Spanish General

Accounting
Plan1

1
Consolidated text with the amendments introduced by: Royal Decree 1159/2010, of
September 17, Royal Decree 602/2016, of December 2 and Royal Decree 1/2021, of January 12,
applicable starting January 1, 2021.
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su procedencia
 SPANISH GENERAL ACCOUNTING PLAN
(PLAN GENERAL DE CONTABILIDAD ESPAÑOL –
ENGLISH TRANSLATION)2
OVERVIEW

Pages
PRESENTATION 7
INTRODUCTION 9
PART ONE
ACCOUNTING FRAMEWORK 35
1º Annual accounts. Fair presentation 37
2º Disclosure requirements in the annual accounts 37
3º Accounting principles 38
4º Components of the annual accounts 40
5º Recognition criteria for elements of annual accounts 41
6º Measurement criteria 42
7º Generally accepted accounting principles 47
PART TWO
RECOGNITION AND MEASUREMENT STANDARDS 49
1st Application of the Accounting Framework 51
2nd Property, plant and equipment 51
3rd Specific standards on property, plant and equipment 55
4th Investment property 56
5th Intangible assets 56
6th Specific standards on intangible assets 57
7th Non-current assets and disposal groups held for sale 59
8th Leases and similar transactions 61
9th Financial instruments 65
10th Inventories 96
11th Foreign currency 98
12th Value added tax (VAT), Canary Island tax (IGIC) and other indirect taxes 102
13th Income tax 102
14th Revenue from sales and the rendering of services 107

2
Approved by Royal Decree 1514/2007 of 16th November 2007.

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 Pages
15th Provisions and contingencies 112
16th Liabilities arising from long-term employee benefits 113
17th Share-based payment transactions 115
18th Grants, donations and bequests received 116
19th Business combinations 118
20th Joint ventures 132
21st Transactions between group companies 134
22nd Changes in accounting criteria, errors and accounting estimates 137
23rd Events after the balance sheet date 138
PART THREE
ANNUAL ACCOUNTS 139
I. STANDARDS FOR THE PREPARATION OF ANNUAL ACCOUNTS 141
1st Documents comprising the annual accounts 143
2nd Preparation of annual accounts 143
3rd Structure of the annual accounts 143
4th Abbreviated annual accounts 144
5th Standards commonly applicable to the balance sheet, the income state-
ment, the statement of changes in equity and the statement of cash flows 145
6th Balance sheet 147
7th Income statement 151
8th Statement of changes in equity 153
9th Statement of cash flows 155
10th Notes to the accounts 157
11th Revenue for the period 158
12th Average number of employees 158
13th Group companies, jointly controlled entities and associates 158
14th Interim financial statements 159
15th Related parties 159
III. STANDARD FORMAT FOR ANNUAL ACCOUNTS 163
III. ABBREVIATED FORMAT FOR ANNUAL ACCOUNTS 239
PART FOUR
CHART OF ACCOUNTS 263
PART FIVE
DEFINITIONS AND ACCOUNTING ENTRIES 309

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 PRESENTATION

The General Accounting Plan represents the legal development in company

law for individual annual company accounts, and given its nature, it is a widely
used tool which responds to the meaning of accounting as an essential
information system that will be used both within the company itself and by
third parties dealing with the entity.
The information provided in the accounting reports must meet a set of
essential requirements enabling adequate decision-making, this includes the
existence of a uniform accounting framework that allows the comparability of
financial information. That is the reason why, within the scope of the European
Union, a decision was reached on the necessity of having unique accounting
standards that allow the essential comparability of the accounts corresponding
to the entities operating in the different states of the European Union. In this
way, the decision taken by the European Council from January 1, 2005, was
justified and involves the mandatory application of the International Accounting
Standards adopted in Europe (IFRS-EU) for the consolidated annual accounts of
groups with a stock exchange listing. This decision had the direct consequence
of modifying the Fourth and Seventh Directives on accounting regulation.
After the previously mentioned modifications, the first step towards
accounting harmonization in Spain took place with the implementation of
Law 16/2007, of July 4, reforming and adapting company law on accounting
matters for international harmonisation based on European Union regulations.
This measure allowed the incorporation into Spain of the legal framework
contained in the European Accounting Directives adjusted by the contents
of the European Commission Regulations that incorporate IFRS-EU. The final
provision of the above mentioned Law 16/2007 gave the Government the
competence to approve, by Royal Decree, the General Accounting Plan, as
well as its modifications and complementary regulations, in accordance with the
provisions of the Community Directives and taking into consideration IFRS-EU.
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 In this way, approval was made through Royal Decrees 1514/2007 and
1515/2007, of November 16, for the General Accounting Plan which is
mandatory for all companies, and the General Accounting Plan for Small and
Medium-sized Companies which also incorporates simplified criteria for micro-
enterprises and that can be voluntarily applied by all companies that meet the
requirements specifically required for its application.
Subsequently, different changes were included as a result of the permanent
updating of the regulatory framework such as those included in Royal Decree
1159/2010, of September 17, in force for the years commencing on or after January
1, 2010, and the changes introduced by Royal Decree 602/2016, of December
2, in force for the years commencing on or after January 1, 2016, which basically
includes a simplification of accounting obligations for small and medium-sized
companies; a new regulation for the accounting treatment of intangible assets,
especially for goodwill, and a modification of the Rules on the formulation of
Consolidated Annual Accounts, more specifically, the cases where exemption and
exclusion of the obligation to consolidate applies as well as the new regulation on
goodwill in line with the treatment of individual annual accounts.
Finally, in 2021, the entry into operation of the last modification took
place. This change was carried out through Royal Decree 1/2021 of January
12, published in the BOE of January 30, which updates the registration and
valuation rule 9.ª “Financial instruments” and the 14th registration and valuation
rule “Income from sales and provision of services”. These modifications are
the result of the adaptation to IFRS-EU 9 and IFRS-EU 15. The incorporation
of these changes into the General Chart of Accounts was carried out once it
became clear that the new treatment of the IFRS-EU is more useful and suitable
for the users of the individual annual accounts when taking economic decisions.
The new edition presented includes the consolidated text of the General
Ac-counting Plan, which is mandatory for all companies, and which is in force
and applicable to the annual accounts corresponding to the years commencing
on or after January 1, 2021.
Finally, I would like to thank Dr. Anne Marie Garvey, BSc (Hons) OPEN;
MSc; FCCA, Associate Contracted Professor of Financial Economics and
Accounting at the University of Alcalá (UAH), for her advice in translating the
text into English, and the ICAC staff for the work they have done so that this
consolidated text can be presented today, which will undoubtedly facilitate its
use by its recipients.
In Madrid, September 2021
Santiago Duran Dominguez
President of the Accounting and Auditing Institute (ICAC)
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 INTRODUCTION

1. With the approval of the General Accounting Plan through Decree

530/1973 of 22 February 1973, Spain embarked upon the modern-day trend of
accounting standardisation.
Spain’s subsequent entry into what is now the European Union entailed
harmonising its accounting standards with European Community accounting
legislation, hereinafter the Accounting Directives (Fourth Council Directive
78/660/EEC of 25 July 1978 related to the annual accounts of certain types of
companies, and Seventh Council Directive 83/349/EEC of 13 June 1983 related
to consolidated accounts). Convergence was based on Law 19/1989 of 25 July
1989 and Royal Decree 1643/1990 of 20 December 1990, which approved the
1990 General Accounting Plan.
As a result, true accounting legislation was incorporated into Spanish
commercial law, giving financial information a distinctly international nature. The
General Accounting Plan, as in other countries, was a key tool of standardisation.
The standardisation process in Spain would not have been complete without
the regulatory developments advocated by the Accounting and Auditing
Institute (ICAC), with the collaboration of universities, professionals and other
accounting experts. These developments were based on the statements issued
by national and international accounting standards boards. The Spanish business
community has without doubt helped to consolidate acceptance of accounting
standardisation by applying these new standards.
2. In the year 2000, and with a view to making the financial information
of European companies more consistent and comparable, irrespective of
where these companies are domiciled or on which capital market they trade,
the European Commission recommended to other European Community
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institutions that the consolidated annual accounts of listed companies be
prepared applying the accounting standards and interpretations issued by the
International Accounting Standards Board (IASB).
In order for accounting standards drafted by a private organisation to
constitute law in Europe, specific legislation had to be enacted. European
Parliament and Council Regulation 1606/2002 was introduced on 19 July 2002,
defining the process for the European Union to adopt International Accounting
Standards (hereinafter adopted IAS/IFRS). The Regulation made it mandatory
to apply these standards in the preparation of consolidated annual accounts by
listed companies, leaving member states to decide whether to allow or require
direct application of the adopted IAS/IFRS to the individual annual accounts
of all companies, including listed companies, and/or the consolidated annual
accounts of other groups.
3. In Spain, the scope of the European decision was analysed by the
Expert Committee created by the Ministry of Economy Order of 16 March
2001. In 2002, the Committee prepared and published a report on the
accounting situation in Spain, setting out basic guidelines for reform. The
main recommendation was that individual annual accounts should continue
to be prepared under Spanish accounting standards, appropriately revised to
harmonise the accounting information and make it comparable, in keeping with
the new European requirements. The Committee considered that the reporting
company should decide whether to apply Spanish accounting standards or the
European Community Regulation in the preparation of consolidated annual
accounts.
Based on these considerations, through the eleventh final provision of Law
62/2003 of 30 December 2003 on tax, administrative and social measures,
the Spanish legislator stipulated that the individual accounting information of
Spanish companies, including listed companies, should continue to be prepared
under the accounting principles set out in Spanish accounting and commercial
law.
4. The amendments proposed by the Expert Committee were enacted by
Law 16/2007 of 4 July 2007, which revised and adapted commercial law to bring
accounting standards into line with European Union Regulations (hereinafter
Law 16/2007). This law made amendments to the Commercial Code and the
Companies Act, which were vital for the international convergence process
while also ensuring that the modernisation of Spanish accounting practices did
not contravene the legal regime governing aspects intrinsic to the operation of
any trading company, such as the distribution of profit, obligatory share capital
reductions and compulsory liquidation in the event of losses.
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 The first final provision of Law 16/2007 authorised the government to
approve the General Accounting Plan by Royal Decree, in order to set up a new
legal regulatory framework compliant with European Community Directives
considering the IAS/IFRS adopted under European Union Regulations. In
recognition of the importance of small and medium-sized enterprises (SMEs)
in Spain, the law also empowered the government to supplement the General
Accounting Plan with text adapted to the disclosure requirements of SMEs.
Moreover, the Ministry of Economy and Finance was empowered to approve
sector-specific adaptations proposed by the Accounting and Auditing Institute
(ICAC), while the Institute itself may also approve standards to implement the
General Accounting Plan and its complementary standards.
5. With the procedure underway for approval of Law 16/2007 by the
parliament, the Accounting and Auditing Institute started work on the new
General Accounting Plan with the goal of drafting the text as swiftly as possible.
An expert committee was set up together with various working groups
on specific areas, formed by experts from the Institute, professionals and
academics, who contributed their invaluable knowledge and experience with
regard both to overall considerations and specific operations, thereby bridging
the theoretical and practical aspects of a constantly changing business world.
The General Accounting Plan, adapted to the relevant provisions of Law
16/2007, is therefore the work of an extensive ensemble of accounting experts,
brought together with the aim of achieving an appropriate balance between
companies preparing information, users of that information, expert accounting
professionals, university professors in the field and government representatives.
The new text should be evaluated considering two key concepts. Firstly, the
purpose of convergence with the European Community Regulation containing
the adopted IAS/IFRS to make the sets of accounting standards compatible,
even though the number of options in the new General Accounting Plan is
more limited than in the European Community Regulation and certain criteria
included in the European Community Directives, such as capitalisation of
research expenses, may be applied, although this is an exception and by no
means the general rule.
Secondly, the autonomous nature of the new General Accounting Plan as
an approved legal standard in Spain, for which the scope of application is clearly
defined: the preparation of individual annual accounts by all Spanish companies,
notwithstanding the special rules inherent in the financial sector deriving from
European legislation in this respect.
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 Logically, correct interpretation of the new General Accounting Plan would
not entail simply applying the IAS/IFRS incorporated in European regulations.
This option was available to the Spanish legislator pursuant to Regulation
1606/2002 but was ultimately rejected in the process of internal debates
on European accounting strategy. The adopted IAS/IFRS are, nonetheless, a
benchmark for all future Spanish accounting legislation.

II

6. The new General Accounting Plan is structured similarly to its

predecessors, to maintain our traditional accounting guidelines for those
areas unaffected by the new criteria. The change in order merely reflects the
convenience of locating the most substantive contents, of mandatory application,
in the first three parts, with standards of largely voluntary application set out in
the final two sections. The structure is as follows:
– Accounting Framework
– Recognition and measurement standards
– Annual accounts
– Chart of accounts
– Definitions and accounting entries
The Accounting Framework is a set of basic underlying assumptions,
principles and concepts that provide the basis for logical recognition and
measurement, through deductive reasoning, of the items disclosed in the
annual accounts. The incorporation of the Framework into the General
Accounting Plan, and its consequent status as a legal standard, is aimed at
ensuring thoroughness and consistency in the subsequent process of preparing
recognition and measurement standards and interpretation and integration in
accounting legislation.
From part one of the new General Accounting Plan it is clear that the
objective of systematic and regular application of accounting standards
continues to be fair presentation of a company’s equity, financial position and
results. To reinforce this requirement, accounting and commercial law sets
out the principles to serve as guidance for the government in its regulatory
developments and for reporting entities in their application of the standards.
The economic and legal substance of transactions is the cornerstone for their
accounting treatment. Transactions are therefore recognised based on their
nature and economic substance, and not just their legal form.
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 The Framework continues to attach relevance to the principles included in
part one of the 1990 General Accounting Plan, which are still considered the
backbone of accounting legislation. Nonetheless, the two amendments to this
section seek to enhance the theoretical consistency of the model as a whole.
In keeping with the Framework’s system of deductive reasoning, the
principles of recognition and matching of income and expenses are classed as
criteria for recognising items in the annual accounts, while the purchase price
principle has been included in the Framework section on measurement criteria,
as assigning value is considered to be the final step before accounting for any
economic transaction or event.
The second change puts prudence on an equal footing with other principles.
This in no way suggests that the primacy of a company’s solvency with respect
to its creditors is abandoned in the model. On the contrary, risks should
continue to be recognised in the neutral, objective manner previously required
by the 1990 General Accounting Plan for analysing obligations. In the past it
was generally the case that provisions should not be made except where the
company was exposed to genuine risks.
For the purposes of international harmonisation, Law 16/2007 of 4 July 2007
revised and adapted commercial law to bring accounting standards into line
with European Union legislation, and article 38 of the Commercial Code was
amended as a result. Paragraph c) of this article stipulates that, in exceptional
circumstances, where risks that have a significant impact on fair presentation
come to the company’s knowledge between the date of preparation of the
annual accounts and of their final approval, the annual accounts should be
redrafted.
The purpose of this legal regulation concerning events occurring subsequent
to the balance sheet date is not to require directors to redraft the annual
accounts for just any significant circumstances arising prior to their approval
by the pertinent governing body. Only in exceptional and particularly relevant
circumstances relating to the company’s equity position, involving risks that
existed at the closing date but which only came to light subsequently, are the
directors required to redraft the annual accounts. The period during which
accounts may be required to be redrafted generally prescribes when the
process for their approval commences.
Under the new model, there is a significant change in the Framework
definitions of items included in the annual accounts (assets, liabilities, equity,
income and expenses). In particular, liabilities are defined as present obligations
arising from past events, the settlement of which is expected to result in an
outflow of resources from the company, which could embody future economic
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benefits. This definition and the prevalence of substance over form will affect
the recognition of certain financial instruments, which should be accounted for
as liabilities when, a priori, and from a strictly legal perspective, they appear to
be equity instruments.
A further significant amendment in this section is the stipulation that certain
income and expenses should be accounted for directly in equity (and disclosed
in the other comprehensive income statement) until the item with which they
are associated is recognised, derecognised or impaired, at which point the
income and expenses should generally be recognised in the income statement.
In accordance with the Framework, the company should record items in
the balance sheet, the income statement or the statement of changes in equity
when it is probable that it will obtain or transfer resources embodying economic
benefits, and provided that the value can be reliably measured. Nonetheless, in
some cases, for instance with certain provisions, best estimates have to be
based on the probabilities of possible scenarios or outcomes of the associated
risk.
Section 6 of the Framework sets out the measurement criteria and certain
related definitions used in the standards contained in part two, to allocate
the appropriate accounting treatment to each economic event or transaction:
historical cost or cost, fair value, net realisable value, present value, value in use,
costs to sell, amortised cost, transaction costs attributable to a financial asset
or financial liability, carrying amount and residual value.
There is no doubt that the most significant change is fair value, now used
not only to account for certain valuation allowances but also to recognise
adjustments in value above the purchase price in the case of certain assets, such
as particular financial instruments and other items to which hedge accounting
criteria are applied.
Under both the new and former accounting models, assets should initially
be measured at purchase price. In certain cases the standards expressly refer
to purchase price as the fair value of the asset acquired and, where applicable,
of the consideration given. This is logical considering the principle of economic
equivalence that should govern any transaction of a commercial nature, whereby
the value of the goods or services provided and of the liabilities assumed should
be equivalent to the consideration received.
The Framework concludes with a reference to generally accepted
accounting principles and standards. The new legal framework for financial
information maintains the structure used in the 1990 General Accounting Plan,
based on Spanish legislation. However, there are two blocks of legislation in
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Spain: extensive European Community legislation (IAS/IFRS as adopted by the
European Union) directly applicable to the consolidated annual accounts of
groups containing at least one listed company; and the Commercial Code, the
Companies Act and the General Accounting Plan, applicable to the individual
annual accounts of Spanish companies. The role of the European Community
framework should therefore be taken into consideration.
When the new General Accounting Plan comes into force, the text
and provisions contained therein will continue to constitute the mandatory
legislation for companies falling within the scope of application. Nonetheless,
the criteria set out in sector-specific adaptations, rulings issued by the ICAC
and other implementation standards shall only remain in force insofar as they do
not conflict with the new higher-ranking accounting standards. Any aspect that
cannot be interpreted in the light of the regulatory content of the Law and the
Regulation, including sector-specific adaptations and rulings issued by the ICAC,
should be reflected in the individual annual accounts of companies, applying
criteria that are consistent with the new accounting legislation. However,
the international standards adopted by the European Union should under
no circumstances be applied directly, as an extension of the aforementioned
standards to individual annual accounts as it does not appear to have been the
Legislator’s intention.
In keeping with the core philosophy of the reform, the standards developed
to interpret the 1990 General Accounting Plan, sector-specific adaptations and
rulings issued by the ICAC, shall of course be amended and extended, based
on the legal framework deriving from regulations adopted by the European
Commission.
7. Part two of the General Chart of Accounts contains the recognition and
measurement standards. Changes have been introduced for two reasons: firstly,
to bring Spanish principles largely into line with the criteria set out in IAS/IFRS
adopted through European Union Regulations; and secondly, to incorporate
the criteria introduced into the General Accounting Plan since 1990 through
successive sector-specific adaptations, in order to make the standards more
systematic. The main changes are listed below.
Property, plant and equipment now include the present value of obligations
for dismantling, removing and restoring the site on which items are located as
part of the purchase price. Under the 1990 General Accounting Plan, these items
gave rise to the systematic recognition of a provision for risks and liabilities.
The provision to be recognised as a balancing entry for items of property, plant
and equipment shall be increased each year to reflect the time value of money,
notwithstanding any change in the initial amount from new estimates of the
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cost of the work or the discount rate applied. In both cases, the adjustment
shall entail remeasurement of both the asset and the provision at the start of
the reporting period in which that adjustment arises.
The treatment of provisions for major repairs also changes under the new
accounting framework. At the acquisition date, the company should estimate
and identify the costs to be incurred on servicing the asset. These costs shall be
depreciated separately from the cost of the asset until the date on which the
asset is serviced, at which point they shall be accounted for as a replacement.
Any amount pending depreciation shall be derecognised and the amount paid
for the repair work recognised and depreciated on a systematic basis until the
subsequent service.
While analysing the amendments, it should be noted that under the new
General Chart of Accounts borrowing costs incurred on the acquisition or
construction of assets until they are ready to enter service must be capitalised,
provided that a period of more than one year is required to bring the assets
to their working condition. This capitalisation was optional under the 1990
General Accounting Plan.
The last relevant change to this standard concerns the criteria for recognising
exchanges of property, plant and equipment. The standard differentiates
between exchanges with and without commercial substance. Those with
commercial substance are transactions in which the expected cash flows from
the asset received differ significantly from those of the asset given up. This
is either because the configuration of the cash flows differs or because the
entity-specific value of the asset received is higher than that of the asset given
up, which therefore becomes a payment method in financial terms. Based on
this reasoning, the standard stipulates that when the exchange has commercial
substance, any profit generated or loss incurred should be recognised, provided
that the fair value of the asset conveyed or received, as applicable, can be
measured reliably.
The reform does not introduce notable changes with respect to the
criteria for subsequent measurement of property, plant and equipment or the
recognition of asset depreciation or impairment (provisions for decline in value
in the 1990 General Accounting Plan). However, the appropriate techniques
for calculating unsystematic impairment of assets are described in great detail.
Specifically, the standard introduces the concept of cash-generating units,
defined as the smallest identifiable group of assets that generates cash inflows.
This concept serves as a basis for calculating impairment of the related group
of assets, provided that impairment cannot be determined separately for each
individual item.
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 With regard to the recognition of intangible assets in the balance sheet,
besides the criteria applicable to all assets (the asset must be controlled by the
company and meet the requirements of probability and reliable measurement),
the asset should also be identifiable, either because it is separable or because it
arises from legal or contractual rights.
One significant change in the new General Accounting Plan in this respect is
the potential for intangible assets with an indefinite useful life1. Such assets are
not amortised; however, where impairment is determined, an impairment loss
shall be recognised. Particular mention should be made of goodwill, which is no
longer amortised but instead tested for impairment at least annually. Should the
test give cause for impairment, this impairment would be irreversible and the
calculation should be disclosed in the notes to the annual accounts, taking great
care to ensure that goodwill generated internally by the company subsequent
to the acquisition date is not capitalised indirectly.
Establishment costs are also treated differently, henceforth recognised as
expenses in the income statement for the reporting period in which they are
incurred. However, costs of incorporation and share capital increases shall be
accounted for directly in the equity of the company and not in the income
statement. These expenses form part of overall changes in equity for the
reporting period and shall therefore be disclosed in the statement of total
changes in equity.
Another change to this standard is the possibility for development expenses
to be amortised over a period of more than five years, provided that this longer
useful life is duly justified by the company. Treatment of research expenses is
the same as under the 1990 General Accounting Plan. However, international
standards adopted in Europe generally require research expenses to be
recognised in the income statement in the reporting period in which they are
incurred, while nonetheless allowing for their recognition when identified as an
asset of the company acquired in a business combination. Pursuant to the Fourth
Directive, the General Accounting Plan adopts this treatment even when the
research expenses do not derive from a business combination, provided that
they are expected to have a positive economic impact in the future.
In recent years, different types of lease contracts and other similar
transactions have been a common source of financing for Spanish companies.
Alongside contracts classified strictly as finance leases, which are regulated
by section 1 of the seventh additional provision of Law 26 of 29 July 1988,
governing the discipline and intervention of financial institutions, a number of

1
Position adopted in the amended standard. See Royal Decree 602/2016 of 2 December.

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other contracts have emerged which, although operating leases in form, are
similar in substance to finance leases from an economic perspective.
The standard on leases therefore aims to specify the accounting treatment
applicable to these transactions. In general terms, except with regard to the
nature of the asset, this should remain unchanged, as the doctrine had already
included contracts whereby the risks and rewards of ownership of the goods
or underlying rights are transferred in the 1990 General Accounting Plan, in
paragraphs f) and g) of measurement standard 5.
Also new in the General Accounting Plan is the classification of non-current
assets and disposal groups as held for sale. To qualify for this category, non-
current assets and disposal groups comprising assets and liabilities must meet
certain conditions; namely, they must be immediately available and their sale
highly probable.
The main consequence of this new classification is that assets in this
category are not amortised or depreciated. Such assets should be disclosed in
the balance sheet within current assets, as their carrying amount is expected to
be recovered by selling the assets rather than through their use in the ordinary
course of the company’s business. The standard income statement should
also include certain information on disposal groups held for sale classified as
discontinued operations (in particular, disposal groups constituting a significant
line of business or geographical area, or subsidiaries acquired for resale).
8. Standard 9 on financial instruments and the standard regulating “Business
combinations” are without doubt the most relevant amendments in the new
General Accounting Plan.
The main change introduced in the new text is that the measurement of
financial assets and financial liabilities is based on the company’s management of
these items and not on their nature, i.e. fixed or variable return.
For measurement purposes, the different types of financial assets are classified
in the following portfolios: loans and receivables (including trade receivables),
held-to-maturity investments, financial assets held for trading, other financial
assets at fair value through profit or loss, investments in group companies,
jointly controlled entities and associates and available-for-sale financial assets2.
Financial liabilities shall be classified in one of the following categories: debts
and payables (mainly suppliers), financial liabilities held for trading and other
financial liabilities at fair value through profit or loss3.

