Financial Accounting of the Enterprise - Victor Munteanu - Coordonator

FOREWORD / 15

CHAPTER 1: THE BASICS OF ORGANIZING FINANCIAL ACCOUNTING / 17
1.1. Definition of financial accounting / 17
1.2. Elements regarding the normalization and regulation of financial accounting / 18
1.2.1. Definition, types and concepts of accounting normalization / 18
1.2.2. Accounting standardization devices in Romania / 19
1.2.2.1. Accounting law no. 82/1991, republished / 20
1.2.2.2. Accounting regulations regarding the individual annual financial statements and the consolidated annual financial statements (Order M.F.P. no. 1802 / December 2014) / 20
1.2.3. IASB general conceptual framework. Definition, purpose and scope / 21
1.2.3.1. Define, purpose / 21
1.2.3.2. Scope / 22
1.3. Objective of financial statements (reporting) / 23
1.4. Qualitative characteristics of financial information and accurate image / 25
1.4.1. Qualitative characteristics / 25
1.4.2. The real and correct image. The faithful image / 27
1.5. Users of financial statements / 28
1.6. Defining, recognizing and evaluating the structures in the financial statements / 29
1.6.1. Elements (structures) modeled by financial statements. Delimitations and definitions / 29
1.6.2. Recognition of structures in financial statements / 30
1.6.3. Evaluation of elements (structures) in the financial statements / 31
1.6.3.1. Basics of evaluation in accounting / 31
1.6.3.2. Valuation rules as a reference system in the formulation of accounting policies / 34
1.7. The concept of capital and capital maintenance / 38
1.8. Principles of financial accounting / 39
1.9. Financial statements (reports) - delimitations and references / 41
1.9.1. Financial statements (reports) within the meaning of IFRS / 42
1.9.1.1. Balance sheet / 43
1.9.1.2. Profit and loss account / 43
1.9.1.3. Statement of changes in equity / 45
1.9.1.4. Cash flow statement / 45
1.9.1.5. Explanatory notes / 48
1.9.2. Financial statements / annual accounts in accordance with the Fourth Directive of the European Economic Communities / 49
1.9.2.1. Balance sheet / 49
1.9.2.2. Profit and loss account / 54
1.9.2.3. The annex to the balance sheet or the notes to the accounts according to the 4th Directive of the C.E.E. / 55
1.9.3. Regulated financial statements in Romanian accounting / 56
1.9.3.1. Balance sheet - the statement of the financial position of the entity / 57
1.9.3.2. Profit and loss account - the financial performance of the entity / 59
1.9.3.3. Statement of changes in equity / 61
1.9.3.4. Cash flow statement / 62
1.9.3.5. Explanatory notes to the annual financial statements / 65

CHAPTER 2: CAPITAL ACCOUNTING / 68
2.1. Content and structure of capitals / 68
2.2. Organization of capital accounting / 69
2.2.1. Objectives and factors of capital accounting organization / 69
2.2.2. Organization of the system of documents and of the operative evidence of the capitals 70 2.2.3. Current capital valuation / 72
2.2.4. The system of accounts used in the organization of capital accounting / 76
2.3. Accounting for equity operations / 77
2.3.1. Share capital accounting / 77
2.3.1.1. Accounting of the operations of constitution of the social capital / 78
2.3.1.2. Accounting for operations regarding the increase of the share capital / 83
2.3.1.3. Accounting for operations regarding the decrease of the share capital / 86
2.3.2. Accounting for capital premiums / 91
2.3.3. Revaluation reserve accounting / 97
2.3.4. Accounting for legal reserves and other reserves / 98
2.3.5. Own shares accounting / 100
2.3.6. Accounting for results / 101
2.3.6.1. Accounting for the carried forward result / 101
2.3.6.2. Accounting for the result of the exercise / 103
2.3.7. Accounting for gains or losses related to the issue, redemption, sale, assignment free of charge or cancellation of equity instruments / 105
2.4. Accounting for provisions / 106
2.4.1. Accounting for litigation provisions / 107
2.4.2. Accounting for provisions for guarantees granted to customers / 108
2.4.3. Accounting for provisions for decommissioning of fixed assets and other similar actions related to them / 110
2.4.4. Accounting for restructuring provisions / 111
2.4.5. Accounting for provisions for pensions and similar obligations / 113
2.4.6. Accounting for tax provisions / 113
2.4.7. Accounting for provisions for terminating the employment contract / 113
2.4.8. Accounting for other provisions / 113
2.4.9. Evaluation of provisions / 114
2.5. Accounting for loans and similar debts / 115
2.5.1. Accounting for loans from bond issues / 115
2.5.2. Accounting for long - term bank loans / 118
2.5.3. Accounting for other loans and similar liabilities / 121

