Law No. 36/2023 brings the following amendments to the Accounting Law no. 82/199 and the Government Emergency Ordinance no. 28/1999 regarding the obligation of economic operators to use electronic fiscal marking machines.
Minister of Finance Order no. 4.291/2022 published in the Official Gazette no. 18 / January 2023, applicable starting with the financial statements related to the financial year 2022, brings some new accounting aspects, as follows:
An entity must suspend capitalization of borrowing costs during extended periods when does not actually work on the long – cycle asset manufacturing. An entity may incur borrowing costs during an extended period when the entity suspends its necessary activities for preparing the assets for use or sale. Capitalization of borrowing costs is not interrupted during the period when the entity performs significant technical and administrative work or when a temporary postponement is a necessary part of the process of preparing an asset for its intended use or for sale. The provisions relating to the interruption of the capitalization of borrowing costs apply starting with the annual financial statements relating to the financial year of 2022, if the effect of the change in the accounting policy are set up by the date when those annual financial statements are authorized for issuance. Otherwise, these provisions after January 1, 2023. The entities that chose a financial year other than the calendar year apply these provisions starting with the first annual financial statements concluded on a date after January 1, 2023.
The amounts received from the customer before the entity transfers a good or service to the customer is booked as a debt to the customer (account 419 “Advances from customers”). The entity incurs a liability to the customer, which will be settled and the revenue recognized, respectively, when the entity transfers those goods or services and thereby fulfills its contractual obligation.
An entity might collect a non-refundable advance from the customer at or near the start of the contract If the advance represents an advance payment made by a customer for services, which will be provided in a future period, the corresponding amount is recognized in account 472 “Deferred revenues”, and the revenue will be recognized when the respective services will be provided. If the advance does not refer to future services, the amount collected from the customer is recognized as the revenues of the period.
Entities that receive dividends during the financial year reflect them against the liability (Journal Entry 461 Sundry debtors/analytical account = 467 Liabilities related to interim distributions of dividends).