2
Position adopted in the amended standard. See Royal Decree 1/2021 of 12 January.
3
Position adopted in the amended standard. See Royal Decree 1/2021 of 12 January.

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 Another new aspect is the application of fair value to all financial assets,
except for investments in group companies, jointly controlled entities and
associates, loans and receivables and investments in debt securities that the
company intends to hold to maturity, provided that the fair value can be reliably
measured.
This change in content and accounting approach is evident through the
structuring of the standard, which has grouped measurement standards 8 to 12
from the 1990 General Accounting Plan. However, the ordinary transactions
of most companies, namely trade receivables and trade payables, are barely
affected. The main new requirements are the measurement at fair value of assets
held for trading (investments held by the company with the clear intention of
disposal in the short term) and available-for-sale assets. Changes in fair value
of these assets shall be recognised in the income statement and directly in
equity, respectively. Changes in fair value recognised directly in equity shall be
transferred to the income statement when the investment is derecognised or
impaired4.
A third major change in this area is the general recognition, measurement
and disclosure as liabilities of all financial instruments with characteristics of
equity instruments that constitute an obligation for the company under the
terms of the agreements between issuer and holder. In particular, these include
certain redeemable and non-voting shares. The treatment of these transactions
also has to be consistent; when these instruments are classified as liabilities, the
associated remuneration clearly has to be accounted for as a finance expense
and not a dividend.
Finally, the accounting treatment of transactions involving own shares or
equity holdings has also been modified in the new General Accounting Plan.
Any difference between the purchase price and the consideration received at
the date of the sale shall be recognised directly in capital and reserves in order
to show the economic substance of these transactions; namely, repayments or
contributions to the equity of the company’s equity holders or owners.
The last two sections of the standard on financial instruments contain a
number of specific cases and the treatment of accounting hedges. These sections
include the minimum content considered necessary to ensure the legal security
of any subsequent regulatory developments in these areas. The treatment of
accounting hedges would need to be set out in greater detail in a relevant ruling
issued by the ICAC.

4
Position adopted in the amended standard. See Royal Decree 1/2021 of 12 January.

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 9. The measurement and recognition standard applicable to foreign
currency has also been changed.
When a company sets up operations in a foreign country through a
branch or when, as an exception, a company based in Spain operates mainly
in a currency other than the Euro, in strictly economic terms the exchange
differences arising on foreign currency items relate to the currency used in
the company’s economic environment and not the Euro. Frequently this is the
currency in which the sales prices of its products and any expenses incurred
are denominated and settled.
However, in light of the obligation to present the annual accounts in euros,
once the company has accounted for the effect of the foreign currency exchange
rate, it is required to recognise the effect of translating its functional currency
to the Euro. The standard therefore stipulates that translation differences
should be recognised directly in equity, as items denominated in the functional
currency will not be translated to euros in the short term and, consequently,
will have no effect on the company’s cash flows. The criteria for determining
the functional currency and, where applicable, translating this currency to euros
are to be described in the standards for the preparation of consolidated annual
accounts approved through regulatory developments of the Commercial Code.
The standard on foreign currency also incorporates the terms monetary
item and non-monetary item into the General Accounting Plan. These terms are
used in IAS 21, the benchmark international standard adopted by the European
Union, and in Royal Decree 1815/1991 of 20 December 1991. The main
change is in the treatment of exchange gains on monetary items (cash, loans
and receivables, debts and payables and investments in debt securities). Under
the new General Accounting Plan, these shall be recognised in the income
statement, as the prudence principle has been placed on an equal footing with
other principles and there has been a transition to symmetrical treatment of
exchange gains and exchange losses as a result.
Under the 1990 General Accounting Plan, income tax was recognised based
on timing and permanent differences between accounting profit or loss and the
taxable income or tax loss disclosed in the income statement. The governmental
doctrine on accounting policies also required that this treatment be applied to
other operations (for instance, certain transactions reflected under “Business
combinations” in the new General Accounting Plan: merger transactions and
the non-monetary contribution of a company’s shares representing majority
voting rights).
As a result of applying the new approach introduced by this General
Accounting Plan (differences giving rise to deferred tax assets and liabilities
– 20 –
are calculated based on the company’s balance sheet), the annual accounts will
reflect similar amounts to those obtained using the former criteria. This change
is aimed at ensuring consistency with a Framework based on recognition and
measurement criteria that give preference to assets and liabilities over income
and expenses, which is the international generally accepted approach.
A further amendment compared to the 1990 General Accounting Plan is
the differentiation between the current income tax expense (income) (which
shall include permanent differences arising under the 1990 General Accounting
Plan) and the deferred income tax expense (income). The total expense or
income shall be the algebraic sum of these two items, which should nonetheless
be quantified separately. Deferred taxes and prepaid taxes have been renamed
deferred tax liabilities and deferred tax assets, respectively, to bring Spanish
standards into line with the terminology used in international standards adopted
in Europe.
The income tax expense (income) shall generally be included in the income
statement, except when associated with income or expenses recognised directly
in equity, in which case, logically, the income tax expense (income) should be
recorded directly in the other comprehensive income statement, so that the
related equity item is disclosed net of the tax effect. The tax effect on initial
recognition of “Business combinations” shall be accounted for as an increase in
goodwill. Subsequent variations in deferred tax assets and liabilities associated
with assets and liabilities accounted for in the “Business combination” shall be
recorded in the income statement or the statement of other comprehensive
income in accordance with the general rules.
The standard that regulates the accounting treatment of revenue from
sales and the rendering of services5 includes a new criterion for recognising
exchanges of goods or services in trade transactions. Based on the new
Framework principles, the purchase price shall lead to recognition of revenue
on these transactions provided that the goods or services exchanged are not
of a similar nature or value.
A further significant amendment in the General Accounting Plan relates to
trade transactions. This change introduces prompt payment discounts on trade
receivables, irrespective of whether these are included in an invoice, as an
additional item in revenue (for a negative amount), which is therefore excluded
from the company’s financial margin. In line with this new criterion, prompt
payment discounts granted by suppliers, whether on the invoice or not, are
accounted for as a decrease on the purchase.

5
Position adopted in the amended standard. See Royal Decree 1/2021 of 12 January.

– 21 –
 Following the introduction of the former General Accounting Plan, doubts
arose as to when exactly revenue on certain sales transactions was considered
to be accrued. The numerous clauses included in contracts presently governing
these transactions make it difficult at times to identify exactly when collections
and payments actually occur. Consequently, the new General Accounting Plan
sets out the requirements to be met by any transaction on which revenue is to be
recognised, further defining the criteria set out in the 1990 General Accounting
Plan in the interests of providing the model with greater legal security. By way
of example, the new General Accounting Plan clearly stipulates the requirement
regarding the transfer of the significant risks and rewards of ownership of the
goods6 (irrespective of the legal transfer) previously defined in governmental
doctrine as a prerequisite for recognition of the gain or loss by the vendor
and of the asset by the acquirer. The analysis required under the international
standard adopted by the European Union also demands compliance with other
conditions included in the new General Accounting Plan.
In keeping with the didactic or explanatory nature of this standard, the
new General Accounting Plan includes a specification of the substance over
form principle. This principle requires that transactions encompassed in a
single operation be considered on an individual basis, or that several individual
transactions be considered as a whole, when an analysis of the economic and
legal substance of the transactions indicates the prevalence of their individual
or joint nature, respectively.
10. Although standard 15 on provisions and contingencies was introduced
as a result of the prudence principle ceasing to prevail, this does not mean
that provisions will disappear from the balance sheets of Spanish companies.
The ruling on environmental information issued by the ICAC in 2002 already
incorporated the main matters set out in the international standard on this
subject (IAS 37 Provisions, Contingent Liabilities and Contingent Assets) into
the Spanish accounting model. These primarily include the stipulation that all
provisions should relate to a present obligation arising from past events, the
settlement of which is expected to result in an outflow of resources and the
amount of which can be measured reliably; the distinction between legal and
contractual, and constructive or tacit obligations; the requirement to discount
the amount by the time value of money when payment is to be made in the long
term; and the accounting treatment of consideration payable to a third party on
settlement of the obligation.

6
Position adopted in the amended standard. See Royal Decree 1/2021 of 12 January.

– 22 –
 When not even the minimum amount of the liability can be measured
reliably, this fact shall be disclosed in the notes to the annual accounts in the
terms described in part three of the General Accounting Plan. As indicated
previously, this is irrespective of the degree of uncertainty inherent in the
calculation of any provision, whereby on many occasions the requirement for
the outflow of resources to be probable should necessarily entail calculation of
the probable amount of the obligation.
This consideration should be extended to the accounting treatment of
long-term employee benefits, including post-employment benefits (pensions,
post-employment healthcare and other retirement benefits) and any other
remuneration entailing a payment to an employee that is deferred for a period
of more than twelve months after the employee has rendered the service.
Nonetheless, contributions made to separate entities generally have shorter
payment periods.
The standard distinguishes between defined contribution long-term
employee benefits, whereby risks are not retained by the company and any
liabilities disclosed in the balance sheet merely reflect the instalment payable
to the relevant insurance entity or pension plan, and other remuneration that
does not meet these requirements, known as defined benefit remuneration.
In the case of defined benefit remuneration, the company must recognise
the associated liability because it retains a risk, irrespective of whether the
commitment to employees has been arranged through a collective insurance
policy or a pension plan. If the company has externalised the risk, the liability
shall be recognised in the balance sheet at the net amount resulting from applying
the quantification criteria described in the standard. When the company has
not externalised the commitment, the liability shall be recognised in the balance
sheet at the present actuarial value of the commitments, less unrecognised past
service costs.
The standard also requires that differences arising on the calculation of assets
or liabilities as a result of changes in actuarial assumptions relating to defined
benefit post-employment remuneration be recognised in voluntary reserves
through the statement of changes in equity. This ensures that assets or liabilities
are correctly quantified at all times based on the best available information,
while simultaneously neutralising the impact of inevitable fluctuations in actuarial
variables on the company’s profit or loss, where actuarial gains or losses are
recognised in the income statement.
In the standard on share-based payment transactions, the General
Accounting Plan groups together all transactions in which the company
grants either its own equity instruments or cash for the value of those
– 23 –
equity instruments as consideration. In particular, these criteria stipulate the
accounting treatment applicable to share-based employee remuneration, which
has become increasingly common in recent years, as permitted by article
159 of the revised Companies Act. In line with the 1990 General Accounting
Plan, for clarification purposes section 1.4 of standard 2 on property, plant
and equipment reiterates the criteria established for items received as a non-
monetary capital contribution, which are to be measured at their fair value on
the contribution date.
The changes to standard 18 on grants, donations and bequests received
distinguish between those from equity holders or owners and those from third
parties. Grants awarded by third parties, provided that these are non-refundable
grants under the new criteria, are generally recognised as income directly in the
statement of other comprehensive income and subsequently transferred to the
income statement in accordance with their purpose. In particular, grants for
expenses are recognised when the associated expenses are incurred. Grants
should be recognised as liabilities until all the conditions for consideration as
non-refundable have been met.
Consequently, irrespective of the amendments, grants continue to be
transferred to the income statement based on the purpose for which they were
awarded, reflecting the criteria already incorporated into certain sector-specific
adaptations (healthcare entities, not-for-profit entities, viticulture businesses)
of measurement standard 20 from the 1990 General Accounting Plan.
However, the main change in the new General Accounting Plan, besides
initial recognition of grants, donations and bequests directly in equity, is that
amounts received from equity holders or owners of the company are classed
as capital and reserves without valuation adjustments and not as income. Such
grants, donations and bequests are put on an equal footing from a financial
perspective with other contributions made to the company by equity holders
or owners, primarily with a view to strengthening the equity position. The
1990 General Accounting Plan only considered this treatment for equity holder
or owner contributions made to offset losses or a “deficit”. Contributions
to ensure a minimum level of profitability, to support specific activities or to
establish government prices for certain goods or services were not eligible for
this treatment.
Companies in the public sector can receive grants on the same terms as
private sector companies. Consequently, in the case of grants awarded to
public sector companies by the equity holders to finance activities of general
or public interest, the fair presentation principle requires an exception to the
– 24 –
general rule set out in section 2 of standard 18, and application of the general
accounting treatment regulated in section 1.
11. Business acquisitions can be made through different legal transactions:
mergers, spin-offs, non-monetary contributions and the sale and purchase of an
economic unit (i.e. the assets and liabilities that make up a business), or the non-
monetary contribution or sale and purchase of shares that grant control over a
company. Mergers and spin-offs are the only examples of such transactions not
reflected in a general standard, despite firmly established government policies.
The new General Accounting Plan bridges this gap in standards and provides
the accounting model and, by extension, business activity with the desired legal
security. Standard 19 regulates “Business combinations”, namely transactions in
which the company acquires control of one or more businesses.
When the working group began its review, the International Accounting
Standards Board (IASB) published a proposed amendment to the international
standard on these transactions (IFRS 3 Business Combinations). Certain changes
were significant and prompted a debate on what would be the most suitable
point of reference: the prevailing standard or the proposed amendment. It was
initially considered more suitable to adopt the criteria set out in the draft IFRS
3. However, as this standard has not yet been approved, it was finally decided
that the General Accounting Plan should include the criteria established in the
prevailing standard adopted by the European Commission7. Notwithstanding
the above, this and the remaining provisions of the new General Accounting
Plan could be adapted to take into consideration any future amendments to
European Community accounting legislation, where appropriate.
The rules governing the accounting treatment of these transactions are
set out under the “purchase method”, whereby assets acquired and liabilities
assumed by the acquiring company are generally recognised at fair value.
Furthermore, goodwill is not amortised8 and any negative difference arising on
the business combination is recognised directly in the income statement at the
date on which the acquiring company obtains control of the acquiree.
However, in line with the European standard, this general system does not
encompass restructuring transactions between group companies. These are
not considered business acquisitions in purely financial terms, as economic and,
indirectly, legal control was already held by the management of the group to
which the companies belong, before the de jure unit arose from the combination.

7
Position adopted in the amended standard. See Royal Decree 1159/2010 of 17 September.
8
Position adopted in the amended standard. See Royal Decree 602/2016 of 2 December.

– 25 –
 The new General Accounting Plan aims to provide a legal structure for the
recognition of the main transactions currently carried out by Spanish companies.
As a result, although the IFRS 3 adopted by the European Union excludes, and
therefore does not regulate, the accounting treatment of such transactions
between companies of the same group, as these are common practice in the
business world, standard 21 establishes specific accounting treatment for
mergers, spin-offs and non-monetary contributions of a business.
The criteria established for these transactions in the new General
Accounting Plan are aimed at bridging the two basic positions within the group
formed by the ICAC for this purpose. From one perspective, the transferred
assets should continue to be recognised at the values, consolidated where
applicable, at which they were previously measured within the group before
the transaction. Advocates of this approach do not consider the legal form of
these transactions, including the sale and purchase of equity instruments that
grant control over a company. From another viewpoint, as the individual annual
accounts are reported by the company, acting independently from any group to
which it belongs, assets and liabilities in transactions with companies governed
by the same decision-making unit should be measured under the same terms
as those applied for third-party transactions, notwithstanding the disclosures
required in the notes to the annual accounts. These advocates proposed that
no specific standards be included to regulate these transactions, arguing that
such transactions should be accounted for by applying the criteria of standard
19 on business combinations.
The extensive debate that preceded the preparation of this chapter of the
General Accounting Plan and the varied viewpoints in this respect underlined
that, to guarantee legal security and the comparability of the financial information
arising from these transactions, what was most important, irrespective of the
different approaches and positions, was the need to set a single recognition
criterion. This matter was resolved focusing on the two characteristics which,
from a legal and economic perspective, are considered to give these transactions
the particular nature inherent in any special rule.
Firstly, the acquiring company conveys its own equity instruments as
consideration or, as in the case of simplified mergers regulated by article 250
of the revised Companies Act, is not required to issue any shares or equity
holdings. Secondly, the very nature of the transaction: assets and liabilities
constituting a business, which are directly transferred en bloc from one party
to another, and by extension from one set of accounting records to another,
with no real variation in the pre-existing economic unit, which, in essence,
simply adopts a new organisational or legal structure.
– 26 –
 Based on this reasoning, where consideration is not in the form of securities
or there is no direct object such as that described in the transaction, the scope
of the standard does not encompass transactions that are structured for legal
purposes as a sale and purchase of assets and liabilities constituting a business,
or transfer transactions, including non-monetary capital contributions, involving
a portfolio of equity instruments that grant control over a business.
Until European regulators reach a consensus, the overall approach used for
these transactions is based on the accounting criterion included in section 2.2
of standard 21, which is in line with the government policy that implements the
1990 General Accounting Plan.
The standard on joint ventures continues to uphold the criteria applied to
date by entities operating as temporary joint ventures, which is the main type of
business collaboration. The accounting treatment for temporary joint ventures
was incorporated into the General Accounting Plan through certain sector-
specific adaptations (construction companies, electricity sector, etc.).
Consequently, there are no relevant accounting amendments in this
respect. Instead, the standard has been made more systematic, as the range
of transactions regularly carried out by companies has been included in the
General Accounting Plan, irrespective of the sector in which they operate.
Notwithstanding the above, for the purposes of regulatory coordination, the
terminology used in the standard has evidently been updated with respect
to the former General Accounting Plan and now reflects the new definitions
included in European Union accounting standards.
12. Standard 22 on changes in accounting criteria, errors and accounting
estimates, amends the rule applicable to changes in criteria set out in the 1990
General Accounting Plan.
Specifically, while the impact on net assets and liabilities of the company
arising from the change in accounting criteria or correction of the error must
still be quantified retrospectively, the amendment entails a new obligation for the
effect of these changes also to be disclosed retrospectively. This requirement
originates from alignment with the international standards adopted and dictates
that income and expenses deriving from a change in criteria or correction of an
error should be accounted for directly in the company’s equity. Such income
and expenses should generally be recognised in voluntary reserves, unless the
change or correction affects another equity item.
Finally, the standard on events after the balance sheet date specifies the
two types of events that may occur, depending on whether the circumstances
– 27 –
disclosed already existed at the balance sheet date or emerged subsequent to
that date.

III

13. Part three of the General Accounting Plan contains the standards for
the preparation of annual accounts with standard and abbreviated models for
the documents that comprise the annual accounts, including the contents of the
notes.
The annual accounts comprise the balance sheet, income statement,
statement of changes in equity, statement of cash flows and the notes thereto.
The statement of cash flows shall not be obligatory for companies eligible
to prepare their balance sheet, statement of changes in equity and notes in
abbreviated format9. Consequently, the main change, besides greater disclosure
requirements in the notes, is the incorporation of two new documents: the
statement of changes in equity and the statement of cash flows.
To make the financial information supplied by Spanish companies suitably
comparable, and in line with the 1990 General Accounting Plan, compulsory
models have been prepared indicating a defined format and the specific
terminology that must be used. This is not the case with the adopted IAS/IFRS.
A further general amendment, in keeping with the criteria set out in the
adopted international standards, is the requirement to include quantitative
information for the prior reporting period in the notes to the annual accounts,
and to adjust comparative figures for the prior period for any valuation
adjustments due to changes in accounting criteria or errors. In addition to
comparative figures, where relevant to aid comprehension of the annual
accounts for the current reporting period, the standard also requires that
descriptive information for the prior period be included.
Ultimately, the changes incorporated into the model are aimed at providing
the user of the annual accounts with more detailed information on the directors’
management of company resources by simply reading the principal accounting
statements.
Items recognised in the balance sheet have been classified as assets,
liabilities and equity. Equity shall include capital and reserves without valuation
adjustments and other equity items classified separately. This classification aims

9
Position adopted in the amended standard. See Royal Decree 602/2016 of 2 December.

– 28 –
to clarify that equity of the company comprises the traditional shareholders’
equity and other items that can be disclosed in a company’s balance sheet under
the new criteria; primarily, fair value adjustments to be recognised directly in
equity, pending transfer to the income statement in subsequent years.
Assets have been classified as non-current and current, similarly to the
differentiation between fixed assets and current assets under the 1990 General
Accounting Plan. Current assets shall comprise items intended for sale or
consumption or expected to be realised in the company’s normal operating
cycle. Current assets shall also comprise items expected to mature, or to be
sold or realised, within twelve months, assets classified as held for trading,
except the non-current portion of derivatives, and cash and cash equivalents.
All other assets shall be classified as non-current.
To record the management of resources in greater detail, the new General
Accounting Plan stipulates that non-current assets held for sale (generally
property, plant and equipment, investment property and investments in group
companies, jointly controlled entities and associates expected to be sold within
twelve months) and disposal groups held for sale (assets and liabilities expected
to be sold within twelve months) shall be disclosed in a separate line item
within current assets and liabilities (in the latter case, the liabilities that form
part of the disposal group).
Finally, of the main amendments to the balance sheet there only remains
to mention the change for own equity instruments (generally comprising own
shares and equity holdings), which are disclosed as a decrease in capital and
reserves without valuation adjustments under the new General Accounting
Plan. Similar criteria are applied to payments for own equity instruments which
are uncalled at the balance sheet date; these are recognised as a reduction in
share capital. Shares, equity holdings and other financial instruments that have
the legal substance of equity instruments, based on the definition of the items
and the associated terms and conditions, but which represent obligations for
the company, are recognised as liabilities.
The income statement reflects the accounting profit or loss for the
reporting period. Income and expenses are disclosed separately and by nature;
in particular, income and expenses arising from changes in value due to
measurement at fair value, in accordance with the Commercial Code and this
General Accounting Plan.
Three changes in particular are worthy of mention. Firstly, the income
statement is now presented in a single column, rather than two. Secondly, the
extraordinary margin has been eliminated, as the adopted international standards
prohibit classification of income and expenses as extraordinary. Finally, profit or
– 29 –
loss from continuing operations and profit or loss from discontinued operations
are disclosed separately in the normal income statement format. Discontinued
operations are generally described as lines of business or significant geographical
areas that the company has either sold or expects to sell within twelve months.
The most notable amendment, however, is without doubt the incorporation
of two new statements into the annual accounts. The statement of changes in
equity is presented in two documents:
a) the statement of other comprehensive income, and
b) the statement of total changes in equity.
The statement of other comprehensive income comprises income and
expenses recorded during the reporting period and the net balance of total
income and expense. Amounts transferred to the income statement during
the reporting period in accordance with the criteria set out in the relevant
recognition and measurement standards are disclosed separately. The statement
of total changes in equity reflects all changes in equity during the reporting
period. Besides recognised income and expenses, this statement shall also
include other changes in equity. For example, changes arising on transactions
with equity holders or owners of the company and any reclassifications in equity,
in light of amounts recognised in reserves as a result of the agreed distribution
of profit, adjustments due to corrections of errors or any exceptional changes
in accounting criteria.
The statement of cash flows is also new. This statement aims to show
the company’s ability to generate cash and cash equivalents and the liquidity
needs of the company, presented in three categories: operating activities,
investing activities and financing activities. However, the conflict of interests
associated with any new information requirement, for instance transparency
versus simplification of accounting obligations, is an aspect which should
logically be considered by weighing up the requirement in relation to the size
of the company. This conflict has been resolved by making this statement non-
compulsory for companies eligible to prepare their balance sheet, statement of
changes in equity and notes in abbreviated format10.
The notes have become more relevant and now include the obligation to
provide comparative figures and descriptive information, in line with IAS 1
adopted by the European Commission. In particular, this document increases
disclosure requirements relating to financial instruments, business combinations
(this being a new standard) and related parties, the latter being particularly

10
Position adopted in the amended standard. See Royal Decree 602/2016 of 2 December.

– 30 –
relevant to enable a true and fair presentation of the economic and financial
relationships of a company.
In relation to the above, the definition of group company, jointly controlled
entity and associate in connection with individual annual accounts is contained
in standard 13 on the preparation of annual accounts, included in part three
of the General Accounting Plan, which in turn relates to the recognition and
measurement standards included in part two. In addition to companies controlled
directly or indirectly under the terms described in article 42 of the Commercial
Code, companies controlled, by any means, by one or more individuals or
legal entities in conjunction, or which are solely managed in accordance with
statutory clauses or agreements, shall also be considered group companies.
Consequently, the amendment to article 42 of the Commercial Code introduced
by Law 16/2007, defining a group for the purposes of consolidation, has no
effect on the measurement or disclosure of investments in these companies in
the individual annual accounts.
Besides the relevant information on transactions carried out between
these companies, the notes to the individual annual accounts also contain the
information required by Law 16/2007; namely, aggregate details of the assets,
liabilities, equity, revenues and profit or loss of all companies with registered
offices in Spain which are controlled, by any means, by one or more individuals
or legal entities that are not required to prepare consolidated accounts, and
companies which are solely managed in accordance with statutory clauses or
agreements.
Finally, the statement of source and application of funds has been eliminated
from the notes, irrespective of the information on movement of funds required
by the standards for the preparation of annual accounts.
14. Part four is the chart of accounts, which uses the numeral classification
system. The new text incorporates two new groups that were not included in
the 1990 General Accounting Plan, namely 8 and 9, to encompass expenses and
income recognised in equity.
Consequently, group 9, which was proposed in the 1990 General
Accounting Plan for internal accounting purposes, should now be used for the
new accounting entries. Companies opting to carry out cost accounting may
use group 0.
The chart of accounts expands upon the 1990 content to encompass
the new operations reflected in part two of the General Accounting Plan.
Nonetheless, as mentioned in the introduction to the 1990 General Accounting
Plan, there could also be certain gaps in the new text, primarily because it is
– 31 –
not possible to cover the wide range of specific factors shaping the activities
of many companies. In any event, companies are able to bridge possible gaps in
the text using the Framework and the most relevant technical rules lifted from
the principles and criteria on which the General Accounting Plan is based. The
company should break down the content of the accounts into an appropriate
number of subgroups to control and monitor its transactions and comply with
disclosure requirements in the annual accounts.
15. Part five contains the definitions and accounting entries. A definition is
provided for each group, subgroup and account, indicating the most significant
content and characteristics of the transactions and economic events they
represent.
As in the previous General Accounting Plan, the accounting entries describe,
albeit not exhaustively, the most common cases for debits and credits to the
accounts. Consequently, in the case of transactions for which the text does not
explicitly stipulate the accounting treatment, appropriate accounting entries
should be made based on the criteria set out in the text.
As was the case in the 1990 General Accounting Plan, the application of
parts four and five is optional. However, when exercising this option, companies
are advised to use similar terminology to facilitate preparation of the annual
accounts, for which the structure and the standards that dictate the content
and format are obligatory. In particular, as in the 1990 General Accounting Plan,
the speculative system proposed for accounting entries relating to inventory
accounts is optional.

