Best Accounting & Auditing Lawyers in Romania

About Accounting & Auditing Law in Romania

Accounting and auditing laws in Romania are integral to ensuring transparency, compliance, and financial accuracy within businesses. The country follows International Financial Reporting Standards (IFRS), especially for entities of public interest such as listed companies. Romanian accounting law is primarily governed by Law no. 82/1991, also known as the Accounting Law, and subsequent amendments which set the framework for financial record-keeping, auditing requirements, and financial reporting. The National Authority for Fiscal Administration (ANAF) oversees the enforcement of these laws, while The Chamber of Financial Auditors of Romania (CAFR) regulates professional auditing activities.

Why You May Need a Lawyer

There are several situations in which individuals or businesses might require legal assistance in the field of accounting and auditing in Romania:

1. **Business Formation:** To ensure compliance with accounting regulations from the start.

2. **Financial Discrepancies:** Address any allegations or discoveries of financial discrepancies or fraud.

3. **Audit Disputes:** Resolve disputes arising from audit results or procedures.

4. **Tax Compliance:** Navigate complex tax laws and avoid penalties from non-compliance.

5. **Regulatory Changes:** Adapt to new laws and regulations impacting financial reporting and auditing.

6. **Cross-Border Transactions:** Handle financial reporting and auditing in international or cross-border transactions.

Local Laws Overview

Romania's accounting and auditing framework is comprehensive and follows several key regulations:

1. **Accounting Law No. 82/1991:** Details the requirements for keeping financial records and reporting standards.

2. **Order of the Minister of Public Finance No. 1802/2014:** Establishes simplified accounting standards for small and medium-sized enterprises (SMEs).

3. **Audit Law No. 162/2017:** Governs the activity of financial auditors and lays down the standards for auditing procedures.

4. **Fiscal Code:** Provides detailed tax regulations affecting accounting practices.

5. **IFRS Adoption:** Certain businesses must follow the IFRS, and this law aligns local accounting standards with international norms.

Frequently Asked Questions

What are the common accounting standards in Romania?

Romania employs both local GAAP (Generally Accepted Accounting Principles) and IFRS for financial reporting, with IFRS applicable for publicly listed companies and financial institutions.

Who needs to undergo an audit in Romania?

Audit requirements typically apply to public interest entities, medium to large companies, and any business exceeding certain financial thresholds defined by Romanian law.

How often are audits conducted in Romania?

Audits are usually conducted annually, though the frequency can depend on the company's size, industry, and any specific legal requirements or findings from previous audits.

What penalties exist for accounting non-compliance in Romania?

Non-compliance can lead to penalties including fines, sanctions against company directors, and potential criminal charges if fraudulent activities are identified.

Is it necessary to have an internal audit department?

While not mandatory for all companies, an internal audit department is highly beneficial and required for public interest entities to ensure ongoing compliance and financial accuracy.

How does the VAT system impact accounting in Romania?

VAT is a pivotal component of Romanian taxation, and accounting systems must accurately calculate, report, and remit VAT to the tax authorities to avoid penalties.

What role does technology play in accounting in Romania?

Technology is increasingly utilized for automating accounting and compliance processes, including digital invoicing and tax reporting systems implemented by ANAF.

How are foreign investments accounted for in Romania?

Foreign investments must be recorded in accordance with both Romanian and applicable international standards, considering currency conversion impacts and cross-border transaction rules.

Can SMEs receive exemptions from certain accounting requirements?

Yes, SMEs in Romania may qualify for simplified accounting rules based on their size and revenue, easing the reporting burden while ensuring compliance.

What should I do if I disagree with an audit result?

Disputing an audit result typically involves consulting with a legal or auditing professional to review the audit, identify discrepancies, and formally challenge the findings.

Additional Resources

For more assistance, consider reaching out to these organizations:

1. **National Authority for Fiscal Administration (ANAF):** Handles taxation and compliance questions.

2. **Ministry of Public Finance:** Offers guidelines and updates on accounting laws.

3. **Chamber of Financial Auditors of Romania (CAFR):** Provides information on auditing standards and professional requirements.

4. **Romanian Chamber of Commerce and Industry:** Supports businesses with accounting compliance and related resources.

Next Steps

If you need legal assistance with accounting and auditing in Romania, consider the following steps:

1. **Identify Your Needs:** Determine the specific accounting or auditing issue you're facing.

2. **Consult Professionals:** Engage with a lawyer specialized in Romanian financial law or a certified accountant.

3. **Gather Documentation:** Collect relevant financial records and reports to assist your legal advisor.

4. **Review and Plan:** Work with your advisor to understand your legal obligations and develop a compliance strategy.

5. **Proceed Legally:** Follow through with corrective actions, dispute resolutions, or legal filings as advised.