- The standard regulates the presentation of financial instruments and other accounting aspects related to the commercial regulation of capital companies
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The resolution will be applicable to the exercises initiated as of January 1, 2020
The Institute of Accounting and Audit of Accounts (ICAC) has published a resolution that regulates the presentation of financial instruments and other accounting aspects related to the commercial regulation of capital companies. This rule will be applicable to the exercises started as of January 1, 2020.
To date, there was no complete regulation of the accounting implications of the commercial regulation of capital companies in Spain. The purpose of the standard is to improve the quality and transparency of the financial information published by companies, making it easier for users of such information to make economic decisions by providing greater legal certainty for the accounting record of these operations, whose accounting implications are relevant. .
The standard aims, on the one hand, to develop the presentation criteria in the balance sheet of Spanish companies of financial instruments, such as stocks, shares and obligations. These criteria are aligned with the international reference standards adopted by the European Union and must be followed by both the Spanish companies that issue the instruments and the partner or investor that subscribes or acquires them.
On the other hand, the published resolution also aims to clarify the numerous accounting implications of the mercantile regulation of capital companies. In particular, the accounting treatment of the different social contributions (according to their different nature and purpose), the operations with shares and participations of the entity or the parent company, the correction of errors, the application of the result, the operations are required. capital increase and reduction, issuance of obligations, dissolution and liquidation, and structural modifications (such as merger and spin-off operations).
This rule is of special relevance when clarifying how Spanish companies should deal with the different operations and institutions contemplated in commercial regulation, from the capital they receive when issuing their financial instruments to finance their activities, up to the magnitudes that they must take into account the effects of distributing the benefit among its partners.
The resolution incorporates practical solutions, in accordance with the proportionality principle, in that the solutions have been collected once it has been confirmed that there are no other less restrictive options for companies.
In addition to the procedures for prior consultation and public hearing, the Resolution has been drawn up at the ICAC with the participation of a large group of experts representing all users affected by the rule, among others, representatives of the Ministry of Justice, professors of accounting and professionals of the University, representatives of the National Commission of the Stock Market, the Bank of Spain, the General Directorate of Insurance and Pension Fund, the General Intervention of the State Administration, the General Council of Economists and the Censors Institute Account jurors representing listed companies and representatives of associations of issuers of accounting principles and criteria, which has contributed to greater success and technical consensus in the regulation it contains.