IV

16. The entry into force of the General Accounting Plan requires a review
of the sector-specific adaptations and the rulings issued by the Accounting
and Auditing Institute. However, until this review has been performed the
aforementioned standards shall remain in force unless they expressly contradict
the new criteria contained in the General Accounting Plan.
The experience of recent years has revealed the dynamic nature of the
accounting model proposed by European Community institutions. The European
Union has fully endorsed the pronouncements issued by the IASB. Nonetheless,
the IASB’s aim of converging with the standards approved by the US Financial
Accounting Standards Board (FASB) is likely to entail future amendments
to European Community Regulations. Consequently, notwithstanding any
amendments to the General Accounting Plan deemed necessary in the future,
– 32 –
knowledge of the standards is vital to ensure compliance and a certain level
of stability is advisable. Therefore, to protect the legal security that should
prevail in all standardisation processes, any future amendments to the General
Accounting Plan and governing legislation should only be made in the event of
substantial changes at international level. Such changes would be the inevitable
outcome of amendments to the Framework, recognition and measurement
standards or standards for the preparation of annual accounts.

– 33 –
 PART ONE

ACCOUNTING FRAMEWORK
1.º Annual accounts. Fair presentation

A company’s annual accounts comprise the balance sheet, income statement,

statement of changes in equity, statement of cash flows and the notes thereto.
These documents constitute a unit. However, the statement of changes in
equity and the statement of cash flows shall not be obligatory for companies
eligible to prepare their balance sheet and notes to the annual accounts in
abbreviated format. The annual accounts should be written clearly so that the
information disclosed is readily understandable and useful to the user when
making decisions of an economic nature. The annual accounts should present
fairly the equity, financial position and results of the company, in accordance
with prevailing legislation.
The systematic and methodical application of the accounting requirements,
principles and criteria set out below should ensure fair presentation of the
equity, financial position and results of the company in its annual accounts.
Transactions shall be accounted for in accordance with their economic reality
and not merely their legal form.
When compliance with the accounting requirements, principles and criteria
set out in this General Accounting Plan is not considered sufficient to ensure
fair presentation, the notes to the annual accounts should include any additional
disclosures considered necessary.
In exceptional cases in which compliance with a requirement would be
misleading and would conflict with the objective of fair presentation, the
company shall depart from that requirement and provide sufficient disclosure
in the notes to the annual accounts of this departure and the impact on the
equity, financial position and results of the company.
Legal entities reporting individually under this General Accounting Plan shall
do so independently from the group of companies to which they may belong,
notwithstanding the specific standards set out in part two of this Chart of
Accounts and the disclosure requirements in the annual accounts.

2.º Disclosure requirements in the annual accounts

The information disclosed in the annual accounts should be relevant and

reliable.
Information is relevant when it is useful for making economic decisions; in
other words, when it helps to evaluate past, present or future events, or to
– 37 –
confirm or correct prior evaluations. To meet this requirement, the annual
accounts should adequately disclose the risks to which the company is exposed.
Information is reliable when it is neutral and free from material error; in
other words, when it is unbiased and can be depended on by users to represent
faithfully that which it purports to represent.
Information has the quality of reliability when it is complete, which is
achieved when the financial information contains all data that could have an
impact on decision-making and no significant information is omitted.
Financial information should also be comparable and clear. Users must be
able to compare the annual accounts of a company through time as well as
those of different companies at a given time and for the same period in order
to evaluate their relative financial position and performance. Comparability
requires the treatment of transactions and other economic events arising in
similar circumstances to be consistent. Clarity enables users of the annual
accounts with a reasonable knowledge of economic activities, accounting and
business finance to make judgements that facilitate their decision-making, after
a diligent examination of the information provided.

3.º Accounting principles

Companies shall apply the following principles in their accounting and, in

particular, for the recognition and measurement of components of the annual
accounts:
1. Going concern. Unless there is evidence to the contrary, it shall be
presumed that the company will continue in operation in the foreseeable
future. Therefore, the aim when applying the accounting principles and
criteria is not to determine the value of the company’s net equity with a
view to disposing of part or the entire business of the company, or the
amount that would be obtained in the event of liquidation.
Where this principle is not applicable under the terms of the standards
for implementation of this General Accounting Plan, the company shall
apply the most appropriate measurement standards for fair presentation
of the transactions carried out to realise assets, settle debts and, where
applicable, distribute the resulting equity. The company should include
relevant information on the criteria applied in the notes to the annual
accounts.
– 38 –
2. Accrual. The effects of transactions and other economic events shall
be recognised when they occur. The related expenses and income shall
be recognised in the annual accounts for the reporting period to which
they relate, irrespective of the payment or collection date.
3. Consistency. Once a criterion has been selected from amongst the
available options, this should be maintained over time and applied
consistently to other similar transactions, events and conditions, insofar
as the circumstances that gave rise to its selection remain unchanged.
Should the grounds for the original choice of a criterion change, a
different policy could be applied and details of this situation should be
disclosed in the notes, indicating the quantitative and qualitative effect
of the variation on the annual accounts.
4. Prudence. Prudent criteria should be applied when estimates and
measurements are made in conditions of uncertainty. However,
prudence when measuring assets and liabilities is not justified if the fair
presentation of the annual accounts is affected.
Notwithstanding article 38 bis of the Commercial Code, only profits
obtained before the end of the reporting period shall be recognised.
However, all risks arising during the current or prior reporting periods
should be taken into consideration as soon as they become known,
even if they only come to light between the balance sheet date and the
date the annual accounts are officially drawn up by the directors. In such
cases, details shall be duly disclosed in the notes to the annual accounts,
as well as in other documents comprising the annual accounts when a
liability or an expense has been incurred. In exceptional circumstances,
should the risks come to light between the date the annual accounts
are officially drawn up by the directors and their final approval by the
shareholders, and should such risks have a significant impact on fair
presentation, the annual accounts must be redrafted.
Asset amortisation, depreciation and impairment should be reflected,
irrespective of whether the result for the reporting period is a profit or
a loss.
5. Offsetting. Assets and liabilities, and income and expenses, shall not be
offset unless expressly permitted by a standard. The components of the
annual accounts shall be measured separately.
6. Materiality. Strict application of certain accounting principles and
criteria may be waived when the quantitative or qualitative materiality
of the variation arising as a result is of little significance and, therefore,
– 39 –
 does not affect fair presentation. When items or amounts are not
material, these may be aggregated with other items of a similar nature
or function.
Where accounting principles conflict, the criteria that best ensure fair
presentation of the equity, financial position and results of the company
should prevail.

4.º Components of the annual accounts

The following items are recognised in the balance sheet when they meet the
recognition criteria described below:
1. Assets: goods, rights and other resources controlled by the company
as a result of past events and from which future economic benefits are
expected to flow to the company.
2. Liabilities: present obligations of the company arising from past events,
the settlement of which is expected to result in an outflow of resources
from the company embodying future economic benefits. Liabilities shall
include provisions.
3. Equity: the residual interest in the assets of the company after deducting
all its liabilities. Equity includes contributions made by equity holders or
owners upon incorporation of the company or subsequently that are
not considered as liabilities, as well as retained earnings and cumulative
losses or other related variations.
The following items are recognised in the income statement, or in
the statement of changes in equity, as applicable, when they meet the
recognition criteria described below:
4. Income: increases in the company’s equity during the reporting
period in the form of inflows or enhancements of assets or decreases
in liabilities, other than those relating to monetary or non-monetary
contributions from equity holders or owners.
5. Expenses: decreases in equity during the reporting period in the form
of outflows or depletions of assets or incurrences of liabilities, other
than those relating to monetary or non-monetary distributions to equity
holders or owners.
Income and expenses for the reporting period shall be recognised in the
income statement and included in profit or loss, except where they must be
recognised directly in equity, in which case they shall be accounted for in the
– 40 –
statement of changes in equity, in accordance with part two of this General
Accounting Plan or applicable implementation standards.

5.º Recognition criteria for elements of annual accounts

Recognition is the process of incorporating items that meet the definition

of an element of the annual accounts into the balance sheet, income statement
or statement of changes in equity, in accordance with the recognition standard
applicable in each case, as set out in part two of this General Accounting Plan.
Items shall be recognised when they meet the definitions set out in the
preceding section and satisfy the probability criteria relating to inflows or
outflows of resources that embody economic benefits, and when their value
can be measured reliably. Where the value must be estimated, the use of
reasonable estimates should not diminish the reliability of the value. The
following in particular should be noted:
1. An asset shall be recognised in the balance sheet when it is probable that
the future economic benefits will flow to the company, and provided
that the value of the asset can be reliably measured. Recognition of
an asset entails simultaneous recognition of a liability, the decrease in
another asset or recognition of income or other increases in equity.
2. A liability shall be recognised in the balance sheet when it is probable
that an outflow or transfer of resources embodying future economic
benefits will result from settlement of the obligation, and provided that
the value can be measured reliably. Recognition of a liability entails
simultaneous recognition of an asset, the decrease in another liability or
recognition of an expense or other reductions in equity.
3. Income shall be recognised when there is an increase in the company’s
resources that can be reliably measured. Recognition of income
therefore occurs simultaneously with the recognition or increase of an
asset or the extinguishment or decrease of a liability and, on occasions,
the recognition of an expense.
4. Expenses shall be recognised when there is a decrease in the company’s
resources that can be measured reliably. Recognition of an expense
therefore occurs simultaneously with the recognition or increase of a
liability or the extinguishment or decrease of an asset and, on occasions,
the recognition of income or an equity item.
– 41 –
 Income and expenses shall be recognised on an accruals basis, applying the
matching principle where appropriate. Under no circumstances may assets or
liabilities be recognised unless the qualifying conditions are met for definition
as such.

6.º Measurement criteria

Measurement is the process of assigning a monetary amount to each

element of the annual accounts, in accordance with the applicable measurement
standard in each case, as set out in part two of this General Accounting Plan.
The following measurement criteria and related definitions shall be taken
into consideration:

1. Historical cost or cost

The historical cost or cost of an asset is its cost of acquisition or production.

The cost of acquisition is the amount of cash and cash equivalents paid or
payable, plus the fair value of any other committed consideration directly related
with the acquisition and required to bring the asset into operating condition.
The cost of production includes the purchase price of raw materials
and consumables, costs directly attributable to production of the asset and
the proportional amount of production costs indirectly attributable to the
asset, insofar as these were incurred during the production, construction or
manufacturing period, they are based on the level of usage of normal production
capacity, and are required to bring the asset into operating condition.
The historical cost or cost of a liability is the value of the proceeds received
in exchange for the obligation or, in certain cases, the amount of cash and cash
equivalents expected to be paid to satisfy the liability in the ordinary course of
business.

2. Fair value

Fair value is the price that would be received to sell an asset or paid to
transfer or settle a liability in an orderly transaction between market participants
at the measurement date. Fair value shall be determined without deducting any
transaction costs incurred on disposal. The amount a company would receive
or pay in a forced transaction, distress sale or involuntary liquidation shall not
be considered as fair value.
– 42 –
 Fair value is measured for a certain date as market conditions may vary over
time, and that value may be inappropriate for another date. Furthermore, when
measuring fair value an entity shall take into account the characteristics of the
asset or liability that market participants would take into account when pricing
the asset or liability at the measurement date. Such characteristics include, but
are not limited to, the following in the case of assets:
a) the condition and location of the asset; and
b) restrictions, if any, on the sale or use of the asset.
A fair value measurement of a non-financial asset takes into consideration
a market participant’s ability to generate economic benefits by using the asset
in its maximum and best use or by selling it to another market participant that
would use the asset in its maximum and best use.
In measuring the fair value, it will be assumed as a hypothesis that the
transaction to sell the asset or transfer the liability is carried out:
a) between interested and duly informed parties, in a transaction under
conditions of mutual independence,
b) in the principal asset or liability market, understood as the market with
the highest volume and level of activity, or
c) in the absence of a principal market, in the most advantageous market
to which the company has access to for the asset or liability, understood
as the one that maximizes the amount that would be received for the
sale of the asset or minimizes the amount that would be paid for the
liability transferred, after taking into account transaction and transport
costs.
Unless proven otherwise, the market in which the company would normally
carry out a transaction to sell the asset or transfer the liability is presumed
to be the principal market or, in the absence of a principal market, the most
advantageous market.
Transaction costs do not include transportation costs. If the location is
a characteristic of the asset (as may be the case, for example, of a quoted
raw material), the price in the principal (or most advantageous) market will be
adjusted by the costs, if any, which would be incurred to transport the asset
from its present location to that market.
Fair value shall generally be measured by reference to a reliable market
value. Quoted market prices in an active market provide the most reliable
estimate of fair value. An active market is a market in which all of the following
conditions exist:
– 43 –
 goods or services traded within the market are homogeneous;
a) 
willing buyers and sellers can normally be found at any time; and
b) 
prices obtained in frequent market transactions of sufficient volume are
c) 
available to the public.
For those elements for which there is no active market, the fair value will
be obtained, where appropriate, by applying valuation models and techniques.
Valuation models and techniques include the use of references to recent
transactions in conditions of mutual independence between duly informed
interested parties, if available, as well as to references of the fair value of
other assets that are substantially the same, or through the use of discounting
estimated cash flow methods and models generally used to value options.
In any case, the valuation techniques used must be consistent with the
methodologies accepted and used by the market for setting prices, using the
one, if available, that has been shown to obtain the most realistic price estimates.
And they should take into consideration the use of observable market data
and other factors that market participants would consider when setting the
price, limiting as much as possible the use of subjective, unobservable or non-
verifiable data.
The company must evaluate the effectiveness of the valuation techniques
that it uses periodically, using as a reference the observable prices of recent
transactions for the same asset that is valued using prices based on observable
market data or indices that are available and applicable.
In this way, a hierarchy is deduced in the variables used in determining fair
value and a fair value hierarchy is established that allows measurements to be
classified into three levels:
a) Level 1: inputs using unadjusted quoted prices in active markets for
identical assets or liabilities that the entity can access at the measurement
date.
b) Level 2: inputs that use prices quoted in active markets for similar
instruments or other valuation methodologies in which all significant
variables are based on directly or indirectly observable market data.
c) 
Level 3: inputs in which some significant variable is not based on
observable market data.
A fair value measurement is classified at the same level of the fair value
hierarchy as the lowest level variable that is significant for the result of the
valuation. For these purposes, a significant variable is one that has a decisive
influence on the result of the measurement. In evaluating the importance of a
– 44 –
specific variable for measurement, the specific conditions of the asset or liability
being valued will be taken into consideration.
The fair value of a financial instrument must include, among others, the
credit risk and, in the specific case of a financial liability, the company’s default
risk, which includes, among other components, the company’s own credit risk.
However, to measure fair value, no adjustments should be made for volume or
market capacity.
When it is appropriate to apply the fair value measurement, those assets
that cannot be valued reliably, either by reference to a market value or through
the application of the valuation models and techniques mentioned above, will
be valued by their amortized cost, by their acquisition price or production cost
whichever is more appropriate and reduced by the value of the corresponding
corrective items and reporting this fact in the notes to the accounts and the
circumstances that gave rise to this decision.
The fair value of an asset or liability, for which there is no unadjusted quoted
price of an identical asset or liability in an active market, can be reliably measured
if the variability in the range of fair value measurements for the asset or liability
are not significant or the probability of the different measurements, within that
range, can be reasonably evaluated and used in the fair value measurement.

3. 
Net realisable value

The net realisable value of an asset is the amount the company can obtain
by selling the asset in the market in the ordinary course of business, less the
costs necessary to make the sale and, in the case of raw materials and work
in progress, the estimated costs to complete the production, construction or
manufacture.

4. 
Present value

Present value is the amount of the cash inflows and outflows expected to
arise on an asset or a liability, respectively, in the ordinary course of business,
discounted at an appropriate rate.

5. 
Value in use

The value in use of an asset or a cash-generating unit is the present value of

the future cash flows expected to be obtained through its use in the ordinary
course of business and, where applicable, its disposal, taking into consideration
its present state, discounted at a market risk-free rate of interest and adjusted
– 45 –
for any risks specific to the asset for which the estimated future cash flows
have not been adjusted. Cash flow projections shall be based on reasonable
and supportable assumptions. The amount or distribution of cash flows is
normally uncertain, and this should be taken into consideration when allocating
probabilities to the different cash flow estimates. These estimates should
include any other assumptions that market players would consider, such as the
inherent liquidity of the measured asset.

6. Costs to sell

Costs to sell are incremental costs directly attributable to the disposal of an

asset that the company would not have incurred had it not decided to make the
sale, excluding finance expenses and income tax, and including legal expenses
incurred on transferring ownership of the asset and sales commissions.

7. Amortised cost

The amortised cost of a financial instrument is the amount at which the

financial asset or financial liability is measured at initial recognition less any
principal repayments, plus or minus any difference between that initial amount
and the maturity amount recognised in the income statement using the effective
interest method and, in the case of financial assets, less any reduction (directly
or through the use of an allowance account) for impairment.
The effective interest rate is the discount rate that equates the carrying
amount of a financial instrument to the present value of the estimated cash
flows expected to be generated over the life of the instrument based on the
contractual terms, excluding future losses due to credit risk. The calculation
basis for the effective interest rate shall include any fees and commissions
charged when financing is granted.

8. 
Transaction costs attributable to a financial asset or financial liability

These are incremental costs directly attributable to the acquisition, issue

or disposal of a financial asset, or to the issue or incurrence of a financial
liability, which the company would not have incurred had it not entered into
the transaction. Transaction costs include fees and commissions paid to agents,
advisors and intermediaries, such as brokerage, public notary expenses and
others, as well as taxes and other rights relating to the transaction. Transaction
costs do not include premiums or discounts obtained on the acquisition or
issue, finance expenses, maintenance costs or internal administrative expenses.
– 46 –
 9. Carrying amount

The carrying amount is the net amount at which an asset or liability is

recognised in the balance sheet, after deducting accumulated amortisation or
depreciation and any accumulated impairment in the case of assets.

10. Residual value

The residual value of an asset is the estimated amount that the company
would currently obtain from disposal of the asset, after deducting the costs of
disposal, if the asset were already of the age and in the condition expected at
the end of its useful life.
Useful life is the period over which an asset is expected to be available
for use by the company, or the number of production units expected to be
obtained from the asset. In the case of concession assets that revert, the useful
life is the shorter of the concession period and the economic life of the asset.
Economic life is the period over which an asset is expected to be usable by
one or more users, or the number of production units expected to be obtained
from the asset by one or more users.

7.º Generally accepted accounting principles

Generally accepted accounting principles are considered to be those set

out in the following:
the Commercial Code and other prevailing legislation,
a) 
the General Accounting Plan and sector-specific adaptations,
b) 
the implementation standards established by the Accounting and
c) 
Auditing Institute for accounting purposes, and
other specifically applicable Spanish legislation.
d) 

– 47 –
 PART TWO

RECOGNITION AND MEASUREMENT STANDARDS

1st Application of the Accounting Framework

1. The recognition and measurement standards develop the accounting

principles and other provisions set out in part one of this text relating to the
Accounting Framework, and include the criteria and rules applicable to different
transactions or economic events, as well as to different assets and liabilities.
2. Application of the recognition and measurement standards set out
below is mandatory.

2nd Property, plant and equipment

1. Initial measurement

Elements of Property, plant and equipment shall be measured at cost,

determined as the purchase price or production cost.
The purchase price or production cost shall only include indirect taxes on
property, plant and equipment when these are not directly recoverable from
the Spanish taxation authorities.
The value of an item of property, plant and equipment shall also include the
initial estimate of the present value of obligations for dismantling or removing the
item, as well as other obligations associated with the asset, such as restoration
of the site on which it is located, provided that these obligations give rise to the
recognition of provisions in accordance with the applicable standard.
Borrowing costs accrued, which have been charged by suppliers or relate
to loans or other types of specific and general external financing directly
attributable to the acquisition, manufacture or construction of property, plant
and equipment that need more than one year to be brought into working
condition, shall be included in the purchase price or production cost of the
asset.

1.1. Purchase price

The purchase price comprises the amount invoiced by the seller, after
deducting trade discounts and rebates, as well as any costs directly attributable
to bringing the asset to the location and condition necessary for it to operate
as intended; such as levelling and demolition costs, transport, customs duties,
insurance, installation, assembly and others.
– 51 –
 Payables for the acquisition of property, plant and equipment shall be
measured in accordance with the standard on financial instruments.

1.2. Production cost

The production cost of property, plant and equipment manufactured or

constructed by the company shall comprise the purchase price of raw materials
and consumables, other directly related costs and the proportional amount of
costs indirectly attributable to the items in question, insofar as these relate to
the production, construction or manufacturing period and are required to bring
the asset into operating condition. The cost of inventories shall be determined
using the applicable general criteria.

1.3. Exchanges of property, plant and equipment

For the purposes of this General Accounting Plan, an item of property,

plant and equipment is considered to be acquired through an exchange when
the item is received in exchange for non-monetary assets or a combination of
non-monetary and monetary assets.
In exchange transactions with commercial substance, the item of property,
plant and equipment received shall be measured at the fair value of the asset
given up plus any monetary consideration given in exchange, unless clearer
evidence of the fair value of the asset received is available, up to the limit of this
value. Any measurement differences arising on derecognition of the item given
in exchange shall be taken to the income statement.
An exchange shall be considered to have commercial substance when:
The configuration (risk, timing and amount) of the cash flows of the
a) 
asset received differs from the configuration of the cash flows of the
asset transferred; or
The present value of the post-tax cash flows from the activities of the
b) 
companies involved in the exchange changes as a result of the transaction.
Moreover, any difference arising due to a) or b) above must be significant
relative to the fair value of the assets exchanged.
In exchange transactions with no commercial substance, or where the fair
value of the exchanged items cannot be measured reliably, the property, plant
and equipment received shall be measured at the carrying amount of the asset
given up plus any monetary consideration given in exchange, up to the limit of
the fair value, where available, of the asset received, if this were lower.
– 52 –
 1.4. Non-monetary capital contributions

Items of property, plant and equipment received as non-monetary capital

contributions shall be measured at the contribution-date fair value, in accordance
with the standard on share-based payment transactions, as it is assumed that
the fair value of these items can always be reliably estimated.
The contributors of these items shall apply the criteria set out in the
standard on financial instruments.

2. Subsequent measurement

After initial recognition, property, plant and equipment shall be carried

at purchase price or production cost, less accumulated depreciation and any
accumulated impairment.

2.1. Depreciation

Property, plant and equipment shall be depreciated on a systematic and

rational basis over the useful life of the assets, taking into account their residual
value and based on impairment normally incurred due to operational wear and
tear, and considering potential technical or commercial obsolescence.
Each component of an item of property, plant and equipment with a cost
that is significant in relation to the total cost of the asset and with a useful
life that differs from that of the remainder of the asset shall be depreciated
separately.
Any changes in the residual value, the useful life or the depreciation method
of an asset shall be accounted for as changes in accounting estimates, except
where due to error.
When impairment must be recognised as specified in the following section,
depreciation of the impaired assets for subsequent reporting periods shall be
adjusted in line with the new carrying amount. The same procedure shall apply
to reversals of impairment.

