolidated results, indicating that corresponds to minority party.
  • Results obtained in the sale of:
  • Bonds issued by companies included in the consolidated group.
  • Shares in the capital of companies included in the scope of consolidation.
  1. Relations with related companies.

Information on transactions during the exercise, the group companies as well as debits and credits existing at year end, with natural or legal persons associated directly or indirectly with the parent company, according to the criteria established in the 11 standard rules for drawing up the annual accounts of the General Accounting Plan.

  1. Other Information.

Information about:

  • The salaries, allowances and payments of any kind accrued during the year by members of the board of the parent company, whatever its cause and the group company, joint venture or associate obliged to satisfy. This information will be globally by remuneration.
  • Amount of advances and credits granted by any group company, joint venture or associate to all members of the board of the parent company, indicating the interest rate, essential characteristics and amounts returned, and the obligations on their behalf by way of security.
  • Amount of obligations on pensions and life insurance for any group company, joint venture or associate regarding former and current members of the board of the parent company. This information will be globally and separation benefits in question.
  1. Events occurring after closure.
  • Further information regarding events after the close that do not affect the consolidated financial statements at that date but whose knowledge is useful for users of financial statements. will be informed of the subsidiaries are no longer part of the group, as well as they have been incorporated therein.
  • Further information regarding events after the close of the consolidated financial statements affecting the application of the principle of going concern.
  1. Consolidated financial table.

When the dialog consolidated funding is made, it the financial resources obtained in the exercise will be described and their application or use and the effect that such operations have been consolidated working capital, according to the attached model.

* APPLICABLE REGULATIONS

  • Royal Decree of 22 1885 August, approving the Commercial Code is published.
  • 19 / 1989, 25 of July, SOCIETIES law. partial reform and adaptation of commercial legislation to the directives of the European Economic Community on companies.
  • 62 / 2003 law of 30 December, Law 62 / 2003, 30 of December, ECONOMIC POLICY. Fiscal, Administrative and Social Measures.
  • Royal Decree 1564 / 1989, 22 of December, CORPORATIONS. Approves the revised text of the Corporations Law.
  • Royal Decree 1643 / 1990, 20 of December, approving the General Accounting Plan is approved.
  • Royal Decree 1815 / 91, 20 of December, laying down rules for the preparation of consolidated financial statements are approved.

* CONSULTATION BINDING

Reference: NFC020264

Consulta 4

No. BOICAC. 60, 12-2004

SUMMARY: On the information to be included in the consolidated financial statements on issues arising from the transition from national accounting standards to international financial reporting adopted by the EU, prior to that in which these international standards are applied exercise.

ANSWER: Regulation (EC) No 1606 / 2002 of the European Parliament and the Council of 19 July 2002 on the application of international accounting standards, provides that in the preparation of the consolidated companies whose securities financial statements in balance sheet date, have been admitted to trading on a regulated market of any member State shall apply to financial years beginning on or after January 1 2005 from a single set of international accounting standards. Notwithstanding the foregoing, in the aforementioned Regulation it provides an extension of the application of these rules in preparing the individual financial statements and / or consolidated accounts of companies not listed at the option of the Member State. It also regulates two transitional provisions which provide for the deferral of the application of this Regulation until fiscal years beginning from January 2007.

The Spanish decision is determined in Final Provision Eleven of 62 / 2003 Act of 30 December on fiscal, administrative and social measures, which states that:

  • For fiscal years beginning on or after 1 January 2005, the consolidated group in which any of the companies have issued securities admitted to trading on a regulated market of any Member State market values, annual accounts shall be drawn up in accordance with the rules international accounting regulations approved by the European Commission; in the event that the companies are obliged to formulate the consolidated financial statements, they have issued only debt securities, may defer implementation of these standards until fiscal years beginning on or after 1 January 2007, except for credit institutions, which are not applying this option.
  • For fiscal years beginning on or after 1 January 2005, groups in which any of the companies that form have issued listed securities may opt for the application of international accounting standards approved by Regulations the European Commission (hereinafter, international financial Reporting standards adopted) or accounting standards included in the third of Title III of book I of the Commercial Code and the regulations that develop section; If you choose the former, the consolidated financial statements should be developed continuously in accordance with those rules.

According to the above, the preparation of the consolidated annual accounts of the first year in which the International Financial Reporting Standards adopted apply, shall be in accordance with those standards; in particular, be applicable International Financial Reporting Standard No. 1 "Adoption for the first time, the International Financial Reporting Standards" adopted by 707 / 2004 Commission Regulation of 6 2004 April, by It is amending the 1725 / 2003 Regulation establishing certain international accounting standards in accordance with 1606 / 2002 Regulation of the European Parliament and the Council adopted, and updated by successive regulations modify the content of this standard .

Therefore, on the issue raised in the consultation on whether there is an obligation to inform the notes to the consolidated last year in which the Royal Decree 1815 / 1991 from 20 December, applies annual accounts which are approved Standards for the Preparation of Consolidated financial statements, the effects that the aforementioned regulatory change will result in net worth, financial position and results of the accounting subject, it should be noted that there is currently no statutory provision requiring included in such accounts annual effect of the transition to international financial Reporting standards adopted. However, to the extent that managers of the parent company consider appropriate to provide users of the consolidated financial statements, a level of information in sufficient detail to know and analyze in advance the impact that will involve the application of international financial Reporting standards adopted in the preparation of the consolidated financial statements, may include such information in the consolidated financial statements, provided that such information is reliable and that, as a whole, collect all relevant information so that the information to be provided is complete. In this case, a section created for this purpose in the memory of the consolidated financial statements, whose name could be "Matters arising from the transition of accounting standards" shall include, to the extent that it is significant, an explanation of the major differences between current accounting policies and those it is intended to apply in the context of the international financial Reporting standards adopted and quantifying the impact of this change in accounting principles, in equity and results of the corporate group. This quantification will be explained through reconciliations of equity and earnings presented under previous accounting principles and International Financial Reporting Standards adopted, to be implemented with sufficient detail to enable users to understand the adjustments and losses significant as a result of the transition of accounting standards.


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