Accountancy Books in Spain.
The Spanish accountancy books are a set of documents that capture the financial information and the operations of a company during a determinate period. And, the company is required to legalize these books on a yearly basis at the mercantile Register where the company has its registered address.
The purpose of this requirement is to unable a company to manipulate the financial information at a latter date.
The deadline to submit the accountancy books in Spain at the corresponding mercantile register is four months which start counting after the accountancy closedown. In Spain the majority of companies have the yearend on the 31st of December, therefore the accountancy books must be deposited on or before the 30th of April of the following year.
From September 2013 the accountancy books have to be issued in an electronic format and presented digitally though the official register web page. No hard or paper copy will now be accepted.
Annual Accounts in Spain.
The annual accounts in Spain are a set of documents, balances and statements that allows checking the economical and financial reality of a firm. It can be divided on the following main parts:
- Balances – States the assets and rights of a company and the internal and external resources which finance these. Two balances are included one with the figures from the period and another from the previous period as this will allow the figures to be compared and check the evolution of the company.
- Profit & Loss Account – this presents the economical information of the company for the period. And, as with the Balances compares the same with the results from the previous period.
- Statement of changes of Net Assets – this provides information regarding the equity of the company and the changes that have taken place during the period such as the economical result for the period, changes in the capital due to operations during the period (capital increase, dividends …).
- Cash-Flow – provides information of the way the operations of the company are financed.
- Memory – complements the information provided on the previous points
Failure to present the annual accounts by the company may result in fines of up to 60.000 Euros set by the Institute of Accounting and Auditing.
The deadline for submitting the annual accounts in Spain runs up to one month after its approval at the Ordinary General Shareholder’s Meeting, held six months after the end of the fiscal year, therefore for most Spanish companies, whose fiscal year coincides with the natural year, the maximum term is until the 30th of July of the following year.