CHAPTER 3: ACCOUNTING OF FIXED ASSETS / 125
3.1. Delimitations and structures regarding fixed assets / 125
3.2. Organization of fixed assets accounting / 127
3.2.1. Objectives and factors of organizing the accounting of fixed assets / 127
3.2.2. Primary documents regarding fixed assets / 127
3.2.3. Fixed assets accounts subsystem / 130
3.2.4. Valuation of fixed assets / 130
3.3. Accounting for intangible assets / 133
3.3.1. Characterization of intangible assets; recognition and evaluation / 133
3.3.2. Establishment expense accounting / 134
3.3.3. Development expenditure accounting / 136
3.3.4. Accounting for fixed assets in concessions, patents, licenses, trademarks, rights and similar assets / 140
3.3.5. Goodwill accounting / 145
3.3.6. Accounting for other intangible assets / 148
3.4. Accounting for property, plant and equipment / 149
3.4.1. Land and land planning accounting / 150
3.4.1.1. Land accounting proper / 150
3.4.1.2. Landscaping accounting / 152
3.4.2. Fixed assets accounting / 154
3.4.2.1. Delimitations and structures regarding fixed assets / 154
3.4.2.2. Organization of fixed assets accounting / 156
3.4.2.3. Fixed assets movement accounting / 163
A. Accounting for transactions regarding fixed assets inflows / 163
B. Accounting for transactions regarding fixed assets outflows / 174
C. Accounting for leased fixed assets / 185
3.5. Real estate investment accounting / 186
3.6. Accounting for productive biological assets / 187
3.7. Accounting for fixed assets under construction / 188
3.7.1. General characterization of assets under construction / 188
3.7.2. Accounting for tangible fixed assets in progress / 189
3.8. Accounting for financial assets / 189
3.8.1. Definitions and structures regarding financial assets / 189
3.8.2. Recognition and evaluation of financial assets / 191
3.8.3. Accounting of transactions regarding financial assets in securities / 191
3.9. Depreciation accounting for fixed assets / 196
3.9.1. Depreciation of fixed assets / 196
3.9.1.1. Definition, role and calculation methods regarding depreciation / 196
3.9.1.2. Depreciation accounting / 207
3.9.2. Accounting for adjustments for depreciation or impairment of fixed assets / 209
3.9.2.1. General characterization of adjustments for depreciation of fixed assets / 209
3.9.2.2. Accounting for adjustments for impairment of intangible assets / 211
3.9.2.3. Accounting for adjustments for impairment of property, plant and equipment / 211
3.9.2.4. Accounting for adjustments for impairment of financial assets / 211
3.9.2.5. Accounting for adjustments for depreciation of fixed assets in progress / 212

CHAPTER 4: ACCOUNTING OF CURRENT ASSETS / 214
4.1. Definitions and delimitations regarding current assets / 214
4.2. Inventory accounting / 215
4.2.1. Definition and recognition of stocks / 215
4.2.2. Objectives and factors of stock accounting organization / 218
4.2.3. Stock valuation / 219
4.3. Organization of the information-accounting system of stocks / 230
4.4. Organization of analytical accounting of stocks / 235
4.5. Organizing synthetic stock accounting / 240
4.6. Accounting of raw materials and consumables / 244
4.7. Production accounting in progress / 258
4.8. Product accounting / 261
4.8.1. Product accounting organization / 261
4.8.2. Semi - finished products accounting / 263
4.8.3. Accounting for finished products / 267
4.8.4. Accounting for residual products / 271
4.9. Accounting for stocks held by third parties / 271
4.10. Accounting for biological assets of the nature of stocks / 274
4.11. Commodity accounting / 277
4.12. Accounting for packaging stocks / 285
4.12.1. The notion and classification of packaging / 285
4.12.2. Packaging accounting organization / 287
4.12.3. Accounting of the main operations regarding the packaging / 290
4.13. Accounting for adjustments for depreciation of inventories and production in progress / 297