2.2. Impairment

An item of property, plant and equipment shall be considered impaired

when its carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of the fair value of the asset less costs to sell and its value
in use.
– 53 –
 The company shall assess at least at the end of each reporting period
whether there is any indication that items of property, plant and equipment
or cash-generating units may be impaired. If any such indication exists, the
company shall estimate the recoverable amount of these items and make the
required valuation allowances. A cash-generating unit is the smallest identifiable
group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or groups of assets.
Impairment shall be calculated separately for each individual item of property,
plant and equipment. If the company is unable to estimate the recoverable
amount of each individual item, it shall determine the recoverable amount of
the cash-generating unit to which each item belongs.
Should the company need to recognise an impairment loss for a cash-
generating unit to which all or part of goodwill has been allocated, it shall
first reduce the carrying amount of the goodwill associated with that unit. If
impairment exceeds the amount of goodwill, the company shall then reduce
the remaining assets in the cash-generating unit on a pro rata basis based on
their carrying amounts. The carrying amount of each asset may not be reduced
below the higher of its fair value less costs to sell, its value in use or zero.
Impairment of items of property, plant and equipment, and reversals thereof
when the circumstances that gave rise to the impairment cease to exist, shall
be recognised in the income statement as an expense or income, respectively.
Impairment shall only be reversed up to the limit of the carrying amount of
the property, plant and equipment that would have been determined at the
reversal date had impairment not been recognised.

3. Derecognition

Items of property, plant and equipment shall be derecognised on disposal or

when no future economic benefits are expected from them.
The gain or loss on derecognition of an item of property, plant and equipment
shall be determined as the difference between the amount obtained on the
disposal of the item, less costs to sell, and the carrying amount. The gain or loss
shall be recognised in the income statement when the item is derecognised.
The consideration receivable for the disposal of property, plant and
equipment shall be measured in accordance with the standard on financial
instruments.
– 54 –
3rd Specific standards on property, plant and equipment

The following specific standards shall apply to the items described below:
Unbuilt land. The purchase price shall include land preparation costs such
a) 
as enclosures, excavation, purification and drainage, demolition where
required for the construction of new buildings, the cost of inspections
and plans drawn up prior to the purchase and, where applicable, the
initial estimate of the present value of existing obligations associated
with restoration of the land.
Land usually has an indefinite life and is therefore not depreciated.
However, where the initial value includes restoration costs, in compliance
with section 1 of the standard on property, plant and equipment, this
portion of the land shall be depreciated over the period that it generates
economic benefits as a result of having incurred these costs.
Buildings. The purchase price or production cost shall comprise
b) 
all permanent installations and items, as well as construction taxes
and project and works management fees. Land, buildings and other
constructions shall be measured separately.
Measurement of technical installations, machinery and equipment shall
c) 
comprise all acquisition, production or construction costs incurred until
the items are in operating conditions.
Utensils and tools included in mechanical devices shall be measured and
d) 
depreciated in accordance with the applicable standards.
Utensils and tools that do not form part of a machine and which are
expected to be used for less than one year shall be charged as an expense
for the reporting period. For purposes of operating efficiency, when
utensils and tools are expected to be used for more than one year it is
recommended they be accounted for as property, plant and equipment
and written off at the end of the reporting period if impairment is
detected as a result of a physical count. Patterns and moulds recurringly
used on production lines shall be recognised as property, plant and
equipment and depreciated over their estimated useful life.
Moulds made to order for specific manufacturing processes shall not be
inventories unless their net realisable value can be determined.
Costs incurred during the reporting period on work carried out by the
e) 
company for assets shall be charged to the relevant expense accounts.
These expenses are capitalised as property, plant and equipment under
– 55 –
 construction, and credited to work carried out by the company for
assets in the income statement.
Costs incurred to renovate, enlarge or improve items of property, plant
f) 
and equipment which increase capacity or productivity or extend the
useful life of the asset shall be capitalised as part of the cost of the
related asset. The carrying amount of items that are replaced shall be
derecognised.
The effect of major overhaul costs shall be considered when measuring
g) 
property, plant and equipment. An amount equivalent to these costs
shall be depreciated separately from the rest of the asset over the period
until the overhaul is performed. Where such costs are not specified on
acquisition or construction, their amount may be determined based on
the present market value of a similar overhaul.
When the overhaul is performed, the costs shall be recognised in the
carrying amount of the asset as a replacement, provided the recognition
criteria are met at this time. Any prior amount related with the overhaul
that is still accounted for in the carrying amount of the aforementioned
asset shall be derecognised.
In the case of agreements that must be classified as operating leases in
h) 
accordance with the standard on leases and similar transactions, lessee
investments that cannot be separated from the leased or transferred
asset shall be recognised as property, plant and equipment when they
meet the definition of an asset. These investments shall be depreciated
based on their useful life, which shall be the shorter of the term of the
lease or transfer contract, including the renewal period where there is
evidence that the contract will be renewed, and the economic life of the
asset.

4th Investment property

The criteria set out in the preceding standards on property, plant and
equipment shall be applied to investment property.

5th Intangible assets

The criteria set out in the standards on property, plant and equipment shall
be applied to intangible assets. Nonetheless, the specific standards on intangible
– 56 –
assets set out below and the criteria applicable to goodwill in the standard on
business combinations shall also apply.

1. Recognition

For initial recognition, an intangible asset must not only meet the definition
of an asset and the recognition criteria set out in the Accounting Framework,
but also the identifiability criteria.
The identifiability criteria require the asset to fulfil one of the following two
conditions:
It must be separable, i.e. capable of being separated from the company
a) 
and sold, transferred, licensed, rented or exchanged.
It must arise from legal or contractual rights, irrespective of whether
b) 
those rights are transferable or separable from the company or from
other rights or obligations.
Start-up costs and internally generated brands, mastheads, publishing titles,
customer lists and similar items shall not be recognised as intangible assets.

2. Subsequent measurement

Intangible assets are assets with a defined useful life and, therefore, should
be subject to systematic amortization in the period during which it is reasonably
expected that the economic benefits inherent to the asset will produce
economic benefits for the company.
When the useful life of these assets cannot be reliably estimated, they will
be amortized over a period of ten years, without affecting the terms established
in the particular rules for intangible assets.
In any case, indications of impairment in value must be analysed at least
annually to check, where appropriate, its final impairment value.

6th Specific standards on intangible assets

The following specific standards shall apply to the items and rights described
below:
Research and development. Research costs shall be recognised as an
a) 
expense in the reporting period in which they are incurred. However,
– 57 –
 they may be capitalised as intangible assets provided that they meet the
following conditions:
– The costs are itemised by project and clearly defined to enable them
to be allocated over time.
– There is evidence of the project’s technical success and economic
and commercial feasibility.
Capitalised research costs shall be amortised over their useful life and,
in any event, within a five-year period. Where there is reasonable doubt
as to the technical success and economic and commercial feasibility
of the project, any amounts capitalised shall be recognised directly in
losses for the reporting period.
Development expenditure that meets the conditions for capitalisation
of research costs shall be capitalised and amortised over the useful life
which, in principle, shall be considered not to exceed five years, unless
there is evidence to the contrary. Where there is reasonable doubt as
to the technical success or economic and commercial feasibility of the
project, any amounts capitalised shall be recognised directly as a loss in
the reporting period.
Industrial property. Development expenditure capitalised when a
b) 
patent or similar right is obtained, including expenses incurred on
registering industrial property, irrespective of any amounts capitalised
for acquisition of the related rights from third parties, shall be accounted
for as industrial property. Development expenditure shall be amortised
and impairment recognised in accordance with the criteria applicable to
intangible assets.
Goodwill. It may only be recognised as an asset when it arises from an
c) 
onerous acquisition in a business combination.
Goodwill shall be measured in accordance with the standard on business
combinations and should be allocated as of the acquisition date between
all of the company’s cash-generating units that are expected to benefit
from the synergies of the business combination.
After initial recognition, goodwill will be valued at its acquisition price
less accumulated amortization and, where appropriate, the accumulated
amount of recognized impairment adjustments.
Goodwill will be amortized over its useful life. The useful life will be
determined separately for each cash-generating unit to which goodwill
has been assigned.
– 58 –
 Unless there is evidence to the contrary, it will be presumed that the
useful life of the goodwill is ten years and that its recovery is linear.

In addition, at least annually, indications of impairment in value of
the cash-generating units to which goodwill has been assigned will be
analysed, and, where indications exist, their final impairment value will
be checked in accordance with the provisions of section 2.2 of the
standard relating to property, plant and equipment.
Impairment recognized for goodwill shall not be reversed in subsequent
years.
Transfers may only be recognised as an asset when their value comes to
d) 
light as the result of an onerous acquisition. Transfers shall be amortised
and impairment recognised in accordance with the criteria applicable to
intangible assets.
Computer software acquired from third parties or produced internally,
e) 
including website development costs, that meets the recognition
criteria set out in section 1 of the standard on intangible assets shall be
capitalised.
Computer software maintenance costs shall not be capitalised.
The criteria applicable to development expenditure shall be used to
recognise and amortise computer software. Impairment shall be
recognised in accordance with the criteria used for intangible assets.
Other intangible assets. Other items besides the above shall also be
f) 
recognised as intangible assets provided that they meet the criteria set
out in the Framework and the specific requirements of these recognition
and measurement standards. These include administrative concessions,
commercial rights, intellectual property or licences.
These items shall be amortised and impairment recognised in accordance
with the criteria applicable to intangible assets.

7th Non-current assets and disposal groups held for sale

1. Non-current assets held for sale

The company shall classify a non-current asset as held for sale if its carrying
amount will be recovered principally through a sale transaction rather than
through continuing use, and provided that it meets the following requirements:
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 The asset must be available for immediate sale in its present condition
a) 
subject to terms that are usual and customary for sales of such assets;
and
b) Its sale must be highly probable due to the following circumstances:
b1) The company must be committed to a plan to sell the asset and an
active programme to locate a buyer and complete the plan must
have been initiated.
b2) The asset must be actively marketed for sale at a price that is
reasonable in relation to its current fair value.
b3) The sale should be expected to be completed within one year from
the date the asset is classified as held for sale, unless this period must
be extended due to events or circumstances beyond the company’s
control and there is sufficient evidence that the company remains
committed to its plan to sell the asset.
b4) Actions to complete the plan should indicate that it is unlikely that
significant changes to the plan will be made or that the plan will be
withdrawn.
Non-current assets held for sale shall be measured at the date of
reclassification at the lower of the carrying amount and the fair value less costs
to sell.
In order to obtain the carrying amount at the date of reclassification,
impairment at that time shall be determined and an impairment allowance shall
be recognised if necessary.
The company shall not depreciate or amortise a non-current asset while
it is classified as held for sale, and shall recognise the necessary impairment so
that the carrying amount does not exceed the fair value less costs to sell.
When an asset no longer meets the conditions for classification as held for
sale, it shall be reclassified according to its nature and measured at the lower
of the carrying amount before it was classified as held for sale, adjusted for any
depreciation, amortisation or impairment that would have been recognised had
the asset not been classified as held for sale, and the recoverable amount at
the reclassification date. Any difference is recognised in the income statement
according to its nature.
The above measurement criteria shall not apply to the following assets, for
which specific measurement standards exist, although they are classified in this
category for presentation purposes:
– 60 –
 Deferred tax assets, which are subject to the standard on income tax.
a) 
Assets arising from employee benefits, which are subject to the standard
b) 
on liabilities arising from long-term employee benefits.
Financial assets, except equity investments in group companies, jointly
c) 
controlled entities and associates, which are covered by the standard on
financial instruments.
Impairment of non-current assets held for sale, and reversals thereof when
the circumstances that gave rise to the impairment cease to exist, shall be
recognised in the income statement, except when they must be recognised
directly in equity in accordance with the specific standards applicable to each
asset.

2. Disposal groups held for sale

A disposal group held for sale is a group of assets, and the directly associated
liabilities, to be sold together as a group in a single transaction. A disposal group
can include any of the company’s assets or associated liabilities, even where
these do not meet the definition of a non-current asset, provided that they are
to be sold together.
Disposal groups held for sale shall be measured using the rules described
in the preceding section. Assets and associated liabilities not covered by
the aforementioned rules shall be measured in accordance with the specific
applicable standard. After measurement, the disposal group shall be carried at
the lower of the carrying amount and the fair value less costs to sell. Where it is
necessary to recognise impairment for the disposal group, the carrying amount
of the non-current assets in the group shall be reduced using the allocation
basis set out in section 2.2 of the standard on property, plant and equipment.

8th Leases and similar transactions

For the purposes of this standard, a lease is any legal agreement (regardless
of the form of the agreement) whereby the lessor conveys to the lessee the
right to use an asset for an agreed period of time in return for a sole payment
or series of payments, irrespective of whether the lessor is required to render
services in connection with the operation or maintenance of the asset.
Classification of leases as finance leases or operating leases depends on the
circumstances of each party to the contract. The lessor and the lessee might
therefore classify the lease differently.
– 61 –
 1. Finance leases

1.1. Description

When the economic conditions of a lease agreement indicate that

substantially all the risks and rewards incidental to ownership of an asset are
transferred, this agreement shall be classified as a finance lease and recognised
as stipulated below.
When it is reasonably certain that a purchase option associated with an
asset lease agreement will be exercised, substantially all the risks and rewards
of ownership shall be considered to be transferred. In the absence of evidence
to the contrary, substantially all the risks and rewards of ownership shall be
considered to be transferred in the following cases, even when there is no
purchase option:
Lease contracts that transfer ownership of the leased asset, or where
a) 
the contract conditions imply that ownership will be transferred to the
lessee by the end of the lease term.
Contracts with a lease term that covers all or the major part of the
b) 
economic life of an asset, provided that the terms and conditions
demonstrate the economic feasibility of the continued transfer of usage
rights.
The lease term is the non-cancellable period for which the lessee has
contracted to lease the asset together with any further terms for which
the lessee has the option to continue to lease the asset, with or without
further payment, when at the inception of the lease it is reasonably
certain that the lessee will exercise the option.
At the inception of the lease the present value of the minimum lease
c) 
payments amounts to substantially all of the fair value of the leased
asset.
When the specialised nature of the leased assets restricts their use to
d) 
the lessee.
The lessee can cancel the lease and the lessor’s losses associated with
e) 
the cancellation are borne by the lessee.
Gains or losses from the fluctuation in the fair value of the residual
f) 
amount accrue to the lessee.
The lessee can continue the lease for a secondary period at a rent that
g) 
is substantially lower than market rent.
– 62 –
 1.2. Lessee accounting records

At the commencement of the lease term, the lessee shall recognise an

intangible asset or an item of property, plant and equipment, according to the
nature of the asset, and a financial liability for the same amount, at the lower
of the fair value of the leased asset and the present value of the minimum
lease payments determined at the inception of the lease. The minimum lease
payments shall include the purchase option payment, when it is reasonably
certain this will be exercised, as well as any amounts guaranteed directly or
indirectly, excluding contingent rents, costs for services and taxes that may
be passed on by the lessor. Contingent rents are those lease payments that
are not fixed in amount but are based on future trends in a particular variable.
Initial direct transaction costs incurred by the lessee shall be considered as an
increase in the value of the asset. Fair value shall be calculated based on the
interest rate implicit in the lease. Where this cannot be determined, the lessee
interest rate for similar transactions shall be used.
The total finance charge shall be allocated over the lease term and
recognised in profit and loss for the reporting period in which it is accrued,
using the effective interest rate method. Contingent rents shall be expensed in
the reporting period in which they are incurred.
The lessee shall apply the relevant depreciation, amortisation, impairment
and derecognition criteria based on the nature of the assets to be recognised in
the balance sheet. Financial liabilities shall be derecognised in accordance with
section 3.5 of the standard on financial instruments.

1.3. Lessor accounting records

The lessor shall initially recognise a receivable for the present value
of minimum lease payments and the residual value of the asset, even if not
guaranteed, discounted at the interest rate implicit in the lease.
The lessor shall recognise gains or losses arising on the lease transaction in
accordance with section 3 of the standard on property, plant and equipment.
However, where the lessor is also the manufacturer or dealer of the leased
item, the lease shall be considered as a trading transaction and the criteria set
out in the standard on revenue from sales and the rendering of services shall
apply.
The difference between the receivable recognised in assets in the balance
sheet and the amount to be collected in respect of unearned interest shall
– 63 –
be recorded in profit or loss for the reporting period in which the interest is
accrued, using the effective interest rate.
Impairment and derecognition of receivables recognised in respect of the
lease shall be accounted for using the criteria in sections 2.1.3 and 2.9 of the
standard on financial instruments.

2. Operating leases

An operating lease is an agreement other than a finance lease whereby the

lessor conveys to the lessee the right to use an asset for an agreed period of
time in return for a sole payment or series of payments.
Income and expenses attributable to the lessor and the lessee in respect
of an operating lease agreement shall be considered as income or an expense,
respectively, for the reporting period in which they are accrued, and shall be
recognised in profit or loss.
The lessor shall continue to disclose and measure the leased assets in
accordance with their nature. The carrying amount shall be increased by the
amount of directly attributable contract costs, which shall be recognised as an
expense over the lease term using the same criteria as for the recognition of
lease income.
Any payment received or made on entering into an operating lease shall
be considered as revenue received in advance or a prepayment and taken to
the income statement over the lease term in accordance with the pattern of
economic benefits transferred or received.

3. Sale and leaseback transactions

When the economic conditions of the sale associated with the leaseback of
the assets sold indicate that the transaction is a financing method, and therefore
a finance lease, the lessee shall not change the classification of the asset or
recognise any gain or loss on the transaction. The amount received shall be
recognised with a credit to an account that reflects the related financial liability.
The total finance charge shall be allocated over the lease term and
recognised in profit or loss for the reporting period in which it is accrued, using
the effective interest rate method. Contingent rents shall be taken to expenses
in the reporting period in which they are incurred.
The lessor shall account for the associated financial asset in accordance
with section 1.3 of this standard.
– 64 –
 4. Leases of land and buildings

Joint leases of land and buildings shall be classified as operating or finance

leases using the same criteria as for leases of other assets.
However, as land normally has an indefinite economic life, the land and
buildings components in a joint finance lease shall be considered separately.
The portion of the lease relative to land shall be classified as an operating lease,
unless title is expected to pass to the lessee by the end of the lease term.
The minimum lease payments shall be allocated between the land and the
building elements in proportion to the relative fair values of the leasehold
interests in these components. If the lease payments cannot be allocated
reliably between these two elements, the entire lease shall be classified as a
finance lease, unless it is clearly an operating lease.

9th Financial instruments

A financial instrument is a contract that gives rise to a financial asset in

one company and, simultaneously, a financial liability or an equity instrument in
another company.
This standard is applicable to the following financial instruments:
Financial assets:
a) 
– Cash and cash equivalents as defined in standard 9 on the preparation
of annual accounts;
– Trade and other receivables;
– Loans and credits extended to third parties, including those relating
to the sale of non-current assets;
– Acquired debt securities of other companies, such as debentures,
bonds and promissory notes;
– Acquired equity instruments of other companies, e.g. shares, mutual
fund units and other equity instruments;
– 
Derivatives that are in the money for the company, including
futures or forward operations, options, financial swaps and forward
exchange contracts; and
– 65 –
 – Other financial assets, such as bank deposits, loans and advances to
personnel, guarantees and deposits extended, dividends receivable
and receivables on called-up own equity instruments.
b) Financial liabilities:
– Trade and other payables;
– Debt with financial institutions;
– Obligations and other marketable securities issued, such as bonds
and promissory notes;
– Derivatives that are out of the money for the company, including
futures or forward operations, options, financial swaps and forward
exchange contracts;
Payables of a special nature; and
– 
– Other financial liabilities, such as loans and credits extended by
individuals or companies other than financial institutions, including
those relating to the purchase of non-current assets, guarantees
and guarantee deposits received and payables to third-parties on
called-up equity holdings.
Own equity instruments comprising all financial instruments included
c) 
in capital and reserves without valuation adjustments, such as ordinary
shares issued.
A financial derivative is a financial instrument with the following
characteristics:
a) Its value changes in response to a change in variables such as interest
rates, financial instrument prices, commodity prices, foreign exchange
rates, credit ratings and indexes thereon. Non-financial variables do not
need to be specific to a party to the contract.
b) The initial investment required is zero, or less than that required for
other types of contracts that would be expected to respond similarly to
changes in market conditions.
c) It is settled at a future date.
This standard is applicable to accounting hedges and the transfer of financial
assets, such as trade discounts, factoring transactions, repurchase agreements
and securitisation of financial assets.
– 66 –
 1. Recognition

The company shall recognise a financial instrument in its balance sheet

under the terms of the contract or legal transaction to which it becomes party.

2. Financial assets

A financial asset is any asset that is cash, an equity instrument of another

company, or which represents a contractual right to receive cash or another
financial asset, or to exchange financial assets or financial liabilities with third
parties under potentially favourable conditions.
Any contract that can or will be settled with the company’s own equity
instruments shall also be classed as a financial asset, provided that it is:
A non-derivative that requires or could require the company to receive
a) 
a variable number of its own equity instruments.
A derivative with a favorable position for the company that can or will
b) 
be settled through means other than the exchange of a fixed amount of
cash or another financial asset for a fixed number of the company’s own
equity instruments. For this purpose, own equity instruments shall not
include instruments that are themselves contracts for the future receipt
or delivery of the company’s own equity instruments.
For measurement purposes, financial assets shall be classified in one of the
following categories:
1. Financial assets at fair value through profit and loss account.
2. Financial assets at amortized cost.
3. Financial assets at fair value through other comprehensive income.
4. Financial assets at cost.

2.1. Financial assets at fair value through profit and loss account.

A financial asset must be included in this category unless it is classified in

any of the other categories in accordance with the provisions of sections 2.2,
2.3 and 2.4 of this standard.
Financial assets held for trading are compulsorily included in this category.
The concept of trading financial instruments generally reflects active and
frequent purchases and sales with the objective of generating a profit from
short-term price fluctuations or from intermediation margins.
– 67 –
 A financial asset is considered to be held for trading when it:
a.1. originates or is acquired principally for the purpose of selling it in the
short term (for example, debt securities, irrespective of their maturity
date, or quoted equity instruments acquired for resale in the short
term);
a.2. forms part of a portfolio of identified financial instruments that are
managed together and for which there is evidence of recent initiatives
to obtain profits in the short term; or
a.3. is a derivative financial instrument, except for a derivative that is a
financial guarantee contract or a designated hedging instrument.
The company may make an irrevocable choice at the time of initial
recognition to register subsequent variations in fair value directly in equity for
those equity instruments that are not held for trading and that do not qualify
for valuation at cost either.
In any case, a company may, at the time of initial recognition, irrevocably
designate a financial asset as measured at fair value with changes in the profit and
loss account, even when this asset would have been initially included in another
category. This is allowed if by doing so eliminates or significantly reduces a
valuation inconsistency or accounting mismatch that would otherwise arise
from the valuation of assets or liabilities using different criteria.

2.1.1. Initial measurement

The financial assets included in this category shall initially be valued at

their fair value. In the absence of evidence to the contrary, this shall be the
transaction price, which is equivalent to the consideration given. Directly
attributable transaction costs shall be recognized in the profit and loss account
for the reporting period.

2.1.2. Subsequent measurement

After initial recognition, the company will value the financial assets included
in this category at fair value with changes in the profit and loss account.

2.2. Financial assets at amortized cost

A financial asset will be included in this category, even when it is admitted to

trading on an organized market, if the company maintains the investment with
the aim of receiving the cash flows derived from the execution of the contract,
– 68 –
and the contractual conditions of the financial asset give rise to the collection
of cash flows on specified dates which relate only to the principal and interest
of the principal amount outstanding.
The contractual cash flows that relate only to the collection of principal
and interest on the amount of the outstanding principal are inherent to an
agreement that has the nature of an ordinary or common loan, notwithstanding
that the operation is agreed at a zero interest rate or a rate below market.
Thus, a bond with a specific maturity date and for which a variable market
interest rate is charged would be consubstantial with such an agreement and
may be subject to a limit. Conversely, instruments convertible into equity
instruments of the issuer would not meet this condition; loans with inverse
variable interest rates (i.e., a rate that has an inverse relation to market
interest rates); or those in which the issuer can defer the interest payment if
said payment would affect its solvency, without the deferred interest accruing
additional interest.
The management of a group of financial assets to obtain their contractual
flows does not imply that the company must keep all the instruments until
maturity; financial assets may be considered to be managed for that purpose
even if sales have occurred or are expected to occur in the future. To this
end, the company must consider the frequency, amount, and timing of sales in
previous years, the reasons for those sales and the expectations in relation to
future sales activity.
The company’s management of these investments is a matter of fact and
does not depend on its intentions for an individual instrument. A company may
have more than one policy for managing its financial instruments and it may be
appropriate, in some circumstances, to separate a portfolio of financial assets
into smaller portfolios to reflect the level at which the company manages its
financial assets.
In general, credits for commercial operations and credits for non-commercial
operations are included in this category:
a) 
Credits for commercial operations: are those financial assets that
originate from the sale of goods and the provision of services of
operating activities of the company with deferred payment, and
b) Credits for non-commercial operations: are those financial assets that,
not being equity instruments or derivatives, have no commercial origin
and the collectable amount is a determined or determinable sum, that
comes from loans or credit operations granted by the company.
– 69 –
 2.2.1. Initial measurement

Financial assets included in this category shall initially be measured at fair

value. In the absence of evidence to the contrary, this shall be the transaction
price, which is equivalent to the fair value of the consideration given plus directly
attributable transaction costs.
Nonetheless, trade receivables falling due within one year for which there
is no contractual interest rate, and loans and advances to personnel, dividends
receivable and receivables on called-up equity instruments expected to be
collected in the short term can be measured at their nominal amount, provided
that the effect of not discounting the cash flows is not material.

