UNIVERSITY HYPERION BUCHAREST - ROMANIA

Lecturer Doctor Ustinia Rachita

Most recent amendments to the Romanian financial accounting1
The most important completions and classifications on lease-back operations
accounting (in point 90). The lease-back operation means the long term sale-buy
operation of an asset, followed immediately by a leasing operation.

1. The lodger (buyer) proceeds as follows:

For the financial leasing
The transaction carried out is a financing operation, and not a sell- buy one, and the asset
is further maintained registered in the book keeping with the value existing previously the
leasing operation, within the same depreciation system used.
Accounts:
5121
Bank accounts in Lei

167
Other financing operations
and assimilated debts

x x x lei

a) For the operational leasing

The operation is carried on the two components, as follows:
-

long term assets selling followed by registering the asset or the amounts received or
to be received within the accountings:
according to the operational leasing agreement, periodically are registered the dues
(the rent) coming from leasing (the leasing agreement is outside the accounting
registered in the account 8031Rented corporeal immobilizing.

2. Direct costs assignable to material immobilizations (in point 92) which are effected
when accumulated, may be:
- material expenses;
- expenses with the employees salaries, contributions related to these;
- costs related to the location arrangement;
- initial costs for handling and delivery;
- costs related to installation and assembling;
- design expenses and for getting the licenses;
- professional fees paid to the lawyers and professionals, etc.
1

Order of the Minister of Economy and Finance no. 2374/12.XII.2007.

3. The replacement of some component parts of complex goods set up of kits (in point
100), subsets and spare parts of high value. In these circumstances the component parts
which have to be replaced are taken out of use at the remaining value.
According to the way the new component has been purchased, following the replacement
the cost of the new component part is registered within the current assets.
Accounting register:
212
Buildings

401
Suppliers
(cost of the new component part)

x x x lei

4. The category of goods in stocks and assets with long manufacturing cycle intended to
be sold (in point 124), for example, residential ensembles and complexes.
5. The evaluation of the purchased stocks paid in currency for which the invoice is
received later (in point 152), is performed based on the Romanian Standard, using the
exchange rate valid on the reception day.
6. When treasury advances have been granted (in point 171) and they have not been
reimbursed till the tax year closing, the companies have to register these advances in the
debtors account.
Book keeping:
461
Different debts

542
Treasury advance

x x x lei

Further there are presented some accounting register modifications of the book
keeping for operations concerning the accounting result distribution (in point 222) at the
end of the tax year. In chronological terms, this type of operations are carried out as
follows:
Book keeping:

129 Profit distribution

106 Reserves

x x x lei

In the balance sheet issued (on 31 December), the accounts 121 Profit or loss and 129
Profit allotment have a balance. At the beginning of the year the two accounts are
closed, and the resulting value remaining not distributed after the allotment to the legal
reserves is transferred to the account 117 Result carried over.
Book keeping:
121 Profit or loss

%
129 Profit allotment
117 Result carried over

x x x lei
xxx
xxx

Following the approval of the General Meeting of Shareholders, the profit is registered
and distributed as follows:
Book Keeping:
117 Carried over
result

%
129 Dividend to be paid
106 Reserves

x x x lei
xxx
xxx

Please note the fact that the profit obtained by the company during the closing tax year is
not distributed on kinds of assignment until the accounting loss accumulated during the
previous financial years are not covered from the profit of the tax year and the carried
over profit (account debt 117), from reserves, capital primes and social capital, according
to the decision of the General Meeting of Shareholders in the spirit of the legal
provisions, are corroborated the provisions of the Law on accounting No. 82/1991,
republished and modified by the Order of Minister of Public Finance no. 1752/2005,
republished in 2007 on approving the accounting regulations according to the UE
Directives.

10 January 2009

UNIVERSITY HYPERION BUCHAREST - ROMANIA

Lecturer Doctor Ustinia Rachita
Most frequent accounting mistakes
A frequent mistake is made when setting the base for the calculation of the net profit, by
omitting the not deductible expenses registrations. Generally, the base for computing the
profit tax is calculated as (Incomes Expenses) x 16%, but the law specifies the expenses
classes which are tax exempt. The most important expenses categories of this kind are:
(i) expenses for goods of stock kind found missing during the budgetary control,
(ii) expenses for VAT corresponding to the previous ones,
(iii) protocol expenses.
Direct registering in the expenses account of the stackable materials (fuels, spare parts,
consumption materials, inventory goods) before closing the month book keeping is an
absolutely unhappy idea, because at the end of the month people authorized by the
company will submit to the accounting department the respective documents in proof for
the concerned month. When the registration has been already made, it is possible that the
stock be not yet used up.
1. Example of an accurate registering
%
3022 Fuels
4426 Deductible VAT

401 Suppliers

x x x lei
xxx
xxx

The initial registering in the account corresponding to the fuel stocks for example, and
then, at the end of the months issuing the accounting note corresponding to the actual
consumption; actual consumption:
Accounting register:
=

3022 Fuels

x x x lei

2. Example of an inappropriate accounting register

Accounting register:
6022
Expenses related to the fuel
4022 .

401 Suppliers

x x x lei

401 Suppliers

x x x lei

Direct registration within expenses although it is possible that the stock be not yet
completely used up and in fact there is a fuel stock.

The advance receiving amounts have to include also the VAT corresponding to the
respective registering. If, for example, it has been received an amounts of 119 Lei for this
month representing the value of a delivery quantity that will be received during the next
month, the inappropriate practice is the following:
5311 Cash in Lei

411 Clients

119 lei

The book keeping does not include the VAT corresponding to the operation, whole
amount is registered within the Client account. The proper accounting notes
corresponding to the receiving amount are:
Book keeping:
5311 Cash in Lei

419 Clients-creditors

100 lei

As when someone pays an amount, but the company did not yet deliver the goods, this
person is a Client- Creditor, and the company has an outstanding debt towards them.

10 January 2009