Tax Year in Romania

The fiscal year begins on 1 January and ends on 31 December, although taxpayers can opt for a fiscal year format corresponding to a financial accounting year via some required documents. Romanian subsidiaries of foreign companies, which have a modified financial accounting year, can modify the date set for the completion of their financial certificate only if the parent company adjusts its reporting date or is subject to reorganization procedures.

Romania's Accounting Standards

Accounting in Romania is being governed by accounting principles and standards :

- The Ministry of Economy and Finance: Order No. 907/2005; Order No. 1752/2005; Order No. 1121/2006; Order No. 2001/2006, Order No. 3055/2009, Orders No .1286/2012 and No. 881/2012 on the Application of the IFRS

- National Ethics Code for the accounting profession

- Regulation No. 1606/2002 by the European Parliament Assembly of 19 June 2002 on the Application of International Accounting Standards

- The National Bank of Romania : Order 27/2010 on the Application of the IFRS

All domestic companies whose securities trade in a regulated market are required to use IFRS standards as adopted by the EU in their consolidated financial statements.

In case of listings by foreign companies, IFRS Standards are required in the consolidated financial statements, but if the standards of the foreign company's home jurisdiction are deemed by the EU to be equivalent to IFRS Standards, the company may use its home standards.

IFRS Standards as adopted by the EU are required for all credit institutions (National Bank of Romania Order no. 27/2010) and all insurance companies (CSA Bulletin no. 202/2012), including those whose securities do not trade in public markets.

Accounting Reports

Bookkeeping record clouds are divided into credit and debt, the latter being broken up into long-term and short-term debts.The results give emphasis to the overall production and classifies expenses by type.

Accounting services and accounting systems in Romania are at such a high level, that almost all reports, all payroll and bookkeeping records can be kept using cloud accounting tools that are approved via required documents by the Romanian government.