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Financial statements and reporting in Romania follow strict guidelines outlined by Order 1802/2014, ensuring alignment with European Directives or IFRS standards, depending on the entity’s reporting framework. These regulations standardize both the presentation and content of financial documents, promoting consistency and comparability across organizations.
As a crucial aspect of business operations, financial reporting reflects an entity’s fiscal health and compliance obligations. This article explores the types of financial statements required, the reporting periods, submission protocols and auditing criteria applicable to Romanian entities. Whether you’re a business owner or a financial professional, understanding these requirements is vital to navigating Romania’s regulatory landscape effectively.
Balance sheet (statement of financial position): Summarizes assets, liabilities and equity at the end of the reporting period. Includes detailed classifications such as fixed assets, current assets, short-term and long-term liabilities.
Profit and loss account (income statement): Details revenues, expenses and profit or loss for the reporting period. Uses either a nature-based or function-based format.
Statement of changes in equity: Explains movements in equity accounts during the reporting period, including retained earnings, share capital changes and reserves.
Cash flow statement (mandatory for larger entities): Provides insights into cash inflows and outflows, classified into operating, investing and financing activities.
Explanatory notes to the financial statements: Provide additional details and context for the figures in the primary statements. Include accounting policies, contingent liabilities and events after the reporting period.
Directors’ report: A narrative overview of the entity’s performance, key risks and future outlook.
Audit report (only if applicable): Required for entities meeting certain size thresholds (turnover, assets, employees) or by law (e.g., listed companies).
All entities are required to prepare and submit annual financial statements. The fiscal year typically aligns with the calendar year (January 1 to December 31).
Submission deadline: By May 30 of the following year for most entities.
Entities which in the previous financial year recorded a net turnover higher than the RON equivalent of EUR 1,000,000 or other certain entities, such as public interest entities (e.g., listed companies, banks and insurance companies), must prepare semi-annual financial reports.
For mergers, divisions, liquidations, or transformations, special financial statements must be prepared as of the event date.
Financial statements must be submitted to the Romanian Ministry of Finance via its electronic platform (SPV). Additionally, larger entities may face extra submission requirements, including reporting to regulators like the National Bank of Romania or the Financial Supervisory Authority.
Entities meeting certain size thresholds (e.g., turnover, asset value, employee count) are required to have their financial statements audited by an independent auditor.
Public interest entities are required to publish their financial statements on their websites or submit them to the Trade registry for public access.
Preparing and submitting accurate financial statements and reporting in Romania requires more than just meeting deadlines. It calls for deep knowledge of local regulations and attention to detail. At Accace, we help businesses stay fully compliant by managing the preparation, audit coordination and electronic filing of their reports. Whether you’re working under Order 1802/2014 or IFRS, our experts make sure your financial statements meet all legal and operational requirements. Explore our accounting and reporting services in Romania or get in touch with us to see how we can help.