CHAPTER 5: ACCOUNTING OF THIRD PARTY SETTLEMENTS / 305
5.1. Definition, content and structure of settlements with third parties / 305
5.2. Objectives and factors of organizing the settlement accounting with third parties / 308
5.3. Recognition and valuation of debts and receivables / 309
5.4. Information-accounting system of debts and receivables / 310
5.4.1. Primary documents used / 310
5.4.2. Operative evidence of debts and receivables / 311
5.4.3. Analytical accounting of debts and receivables / 311
5.4.4. The system of synthetic accounts used to reflect in accounting the settlements with third parties / 311
5.5. Accounting transactions regarding settlements with suppliers / 312
5.6. Accounting transactions regarding settlements with customers / 324
5.7. Accounting for settlements with staff and assimilated operations / 334
5.8. Accounting for settlements with social insurances and social protection / 348
5.9. Accounting for settlements with the state budget and special funds / 354
5.9.1. Profit tax settlements / 354
5.9.2. Value added tax settlements / 357
5.9.2.1. Value added tax - definition, scope, generating fact, base and tax rates, settlement / 357
5.9.2.2. Objectives and factors of organizing the accounting of value added tax / 363
5.9.2.3. Organization of value added tax accounting / 364
5.9.2.4. Subsystem of value added tax accounts / 369
5.9.2.5. Applications regarding the accounting of value added tax settlement operations / 376
5.9.2.6. Value added tax settlement / 382
5.9.3. Subsidy settlements / 384
5.9.4. Settlements regarding other taxes, fees and assimilated payments / 385
5.9.5. Accounting for settlements with special funds / 386
5.9.6. Other debts and receivables with the state budget / 388
5.10. Accounting / operations regarding the settlements within the group with shareholders / associates / 389
5.11. Settlement accounting with various debtors and creditors / 390
5.11.1. Settlements with various debtors / 390
5.11.2. Settlements with various creditors / 393
5.12. Accounting of operations regarding the accounts of subsidies, regularization and assimilated. 394
5.12.1. Expenses recorded in advance / 394
5.12.2. Revenues recorded in advance / 397
5.12.3. Settlements from operations under clarification / 398
5.12.4. Investment grants / 399
5.13. Accounting for adjustments for impairment of receivables / 401

CHAPTER 6: TREASURY ACCOUNTING / 404
6.1. Delimitations and accounting structures regarding the entity's treasury / 404
6.2. Organization of treasury accounting / 405
6.3. Short - term investment accounting / 409
6.3.1. Characteristics and structure of short - term investments / 409
6.3.2. Short - term investment evaluation / 411
6.3.3. Accounting for shares held in affiliated entities / 412
6.3.4. Accounting for short-term investments in bonds / 413
6.3.5. Accounting for green certificates / 418
6.3.6. Accounting for other short - term investments and similar receivables / 419
6.4. Accounting for receivables / 420
6.4.1. Checks receivable / 420
6.4.2. Cash effects / 421
6.4.3. Effects remitted for discounting / 422
6.5. Accounting of collection and payment operations performed through bank accounts / 422
6.5.1. Bank accounts in lei / 422
6.5.2. Bank accounts in foreign currency / 426
6.5.3. Amounts being settled / 429
6.6. Accounting for short - term bank loans / 430
6.7. Interest accounting on cash and short-term bank loans / 431
6.8. Accounting for cash operations and other treasury values ​​/ 433
6.8.1. Accounting for cash operations / 433
6.9. Accounting for letters of credit and cash advances / 437
6.9.1. Letters of credit / 437
6.9.2. Treasury advances / 438
6.10. Peculiarities regarding the accounting of internal transfers / 440
6.11. Accounting for adjustments for impairment of treasury accounts / 442

