 This adaptation implies an improvement in the quality of the information in the accounting of financial instruments and the recognition of income from goods and services

The Institute of Accounting and Audit of Accounts (ICAC) has opened today the process of public hearing of the draft Royal Decree, which modifies the General Accounting Plan (PGC) and its complementary provisions.

Progress is being made in adapting Spain's accounting regulations to the criteria contained in two international financial reporting standards adopted by the European Union (IFRS-EU). These provisions affect two very significant areas, such as the accounting of financial instruments and the recognition of income from the delivery of goods and provision of services. Regulatory convergence implies an improvement in the quality of financial information in these areas, following the experience accumulated internationally.

With this project, the Spanish accounting harmonization strategy is maintained with European standards in accordance with the principles of simplification and proportionality, considering the characteristics and activities developed by the companies that apply the General Accounting Plan, which do not belong to the financial sector.

The development of the project was carried out by a working group in which experts and professionals related to the future application of the standard have been part: companies, auditors, accounting professors and public institutions (Ministry of Justice, Ministry of Finance, Bank of Spain, CNMV, DGS and IGAE). The project received the favorable report from the ICAC Accounting Council, the body where most of these institutions are represented.

The amendments to the PGC will be applied to the fiscal years beginning on January 1, 2020 by non-financial companies.

Those interested can consult the project on the Institute's website: www.icac.meh.es.

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