General Accounting and SME Plan

This work contains Royal Decree 1514/2007, dated November 16, approving the General Accounting Plan, and Royal Decree 1515/2007, of November 16, approving the General Accounting Plan of Small and Medium Enterprises and the specific accounting criteria for microenterprises, both adapted to Royal Decree 1159/2010. These Royal Decrees develop Law 16/2007, of July 4, on reform and adaptation of commercial legislation in accounting, according to the criterion of transparency and comparability marked by the European Union. Both are the basic accounting standards and present their contents as follows: conceptual framework, standards of registration and valuation of generalized application, models of normal and abbreviated annual accounts and definitions and accounting relationships more common. The General Accounting Plan for Small and Medium-sized Enterprises is intended for companies that do not exceed two of the three following limits during two consecutive financial years: 2.85 million euros of assets, 5.7 million euros of turnover and 50 employees. In addition, compared to the PGC, it is more synthetic, since it has eliminated the treatment of operations that SMEs do not perform and the annual accounts models have been reduced, even suppressing the cash flow statement. It also includes indispensable consulting tools for accounting students: alphabetical indexes of accounts and two drop-downs: PGC: Chart of Accounts, Balance Sheet, Profit and Loss Account, Statement of Changes in Equity and Statement of Cash Flows. PGC of SMEs: Chart of Accounts, Balance and Profit and Loss Account.