CHAPTER 7: FINANCIAL ACCOUNTING OF EXPENDITURE, REVENUE AND INCOME / 445

A. FINANCIAL ACCOUNTING OF EXPENDITURE / 445
7.1. The concept, content, recognition and structure of expenditure / 445
7.2. Objectives and factors of organizing the accounting of expenses / 447
7.2.1. Organization of primary documentation / 448
7.2.2. Organization of synthetic accounting of expenses / 448
7.3. Accounting for operating expenses / 451
7.3.1. Inventory accounting for stocks / 451
7.3.1.1. Expenditures on raw materials / 451
7.3.1.2. Expenditures on consumables / 452
7.3.1.3. Expenditures on materials of the nature of inventory items / 453
7.3.1.4. Expenditure on non - stored materials / 454
7.3.1.5. Energy and water expenditure / 454
7.3.1.6. Expenditures on biological assets of the nature of stocks / 455
7.3.1.7. Expenditure on goods / 455
7.3.1.8. Expenditure on packaging / 456
7.3.2. Accounting for expenses with services performed by third parties / 457
7.3.2.1. Maintenance and repair expenses / 457
7.3.2.2. Expenses with royalties, management locations and rents / 458
7.3.2.3. Expenses with insurance premiums / 459
7.3.2.4. Expenditures on studies and research / 460
7.3.3. Accounting for expenses with other services performed by third parties / 460
7.3.3.1. Expenditures with collaborators / 460
7.3.3.2. Expenses regarding commissions and fees / 461
7.3.3.3. Protocol, advertising and publicity expenses / 461
7.3.3.4. Expenditure on transport of goods and personnel / 462
7.3.3.5. Travel, secondment and transfer expenses / 463
7.3.3.6. Postal charges and telecommunications charges / 464
7.3.3.7. Expenditures on banking and similar services / 465
7.3.3.8. Other expenses with services performed by third parties / 465
7.3.4. Accounting for expenses with taxes, fees and assimilated payments / 466
7.3.4.1. Expenditures with other taxes, fees and assimilated payments / 466
7.3.5. Personnel expense accounting / 468
7.3.5.1. Staff salaries / 468
7.3.5.2. Expenditures on insurance and social protection / 469
7.3.6. Accounting for other operating expenses / 470
7.3.6.1. Accounting for environmental protection expenses / 470
7.3.6.2. Accounting for losses from miscellaneous receivables and payables / 471
7.3.6.3. Expenses from revaluation of tangible fixed assets / 471
7.3.6.4. Other operating expenses
7.3.7. Accounting / expenses / for / operating / depreciation, provisions and adjustments for impairment or impairment / 472
7.4. Accounting for expenses from financial activity / 473
7.4.1. Expenditures on losses from receivables related to participations / 473
7.4.2. Expenditures on assigned financial investments / 474
7.4.3. Expenses from exchange rate differences / 475
7.4.4. Interest expenses / 475
7.4.5. Expenditures on discounts granted / 476
7.4.6. Financial expenses regarding depreciation, provisions and adjustments for impairment / 476
7.4.7. Other financial expenses / 477
7.5. Accounting for income tax expenses / 477
7.6. Expenditure settlement accounting / 478