2.2.2 Subsequent measurement

The financial assets included in this category shall subsequently be measured

at amortised cost. Accrued interest shall be recognised in the income statement
using the effective interest rate method.
However, receivables falling due within one year initially measured at the
nominal amount, in accordance with the preceding section, shall continue to be
measured at that amount, unless they are impaired.
When the contractual cash flows of a financial asset are modified due to
the financial difficulties of the issuer, the company will analyse whether it is
appropriate to record a loss due to impairment.

2.2.3. Impairment

At least at the balance sheet date, the company shall recognise any
necessary valuation allowances when there is objective evidence that the value
of a receivable, or group of receivables with similar risk exposure measured
together, is impaired as a result of one or more events occurring after initial
recognition and leading to a reduction or delay in estimated future cash flows,
which could be due to debtor insolvency.
The amount of the impairment loss on these financial assets shall be
measured as the difference between the carrying amount and the present
value of estimated future cash flows, discounted at the effective interest rate
calculated upon initial recognition. This includes, where appropriate, those cash
flows from the execution of real and personal guarantees which are estimated
to be generated. For variable interest financial assets, the effective interest
rate at the balance sheet date, in accordance with contractual terms, shall be
– 70 –
used. Formula-based models or statistical methods may be used to determine
impairment losses in a group of financial assets.
Impairment, and reversals thereof when the loss is reduced due to a
subsequent event, shall be recognised in the income statement as an expense
or income, respectively. The loss can only be reversed up to the limit of the
carrying amount of the receivable that would have been recorded at the reversal
date had the impairment loss not been recognised.
However, as a substitute for the current value of future cash flows, the
market value of the instrument can be used, provided that it is reliable enough
to be considered representative of the recoverable value for the company.
The recognition of interest in credit-impaired financial assets will follow the
general rules, notwithstanding the fact that the company must simultaneously
assess whether the said amount will be subject to recovery and, if applicable,
account for the corresponding impairment loss.

2.3. Financial assets at fair value through other comprehensive income

A financial asset will be included in this category when the contractual

conditions of the financial asset give rise, on specified dates, to cash flows that
relate only to the collection of the principal and interest on the amount of the
outstanding principal and is not held for trading nor should it be classified in
the category regulated in section 2.2 of this standard. Investments in equity
instruments for which the irrevocable option regulated in section 2.1 above has
been exercised will also be included in this category.

2.3.1. Initial measurement

The financial assets included in this category shall initially be measured at fair
value. In the absence of evidence to the contrary, this shall be the transaction
price, which is equivalent to the fair value of the consideration given plus directly
attributable transaction costs.
Initial measurement shall include any pre-emptive and similar rights acquired.

2.3.2. Subsequent measurement

The financial assets included in this category will be valued at fair value,
without deducting any transaction costs on disposal. Changes in fair value shall
be accounted for directly in equity until the financial asset is derecognised or
impaired, and subsequently recognised in the income statement.
– 71 –
 However, impairment and exchange gains and losses on monetary financial
assets in foreign currency shall be recognised in the income statement, in
accordance with the standard on foreign currency.
Interest calculated using the effective interest rate method and accrued
dividends shall also be recognised in the income statement. When a value must
be assigned to assets in this category due to derecognition from the balance
sheet or for any other reason, the weighted average cost method applied to
homogeneous groups shall be used.
In the exceptional event that the fair value of an equity instrument ceases to
be reliable, prior adjustments recognised directly in equity shall be accounted
for in accordance with section 2.4.3. of this standard.
When pre-emptive or similar rights are sold, or separated to be exercised,
the carrying amount of the respective assets shall be reduced by the cost of the
rights. This amount shall reflect the fair value or the cost of the rights, measured
consistently with the associated financial assets, and shall be determined using
a generally accepted measurement technique.

2.3.3. Impairment

At least at the balance sheet date, the company shall recognise any necessary
impairment when there is objective evidence that the value of a financial asset,
or a group of financial assets with similar risk exposure measured together, is
impaired as a result of one or more events that occurred after initial recognition,
giving rise to the following:
A reduction or delay in estimated future cash flows from acquired debt
a) 
instruments, which could be due to debtor insolvency; or
Failure to recover the carrying amount of investments in equity
b) 
instruments, for example due to a significant or prolonged decline in the
fair value. The instrument shall be considered impaired after a decline of
a year and a half or by forty percent of its quoted price with no recovery
in value. However, it may be necessary to recognise an impairment loss
before this period has elapsed or before the quoted price has dropped
by the aforementioned percentage.
The impairment for these financial assets shall be measured as the difference
between the cost or amortised cost, less any impairment previously recognised
in the income statement, and the fair value at the measurement date.
– 72 –
 Where there is objective evidence that the asset is impaired, accumulated
losses recognised in equity for a decrease in fair value shall be recorded in the
income statement.
If in subsequent reporting periods the fair value were to increase, the
impairment recognised in prior periods shall be reversed with a credit to the
income statement for the reporting period. However, where the fair value of
an equity instrument increases, the impairment recognised in prior periods shall
not be reversed with a credit to the income statement; rather, the increase in
fair value shall be accounted for directly in equity.

2.4. Financial assets at cost

The following are all included in this valuation category:

a) Investments in the equity of group companies, jointly controlled entities
and associated companies, as these are defined in the 13th regulation
for the preparation of the annual accounts.
b) The remaining investments in equity instruments whose fair value cannot
be determined by reference to a price quoted in an active market for an
identical instrument, or cannot be reliably estimated, and the derivatives
underlying these investments.
c) Hybrid financial assets whose fair value cannot be reliably estimated
unless they meet the requirements to be accounted for at amortized
cost.
d) Contributions made as a result of joint venture contracts and similar.
e) Participative loans whose interests are contingent, either because a fixed
or variable interest rate is agreed upon and is conditional on meeting
a goal in the borrowing company (for example, obtaining profits), or
because they are calculated exclusively by reference to the evolution of
the activity of the aforementioned company.
f) Any other financial asset that should initially be classified in the fair
value through profit or loss portfolio when it is not possible to obtain a
reliable estimate of its fair value.

2.4.1. Initial measurement

Investments included in this category shall initially be measured at cost,

which is equivalent to the fair value of the consideration given plus directly
attributable transaction costs. The criterion described in section 2 of the
– 73 –
standard on transactions between group companies and the criteria for
determining the cost of the combination set out in the standard on business
combinations shall be applied to group companies, where applicable.
In the case of investments existing prior to classification as a group company,
jointly controlled entity or associate, the cost of the investment shall be the
carrying amount immediately before classification.
Initial measurement shall include any pre-emptive and similar rights acquired.

2.4.2. Subsequent measurement

Equity instruments included in this category shall subsequently be measured

at cost less any accumulated impairment.
When a value must be assigned to assets in this category due to derecognition
from the balance sheet or for any other reason, the weighted average cost
method applied to homogeneous groups shall be used, i.e., securities with the
same rights.
When pre-emptive or similar rights are sold, or separated to be exercised, the
carrying amount of the respective assets shall be reduced by the cost of the rights.
This cost shall be determined using a generally accepted measurement technique.
Contributions made as a result of joint venture contracts and similar shall
be valued at cost, increased or decreased by profit or loss amount, respectively,
corresponding to the company as a non-managing participant, and deducting,
where appropriate, accumulated impairment.
The same criteria will be applied in participating loans whose interests
are contingent, either because a fixed or variable interest rate is agreed upon
and is conditional on meeting a goal in the borrowing company (for example,
obtaining profits), or because they are calculated exclusively by reference to
the evolution of the activity of the aforementioned company. If, in addition to
a contingent interest, an irrevocable fixed interest is agreed, the latter will be
accounted for as financial income based on its accrual. Transaction costs will
be charged to the income statement on a straight-line basis over the life of the
participating loan.

2.4.3. Impairment

At least at the balance sheet date, the company shall recognise any necessary
valuation allowances when there is objective evidence that the carrying amount
of an investment will not be recovered.
– 74 –
 The impairment loss shall be measured as the difference between the
carrying amount and the recoverable amount. The recoverable amount is the
higher of the fair value less costs to sell and the present value of future cash
flows from the investment, estimated as either those from dividends expected
to be received from the investee and the disposal or derecognition of the
investment, or from the share in the cash flows expected to be generated by the
investee in the ordinary course of business and from disposal or derecognition.
When estimating impairment of these types of assets, the investee’s equity
shall be taken into consideration, corrected for any unrealised gains net of tax,
existing at the measurement date, unless better evidence of the recoverable
amount of the investment is available. Where the investee in turn holds an
interest in another company, its equity shall be measured taking into account
the equity disclosed in the consolidated annual accounts prepared using the
criteria contained in the Commercial Code and implementation standards.
When the investee’s registered offices are located outside Spain, the
equity to be taken into consideration shall be as specified in the standards in
this provision. However, in a hyperinflationary environment, the values to be
considered shall be taken from the adjusted financial statements, as described
in the standard on foreign currency.
In general, the indirect method of estimation based on equity may be used in
those cases where a minimum recoverable value can be demonstrated without
the need for a more complex analysis when it is deduced that there is no
impairment.
Impairment, and reversals thereof, shall be recognised in the profit and loss
account. The loss can only be reversed up to the limit of the carrying amount
of the investment that would have been disclosed at the reversal date had the
impairment loss not been recognised.
However, when an investment was made in a group company, jointly
controlled entity or associate before it was classified as such, and valuation
adjustments for the investment were recognised directly in equity prior to this
classification, these adjustments shall be maintained after classification, either
until disposal or derecognition of the investment, at which point they shall be
recognised in the income statement, or until the following circumstances occur:
Where prior valuation adjustments have been made for an increase in
a) 
value, impairment shall be recognised in the equity line item that reflects
prior valuation adjustments, up to the value of those adjustments.
Any excess shall be recognised in the income statement. Impairment
recognised directly in equity shall not be reversed.
– 75 –
 Where prior valuation adjustments have been made for a decrease in
b) 
value and the recoverable amount subsequently exceeds the carrying
amount of the investment, the latter shall be increased up to the
limit of the reduction in its value, and recognised in the line item that
reflected the prior valuation adjustments. The resulting amount shall
be considered as the cost of the investment. However, when there is
objective evidence that the investment is impaired, losses accumulated
directly in equity shall be recognised in the income statement.

2.5. Reclassification of financial assets.

When the company changes its management of financial assets in relation to

the generation of cash flows, it shall reclassify all affected assets in accordance
with the criteria established in the previous sections of this standard. The
reclassification of the category is not a derecognition but rather a change in the
valuation criteria.
For these purposes, the changes which occur from the following
circumstances are not reclassifications:
a) When an element that was previously considered as a designated and
effective hedging instrument in a cash flow hedge or in a hedge of the net
investment in a foreign business and no longer meets the requirements
to be considered as such.
b) When an element becomes a designated and effective hedging instrument
in a cash flow hedge or in a hedge of the net investment in a foreign
business.
The reclassification carried out in accordance with the previous paragraph
will be carried out prospectively from the reclassification date, in accordance
with the following criteria.

2.5.1. 
Reclassification of financial assets at amortized cost to the category
of financial assets at fair value through profit and loss and vice versa

If an entity reclassifies a financial asset from the category of assets at

amortized cost to that of fair value through profit and loss, its fair value will be
measured on the reclassification date. Any loss or gain that arises, due to the
difference between the previous amortized cost of the financial asset and the
fair value, will be recognized in the profit and loss account.
– 76 –
 Conversely, if an entity reclassifies a financial asset from the category of
assets at fair value through profit and loss to that of assets at amortized cost,
its fair value on the reclassification date will become its new carrying amount.

2.5.2. 
Reclassification of financial assets at amortized cost to the category
of financial assets at fair value through other comprehensive income
and vice versa

If an entity reclassifies a financial asset from the category of assets at

amortized cost to that of fair value with changes in equity, its fair value is
measured on the reclassification date. Any loss or gain that arises, due to the
difference between the previous amortized cost of the financial asset and the
fair value, will be recognized directly in equity and the rules relating to assets
included in this category will be applied. The effective interest rate will not be
adjusted as a result of the reclassification.
On the contrary, if an entity reclassifies a financial asset from the category
of fair value through other comprehensive income to that of amortized cost, it
will be reclassified at its fair value on that date. Accumulated gains and losses
in equity will be adjusted against the fair value of the financial asset on the
reclassification date. As a result, the financial asset will be measured on the
reclassification date as if it had been measured at amortized cost from the time
of its initial recognition.

2.5.3. 
Reclassification of financial assets at fair value through profit and loss
account to the category of financial assets at fair value through other
comprehensive income and vice versa

If an entity reclassifies a financial asset from the category of fair value through
profit and loss to that of fair value through other comprehensive income, the
financial asset continues to be measured at fair value. In the case of investments
in equity instruments, reclassification is not possible.
On the contrary, if the entity reclassifies a financial asset from the category
of fair value through other comprehensive income to that of fair value through
profit and loss, the financial asset is still measured at fair value, but the profit
or loss accumulated directly in equity will be reclassified to the profit and loss
account on that date.

– 77 –
 2.5.4. Reclassification of investments in equity instruments valued at cost
to the category of financial assets at fair value through profit and loss
and vice versa

When the investment in the equity of a group, joint venture or associate

company is no longer classified as such, the financial investment held in that
company will be reclassified to the category of financial assets at fair value
through profit and loss provided that the fair value of the shares can be estimated
reliably, unless the company chooses at that time to include the investment
in the category of financial assets at fair value through other comprehensive
income.
In such case, its fair value will be measured on the reclassification date,
recognizing any gain or loss that arises, due to the difference between the
book value of the asset prior to reclassification and its fair value, in the income
statement, unless the company exercises the aforementioned option, in which
case the difference will be charged directly to equity. This same criterion will be
applied to investments in other equity instruments that can be valued reliably.
On the contrary, in the event that the fair value of an equity instrument is
no longer reliable, its fair value on the reclassification date will become its new
book value.

2.6. Interest and dividends received from financial assets

Interest and dividends on financial assets accrued after acquisition will be

recognized as income in the profit and loss account. Interest on financial assets
valued at amortized cost must be recognized using the effective interest rate
method and dividends when the partner’s right to receive them is declared.
For these purposes, in the initial valuation of the financial assets, the
following will be registered independently and according to its maturity date,
the amount of the explicit interest accrued and not due at that time, as well
as the amount of the dividends agreed by the competent body at the time of
acquisition. “Explicit interest” shall be understood as that obtained by applying
the contractual interest rate of the financial instrument.
Likewise, if the distributed dividends unequivocally come from results
generated prior to the date of acquisition because larger amounts have been
distributed than the profits generated by the investee since the acquisition date,
then they will not be recognized as income, and will reduce the book value of
the investment.
– 78 –
 The decision as to whether profits have been generated by the investee will
be based exclusively on the profits recorded in the individual profit and loss
account from the date of acquisition unless the distribution charged to said
profits should undoubtedly be classified as a payback of the investment from the
perspective of the entity receiving the dividend.

2.7. Derecognition of financial assets

In accordance with the provisions of the Conceptual Accounting Framework,

the analysis of financial asset transfers must take into account their economic
reality and not only their legal form or the title given to them in contracts.
The company will derecognize a financial asset, or part of it, when the
contractual rights over the cash flows of the financial asset expire or have been
transferred. It is necessary that the risks and benefits inherent to its ownership
have been substantially transferred, in circumstances that will be evaluated by
comparing the exposure of the company, before and after the assignment, to
the variation in the amounts and to the timing of the net cash flows of the
transferred asset. It will be understood that the risks and benefits inherent to
the ownership of the financial asset have been substantially transferred when
its exposure to such variation is no longer significant in relation to the total
variation of the present value of the net future cash flows associated with the
financial asset (such as outright sales of assets, transfers of commercial loans
in factoring operations in which the company does not retain any credit or
interest risk, sales of financial assets with a repurchase agreement for their fair
value and securitisation of financial assets in which the transferring company
does not retain subordinated financing or grant any type of guarantee or assume
any other type of risk).
If the company had not substantially transferred or retained the risks and
benefits, the financial asset will be derecognized when control of it has not been
retained. This situation will be determined depending on the unilateral ability
of the transferee to transfer the said asset, in its entirety and without imposing
conditions, to an unrelated third party. If the transferring company maintains
control of the asset, it will continue to recognize it at the amount to which the
company is exposed to changes in the value of the transferred asset, that is, due
to its continued involvement, and will recognize an associated liability.
When the financial asset is written off, the difference between the
consideration received net of attributable transaction costs, considering any
new asset obtained less any liability assumed, and the book value of the financial
asset, will be used to determine the profit or loss arising on the derecognition
of said asset, and will form part of the income for the year in which it occurs.
– 79 –
 The above criteria will also apply to transfers of a group or part of a group
of financial assets.
The company will not derecognize financial assets and will recognize a
financial liability for an amount equal to the consideration received, in the transfer
of financial assets in which the risks and benefits inherent to its ownership have
been substantially retained, such as discounting of promissory notes, “recourse
factoring”, the sale of financial assets with a repurchase agreement at a fixed
price or at the sales price plus interest and the securitization of financial assets
in which the transferring company retains subordinated financing or other
types of guarantees that substantially absorb all expected losses. This will be
dealt with later in accordance with the provisions of section 3 of this standard.

3. Financial liabilities

The financial instruments issued, incurred or assumed will be classified

as financial liabilities, in their entirety or in one of their parts, provided that
according to their economic reality they are for the company a direct or indirect
contractual obligation to deliver cash or another financial asset, or to exchange
financial assets or liabilities with third parties under potentially unfavourable
conditions, such as a financial instrument that provides for their mandatory
repurchase by the issuer, or that grants the holder the right to demand from
the issuer its redemption on a date and for a determined or determinable
amount, or to receive a predetermined remuneration provided that there are
distributable profits, such as certain redeemable shares and non-voting shares
or participations.
Any contract that can be or will be settled with the company’s own equity
instruments will also be classified as a financial liability, provided that:
a) It is not a derivative and requires or may oblige the delivery of a variable
amount of its own equity instruments.
b) If it is a derivative with an unfavourable position for the company, it
can or will be settled in a different way than through the exchange of
a fixed amount of cash or another financial asset for a fixed amount
of the company’s equity instruments; For these purposes, those that
are, in themselves, contracts for the future reception or delivery of
the company’s own equity instruments will not be included among own
equity instruments.
The rights, options or warrants to acquire a fixed number of the
company’s own equity instruments for a fixed amount in any currency are
equity instruments, provided that the company offers such rights, options or
– 80 –
warrants proportionally to all shareholders or partners of the same class of
equity instruments. If the instruments give the holder the option to settle them
by delivering the equity instruments or in cash at the fair value of the equity
instruments or at a fixed price, then they meet the definition of a financial
liability.
Financial liabilities, for the purposes of their valuation, will be included in
one of the following categories:
1. Financial liabilities at amortized cost.
2. Financial liabilities at fair value through profit and loss.
Notwithstanding the above, the contributions received as a result of
a contract for accounts in participations and similar will be valued at cost,
increased or decreased by the profit or the loss, respectively, that must be
attributed to non-managing participants.
This same criterion will be applied in participative loans whose interest
is contingent, either because a fixed or variable interest rate is agreed upon
and is conditional on meeting a goal in the borrowing company (for example,
obtaining profits), or because it is calculated exclusively by reference to the
evolution of the activity of the aforementioned company. Financial expenses
will be recognized in the profit and loss account in accordance with the accrual
principle, and transaction costs will be charged to the profit and loss account
according to a financial criterion or, if not applicable, linearly over the life of the
participating loan.
Additionally, financial liabilities arising as a result of asset transfers, in which
the company has not substantially transferred or retained its risks and benefits,
will be valued consistently with the transferred asset under the terms provided
in section 2.7.

3.1. Financial liabilities at amortized cost

The company will classify all financial liabilities in this category except when
they must be valued at fair value through profit and loss, in accordance with the
criteria included in section 3.2, or in the case of any of the exceptions provided
for in this standard.
In general, this category includes debits for commercial operations and
debits for non-commercial operations:
a) 
Debits for commercial operations are those financial liabilities that
originate in the purchase of goods and services for the operating
activities of the company, and which have payment deferred, and
– 81 –
 b) Debits from non-commercial operations are those financial liabilities
that, not being derivative instruments, do not have a commercial origin,
but come from loan or credit operations received by the company.
Participative loans that have the characteristics of an ordinary or common
loan will also be included in this category without prejudice to the fact that the
operation is agreed at a zero or below market interest rate.

3.1.1. Initial measurement

Financial liabilities included in this category will initially be valued at their fair
value, which, unless there is evidence to the contrary, will be the transaction
price, which will be equal to the fair value of the consideration received and
adjusted for the transaction costs that are directly attributable to them.
However, debits for commercial operations with a maturity of no more
than one year and that do not have a contractual interest rate, as well as the
disbursements required by third parties on shares, the amount of which is
expected to be paid in the short term, may be valued at their nominal value,
when the effect of not updating the cash flows is insignificant.

3.1.2. Subsequent measurement

Financial liabilities included in this category will be valued at their amortized

cost. The accrued interest will be recorded in the profit and loss account,
applying the effective interest rate method.
However, debits with a maturity of no more than one year that, in
accordance with the provisions of the previous section, are initially valued at
their nominal value, will continue to be valued at the said amount.

3.2. Financial liabilities at fair value through profit and loss

This category includes financial liabilities that meet any of the following
conditions:
a) 
They are liabilities that are held for trading. A financial liability is
considered to be held for trading when:
a.1. It is issued or assumed mainly for the purpose of reacquiring it
in the short term (for example, bonds and other listed negotiable
securities issued that the company could buy in the short term
based on changes in value).
– 82 –
 a.2. It is an obligation that a short seller has, to deliver financial assets
that have been loaned to him (that is, a company that sells financial
assets that he had received on loan and that he does not yet own).
a.3. At the time of initial recognition, they are part of a portfolio of
financial instruments identified and managed jointly and there is
evidence of recent operations to obtain profits in the short term,
or
a.4. 
It is a derivative financial instrument, provided that it is not a
financial guarantee contract, nor has it been designated as a hedging
instrument.
b) From the moment of initial recognition, it has been designated by the
entity to be accounted for at fair value through profit and loss. This
designation, which will be irrevocable, can only be made if it results in
more relevant information, because:
b.1. An inconsistency or “accounting mismatch” with other instruments
at fair value through profit and loss is eliminated or significantly
reduced; or
b.2. A group of financial liabilities or financial assets and liabilities is
managed and its performance is assessed on the basis of fair value
in accordance with a documented investment or risk management
strategy and group information is also provided on the basis of the
fair value to key management personnel, as defined in the 15th
standard for preparing the annual accounts.
c) Optionally and irrevocably, the hybrid financial liabilities regulated in
section 5.1 may be included in their entirety in this category, provided
that the requirements established therein are met.
Initial and subsequent measurement
Financial liabilities included in this category will initially be valued at their fair
value, which, unless there is evidence to the contrary, will be the transaction
price, which will be equal to the fair value of the consideration received. The
transaction costs that are directly attributable to them will be recognized in the
profit and loss account for the year.
After initial recognition, the company will value the financial liabilities
included in this category at fair value through profit and loss.
– 83 –
 3.3. Reclassification of financial liabilities

An entity shall not reclassify any financial liability. For these purposes, the
changes derived from the following circumstances are not reclassifications:
a) When an element that was previously a designated and effective hedging
instrument in a cash flow hedge or in a hedge of the net investment in a
foreign business no longer meets the requirements to be considered as
such.
b) When an element becomes a designated and effective hedging instrument
in a cash flow hedge or in a hedge of the net investment in a foreign
business.

