Opening Accounts 2008

OPENING ACCOUNTS 2008

For several days, and we PGC.Pymes 2008, which replaces the previous PGC.90 as regards our SMEs (It has also approved the normal PGC.2008 we resort If no regulation at PGC.Pymes 2008 )

The aim was to adapt to the IAS and IFRS

The structure of the new PGC.Pymes 2008, is as follows:

1. Conceptual Framework

a. Definitions, Principles, Criteria Evaluation, etc.

2. Registration and Valuation Standards

a. Here a breakdown of the different standards

3. Annual Accounts

a. ECB, PYG, ECPN, MEM, EFE

4. Chart of Accounts

a. Coding of all accounts grouped into 7 groups the same as above PGC.90. (Groups 8 and 9 are additional to the normal PGC and not for PGC.Pymes)

b. Its use is optional, unlike the first 3 sections above are mandatory

5. Definitions and accounting relationships

a. Technical definition of debits and credits in accounts

b. Its use is optional, unlike the first 3 sections above are mandatory

With the new PGC.Pymes.2008 approved, it becomes necessary, a rigorous analysis of the different sections of our accounting, and once under its impact, the measures necessary ... ..

For whom is mandatory ?....

For all companies, without prejudice that may apply PGC.Pymes

It is optional the Chart of Accounts, though I understand it highly recommended for its full implementation.

Why the 2008 who can be presented in abbreviated structure?

? 2008 = When submitting 2 years in a row, 2 described circumstances of the closing date.

 For the ECB - ECPN - MEM

? Active <= 2850 thousands of euros

? Sales <= 5700 thousands of euros

? Template <= 50 employees

 For the PYG

? Active <= 11,400 thousand euros

? Sales <= 22,800 thousand euros

? Template <= 250 employees

 For EFE and IGE

? Not necessary to present in abbreviated structure

How do we close 2007 and open 2008 ?....

? CLOSING 2007

 Close 2007 with PGC.90

? OPENING 2007

 If ... ... ...

? PYME.-2008 before opening, prepare opening balance

• Recognition of new assets and liabilities, and elimination of unrecognized

? For the recognition mentioned, we must establish a voluntary reserves ("Adjustment for changes in value 1131-Reservations ??...) voluntary changes in value adjustments.

? Study their effects with the Treasury

• Reclassification of the assets under new rules

? MICRO .- (you want to apply the PGC-SMEs), applies no recognition, no reclassification.

 is optional:

• Value the elements according to the new accounting standards. Differences were taken to a reserve account.

 Ratings

? The assessment can be carried out unless the above criteria PGC.90 financial instruments fair value criterion

? Assessment of all the items under the new criteria

? HOME 2008

 Once developed the "opening balance sheet?, Will be opening the 2008 seat

? CLOSING 2008

 In closing the 2008, and only this year, the annual accounts are not compared with 2007

 In memory of 2008, SI to include:

? Balance Sheet and Profit and Loss 2007

? Be created under "Matters arising from the transition to new accounting rules? report where the differences in criteria and their impact on equity as well as losses by applying TDV (Impairment Test) had been encountered.

SOME SPECIFIC COMMENTS TO CONSIDER:

Leasing contracts .-

You have to have them all by hand, since we have to establish fair value, presumably coinciding with the nominal outstanding, and cancel the accounts that had PGC.90 Interest Tax deferred or delayed.

That is the expense, only to be recorded for accounting purposes, when earned, ie when the share is accounted for regularly.

In case of not having the contract, rely on calculating the "present value? discounted at the interest rate you're paying.

As the new PGC.Pymes.2008 one with financial approach, especially taking into account the background form, will be accounted for in our plant and equipment, what once had in Heritage. (Always taking into account the lower value between the fair value or amortized cost value)

Now also includes the possibility to modify the valuation of these assets (like the rest), taking into account future costs have for dismantling, removal or other concepts inherent in the fixed assets concerned.

Immobilized., -

We must take into account the new classification of fixed assets: Intangible, Material, Real Estate, In Progress, Financial LP, bonds and deposits, etc..

Above all be subjected to a TTL (Impairment Test) to choose perhaps the lowest value between fair value and accounting.

Stocks .-

Remember the only criteria now accepted FIFO and Weighted Average Cost.

Financial Assets and Liabilities .-

Apart from considering fair value will be rectified in the corresponding cases where its current value differs from book value.

Tax losses from previous years .-

If we counted in the group 474, the "Tax losses Prior year?, Will have to cancel reservations because now recognizing the tax credit (30% above)

We will go for it to temporary differences.

Goodwill .- (or other intangible assets)

We will have to submit to TDV (Impairment Test) to measure fair value if the value corresponds maintain, modify or make it disappear.

Renting or leasing contracts .-

Studying accounting consideration, without consideration of its legal, because as in the case of leasing, the new sticks PGC.2008 the substance rather than to the "form contract?

Notes .-

BCE.-Balance

PYG.-Income

ECPN.-State Changes in Equity

Eph-State Cash Flows

IGE.-Management Report

Mem-Memory

IAS International Accounting Standards .-

.- IFRS International Financial Reporting Standards