Business Guide to Romania* - Bayern - Europa

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Appendix IV 481- 482 Internal Settlements 491- 496 Provisions for Bad and Doubtful Debts Class 5 Treasury Accounts 501 Short-term Financial Investments 502- 509 Marketable Securities - Shares and Bonds 511- 519 Bank Accounts and Short Term Loans 531- 532 Cash and Equivalents 541- 542 Letters of Credit and Advances 581 Cash in Transit 591- 598 Provisions for Depreciation of Treasury Accounts Class 6 Expense Accounts 601- 608 Cost of Raw Materials, Materials and Goods 611- 628 Cost of Services Performed by Third Parties 635 Taxes, Duties and Similar Disbursements 641- 645 Personnel Expenses and Associated Costs 654- 658 Other Operating Expenses 663- 668 Financial Expenses 671 Exceptional Expenses 681- 688 a Depreciation and Provision Expenses Including Inflation Adjustment Expenses 691- 698 Income Tax Expenses Class 7 Revenues Accounts 701- 708 Turnover: Revenues from Sales of Products, Goods and Services Performed and Others 711 Inventory Variation 721- 722 Revenues from Fixed Assets Production 741 Revenues from Operating Subsidies 754- 758 Other Operating Revenues 761- 768 Financial Revenues 771 Exceptional Revenues 781- 788 a Revenues from Provisions and Inflation Adjustment Gains 791 Revenues from Deferred Income Tax * Several accounts included below are optional. a - Inflation adjustment expenses and revenues are not included in the simplified chart of accounts under Order 306/2002. 64 PricewaterhouseCoopers - Business Guide to Romania 2005
Appendix V Major Differences between OMF 94 (for filing with the Ministry of Public Finance) and IFRS Accounting Component/Principle OMF 94 differences to IFRS 1. Accounting for hyperinflation 1.1 Hyperinflation ■ Not applied. However, Romania is no longer considered to be hyperinflationary from 1 July 2004. 2. Consolidation 2.1 Basis of consolidation ■ Not applied for 2003 and 2004 financial statements. Major differences between RAR and IFRS Accounting Component/Principle OMF 306 differences to IFRS 1. Accounting periods ■ All financial years are based on calendar year. The accounting Law provides that the Government could approve, based on a Ministry of Finance proposal, another period for the financial year. 2. Consolidation ■ Annual financial statements incorporate results of an individual company. 3. Fixed Assets 3.1 Property, plant and equipment ■ Up until the end of 2004, carrying amount could be subject to revaluation according to Ministry of Finance norms. Subsequently, Companies may perform revaluations as prescribed by IFRS, however these no longer carry a tax effect. 3.2 Depreciation ■ Useful lives are fixed under law. 4. Investments ■ Usually carried at historical cost with no fair value adjustment. 5. Accounting for deferred taxation ■ Not required. 6. Accounting for hyperinflation ■ Not required. 7. Related party disclosure and ■ Usually not included in practice. contingency disclosure 8. Financial instruments ■ IAS 39 is not applied; financial assets are shown at cost less impairment provision. Appendix V PricewaterhouseCoopers - Business Guide to Romania 2005 65
Page 1 and 2:
Business Guide to Romania* 2005 Edi
Page 3 and 4:
Contents Chapter Page 1. Romania: a
Page 5 and 6:
■ Unions 30 6.2 Working Condition
Page 7 and 8:
■ VAT Compliance 48 10.2 Customs
Page 9 and 10:
Chapter 1 Romania: a Profile ■ Ro
Page 11 and 12:
upgrades made by Moody's and Fitch
Page 13 and 14:
All visitors to Romania require pas
Page 15 and 16: nearly one-third of Romania's banki
Page 17 and 18: Mortgages are created under authent
Page 19 and 20: allowance of 20% of the value of th
Page 21 and 22: Chapter 4 Banking, Finance and Insu
Page 23 and 24: ■ Taking deposits; ■ Making loa
Page 25 and 26: tried to bring more transparency an
Page 27 and 28: Chapter 5 Corporate and Business La
Page 29 and 30: EUR 25,000 by 31 December 2005). Pa
Page 31 and 32: Chapter 6 Labour Relations and Soci
Page 33 and 34: employment contract with an occupat
Page 35 and 36: Chapter 7 Accounting and Audit Requ
Page 37 and 38: Chapter 8 Taxation of Corporations
Page 39 and 40: exempt from paying profit tax throu
Page 41 and 42: ■ Other salary and/or similar exp
Page 43 and 44: - revenues obtained from management
Page 45 and 46: Income Subject to 16% Flat Tax Rate
Page 47 and 48: ■ Income from sale of movable and
Page 49 and 50: similar function, cinema tickets, a
Page 51 and 52: guarantee import duties could be ob
Page 53 and 54: are transported between tax warehou
Page 55 and 56: also stipulates the elements that s
Page 57 and 58: elationships with key contacts, inc
Page 59: Appendices
Page 62 and 63: Appendix II Appendix II Major Banks
Page 64 and 65: Appendix III Restaurants Phone ■
Page 68 and 69: Appendix VI Appendix VI Accountants
Page 70 and 71: Appendix VII (b) Appendix VII (b) W
Page 72 and 73: Appendix IX Appendix IX Customs Dut
Page 74: Appendix XI Appendix XI Excise Tax
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Business Guide to Romania* - Bayern - Europa

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