3.4. Cancellation of financial liabilities

The company will cancel a financial liability, or part of it, when the obligation
has been extinguished; that is, when it has been satisfied, cancelled or expired.
It will also write off its own financial liabilities that it acquires, even if it is with
the intention of relocating them in the future.
If an exchange of debt instruments takes place between a lender and a
borrower, provided that they have substantially different conditions, the
original financial liability will be written off and the new financial liability that
arises will be recognized. In the same way, a substantial modification of the
current conditions of a financial liability will be recorded.
The difference between the book value of the financial liability or the part
of it that has been derecognised and the consideration paid including the costs
or commissions incurred and which will also include any assigned assets other
than the cash or liabilities assumed, will be recognized in the profit and loss
account for the year in which it occurs.
In the case of an exchange of debt instruments that do not have substantially
different conditions, the original financial liability will not be removed from the
balance sheet. Any transaction costs or fees incurred will adjust the carrying
amount of the financial liability. As of that date, the amortized cost of the
financial liability will be determined by applying the effective interest rate that
equals the book value of the financial liability with the cash flows payable under
the new conditions.
For these purposes, the conditions of the contracts will be considered
substantially different, among other cases, when the present value of the cash
flows of the new contract, including any commission paid, net of any commission
– 84 –
received, differs by at least ten percent of the present value of the remaining
cash flows of the original contract, with both amounts updated at the effective
interest rate of the latter. Certain modifications in the determination of cash
flows may not exceed this quantitative analysis but may also lead to a substantial
modification of the liability, such as: a change from fixed to variable interest
rate in the remuneration of the liability, the restatement of the liability in a
different currency, a loan at a fixed interest rate that becomes a participating
loan, among other cases.
In particular, the accounting of the effect of the approval of an agreement
with creditors that consists of a modification of the conditions of the debt will
be reflected in the annual accounts in the year in which it is judicially approved,
provided that compliance is rationally anticipated, and that the company can
continue to apply the going concern principle. To this end, the debtor, in
application of the criteria included in the previous paragraphs, will carry out a
registration in two stages:
a) Firstly, it will analyse if there has been a substantial modification in the
conditions of the debt, for which it will discount the cash flows of the
old and the new debt using the initial interest rate, for later, if applicable
(if the change is substantial),
b) Register the cancellation of the original debt and recognize the new
liability at its fair value (which implies that the interest expense of the
new debt is recorded from that moment applying the market interest
rate on that date; this is, the incremental interest rate of the debtor or
the interest rate that should be paid at that time to obtain financing in a
currency and equivalent term to that resulting from the terms in which
the agreement has been approved).

4. Own equity instruments

An equity instrument is any legal transaction that evidences or reflects a

residual participation in the assets of the issuing company after deducting all its
liabilities.
In transactions carried out by the company with its own equity instruments,
the amount of these instruments shall be recognised in equity as a change in
capital and reserves without valuation adjustments. Under no circumstances
may it be accounted for as a financial asset of the company and no profit or loss
may be recognised in the income statement.
Expenses arising on these transactions, including costs incurred on issuing
the instruments – such as legal fees, notary and registrar fees; printing of
– 85 –
prospectuses, bulletins and securities; taxes; advertising; commissions and other
placement expenses – shall be accounted for directly in equity as a reduction
in reserves.
Costs incurred on an own equity transaction that is discontinued or
abandoned shall be recognised as an expense.

5. Specific cases

5.1. Hybrid financial instruments

Hybrid financial instruments combine a non-derivative host contract and

a financial derivative, known as an embedded derivative, which cannot be
transferred separately and has no counter party other than the instrument,
with the effect that some of the cash flows of the hybrid instrument vary in a
way similar to a stand-alone derivative (for example, bonds indexed to share
prices or stock market index performance).
For the purposes of this rule, two types of hybrid contracts are distinguished:
a) Hybrid contracts with a financial asset as the main contract.
b) Other hybrid contracts.

5.1.1. Hybrid contracts with a financial asset as the main contract

The company will apply the general criteria established in section 2 of this
standard to the complete hybrid contract.

5.1.2. Other hybrid contracts

Hybrid instruments that contain one or more embedded derivatives and a

main contract that is not a financial asset are included in this category.
The company must account separately for the embedded derivative and the
main contract if, and only if:
a) The characteristics and economic risks of the embedded derivative are
not closely related to those of the main contract.
b) A different financial instrument with the same conditions as those of
the embedded derivative would meet the definition of a derivative
instrument; and
c) The hybrid contract is not valued in its entirety at fair value with changes
in the profit and loss account (that is, for example, a derivative that is
– 86 –
 implicit in a financial liability and valued at fair value through profit and
loss is not separated).
The embedded derivative will be accounted for as such and the main contract
will be accounted for in accordance with the recording and valuation criteria
of the corresponding standard. If the requirements listed in the preceding
paragraph to separately recognize and value the embedded derivative and the
main contract are not met, the company will apply the general recording and
valuation criteria to the hybrid contract as a whole.
However, the company may designate irrevocably at its initial recognition,
the entire hybrid contract at fair value with changes in results, thus avoiding the
segregation of the derivative or implicit derivatives, unless one of the following
circumstances occurs:
a) The embedded derivative or derivatives do not significantly modify the
cash flows that the instrument would otherwise have generated, or
b) When considering the hybrid instrument for the first time, it is evident
that the separation of the embedded derivative or derivatives is not
allowed, as would be the case of an implicit prepayment option in a loan
that allows its holder to repay the loan in advance for approximately its
amortized cost.
If it is required by this standard that the company separate an embedded
derivative but the fair value of that embedded derivative could not be reliably
determined based on its own characteristics, such value will be estimated by
the difference between the fair value of the hybrid instrument and that of
the main contract if both could be reliably determined; If this is not possible
either, either on the acquisition date or on a later date, the company will treat
the hybrid contract as a whole and as a financial instrument at fair value with
changes in the profit and loss account.

5.2. Compound financial instruments

A compound financial instrument is a non-derivative financial instrument

that simultaneously includes liability and equity components.
The company shall recognise, measure and disclose separately the
components of any compound financial instruments it has issued.
The initial carrying amount shall be allocated using the criteria described
below and shall not be subsequently modified, except in the event of error:
The liability component shall be measured at the fair value of a similar
a) 
instrument that does not have an associated equity component.
– 87 –
 The equity component shall be measured as the difference between the
b) 
initial amount and the value assigned to the liability component.
Transaction costs shall be allocated proportionately.
c) 

5.3. Contracts held for the purpose of receiving or delivering a non-financial

asset

The contracts that are maintained for the purpose of receiving or delivering
a non-financial asset in accordance with the needs of the company for the
purchase, sale or use of said assets, will be treated as prepayments on account
or commitments for purchases or sales, as applicable, unless they can be settled
by differences and the entity designates them as measured at fair value through
profit or loss. This designation is only possible at the beginning of the contract
and as long as it eliminates or significantly reduces an “accounting mismatch”
that would otherwise arise from not recognizing that contract at fair value.
However, contracts shall be measured and recognised in accordance with
the criteria applicable to derivative financial instruments set out in this standard
when the contract can be settled by differences, in cash or another financial
instrument, or by exchanging financial instruments or, even when they are
settled through delivery of a non-financial asset, the company has a practice of
selling it within a short period after delivery, and shorter than the normal sector
period, for the purpose of generating a profit from short-term fluctuations in
price or dealer’s margin, or where the non-financial asset is readily convertible
into cash.
An option issued to buy or sell a non-financial asset, which can be settled
for the net amount, in cash or in another financial instrument, or through
the exchange of financial instruments, will also be recognized and valued
in accordance with the provisions of this standard for derivative financial
instruments because said contract cannot have been entered into with the
objective of receiving or delivering a non-financial item in accordance with the
purchases, sales or the needs expected by the company.

5.4. Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to

make specified payments to reimburse the holder for a loss it incurs because a
specified debtor fails to make payment when due in accordance with the original
or modified terms of a debt instrument, such as a deposit or a guarantee.
– 88 –
 Financial guarantee contracts shall initially be recognised at fair value. In
the absence of evidence to the contrary, this shall be equal to the premium
received plus the present value of any premium receivable.
Unless the financial guarantee was classified in other financial liabilities at
fair value through profit or loss on initial recognition or section 2.7 of this
standard applies because the guarantees arose on a transfer of financial assets
that does not qualify for derecognition, financial guarantees shall subsequently
be measured at the higher of the following:
The value resulting from application of the standard on provisions and
a) 
contingencies.
The initially recognised amount less any portion recognised in the
b) 
income statement as accrued income.
The company that receives the guarantee (company backed by the
guarantee) will record the cost of the guarantee in the profit and loss account
as an operating expense, despite the fact that the corresponding accrual must
be recognized at the end of the year. Notwithstanding the above, in those cases
in which the guarantee is directly related to a financial operation, for example,
when the interest rate depends on the granting of the guarantee, obtaining the
loan and formalizing the guarantee, it may be considered as a single financing
operation for the company, insofar as the guarantee is an essential requirement
to obtain the loan, a circumstance that should lead to the inclusion of all the
disbursements derived from the guarantee in the calculation of the effective
interest rate of the operation.

5.5. Guarantee deposits delivered and received

In guarantees extended or received for operating leases or the rendering

of services, the difference between the fair value and the amount paid (for
example, because the guarantee is non-current and earns no interest) shall be
considered as a prepayment or revenues received in advance for the lease or
service rendered and shall be recognised in profit or loss over the lease term,
in accordance with section 2 of the standard on leases and similar transactions,
or over the period during which the service is rendered, in accordance with the
standard on revenue from sales and the rendering of services.
When estimating the fair value of guarantees, the minimum contractual term
during which the amount may not be reimbursed is considered as the remaining
period, without taking into account the statistical reimbursement trends.
– 89 –
 Cash flows from current guarantees need not be discounted if its effect is
immaterial.

6. Hedge accounting

In a hedging transaction, one or more financial instruments, known as

hedging instruments, are designated to hedge a specifically identified risk that
could have an impact on the income statement due to changes in the fair value
or cash flows of one or more hedged items.
Under hedge accounting, when certain conditions set forth in the standard
are met the hedging instruments and hedged items shall be recognised by
applying the specific criteria therein rather than the generally established
criteria.
In any case, for the company to apply hedge accounting, all the following
conditions must be met:
a) 
The hedging relationship consists only of hedging instruments and
eligible hedged items, in accordance with the provisions outlined in the
following sections.
b) 
The hedging relationship is designated and documented at
commencement, at which time its objective and strategy must also be
set out.
c) The hedge must be effective throughout the term to compensate for
variations in fair value or cash flows attributed to the hedged risk,
consistent with the initially documented risk management strategy.
The company will discontinue hedge accounting prospectively only when
the hedging relationship (or a part of it) no longer meets the required criteria,
after taking into account, where appropriate, any rebalancing of the hedging
relationship; for example, when the hedging instrument expires, is sold,
terminated or exercised. However, the registration and evaluation of the
coverage does not cease in the event that the company revokes the designation
of the coverage if the rest of the requirements are still met.

6.1. Hedging instruments

In general, instruments that can be designated as hedging instruments are

derivatives whose fair value or future cash flows offset variations in fair value
or future cash flows of items that meet the requirements to be classified as
hedged items. However, a written option may not be designated as a hedging
– 90 –
instrument unless it is designated to hedge a purchase option, including those
purchase options embedded in another financial instrument.
Likewise, financial assets and liabilities that are not derivatives may be
designated as hedging instruments if they are measured at fair value through
profit and loss.
In the case of exchange rate hedges, the exchange rate risk component of a
financial asset or financial liability, other than derivatives, may be designated as
a hedging instrument.
The company may designate as a hedging instrument a combination of
derivatives or a proportion of these and non-derivatives or a proportion of
these, including those cases in which the risk or risks arising from some hedging
instruments outweigh those arising from others.

6.2. Hedged items

A hedged item can be a recognised asset or liability, an unrecognised firm

commitment, a highly probable forecast transaction or a net investment in
a foreign operation. Any of the above that exposes the company to specific
identified risks of changes in fair value or changes in cash flows. A net asset or
liability position shall in no case be considered as a hedged item.
An aggregate exposure formed by the combination of an exposure that
can be considered a hedged item according to the previous paragraph and a
derivative may also be designated as a hedged item.
The hedged item can be a single item, a component of it, or a group of
items, as long as they can be measured reliably.
The company may only designate the following components of an item as
hedged items:
a) Changes in cash flows or in the fair value of an item attributable to a
specific risk or risks, provided that, based on an assessment within the
context of the specific market structure, the risk component can be
separately identifiable and reliably measured, including changes in the
cash flows or the fair value of a hedged item that are above or below a
specified price or other variable (one-sided risk).
b) One or more selected contractual cash flows.
c) The components of a nominal amount, that is, a specific part of the
amount of an item (for example, fifty percent of the contractual cash
flows of a loan or of its future cash flows, for the amount of ten
– 91 –
 monetary units, from sales denominated in a foreign currency after the
first twenty currency units have been exceeded).
A group of items (including a group of items that constitutes a net position)
is only eligible as a hedged item if:
a) It is made up of items, including their components, that are individually
admissible as hedged items;
b) Group items are managed jointly for risk management purposes; and
c) In the case of a cash flow hedge of a group of items whose variations
in cash flows are not expected to be approximately proportional to
the overall variation in the group’s cash flows so that risk positions are
generated and offset against each other:
c.1) It is a hedge for exchange rate risk; and
c.2) The designation of this net position specifies the year in which the
foreseen transactions are expected to affect the profit and loss
account, as well as their nature and their volume.

6.3. Documentation and effectiveness of accounting hedges

Documentation of a hedging relationship should include the identification

of the hedging instrument and the hedged item, the nature of the risk to be
hedged, and how the company will assess whether the hedging relationship
meets the effectiveness requirements of the hedging relationship (together
with the analysis of the causes for the ineffectiveness of the hedge and how to
determine the hedge ratio).
In order for the hedge to be classified as effective, the following requirements
must be met:
a) There is an economic relationship between the hedged item and the
hedging instrument.
b) The credit risk should not have a dominant effect on the changes in
value which result from that economic relationship; and
c) The hedge ratio of the accounting hedge relationship, understood as the
quantity of the hedged item compared to the quantity of the hedging
instrument, must be the same as the hedge ratio used for management
purposes. That is, the hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the hedged item that the
entity actually hedges and the quantity of the hedging instrument that
the entity actually uses to hedge that quantity of hedged item. However,
– 92 –
 this designation should not reflect an imbalance between the weightings
of the hedged item and the hedging instrument that would create hedge
ineffectiveness, irrespective of whether it is recognized or not, that
could result in an accounting outcome that would be inconsistent with
the purpose of hedge accounting.
Once the hedge effectiveness requirement has been fulfilled, the part of
the hedging instrument that is not used to hedge a risk will be accounted for
in accordance with the general criteria. The part of the hedging instrument
that has been designated as effective hedging may include a residual ineffective
part provided that it does not reflect an imbalance between the weights of the
hedged item and the hedging instrument. This ineffective part will be equal to
the excess of the change in the value of the hedging instrument designated as
effective hedge over the change in the value of the hedged item.
If a hedging relationship no longer meets the hedge effectiveness requirement
related to the hedge ratio, but the risk management objective for that designated
hedging relationship remains unchanged, the company will adjust the hedge
ratio of the said hedging relationship so that it meets the qualifying criteria again
and which is referred to as rebalancing in this standard.
Rebalancing means that, for hedge accounting purposes, once a hedging
relationship has been initiated, the company must adjust the quantities of the
hedging instrument or hedged item in response to changes that affect the
corresponding hedge ratio. Typically, this adjustment reflects changes in the
quantities of the hedging instrument and the hedged item used for management
purposes.
Adjusting the hedge ratio can be done in different ways:
a) You can increase the weight of the hedged item (thereby reducing the
weight of the hedging instrument at the same time), either by increasing
the amount of the hedged item or by decreasing the amount of the
hedging instrument.
b) The weighting of the hedging instrument can be increased (thereby
reducing the weight of the hedged item at the same time), either by
increasing the amount of the hedging instrument or by decreasing the
amount of the hedged item.
Changes in the amount refer to changes in the amounts that are part of the
hedging relationship. Consequently, decreases in the amount do not necessarily
mean that the items or transactions cease to exist, or that they are no longer
expected to take place, but rather that they no longer form part of the hedging
relationship. For example, decreasing the amount of the hedging instrument
– 93 –
may result in the company holding a derivative, but only part of it remains a
hedging instrument in the hedging relationship. In that case, the part of the
derivative that ceases to be part of the hedging relationship would be carried at
fair value through profit or loss, unless it is designated as a hedging instrument
in a different hedging relationship.

6.4. Types of hedging and accounting disclosure

For the purposes of recording and valuation, hedging operations will be

classified into the following categories:
a) Fair value hedge: it covers the exposure to changes in the fair value of
recognized assets or liabilities or of unrecognised firm commitments, or
a component of any such item, that is attributable to a particular risk
that may affect the profit and loss account (for example, the contracting
of a financial swap to cover the risk of financing at a fixed interest rate).
Changes in the value of the hedging instrument and of the hedged item
attributable to the hedged risk will be recognized in the profit and loss
account.

When the hedged item is an unrecognized firm commitment or
a component thereof, the cumulative change in the fair value of the
hedged item after its designation will be recognized as an asset or a
liability, and the corresponding gain or loss will be reflected in the profit
and loss account.
Changes in the book value of the hedged items that are valued at
amortized cost will imply the correction of the effective interest rate of
the instrument, either from the moment of the modification, or (at the
latest) from when the hedge accounting ceases.
b) Cash flow hedging: it covers the exposure to variability in cash flows that
is attributable to a particular risk associated with all, or a component
of, a recognized asset or liability (such as the contracting of a financial
swap to hedge the risk of a variable interest rate financing), or a highly
probable forecast transaction that could affect profit or loss (for example,
hedging of exchange rate risk related to forecast purchases and sales of
property, plant and equipment, goods and services in foreign currency).
The exchange rate risk hedge of a firm commitment can be accounted
for as a cash flow hedge or as a fair value hedge.
The loss or gain of the hedging instrument, in the part that constitutes
an effective hedge, will be recognized directly in equity. Thus, the equity
– 94 –
 component that arises as a result of the hedge will be adjusted so that
it is equal, in absolute terms, to the lower of the following two values:
b.1) The cumulative gain or loss of the hedging instrument from the
inception of the hedge.
b.2) The cumulative change in the fair value of the hedged item (that is,
the present value of the cumulative change in the hedged expected
future cash flows) from the inception of the hedge.
Any remaining loss or gain of the hedging instrument or any loss or gain
required to offset the change in the adjustment for cash flow hedging
calculated in accordance with the previous paragraph, will represent an
ineffectiveness of the hedge that will force recognition of these amounts
in the result for the reporting year.
If a hedged highly probable forecast transaction subsequently results
in the recognition of a non-financial asset or a non-financial liability,
or a hedged forecast transaction relating to a non-financial asset or a
non-financial liability becomes a firm commitment to which fair value
hedge accounting applies, the company will eliminate the amount of
the adjustment from the cash flow hedge and include it directly in the
initial cost or other carrying amount of the asset or liability. This same
criterion will be applied in the hedging of the exchange rate risk of
the acquisition of an investment in a group company, joint venture or
associate company.
In all other cases, the adjustment recognized in equity will be transferred
to the income statement to the extent that the expected future cash
flows hedged affect the profit or loss for the year (for example, in the
years in which an interest expense is recognised or a planned sale will
take place).

However, if the adjustment recognized in equity is a loss and the
company expects that all or part of it will not be recovered in one or
more future reporting years, the amount that is not expected to be
recovered will be immediately reclassified in the profit and loss account.
c) The hedge of a net investment in a foreign operation covers the exchange
rate risk in investments in subsidiaries, associates, joint ventures and
branches, whose activities are based or are carried out in a functional
currency other than that used by the company for preparing the annual
accounts.
In the hedging operations of net investments in joint ventures that
lack independent legal identity and foreign branches, the changes in
– 95 –
 value of the hedging instruments attributable to the hedged risk will
be temporarily recognized in equity and charged to the profit and loss
account in the year or years in which the sale or disposition by other
means of the net investment in the business abroad takes place.
Hedging operations of net investments in foreign businesses through
subsidiaries, jointly controlled companies and associate companies will
be treated as fair value hedges for the exchange rate component.
The net investment in a foreign operation is made up of, in addition to
the participation in equity, any monetary item receivable or payable, the
settlement of which is neither contemplated nor likely to occur in the
foreseeable future, excluding items of a commercial nature.
Hedging instruments will be valued and recorded according to their nature
to the extent that they are not, or cease to be, effective hedges.

10th Inventories

1. Initial measurement

Goods, services and other assets included in inventories shall be measured

at cost, determined as purchase price or production cost.
The purchase price or production cost shall only include indirect taxes
on inventories when these are not directly recoverable from the taxation
authorities.
The purchase price or production cost of inventories that require a period
of more than one year to bring them to a saleable condition shall include
borrowing costs, in accordance with the standard on property, plant and
equipment.
Advances to suppliers on account of future supplies of inventories shall be
measured at cost.
Trade payables shall be measured in accordance with the standard on
financial instruments.

1.1. Purchase price

The purchase price comprises the amount invoiced by the seller, after
deduction of any discounts, rebates or other similar items, such as interest
incorporated into the nominal amount, plus any additional costs incurred
– 96 –
to bring the goods to a saleable condition, such as transport, import duties,
insurance and other costs directly attributable to the acquisition of inventories.
Nevertheless, the purchase price can include interest on payables maturing
within one year which do not have a contractual interest rate when the effect
of not discounting the cash flows is immaterial.

1.2. Production cost

The production cost shall comprise the purchase price of raw materials
and consumables, directly related costs and the proportional amount of costs
indirectly attributable to the related products, insofar as these relate to the
production, construction or manufacturing period, are required to bring the
item into a saleable condition and are based on the level of usage of normal
production capacity.

1.3. Allocation of value

The value of specific items included in inventories of interchangeable

goods shall be allocated using the weighted average cost or price method. The
FIFO method is also acceptable and can be used if the company considers this
more appropriate for management purposes. The company shall use the same
allocation method for all inventories having a similar nature and use.
The value of inventories of items that are not ordinarily interchangeable
and goods produced and segregated for specific projects shall be assigned by
identifying the price or specific attributable costs on an individual basis.

1.4. Cost of inventories for services rendered

The criteria described in the preceding sections shall also apply when
determining the cost of inventories for services. Specifically, inventories shall
include production costs associated with the services when the revenue from
the services rendered has not yet been recognised in accordance with the
standard on revenue from sales and the rendering of services.

2. Subsequent measurement

Valuation allowances shall be made and recognised as an expense in the

income statement when the purchase price or production cost of inventories
exceeds the net realisable value.
– 97 –
 No valuation allowances shall be made for raw materials and other
consumables used in the production process if the finished products into which
they will be incorporated are expected to be sold above cost. When a valuation
allowance is required, the replacement cost of the raw materials and other
consumables may be the best available measure of their net realisable value.
Valuation allowances shall not be made for goods or services subject to
firm sales or service contracts to be implemented at a subsequent date if the
sales price specified in the contract at least covers the cost of those goods or
services, plus all costs to be incurred for completion of the contract.
If the circumstances that gave rise to the valuation allowance for inventories
cease to exist, the valuation allowance shall be reversed and recognised as
income in profit and loss.

3. Exception to the general valuation rule

As an exception to the general rule, intermediaries that market listed

raw materials may value their stocks at fair value less costs to sell as long as
this eliminates or significantly reduces an “accounting mismatch” that would
otherwise arise by not recognising these assets at fair value. In this case, the
change in value will be recognized in the profit and loss account.

11th Foreign currency

1. Foreign currency transactions

A foreign currency transaction is a transaction denominated, or which

requires settlement, in a currency other than the functional currency.
The functional currency is the currency of the primary economic
environment in which the company operates. In the absence of evidence to
the contrary, it shall be presumed that the functional currency of companies
domiciled in Spain is the euro.
For the purposes of this standard, assets and liabilities are classified in
accordance with the nature of the consideration given or received, as follows:
Monetary items are cash held and assets and liabilities to be received
a) 
or paid in a fixed or determinable number of currency units. These
include loans and receivables, debts and payables and investments in
debt securities that meet the aforementioned conditions.
– 98 –
 Non-monetary items are assets and liabilities that are not considered
b) 
monetary items; that is, which shall be received or paid in an unfixed
or undeterminable number of currency units. These include property,
plant and equipment, investment property, goodwill and other intangible
assets, inventories, equity investments in other companies that meet the
aforementioned criteria, advances on account of purchases and sales,
and liabilities to be settled through delivery of a non-monetary asset.

1.1. Initial measurement

All foreign currency transactions shall be translated into the functional

currency by applying to the foreign currency amount the spot exchange rate
between the functional currency and the foreign currency at the date of the
transaction. The spot exchange rate is the exchange rate used in transactions
with immediate delivery and the date of the transaction is understood to be the
date on which the transaction qualifies for recognition.
An average exchange rate may be used for all transactions in each foreign
currency occurring during a period (maximum period of one month), except
where there have been significant fluctuations in this rate during the period.

