The annual financial statements can only be corrected for certain errors in certain conditions. Moreover, even if the legal provisions allow the correction, the economic operator is not exonerated of the sanctions provided by the law of accountancy, respectively fines of up to 10,000 lei.
Contexpert recommends you to carefully prepare the documents in order to avoid additional administrative costs and risks.
The correction of the financial statements is provided by the order 450/2016, which entered into force on April 12, 2016. Since the accounting law does not allow submission of another set of documents, the Ministry of Finance issued this procedure indicating the types of errors and how they can be corrected.
The procedure refers to the economic operators and non-profit legal persons (associations, foundations).
First, it is important to note that another set of financial statements may be submitted only to correct errors mentioned in the procedure, not to correct accounting errors defined by applicable accounting regulations.
Though, you cannot submit another set of financial situations that correct accounting errors (ie omitting to declare income or expenses in the period to which they refer, miscalculation of certain taxes which are rectified afterwards or incorrect assignment of assets and liabilities) .
Thus, each entity, according to the regulations they apply, will correct the accounting errors under the provisions of the orders 1802/2014 1969/2007 and 1286/2012, as amended and supplemented.
In conclusion:
• material misstatements from previous years can be corrected only on account of retained earnings;
• immaterial errors can be corrected on account of profit and loss in the year when the error was detected
For what types of errors can another set of financial statements be submitted?
You can submit another set of financial statements / accounting reports if the errors are caused by incorrect filling of:
• the name of the reporting entity
• activity (CAEN class name and / or CAEN code)
• ownership
• the number of employees and / or other indicators report form “data”.
Other types of errors that can be subject to correction:
• Electronic transmission of annual financial statements / reports instead of annual accounting statement of inactivity
• electronic transmission of the declaration of inactivity instead of annual financial statements / annual accounting reports
• Electronic transmission of annual financial statements / annual accounting reports using a reporting format included in the assistance program, different from that for the specific entity (ie financial statements are submitted for micro-entities although the company is framed in the category of small and medium entities)
• failure to transmit electronically all documents required by law (management report, affidavit, statutory auditor’s report, etc.).
Secondly it is important to observe that the corrected financial statements / annual accounting reports can be submitted only at the registration office of the fiscal body, both in electronic format and on paper.
Also, the administrator must submit an affidavit stating that the documents have been retransmitted due to the correction of the detected errors, and that they reflect the reality of the reporting entity.
Third, but not least, you should know that, even for the errors for which the correction is allowed by the legal provisions, the economic operators are not exempted by the sanctions provided by the accounting law.
According to the accounting law, the presentation of the financial statements that contain false or uncorrelated data, including those related to the identification of reporting entity, is fined from 200 lei to 1,000 lei. Submission of multiple sets of annual financial statements for the same financial period is fined from 1,000 lei to 10,000 lei.
The deadline for submission of the financial statements / annual accounting reports which contain corrections is the end of the financial year / the next year the corrected financial statements refer to. For fiscal year 2014 the deadline is April 29, 2016.
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