Thursday, November 7, 2013

Accounting Entries for Closing a Romanian Company

Closing a company involves a set of mandatory procedures which in accounting terms translates into strict protocols which are legally necessary in order to avoid unwanted twists at the financial level. For most of the cases, the general scenario to be taken into account when deciding to close a company covers a sequence of highly useful procedures that we will list below. Accounting for dissolution of company in Romania might require the presence of an expert and if you feel that dealing with this process might bring into question numerous unknown features you would better ask for a professional opinion that will surely solve your issue. As mentioned above we will briefly indicate the most significant operations that should be looked into when doing the accounting entries for closing a Romanian company. First thing to start with is the inventory and a strict evaluation of liability items and assets of the establishment in question. The preparation of financial statements is to be performed in one of two manners that can be illustrated by a professional accountant. The general assembly must decide regarding the operations that are to be performed by the expert liquidator on behalf of the company. The selling of any remaining assets is essential; assets should be previously evaluated. Then the funds that are to be paid to creditors must be discharged. Any debt to the state budget has to be discharged. The next phase indicates the profit/loss evaluation. Then the calculation, withholding and payment of income tax and dividends may be taken into consideration. The balance sheet for partition according to adequate stipulations must be performed. Partition of equities must be performed according to bylaws or to contract of the society, the decision of the general meeting of shareholders and the contribution to the share capital.

Given these procedures, the accounting for dissolution of company in Romania indicates partition as a division between net assets resulting from liquidation. There are, as well, particular cases that can be effectively illustrated only by experts and accepting a professional point of view proves highly important in such situation. Some supplementary details might also be involved depending on the type of liquidation that is to be taken into consideration. Another aspect regards the type of company that you are dealing with. As we explained from the beginning it becomes extremely significant to opt for a professional approach since bookkeeping varies from a national system to another raising new and, most of the times, unexpected questions. Our lawyers are able to deliver a series of answers to controversies related to this area and we can also recommend a group of accountants that will competently assist you in such cases. 

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