1.2. Subsequent measurement

1.2.1. Monetary ítems

At the balance sheet date, monetary items shall be measured at the closing
rate, considered to be the average spot exchange rate at that date.
Exchange gains and losses arising on this process and on settlement of
these assets and liabilities shall be recognised in the income statement for the
reporting period in which they occur.
In the particular case of monetary financial assets classified as fair value
through equity, exchange differences arising due to exchange rate fluctuations
between the transaction date and the balance sheet date shall be determined
assuming that the assets have been measured at amortised cost in the foreign
currency. Exchange differences shall therefore be due to variations in the
amortised cost as a result of exchange rate fluctuations, irrespective of the fair
value. Exchange differences calculated in this way shall be recognised in profit
or loss for the reporting period in which they arise, while other changes in
the carrying amount of these financial assets shall be accounted for directly in
equity in accordance with section 2.3.2 of the standard on financial instruments.
– 99 –
 1.2.2. Non-monetary items

1.2.2.1. Non-monetary items measured at historical cost

These items shall be measured using the exchange rate prevailing at the
transaction date.
The amortisation or depreciation charge of an asset denominated in a
foreign currency shall be calculated based on the amount expressed in the
functional currency using the exchange rate prevailing at the initial recognition
date.
At each subsequent balance sheet date, the amount obtained using this
method may not exceed the recoverable amount at that time, using the closing
exchange rate prevailing at the balance sheet date where necessary.
When, in accordance with the standard on financial instruments, it is
necessary to calculate the equity of an investee, corrected for any unrealised
gains existing at the measurement date, the closing exchange rate shall be
applied to equity and to unrealised gains existing at that date.
However, in the case of foreign companies subject to hyperinflation, the
values to be considered shall be the amounts disclosed in the adjusted financial
statements prior to translation. Adjustments shall be made in accordance
with the criteria applicable to “Adjustments for hyperinflation”, set out in the
standards for the preparation of consolidated annual accounts that implement
the precepts of the Commercial Code.
Hyperinflation in a country’s economic environment is indicated by certain
characteristics including, but not limited to, the following:
the cumulative inflation rate over three years is approaching, or exceeds,
a) 
100%;
the general population prefers to keep its wealth in non-monetary assets
b) 
or in a stable foreign currency;
monetary amounts are usually considered in terms of a stable foreign
c) 
currency, and prices may even be established in that currency;
sales and purchases on credit take place at prices that compensate for
d) 
the expected loss of purchasing power during the credit period, even if
the period is short; or
e) interest rates, wages and prices are linked to a price index.
– 100 –
 1.2.2.2. Non-monetary items measured at fair value

These items shall be measured using the exchange rate prevailing at the fair
value calculation date.
When gains or losses deriving from changes in the value of non-monetary
items, such as investments in equity instruments classified as financial assets at
fair value through equity, any exchange differences included in the gains or losses
shall also be accounted for directly in equity. However, when gains or losses
deriving from changes in the value of non-monetary items, such as investments
in equity instruments classified as financial assets at fair value through profit
and loss, are recognised in the income statement for the reporting period, any
exchange differences included in the gains or losses shall also be accounted for
in profit or loss for the period.

2. Translation of annual accounts into the presentation currency

The presentation currency is the currency in which the annual accounts are
prepared; that is, the euro.
In exceptional circumstances, when a Spanish company has a functional
currency or currencies other than the euro, its annual accounts shall be
translated into the presentation currency using the criteria applicable to financial
statements expressed in a functional currency other than the presentation
currency. These are set out in the standards for the preparation of consolidated
annual accounts that implement the precepts of the Commercial Code.
Translation differences shall be recognised directly in equity.
When a Spanish company holds an interest in foreign assets or operations
which are jointly controlled, as defined in the standard on joint ventures, and
the functional currency of these operations is not the euro, the aforementioned
procedures for translation to the presentation currency shall apply. Foreign
currency transactions carried out by joint ventures disclosed in the annual
accounts of the investee shall be translated into the functional currency applying
the rules set out in section one of this standard. The same criteria shall apply
to the company’s foreign branches.

– 101 –
12th 
Value added tax (VAT), Canary Island tax (IGIC) and other
indirect taxes

Non-deductible input VAT shall be included in the purchase price of current

and non-current assets and services that are subject to this tax. In the case
of work carried out by the company for assets, non-deductible VAT shall be
capitalised as part of the cost of the respective non-current assets.
Rectification of non-deductible input VAT resulting from final pro rata
adjustments, including adjustments for capital goods, shall not affect initial
measurement.
Output VAT shall not be included in income from operations subject to
this tax or in the net amount obtained on disposal when non-current assets are
derecognised.
The rules applicable to non-deductible input VAT shall also apply to Canary
Island tax (IGIC) and any other indirect tax incurred on the acquisition of assets
or services that is not directly recoverable from the taxation authorities.
The rules applicable to output VAT shall also apply to Canary Island tax
(IGIC) and to any other indirect tax charged on operations carried out by
the company and collected on behalf of the taxation authorities. However,
when taxes payable are calculated on the basis of revenue or an other related
indicator, for which the taxable event is not the transaction whereby assets are
transferred or services rendered, such taxes shall be accounted for as expenses
and, consequently, not a reduction in revenue.

13th Income tax

The income taxes referred to in this standard are direct Spanish or foreign
taxes, settlement of which is based on profit or losses calculated in accordance
with applicable tax standards.
When the calculation is not based on actual economic transactions but,
rather, on objective signs, indexes and modules, the section of this standard
that refers to deferred tax shall not apply. Nevertheless, the partial application
of these procedures to calculate taxes or income could give rise to deferred
tax assets or liabilities.

1. Current tax assets and liabilities

Current tax is the amount of taxes payable by the company as a result of

income tax or other tax settlements for a period.
– 102 –
 Deductions and other tax relief applicable to payable taxes, excluding
withholdings and payments on account, and tax loss carryforwards applied in
the current reporting period shall be accounted for as a reduction in current
tax. However, deductions and other tax relief of an economic nature similar to
grants may be accounted for in accordance with section 4 of this standard and
the standard on grants, donations and bequests received.
Current tax for the current and prior reporting periods shall be recognised
as a liability to the extent unpaid. However, if the amount already paid in respect
of the current and prior reporting periods exceeds the amounts due for those
periods, the excess shall be recognised as an asset.
In jurisdictions that allow a tax loss for the current period to be carried
back to recover tax paid for a previous period, the current tax shall be the total
amount of tax for prior reporting periods to be recovered as a result of tax
settlements for the period. When a tax loss is used to recover tax paid for a
previous period, the benefit shall be recognised as a current tax asset.

2. Deferred tax assets and liabilities

2.1. Temporary differences

Temporary differences are those differences arising between the carrying

amount of assets, liabilities and certain own equity instruments of the company
and the value attributed to these items for tax purposes that have an impact on
future tax payments.
The value of an asset, liability or own equity instrument for tax purposes,
called the tax base, is the amount attributed to that item in accordance with
applicable tax legislation. It is possible that certain items may have a tax base
but no carrying amount and therefore are not recognised in the balance sheet.
Temporary differences arise due to the following:
Usually, as a result of timing differences between taxable income and
a) 
accounting profit before tax deriving from different timing criteria used
to determine these two results. These differences therefore reverse in
subsequent periods.
Other cases, such as the following:
b) 
– income and expenses recognised directly in equity that are not
considered as taxable income, including changes in the value of
assets and liabilities, if these variations differ from those attributed
for tax purposes;
– 103 –
 – when the carrying amount of assets and liabilities recognised in a
business combination differs from their tax base;
– 
on initial recognition of an item not deriving from a business
combination, if the carrying amount differs from its tax base.
Temporary differences are classified as follows:
Taxable temporary differences, which are temporary differences that
a) 
will result in higher tax payments or lower recoverable tax in future
reporting periods, usually as the carrying amount of the assets or
liabilities from which they arise is recovered or settled.
Deductible temporary differences, which are temporary differences
b) 
that will result in lower tax payments or higher recoverable tax in
future reporting periods, usually as the carrying amount of the assets or
liabilities from which they arise is recovered or settled.

2.2. Deferred tax liabilities

A deferred tax liability shall be recognised for all taxable temporary

differences, except where they arise due to the following:
Initial recognition of goodwill. However, deferred tax liabilities relating
a) 
to goodwill shall be recognised to the extent that they do not arise from
initial recognition of that goodwill.
Initial recognition of an asset or liability in a transaction that is not a
b) 
business combination and affected neither accounting profit nor taxable
income.

2.3. Deferred tax assets

In accordance with the prudence principle, deferred tax assets shall only be
recognised to the extent that it is probable that future taxable income will be
available to enable their application.
Provided that the above condition is met, a deferred tax asset shall be
recognised in respect of the following:
deductible temporary differences;
a) 
the right to offset tax losses in subsequent periods;
b) 
unused deductions and tax incentives pending application.
c) 
– 104 –
 Nonetheless, a deferred tax asset shall not be recognised when the
deductible temporary difference arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and affected
neither accounting profit nor taxable income.
At each balance sheet date, the company shall reassess recognised and
previously unrecognised deferred tax assets. The company shall then derecognise
previously recorded deferred tax assets when recovery is no longer probable,
or recognise a previously unrecorded deferred tax asset to the extent that it is
probable that future taxable profit will enable its application.

3. Measurement of current and deferred tax assets and liabilities

Current tax assets or liabilities shall be measured at the amount expected

to be paid or recovered from the taxation authorities, using the tax legislation
in force or approved and pending publication at the balance sheet date.
Deferred tax assets and liabilities shall be measured using the tax rates
expected to prevail upon their reversal, based on tax legislation in force or
approved and pending publication at the balance sheet date, and in accordance
with the manner in which the assets are reasonably expected to be recovered
and liabilities settled.
Any amendments to tax legislation, particularly changes in tax rates, and the
company’s economic performance shall give rise to a variation in deferred tax
assets and liabilities.
Deferred tax assets and liabilities shall not be discounted.

4. Tax expense (tax income)

Tax expense (tax income) for the reporting period shall comprise current
tax expense (income) and deferred tax expense (income).
Current tax expense (income) shall reflect the settlement of withholdings
and payments on account and the recognition of current tax assets and liabilities.
Deferred tax expense (income) shall reflect the recognition and settlement
of deferred tax assets and liabilities and the recognition and transfer to profit
and loss of any income recognised directly in equity due to deductions and
other tax relief of an economic nature similar to grants.
Both current and deferred tax expense (income) shall be accounted for in
profit and loss. However, in the following cases, current and deferred tax assets
and liabilities shall be recognised as described below:
– 105 –
 Current and deferred tax assets and liabilities relating to a transaction
a) 
or event which is recognised directly in equity shall be accounted for
with a debit or credit to equity.
Current and deferred tax assets and liabilities arising on a business
b) 
combination shall be accounted for consistently with the other assets
and liabilities of the acquired business, unless they are assets or liabilities
of the acquirer, in which case their recognition or derecognition shall
not form part of the business combination. The current tax expense
arising on cancellation of the previously held investment in the acquiree
shall be recognised in the income statement.
When deferred tax assets and liabilities are increased or reduced as a result
of changes in tax legislation or changes in the company’s economic performance,
these adjustments shall be recognised in profit or loss as a deferred tax expense
or deferred tax income, as applicable. However, adjustments shall be accounted
for directly in equity where relating to items which, in application of this General
Accounting Plan, should be credited or debited to equity.
On the initial recognition of business combinations, when the deferred tax
assets of the acquiree do not qualify for separate recognition and subsequently
these recognition criteria are met, the following shall apply:
Deferred tax assets recognised during the measurement period, as
a) 
described in section 2.6 of the recognition and measurement standard
on business combinations, arising from new information on events and
circumstances existing at the acquisition date, shall reduce the carrying
amount of any goodwill relating to that acquisition. If the goodwill is
zero, any deferred tax assets shall be recognised as an adjustment to the
negative goodwill.
Deferred tax assets recognised after the aforementioned measurement
b) 
period, or which are recognised during the measurement period but
arise from events or circumstances that did not exist at the acquisition
date, shall not give rise to adjustments in the carrying amount of goodwill
or negative goodwill. Rather, they shall be recognised in profit and loss
or, if required by the standard, directly in equity.
In the specific case of a company in which all temporary differences at the
start of the reporting period and at the balance sheet date have arisen due to
timing differences between taxable income and accounting profit before tax,
the deferred tax expense (income) can be directly measured as the algebraic
sum of the following amounts, which may be positive or negative:
– 106 –
 the amount resulting from applying the tax rate applicable to each
a) 
difference recognised or applied during the reporting period, and to the
tax loss carry forwards recognised or applied during the period;
the amount of deductions and other tax incentives pending application
b) 
in subsequent reporting periods, recognised or applied during the
period, and the recognition and transfer to profit and loss of any income
recognised directly in equity due to deductions and other tax incentives
of an economic nature similar to grants;
the amount resulting from any valuation adjustments to deferred tax
c) 
assets and liabilities, usually due to changes in tax rates or in circumstances
affecting the subsequent elimination or recognition of these assets and
liabilities.
In this particular case, the total income tax expense (income) shall include
both current and deferred tax calculated as described for this case.

5. Individual independent professionals

The income tax line item should not include any amounts for individual
professionals. Withholdings and instalments of personal income tax shall be
transferred to the account of the company owner at the end of the reporting
period.

14th Revenue from sales and the rendering of services

1. Common aspects

A company will recognize the revenue from the ordinary development of its
activity when the transfer of control of the goods or services to the customer
takes place. At that time, the company will value the revenue at the amount
that reflects the consideration to which it expects to be entitled in exchange
for the said goods or services.
To apply this fundamental criterion of revenue accounting, the company
will follow a complete process that consists of the following successive stages:
a) Identify the contract (or contracts) with the customer, understood as
an agreement between two or more parties that creates rights and
obligations enforceable by them.
– 107 –
 b) Identify the performance obligation or obligations to fulfil the contract,
representative of the commitments to transfer goods or provide
services to a customer.
c) Determine the transaction price, or the consideration to which the
company expects to be entitled in exchange for the transferring of
promised goods or services to the customer.
d) Allocate the transaction price to each performance obligation on the
basis of the relative stand-alone selling prices of each distinct good or
service promised in the contract, or, where appropriate, following an
estimate of the sales price when it is not independently observable.
e) Recognize revenue from ordinary activities when (as it is fulfilled) the
company satisfies a performance obligation through the transfer of a
good or the provision of a service; performance is satisfied when the
client obtains control of that good or service, so that the amount of
revenue from ordinary activities recognized will be the amount allocated
to the contractual obligation satisfied.
In order to account for the revenue taking into account the economic
background of the operations, it may happen that the identifiable components
of the same transaction must be recognized by applying different criteria, such
as a sale of goods and related services; conversely, different transactions that
are linked will be accounted for together.
Trade receivables will be measured in accordance with the provisions of the
regulation on financial instruments.
Revenue will not be recognized in exchanges of homogeneous elements
such as exchanges of finished products, or interchangeable goods between
two companies with the objective of being more efficient in their commercial
objective of delivering the product to their respective customers.

2. Recognition

The company will recognize the revenue derived from a contract when
(or as it is fulfilled) the transfer of control to the customer over the promised
goods or services (that is, the obligation or obligations to be fulfilled) takes
place.
Control of a good or service (an asset) refers to the ability to direct the
use of, and obtain substantially all of its remaining benefits. Control includes
the ability to prevent other entities from deciding on the use of the asset and
obtaining its benefits.
– 108 –
 For each obligation to be fulfilled (delivery of goods or provision of services)
that has been identified, the company will determine at the beginning of the
contract if the commitment assumed will be fulfilled over time or at a specific
point in time.
Revenue derived from commitments (in general, for the provision of
services) that are fulfilled over time will be recognized based on the degree
of advancement or progress towards full compliance with the contractual
obligations provided that the company has reliable information to measure the
degree of advancement.
The company will review and, if necessary, modify the estimates of revenue
to be recognized, as it complies with the commitment assumed. The need for
such reviews does not necessarily indicate that the outcome or result of the
operation cannot be reliably estimated.
When, at a certain date, the company is not able to reasonably measure
the degree of fulfilment of the obligation (for example, at the early stages of
a contract), even though it expects to recover the costs incurred to satisfy
this said commitment, revenue will only be recognized and the corresponding
consideration to an amount equivalent to the costs incurred up to that date.
In the case of contractual obligations that are satisfied at a certain point
in time, the revenue derived from their execution will be recognized on that
date. Until this circumstance occurs, the costs incurred in the production
or manufacture of the product (goods or services) will be accounted for as
inventory.
When there are doubts regarding the collection of the credit right previously
recognized as revenue from a sale or provision of services, the impairment loss
will be recorded as an impairment expense and not as a lower revenue amount.

2.1. Performance obligations satisfied over time

It will be understood that the company transfers control of an asset (in

general, of a service) over time when one of the following criteria is met:
a) The client simultaneously receives and consumes the benefits provided
by the company’s activity (generally, the provision of a service) as
the entity develops the activity, as occurs in some recurring services
(security or cleaning). In this case, if another company took over the
contract, it would not need to substantially redo the work completed
to date.
– 109 –
 b) The company produces or enhances an asset (tangible or intangible) that
the client controls as the activity develops (for example, a construction
service carried out on customer’s land).
c) The company develops a specific asset for the customer (in general,
a complex technical service or installation or a particular good with
unique specifications) with no alternative use and the company has an
enforceable right to payment for the performance to date (for example,
consulting services leading to a professional opinion being prepared for
the customer).
If the transfer of control over the asset does not occur over time, the
company will recognize the revenue following the criteria established for the
obligations that are performed at a given point in time.

2.2. Indicators of compliance with the obligation at a point in time

To identify the specific moment in which the client obtains control of

the asset (in general, a good), the company will consider, among others, the
following indicators:
a) The client assumes the significant risks and rewards inherent to the
ownership of the asset. In evaluating this point, the company will
exclude any risk that gives rise to a separate obligation, other than
the commitment to transfer the asset. For example, the company may
have transferred control of the asset but not satisfied the obligation to
provide maintenance services during the useful life of the asset.
b) The company has transferred physical possession of the asset. However,
physical possession may not coincide with the control of an asset. Thus,
for example, in some repurchase agreements and in some depository
agreements, a client or consignee may have physical possession of an
asset that is controlled by the transferor company of the said asset
and, therefore, it cannot be considered transferred. In contrast, in post-
invoice delivery agreements, the business may have physical possession
of an asset that the customer controls.
c) The customer has received (accepted) the asset in accordance with the
contractual specifications. If a company can objectively determine that
control of the good or service has been transferred to the customer
in accordance with the agreed specifications, the acceptance of the
specifications is a formality that would not affect the determination of
the transfer of control. For example, if the acceptance clause is based
on meeting specified size or weight characteristics, the company could
– 110 –
 determine whether those criteria have been met before receiving
confirmation of customer acceptance.
However, if the company cannot objectively determine that the good or
service provided to the customer meets the specifications agreed in the
contract, it will not be able to conclude that the customer has obtained
control until it receives the customer’s acceptance.
When products (goods or services) are delivered to a customer on a trial
or evaluation basis and the client has not agreed to pay the consideration
until the expiration of the trial period, control of the product has not
been transferred to the customer until the customer accepts or the
aforementioned term expires without having communicated their
disagreement.
d) The company has a collection right on transferring the asset.
e) The customer has ownership of the asset. However, when the company
retains ownership only as protection against default by the customer,
this circumstance would not prevent the customer from gaining control
of the asset.

3. Valuation

Ordinary revenue from the sale of goods and the provision of services
will be valued at the monetary value or, where appropriate, at the fair value
of the counterpart, received or expected to be received, derived from it,
which, except evidence to the contrary will be the agreed price for the assets
to be transferred to the customer, deducting: the amount of any discount,
price reduction or other similar items that the company may grant, as well as
the interest incorporated into the face value of the loans. However, interest
incorporated into commercial loans with a maturity of no more than one year
and that do not have a contractual interest rate may be included, when the
effect of not updating the cash flows is insignificant.
The taxes levied on the operations of delivery of goods and provision of
services that the company must pass on to third parties, such as value added
tax and special taxes, as well as the amounts received on behalf of third parties,
will not be part of revenue.
The company will take into account in the revenue valuation the best
estimate of the variable consideration if it is highly probable that there will
not be a significant reversal of the amount of revenue recognized when the
uncertainty associated with that said consideration is subsequently resolved.
– 111 –
 As an exception to the general rule, the variable consideration relating
to licensing agreements, in the form of participation in the sales or use of
those assets, will only be recognized when (or as it is fulfilled) the later of the
following events occurs:
a) The sale or subsequent use takes place; or
b) The obligation assumed by the company under the contract and to
which part or all of the variable consideration has been allocated has
been satisfied (or partially satisfied).

15th Provisions and contingencies

1. Recognition

The company shall recognise liabilities that meet the definition and the
recognition criteria set out in the Accounting Framework, for which the
amount and settlement date are uncertain, as provisions. Provisions can be
determined by a legal, contractual, constructive or tacit obligation. In the latter
case, the provision arises because the company has created a valid expectation
with respect to third parties that it will assume an obligation.
Details of the contingencies to which the company is exposed in relation
to obligations other than those mentioned in the preceding paragraph shall be
disclosed in the notes to the annual accounts.

2. Measurement

Provisions shall be measured at the balance sheet date, based on information

available at any given time, as the present value of the best estimate of the
amount required to settle the obligation or transfer it to a third party.
Adjustments arising from the discounting of the provision shall be recognised
as a finance expense when accrued. Provisions expiring within one year shall
not be discounted where the financial effect is not material.
Reimbursements receivable from a third party on settlement of the
obligation shall not reduce the amount of debt. The company shall nonetheless
recognise the related receivable as an asset, provided that there is no doubt
as to its collection. The amount of the asset shall not exceed the amount of
the obligation recognised. Where a risk is externalised by means of a legal or
contractual agreement, provision is only made for the part of the risk assumed
by the company.
– 112 –
16th Liabilities arising from long-term employee benefits

Post-employment benefits such as pensions and other retirement benefits,

and any other long-term benefits entailing a payment that is deferred with
respect to when the employee renders the service, shall be considered as long-
term employee benefits. This standard shall not apply to share-based payment
transactions, which are covered by the next standard.

1. Long-term employee benefits under defined contribution schemes

Long-term employee benefits shall be considered defined contribution

plans when the company pays fixed contributions into a separate entity, such
as an insurance company or pension plan, provided that the company has no
legal, contractual or constructive obligation to pay further contributions if the
separate entity were unable to meet its obligations.
Accrued contributions payable to a defined contribution plan shall give rise
to a liability under long-term employee benefits when they are payable at the
balance sheet date.

2. Long-term employee benefits under defined benefit schemes

Long-term employee benefits other than defined contribution schemes shall

be considered defined benefit plans. The company shall recognise a provision
for long-term employee benefits equivalent to the difference between the
present value of the defined benefit obligation and the fair value of plan assets
out of which the obligations are to be settled, less any past service cost not
yet recognised under the terms of this standard. Any changes in these amounts
during the reporting period shall be recognised in profit or loss, except those
which must be accounted for directly in equity, as described below.
Where application of the previous paragraph gives rise to an asset, the
value of that asset may not exceed the present value of any economic benefits
available to the company in the form of direct reimbursements or reductions
in future contributions, plus the part not yet recognised in profit and loss of
any past service cost. Any adjustments required in respect of this asset ceiling,
relating to post-employment benefits, shall be recognised directly in equity as
reserves.
Actuarial calculation methods and unbiased and mutually compatible financial
and actuarial assumptions shall be used when estimating the present value of
the defined benefit obligation.
– 113 –
 Plan assets, including insurance policies, shall comprise assets owned by
a third party legally separate from the company and which may only be used
to settle employee benefits. Such assets can only be returned to the company
when the remaining assets are sufficient to meet all obligations. In the case
of insurance policies, the insurer must not be a related party of the company
as defined in standard 15 on the preparation of annual accounts. Assets held
by a long-term employee benefit fund cannot be non-transferable financial
instruments issued by the company.
Any variations in the calculation of the present value of post-employment
benefit obligations or the related plan assets at the balance sheet date due to
actuarial gains and losses shall be recognised directly in equity, as reserves, in
the reporting period in which they arise. Actuarial gains and losses are due to
changes in actuarial assumptions or differences between previous calculations
based on actuarial assumptions and actual events.
If the company can require an insurer to pay part or all of the expenditure
required to settle a defined benefit obligation, and it is practically certain that
the insurer will reimburse some or all of the expenditure required to settle that
obligation but the insurance policy does not qualify as a plan asset, the company
shall recognise its right to reimbursement as a separate asset which, in all other
respects, is treated as a plan asset. This reimbursement right shall be measured
at fair value.
Past service costs arising on the introduction of a long-term post-
employment defined benefit plan or on improvements to that plan shall be
recognised as an expense in the income statement, as follows:
Costs relating to vested rights shall be recognised in profit and loss
a) 
immediately.
Costs relating to unvested rights shall be recognised in profit and loss
b) 
on a straight-line basis over the average remaining period until the past
service benefits become vested. However, if application of this standard
gives rise to an asset, unvested rights shall be recognised in profit and
loss immediately, unless there is a reduction in the present value of
the economic benefits available to the company in the form of direct
reimbursements or reductions in future contributions. In this case, the
excess over that reduction shall immediately be accounted for in profit
and loss.
Past service costs arising on any other type of long-term employee benefits
shall immediately be recognised as expenses at present value in the income
statement.
– 114 –
17th Share-based payment transactions

Share-based payment transactions are those in which the company settles

goods or services received, including services rendered by employees, through
its own equity instruments or an amount that is based on the value of its own
equity instruments, such as share options or share appreciation rights.

