Septiembre 2011

Spanish National Chart of Accounts for Small and Medium Enterprises (SMEs)

General issues

If the requirements for applying the Spanish National Chart of Accounts for SMEs are met and if it is opted to apply it, it must be applied in full, and may not be applied only partially.


If it is chosen to apply the Spanish National Chart of Accounts for SMEs, it must be applied continuously for at least three years (provided that the related requirements continue to be met).


If an entity carries out a transaction not regulated by the Spanish National Chart of Accounts for SMEs, the transaction is governed by the Spanish National Chart of Accounts, except for the rules governing non-current assets and disposal groups held for sale, which shall in no event apply.


The conceptual framework and structure of the Spanish National Chart of Accounts for SMEs are similar to those of the Spanish National Chart of Accounts.


With respect to the Spanish National Chart of Accounts,

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  certain recognition and measurement standards have been eliminated as it is considered that in general terms they do not apply to SMEs.
  

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  certain rules have been simplified in order to make them less complex, fundamentally in relation to financial instruments and finance leases.
  

Sections eliminated with respect to the Spanish National Chart of Accounts

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  Goodwill
  

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  Compound financial instruments.
  

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  Derivatives the underlying for which are unlisted equity instruments whose fair value cannot be determined reliably.
  

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  Financial guarantee contracts.
  

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  Guarantees provided and received.
  

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  Hedge accounting.
  

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  Long-term employee benefits.
  

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  Share-based payment transactions.
  

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  Business combinations.
  

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  Mergers, spin-offs and non-monetary contributions of businesses among group companies.
  

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  The rules relating to the following have also been eliminated from
  

the Spanish National Chart of Accounts for SMEs as they do not apply:

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  Non-current assets and disposal groups held for sale.
  

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  Translation of financial statements to the presentation currency.
  

Simplifications with respect to the Spanish National Chart of Accounts

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  Financial instruments:
  

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  Reduction of the number of categories of financial assets and financial liabilities.
  

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  Elimination of the “available-for-sale financial assets” and “other financial assets and financial liabilities at fair value through profit or loss” categories.
  

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  Finance leases: the lessee must recognise the leased asset and a financial liability for the same amount, which will be the fair
  

value of the leased asset calculated at the inception of the lease. Reference to the present value of the financial liability as the limit for the fair value calculation is eliminated.

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  Account groups 8 and 9 (reflecting expenses and income recognised directly in equity) are eliminated as a result of the absence of transactions that might give rise to them under the Spanish National Chart of Accounts for SMEs.
  

Simplifications in the model financial statements

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  The formats and disclosures required by the chart of accounts for SMEs are the same as in the abridged model contained in the
  

Spanish National Chart of Accounts, although items and areas not regulated by the Spanish National Chart of Accounts for SMEs are eliminated.

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  A statement of cash flows need not be presented.
  

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  The statement of changes in equity consists of only one document and the statement of recognised income and expense is eliminated.
  

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  “Equity” does not include “Valuation Adjustments”, in view of the absence of transactions that might give rise to them under the Spanish National Chart of Accounts for SMEs.
  

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  The “Non-current assets held for sale and assets and liabilities in a disposal group held for sale” category does not exist.
  

Specific rules applicable to micro enterprises

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  An entity that is able to apply these rules and decides to do so must apply them continuously for at least three years (provided that the related requirements continue to be met).
  

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  The specific rules must be applied on an across-the-board basis and are as follows:
  

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  Finance lease and similar arrangements: the lease payments incurred in the period in relation to finance lease and other similar arrangements not involving land or other assets with an indefinite useful life are recognised as an expense in the income statement. If the purchase option is exercised, the related asset is measured at the price of exercising the option.
  

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  Income tax: the income tax expense is recognised in the income statement for the amount of the tax settlements for the period.