B. FINANCIAL ACCOUNTING OF REVENUE / 479
7.7. The concept, content, recognition and structure of income / 479
7.8. Objectives and factors of income accounting organization / 482
7.9. Organization of financial accounting of income / 483
7.9.1. Organization of primary documentation / 483
7.9.2. Organization of synthetic income accounting / 484
7.10. Accounting for operating income / 484
7.10.1. Sales revenue accounting (net turnover) / 484
7.10.1.1. Revenues from the sale of finished products, agricultural products and biological assets in the nature of stocks. / 484
7.10.1.2. Revenues from the sale of semi - finished products / 485
7.10.1.3. Revenues from the sale of residual products / 486
7.10.1.4. Revenue from services rendered / 487
7.10.1.5. Revenues from studies and research / 487
7.10.1.6. Revenues from royalties, management locations and rents / 488
7.10.1.7. Revenue from the sale of goods / 488
7.10.1.8. Revenues from various activities / 489
7.10.2. Revenue accounting for product inventory costs / 489
7.10.3. Accounting of income from the production of fixed assets / 495
7.10.3.1. Revenues from the production of intangible assets / 496
7.10.3.2. Revenues from the production of tangible assets / 496
7.10.3.3. Income from real estate investment production / 497
7.10.4. Accounting for operating subsidies / 497
7.10.5. Accounting for other operating income / 498
7.10.5.1. Revenues from reactivated receivables and miscellaneous debtors / 498
7.10.5.2. Revenues from the revaluation of tangible fixed assets / 498
7.10.5.3. Other operating income / 499
7.10.6. Accounting for income from provisions, depreciation and adjustment for impairment or impairment of operating activity / 499
7.11. Accounting for income from financial activity / 500
7.11.1. Income from financial fixed assets / 501
7.11.2. Income from other short - term investments / 501
7.11.3. Income from assigned financial investments / 501
7.11.4. Income from exchange rate differences / 502
7.11.5. Interest income / 503
7.11.6. Revenues from discounts obtained / 504
7.11.7. Other financial income / 504
7.11.8. Financial income from depreciation and amortization 505
7.12. Revenue settlement accounting / 506

C. ACCOUNTING OF THE RESULT OF THE YEAR / 506
7.13. Determination of the result / 506
7.14. Reflection in accounting of the determination of the financial result / 507
7.15. Calculation, registration and settlement of profit tax / 510
7.16. Accounting for the distribution of the result of the exercise / 515

CHAPTER 8: ACCOUNTING FOR OTHER VALUES OUTSIDE THE BALANCE SHEET 519
8.1. General characterization of special accounts / 519
8.2. Off - balance sheet accounts / 520
8.2.1. Commitments granted / 520
8.2.2. Commitments received / 520
8.2.3. Other off - balance sheet accounts / 521
8.2.3.1. Tangible fixed assets received on rent or on the basis of other similar contracts / 521
8.2.3.2. Material values ​​received for processing or repair / 521
8.2.3.3. Material values ​​received in storage or custody / 522
8.2.3.4. Debtors removed from assets, follow further / 522
8.2.3.5. Stocks of the nature of inventory objects put into use / 522
8.2.3.6. Royalties, management locations, rents and other similar debts / 523
8.2.3.7. Expected effects not due / 523
8.2.3.8. Goods received in administration, concession and rent / 523
8.2.3.9. Other off-balance sheet values ​​/ 523
8.2.4. Interest related to leasing contracts and other assimilated contracts, not due / 524
8.2.5. Greenhouse gas emission certificates / 524
8.2.6. Contingent assets / 524
8.2.7. Contingent liabilities / 525
8.2.8. Receivables taken over by assignment / 526
8.3. Balance sheet accounts / 526
8.3.1. Opening balance sheet / 526
8.3.2. Closing balance sheet / 527

CHAPTER 9: CLOSING WORKS FOR THE FINANCIAL YEAR / 528
9.1. Delimitations regarding the closing works of the financial year / 528
9.2. Preparatory works for the preparation of financial statements / 529
9.2.1. Establishing the balance of accounts before inventory / 530
9.2.2. General inventory of assets and liabilities / 531
9.2.3. Accounting for regularization operations / 534
a. Operations regarding the regularization of inventory pluses and minuses / 534
b. Depreciation operations / 536
c. Impairment and impairment adjustments / 537
d. Operations regarding the resumption of provisions / 539
e. Operations regarding exchange rate differences / 539
f. Operations regarding the time delimitation of expenses and revenues. / 540
9.2.4. Balance of accounts by inventory / 541
9.2.5. Determining the result of the exercise / 543
9.2.6. Drafting financial statements / 545
A. Balance / 546
B. Profit and loss account / 549
C. Statement of changes in equity / 560
D. Statement of cash flows / 561
E. Explanatory notes / 561

BIBLIOGRAPHY / 563