An amendment to the Chart of Accounts and the Accounting Procedures for Entrepreneurs has been prepared by the Ministry of Finance. This amendment should introduce new accounts, extend the scope of certain current accounts and cancel others.

This amendment reflects recent changes to the Commercial Code in the accounting legislation and should be effective from 1 January 1997.

The main areas covered by the amendment are expected to be as follows:

  • In the case of the transfer of real estate, the date when the request for entry in the Cadastral office is delivered will be regarded as the decisive date for accounting purposes. The main tax advantage of this new provision will be the possibility to start to depreciate real estate without any delay.
  • Securities and ownership interests acquired as a result of a contribution in-kind will be valued at the net book value of the contributed assets. The same principle is already applied for tax purposes.
  • The scope of account 097 - an account historically used, in particular, for dealing with premiums on acquisitions of businesses - will be extended and amended by new provisions.
  • The Chart of Accounts will be extended by new accounts (373 - Bought options and 374 - Sold options) in respect of receivables and payables resulting from option transactions. Options are defined as securities and should be accounted for on the new balance sheet account 256 - Other securities.
  • Additional transactions which should be accounted for on off-balance sheet accounts are specified in draft amendment: 

   - payables and receivables from contractual fines and interest on late payments
   - guarantees granted and received
   - payables and receivables from leasing, etc.

  • Account 415 - historically used for accounting for uplifts in the recognised value of assets through, for example, use as a capital contribution - will be cancelled. Amounts previously accounted for on this account must be recorded on the relevant financial investments accounts (061, 062, 063). After this accounting entry, shares and ownership interests will be valued at their acquisition price, specifically at the net book value of assets for which the shares were acquired. This change will be implemented during the 1996 year-end closing unless the taxpayer would be adversely affected as a result of such release, for example through tax debt / equity rules.
The content of this article is intended to provide a general guide to the subject matter. It is therefore not a substitute for specialist advice.

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