Provisions applicable to entities opting for a financial year other than the calendar year: OMF no. 1240/2021

The takeaway

Non-profit legal entities that have opted for a financial year other than the calendar year, starting with the annual accounting reports concluded as at 31 December 2021, are required to prepare separate accounting reports for the annual financial statements and submit them to the territorial units of the Ministry of Finance within 150 days as of the end of the calendar year.

The assistance software developed by the Ministry of Finance is used to submit annual accounting notifications and reports.

In detail

Minister of Finance Order no. 1240/2021 (Order 1240/2021) introduced, for non-patrimonial legal entities that have opted for a financial year other than the calendar year, the obligation to notify the territorial unit of the Ministry of Finance about the financial year chosen at least 30 calendar days before the start of that year.

Newly established non-profit legal entities have to submit the respective notification within 30 calendar days as of the date of establishment.

The above entities are required to prepare annual financial statements as at 31 December separately from the annual financial statements as at the date chosen. These provisions apply starting with the annual reports concluded as at 31 December 2021.

The annual accounting reports as at 31 December have to be submitted within 150 days as of the end of the calendar year and meet the following requirements:

• Include the forms “Statement of assets, liabilities and equity” and “Statement of income and expenses”.
• Be signed by the administrator or the person who manages the entity.
• Be submitted in paper format to the registry of Ministry of Finance territorial units, posted by mail with declared value, and in electronic format or only in electronic format on the portal www.e-guvernare.ro with an extended electronic signature attached.

The electronic format consists of a PDF file with an attached xml file, and it can be generated using the assistance software made available to entities free of charge or downloaded from the National Agency for Fiscal Administration site at www.anaf.ro. This software is different from the assistance software available for the preparation of annual financial statements.

Entities have to add their identification data, CAEN codes and unique registration code, without abbreviations or initials, to the first page of the form “Statement of assets, liabilities and equity”. 

If an entity changes its chosen date for the preparation of the annual financial statements so that the reporting year becomes the calendar year, the balance sheet balances reported as of the next financial year-end refer to the year 1 January to 31 December. Revenue and expenditure correspond to the current financial year, i.e. the financial year preceding the reporting year. Thus, if the calendar year starts on 1 January 2021:

• the balance sheet that is a component part of the annual financial statements as at 31 December 2021 includes balances as at the following dates: 1 January 2021 and 31 December 2021;

• the profit and loss account which is a component part of the annual financial statements as at 31 December 2021 comprises two columns with turnovers corresponding to the periods 1 January 2020–31 December 2020 and 1 January 2021–31 December 2021.

Entities that apply the accounting regulations approved by the Minister of Public Finance Order no. 1802/2014 and which return to using the calendar year as their financial year do not have to audit the annual financial statements prepared for the financial year in which they switch to the calendar year.

Source: [Minister of Finance Order no. 1240/2021 on some provisions applicable to entities opting for a financial year other than the calendar year, published in the Official Gazette no. 999 dated 20 October 2021]