1. Recognition

The company shall account for goods and services when it obtains the
goods or the services are received, as an asset or an expense, depending on
the nature of the item. The company shall recognise an increase in equity if
the transaction has been settled through equity instruments, or a liability if
the transaction has been settled with an amount based on the value of equity
instruments.
Where the company has the choice of settling through equity instruments
or in cash, it shall recognise a liability to the extent that it has incurred a
present obligation to settle in cash or through other assets; otherwise, it shall
recognise an equity item. Where it is the provider of the goods or services that
has the choice, the company shall recognise a compound financial instrument,
including a liability component in respect of the counterparty’s right to demand
payment in cash, and an equity component reflecting the counterparty’s right
to demand settlement in own equity instruments.
In transactions requiring completion of a specified period of service, services
shall be recognised during the period over which they are rendered.

2. Measurement

In transactions with employees settled through equity instruments, the

services rendered and the increase in equity shall be recognised at the grant
date fair value of the equity instruments transferred.
Transactions settled through equity instruments as consideration for goods
or services other than those provided by employees shall be measured at fair
value at the date when the goods or services are received, where this can be
estimated reliably. Where the fair value of the goods or services cannot be
estimated reliably, the goods or services received and the increase in equity
shall be measured at the fair value of the equity instruments transferred, at the
date the company receives the goods or the counterparty renders the services.
– 115 –
 Once the goods and services received, and the related increase in equity,
have been recognised in accordance with the preceding paragraphs, no further
adjustments shall be made to equity after the vesting date.
For cash-settled transactions, the goods or services received and the liability
to be recognised shall be measured at the fair value of the liability at the date on
which the recognition criteria are met.
The liability shall subsequently be measured at fair value at each balance
sheet date until settled and any change in measurement during the reporting
period shall be accounted for in profit and loss.

18th Grants, donations and bequests received

1. Grants, donations and bequests awarded by third parties other than equity
holders or owners

1.1. Recognition

Non-refundable grants, donations and bequests shall initially be accounted

for as income directly in equity and allocated to the income statement on a
systematic and rational basis as the expenses related with the grant, donation
or bequest are incurred, in accordance with section 1.3 of this standard.
The company shall recognise repayable grants, donations and bequests as
liabilities until they meet the criteria for classification as non-refundable. Grants,
donations and bequests shall be considered non-refundable when they have
been awarded to the company through an individual agreement, the conditions
have been met and their receipt is reasonably assured.

1.2. Measurement

Monetary grants, donations and bequests shall be measured at the

recognition date fair value of the consideration awarded. Non-monetary grants,
donations and bequests and those received in kind shall be measured at the
recognition date fair value of the item received.

1.3. Allocation to profit and loss

Non-refundable grants, donations and bequests shall be taken to profit and

loss in accordance with the purpose for which they were awarded.
– 116 –
 Monetary grants, donations and bequests shall be recognised in profit
and loss using the same criteria as those applicable to grants, donations and
bequests received in kind when they are used to acquire the same type of asset
or settle the same type of liability.
Grants, donations and bequests shall be recognised in profit and loss
distinguishing between the following:
Those awarded to ensure a minimum profitability or to offset operating
a) 
losses shall be recognised as income for the reporting period in which
they are awarded, except those earmarked to finance operating losses
for a future period, in which case they shall be recognised as income in
that period.
Those awarded to finance specific expenses shall be recognised as
b) 
income in the reporting period in which the financed expenses are
accrued.
Those awarded to acquire assets or settle liabilities shall be recognised
c) 
as follows:
– 
Grants, donations and bequests awarded to acquire intangible
assets, property, plant and equipment and investment property shall
be recognised as income for the reporting period in proportion
with the amortisation or depreciation charges for those assets
in that period or when the assets are disposed of, impaired or
derecognised.
– Grants, donations and bequests awarded to acquire inventories not
obtained through a trade discount shall be recognised as income
for the reporting period in which the inventories are disposed of,
impaired or derecognised.
– Grants, donations and bequests awarded to acquire financial assets
shall be recognised as income for the reporting period in which the
assets are disposed of, impaired or derecognised.
– Grants, donations and bequests awarded for settlement of debt
shall be recognised as income for the reporting period in which the
liability is settled. However, those awarded in relation to specific
financing shall be recognised depending on the nature of the financed
item.
Monetary amounts received that are not earmarked for a specific
d) 
purpose shall be taken to income for the reporting period in which they
are recognised.
– 117 –
 Impairment for parts of items financed free of charge shall not be reversed.

2. Grants, donations and bequests awarded by equity holders or owners

Non-refundable grants, donations and bequests received from equity holders

or owners shall not be considered as income and shall instead be recognised
directly in capital and reserves without valuation adjustments, irrespective
of their nature. These grants, donations and bequests shall be measured in
accordance with section 1.2 of this standard.
However, public sector companies that receive grants, donations and
bequests from the controlling public entity to finance activities of general or
public interest shall be accounted for in accordance with the preceding section
of this standard.

19th Business combinations

1. Scope and application

This standard regulates how companies should account for business

combinations, defined as transactions in which a company acquires control of
one or more businesses.
For the purposes of this standard, a business is an integrated set of activities
and assets that is capable of being conducted and managed for the purpose
of providing a return, lower costs or other economic benefits directly to
the owners or participants. Control is the power to govern the financial and
operating policies of a business so as to obtain economic benefits from its
activities.
In each case, the company shall determine whether the transaction in
question is a business combination, based on the definition in the preceding
paragraph. In particular, it shall determine whether the acquired assets and
the liabilities assumed constitute a business. Where this is not the case, the
purchase method shall only be applied insofar as it does not conflict with the
relevant recognition and measurement standard, and the transaction shall be
accounted for as an acquisition of assets and, where applicable, an assumption
of liabilities, in accordance with the provisions of the aforementioned standard.
In this instance, the transaction cost shall be distributed between the identifiable
assets acquired and the liabilities assumed based on their relative fair values.
Such transactions shall not give rise to goodwill or negative goodwill under the
terms regulated in section 2.5 of this standard.
– 118 –
 Business combinations can arise due to the following circumstances,
depending on the legal form of the transaction:
The merger or spin-off of several companies.
a) 
The acquisition of all assets and liabilities of a company or a portion
b) 
comprising one or more businesses.
The acquisition of shares or equity holdings in the capital of a company,
c) 
including those received as a non-monetary contribution on the
incorporation of a company or in a subsequent share capital increase.
Other transactions or events whereby a company acquires control over
d) 
another company other than through an investment, irrespective of
whether it previously held an interest in that company’s capital.
The business combinations referred to in a) and b) above shall be accounted
for using the purchase method described in the subsequent section of this
standard.
For the business combinations referred to in c) and d) above, in its individual
annual accounts the investor shall measure the equity investment in other
group companies using the criteria applicable to those companies set out in
section 2.5 of the standard on financial instruments. In the consolidated annual
accounts, these business combinations shall be recognised in accordance with
applicable consolidation standards.
Except in the case of a reverse acquisition – as defined in the last paragraph
of section 2.1, and transactions between group companies, acquirees that
are extinguished or spun off in a business combination shall recognise the
transfer of the assets and liabilities comprising the business transferred through
derecognition of the related balance sheet items, recording the gain or loss on
the transaction in the income statement as the difference between the carrying
amount of the business transferred and the fair value of the consideration
received, net of transaction costs. In reverse acquisitions, this difference shall be
recognised as income or an expense in the income statement of the absorbing
company or the beneficiary acquired, irrespective of subsequent elimination in
accordance with section 2.2.

2. Purchase method

Under the purchase method, at the acquisition date the acquirer shall
recognise the identifiable assets acquired and liabilities assumed in a business
combination, as well as any goodwill or negative goodwill. Income, expenses
– 119 –
and the associated cash flows shall be recognised from that date onwards, in
accordance with section 2.2 of this standard.
In particular, application of the purchase method requires the following:
a) Identifying the acquirer;
Determining the acquisition date;
b) 
Measuring the cost of the business combination;
c) 
Recognising and measuring the identifiable assets acquired and liabilities
d) 
assumed; and
Determining the amount of goodwill or negative goodwill.
e) 
Measurement of the acquirer’s assets and liabilities shall not be affected by
the business combination and no assets or liabilities shall be recognised as a
result of the transaction.

2.1. Acquirer

The acquirer is the company that obtains control of the acquired business
or businesses. For the purposes of this standard, the acquirer could also be a
part of a company which, as a result of the combination, is spun off from the
entity of which it formed part and obtains control over another business or
other businesses.
When a new company is incorporated as a result of a merger, spin off
or non-monetary contribution, one of the combining companies that existed
before the business combination shall be identified as the acquirer.
The company that obtains control shall be identified based on the economic
reality of the business combination, and not merely its legal form.
However, as a general rule, the company that gives consideration in exchange
for the acquired business or businesses shall be considered the acquirer. To
determine which company actually obtains control, the following criteria shall
also be taken into consideration:
If the business combination empowers the equity holders or owners of
a) 
one of the combining companies or businesses to retain or receive the
largest portion of the voting rights in the combined entity or enables
them to elect, appoint or remove the majority of the members of
the governing body of the combined entity, or if, as a result of the
combination, those equity holders or owners acting as an organised
group hold the largest minority voting interest in the combined entity, if
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 no other group of owners has a significant voting interest, that company
shall usually be the acquirer.
If the business combination empowers the equity holders or owners
b) 
of one of the combining companies or businesses to appoint the
management team of the combined business, that company shall usually
be the acquirer.
If the fair value of one of the companies or businesses is significantly
c) 
higher than the fair value of the other or others involved in the
transaction, the acquirer shall usually be the company with the highest
fair value.
The acquirer is usually the company that pays a premium over the fair
d) 
value of the equity instruments of the other combining companies.
In a combination involving more than two companies or businesses, other
factors are taken into consideration, such as which of the companies initiated
the combination or whether the volume of assets, revenues or profit and loss
of one of the combining companies or businesses significantly exceeds those of
the others.
When determining which company is the acquirer, the criterion described
in section a) above shall preferably be considered. Failing that, the criterion
included in section b) shall be used.
Applying the above criteria, the acquired business could be that of the
absorbing company, of the beneficiary or of the company that increases its
share capital. For the purposes of this standard, these transactions are called
reverse acquisitions. In such cases the criteria included in the standards for
the preparation of consolidated annual accounts that implement the precepts
of the Code of Commerce should be taken into consideration, adapted as
necessary by the reporting party.

2.2. Acquisition date

The acquisition date is the date on which the acquirer obtains control of
the business acquired.
In the case of a merger or spin-off, that date shall generally be the date of
the general meeting of the acquiree’s shareholders, or equivalent body, at which
the transaction is approved, provided that the agreement for the merger or
spin-off project does not contain an express statement regarding the acquirer’s
assumption of control over the business at a subsequent time.
– 121 –
 Notwithstanding the above, the acquiree or spun-off company shall still
be subject to the registration obligations set out in article 28.2 of the Code
of Commerce until the date on which the merger or spin-off is filed at the
Business Registry. At that date, which is the registration date, the acquirer shall
recognise the retrospective effects of the merger or spin-off from the acquisition
date onwards. This circumstance shall in turn give rise to an adjustment in
the accounting ledgers of the acquiree or spun-off company, to derecognise
transactions carried out since the acquisition date. Once the merger or spin-
off has been filed at the Business Registry, the acquirer shall recognise the
assets and liabilities of the acquired business, applying the recognition and
measurement criteria described in section 2.4 of this standard.
In reverse acquisitions, the accounting effects of the merger or spin-off
should reflect the economic substance of the transaction. Therefore, at the date
on which the acquisition is filed at the Business Registry, income and expenses
of the acquired business (the legal acquirer) accrued up to the acquisition date
shall be recognised under share premium, while income and expenses of the
acquirer shall be recorded in the annual accounts of the absorbing company or
beneficiary of the spin-off from the beginning of the financial year.
The effectiveness of the merger or spin-off shall be subject to the new
company, or the absorption or spin-off, as applicable, being filed at the Business
Registry. Therefore, the obligation to prepare annual accounts prevails until the
date on which the companies involved in the merger or spin-off are extinguished,
and the content of those annual accounts shall be in accordance with the above,
as well as with the stipulations set out below. In particular, the following rules
shall apply:
If the balance sheet date of the companies involved in the transaction
a) 
falls between the date on which control is acquired and the date on
which the new company, or the absorption or spin-off, as applicable,
is filed at the Business Registry, their annual accounts shall reflect the
accounting effect of the merger or spin-off from the acquisition date
onwards, provided that registration takes place before the statutory
period for the preparation of annual accounts specified in commercial
law elapses.
In such cases, the acquirer’s annual accounts shall reflect the income,
expenses and cash flows of the acquiree from the acquisition date, as
well as the identifiable assets and liabilities, in accordance with section
2.4 of this standard. The acquiree shall recognise income, expenses
and cash flows prior to the acquisition date in its annual accounts, and
– 122 –
 derecognise all its assets and liabilities with accounting effect from that
date.
The same criteria shall apply if the merger or spin-off process commences
and is completed in the same financial year.
However, if registration takes place after the statutory period for the
b) 
preparation of annual accounts specified in commercial law, the effect of
the retrospective recognition mentioned in the third paragraph of this
section shall not be reflected in the annual accounts. Consequently, the
acquirer shall not disclose the assets, liabilities, income, expenses and
cash flows of the acquiree in these annual accounts, notwithstanding
the information on the merger or spin-off that should be included in
the notes to the annual accounts of the companies involved in the
transaction.
Once the merger or spin-off has been registered, the acquirer shall
recognise the accounting effect of the retrospective recognition, and
make the corresponding adjustment to the comparative information for
the prior year.
The criteria specified in the above sections shall be applied to reverse
c) 
acquisitions as follows:
c.1) In the scenario described in section a), the annual accounts of the
legal acquirer shall not include the income and expenses accrued
up to the acquisition date, irrespective of the obligation to disclose
the amount and nature of the income and expenses in the notes
to the annual accounts. The acquirer, which is the legal absorbed
company, shall not prepare annual accounts insofar as its assets
and liabilities, as well as its income, expenses and cash flows from
the beginning of the financial year, should be reflected in the annual
accounts of the acquiree, the legal absorbing company.
c.2) In the scenario described in section b), the companies involved in
the transaction shall not reflect the effects of the retrospective
recognition described in the fourth paragraph of this section. Once
the merger or spin-off has been registered, the legal absorbing
company shall reflect the aforementioned effects in accordance
with section c.1), giving rise to an adjustment to the comparative
information for the prior year.
These rules, adapted as may be required, shall also apply to transfers of
assets and liabilities.
– 123 –
 2.3. Cost of the business combination

The cost of a business combination for the acquirer shall be calculated as

the aggregate of:
The acquisition-date fair values of the assets given, liabilities incurred or
a) 
assumed and the equity instruments issued by the acquirer. However,
when the fair value of the business acquired is more reliable, this shall
be used to estimate the fair value of the consideration given.
The fair value of any consideration contingent on future events or
b) 
compliance with certain conditions, which should be recognised as an
asset, a liability or equity in accordance with its nature, except where
such consideration gives rise to the recognition of a contingent asset
that requires income to be recorded in the income statement. In this
case, the contingent asset shall be accounted for in accordance with
section 2.4.c.4) of this standard.
Costs related with the issue of equity instruments, or the financial liabilities
given as consideration for the acquired assets and liabilities shall not be included
in the cost of the business combination. These costs shall be accounted for in
accordance with the standard on financial instruments.
The remaining fees paid to legal advisors or other professionals involved
in the transaction shall be recognised as an expense in the income statement.
Under no circumstances shall expenses incurred internally on such items, or
expenses incurred by the acquiree in relation to the business combination, be
included in the cost of the combination.
In the absence of a more reliable measurement, the fair value of the equity
instruments or the financial liabilities issued which are given as consideration in
a business combination shall be their quoted price in an active market, where
this is available. Where this is not available, in the particular case of mergers
and spin-offs, the fair value shall be the value allocated to the shares or equity
holdings of the acquirer in order to determine the exchange ratio.
When the carrying amount of the assets given by the acquirer as consideration
differs from the fair value, any gain or loss shall be recognised in the income
statement, as provided for in the standard on exchanges of property, plant and
equipment.

2.4. Recognition and measurement of the identifiable assets acquired and

liabilities assumed

At the acquisition date, identifiable assets acquired and liabilities assumed

shall be recognised and measured using the following criteria:
– 124 –
a) Recognition criterion
1. The identifiable assets acquired and the liabilities assumed should
meet the definition of an asset or liability set out in the Accounting
Framework, and should be part of the assets and liabilities exchanged
by the acquirer and the acquiree in the business combination,
irrespective of whether some of these assets and liabilities did not
previously qualify for recognition in the annual accounts of the
acquiree or of the company that owned the acquired business.
In particular, if at the acquisition date the acquired business is party to
an operating lease contract under favourable or unfavourable terms
compared with market conditions, the acquirer shall recognise an
intangible asset or a provision, respectively.
2. At the acquisition date, the acquirer shall classify or designate the
identifiable assets acquired and the liabilities assumed in accordance
with the remaining recognition and measurement standards,
taking into consideration the contractual agreements, economic
conditions, accounting and operating criteria, as well as other
relevant conditions existing at that date.
However, contrary to the stipulations in the preceding paragraph,
contracts for leases and similar transactions shall be classified based
on the contractual terms and other factors existing at the inception
of the contract; or, if the terms have been changed and the contract
must therefore be reclassified, at the amendment date, which can
be the acquisition date.
Measurement criterion
b) 
The acquirer shall measure the identifiable assets acquired and the
liabilities assumed at their fair value on acquisition-date, provided that
this can be measured reliably.
Exceptions to the recognition and measurement criteria
c) 
Notwithstanding the above, the following identifiable assets acquired
and liabilities assumed shall be recognised and measured in accordance
with the rules described below:
1. Non-current assets classified by the acquirer as held-for-sale shall
be measured in accordance with the standard on non-current assets
and disposal groups held for sale.
2. Deferred tax assets and liabilities shall be recognised and measured
in accordance with the standard on income tax.
– 125 –
 3. Assets and liabilities associated with long-term employee benefits
under defined benefit schemes shall be accounted for at the
acquisition- date present value of the defined benefit obligation less
the fair value of the plan assets out of which the obligations are to
be settled.
The present value of the obligations shall include past service costs
arising on changes in benefits or on the introduction of a plan before
the acquisition date, as well as any actuarial gains and losses arising
before that date.
4. If as a result of accounting for an identifiable intangible asset, the
value of which cannot be measured in relation to an active market,
income is recognised in profit and loss in accordance with section
2.5 of this standard, this asset shall be measured at fair value less
the initial negative goodwill. The asset shall not be recognised if the
negative goodwill exceeds the total value of the intangible asset.
5. If the acquirer receives an asset as an indemnity for a contingency
or uncertainty related with all or part of a specific asset or liability,
this asset shall be recognised and measured at the same time and
consistently with the item that gives rise to the contingency or
uncertainty.
6. The acquirer shall measure a reacquired right recognised as an
intangible asset on the basis of the remaining term of the contract,
irrespective of whether a third party would consider possible
contract renewals when determining the fair value.
7. When the acquired business includes contingent obligations, the
acquirer shall recognise the obligations it undertakes as a liability at
fair value, provided that the liability is a present obligation that arises
from past events and the fair value can be measured reliably, even
when it is not probable that an outflow of resources embodying
economic benefits will result from settlement of the obligation.

2.5. Determining the amount of goodwill or negative goodwill

The excess of the cost of the business combination at the acquisition date
over the value of the identifiable assets acquired less the liabilities assumed
under the terms described in the preceding section shall be recognised as
goodwill.
– 126 –
 The criteria set out in the specific standards on intangible assets shall apply
to goodwill.
In the exceptional event that the value of the identifiable assets acquired
less the liabilities assumed exceeds the cost of the business combination, the
excess shall be accounted for as income in profit and loss.
However, before recognising the aforementioned income, the company shall
reassess whether it has correctly identified and measured the identifiable assets
acquired and the liabilities assumed, as well as the cost of the combination.
If during this reassessment any contingent assets or intangible assets have
been identified for which there is no active market, these assets shall only be
recognised for amounts that do not give rise to any negative goodwill.

2.6. Provisional accounting

If the measurement process required for application of the purchase

method cannot be completed by the end of the reporting period in which the
combination is effected, the annual accounts shall be prepared using provisional
values.
The provisional values shall be adjusted over the necessary period to
obtain the information required to complete the initial accounting (hereinafter
the measurement period). This period shall not exceed one year from the
acquisition date.
In any event, adjustments to provisional amounts shall only reflect information
obtained about facts and circumstances that existed at the acquisition date and,
if known, would have affected the measurement of the amounts recognised at
that date.
Some changes in the fair value of contingent consideration that the acquirer
recognises after the acquisition date may be the result of additional information
that the acquirer obtained after that date about facts and circumstances
that existed at the acquisition date. Such changes are measurement period
adjustments. For example, if contingent consideration is agreed based on profits
expected to be obtained in the coming three years, the acquirer shall calculate
its best estimate of that amount at the acquisition date, and this estimate shall
be adjusted one year later to take into account information on the entity’s
results existing at that date.
However, changes resulting from events after the acquisition date, such
as reaching a specified share price or achieving a milestone on a research and
development project, are not measurement period adjustments.
– 127 –
 Adjustments to complete the initial accounting shall be made retrospectively,
so that the resulting values are those that would have been recognised had the
newly incorporated information been available at the outset. Therefore:
Adjustments to the initial value of the identifiable assets and the liabilities
a) 
assumed shall be considered to have been carried out at the acquisition
date.
The value of goodwill or negative goodwill shall be corrected with effect
b) 
from the acquisition date by an amount equal to the adjustment to the
initial value of the identifiable assets and the liabilities assumed, or to the
cost of the combination.
The adjustments shall be disclosed in the comparative information.
c) 
After this period, adjustments shall only be made to initial values when
errors must be corrected, in accordance with the standard on changes in
accounting criteria, errors and accounting estimates. Any other subsequent
amendments shall be recognised as changes in estimates, in accordance with
the aforementioned standard on changes in accounting criteria, errors and
accounting estimates.

2.7. Business combinations achieved in stages

Business combinations achieved in stages are business combinations whereby

the acquirer obtains control of the acquiree through several independent
transactions carried out at different dates.
In these cases, goodwill or negative goodwill shall be determined as the
difference between the following amounts:
The cost of the business combination, plus the acquisition-date fair value
a) 
of the acquirer’s previously held investment in the acquiree; and
The value of the identifiable assets acquired less the value of the liabilities
b) 
assumed under the terms described in section 2.4.
Any gain or loss arising as a result of the fair value measurement at the
date on which control of the acquirer’s previously held investment in the
acquiree is obtained shall be recognised in line item 14.b) or 16.b) of the
income statement. If the investment has previously been measured at fair value,
valuation adjustments pending recognition in profit and loss for the year shall
be taken to the income statement.
The cost of the business combination is presumed to be the best reference
for estimating the acquisition-date fair value of any previously held investment
– 128 –
in the acquiree. Where there is evidence to the contrary, other valuation
techniques shall be used to determine the fair value of the investment.

2.8. Recognition and measurement of separate transactions

The acquirer and the acquiree may have a pre-existing relationship before
the business combination began, or they may enter into a simultaneous
arrangement that is separate from the business combination. In either case,
the acquirer shall identify separate transactions that do not form part of the
business combination, and shall account for these in accordance with the
relevant recognition and measurement standard, recognising an adjustment to
the cost of the combination where applicable.
A transaction entered into by or on behalf of the acquirer or primarily for
the benefit of the acquirer or the combined entity, rather than primarily for
the benefit of the acquiree (or its former owners) before the combination,
is likely to be a separate transaction. The following are examples of separate
transactions to which the purchase method should not be applied:
A transaction that settles pre-existing relationships between the acquirer
a) 
and the acquiree
Where there is a pre-existing contractual or non-contractual relationship
between the acquirer and the acquiree, the acquirer shall recognise
a gain or loss on the settlement of that pre-existing relationship, the
amount of which shall be determined as follows:
1.1. 
For a pre-existing non-contractual relationship (for example, a
lawsuit), fair value.
1.2. 
For a pre-existing contractual relationship, the lesser of the
following:
i) The amount by which the contract is favourable or unfavourable
for the acquirer when compared with market conditions.
ii) 
The amount of any settlement provisions stated in the
contract available to the counterparty to whom the contract is
unfavourable.
If the second amount is less than the first, the difference shall
be included in the cost of the business combination. However,
if under the settlement the acquirer reacquires a right it has
previously transferred, the acquirer shall recognise an intangible
asset in accordance with section 2.4.c.6).
– 129 –
 Whether the settlement is of a contractual or a non-contractual
relationship, when determining the gain or loss the acquirer should
take into consideration any previously recognised related assets
and liabilities.
Any expense or income to be recognised in accordance with the
above criteria shall be accounted for against the consideration
transferred. Consequently, the amount of the aforementioned
expense or income should be reduced or increased, respectively,
by the cost of the combination in order to calculate the goodwill or
negative goodwill.
Any impairment loss previously recognised by the acquirer or the
acquiree in relation to reciprocal receivables and payables shall be
reversed and accounted for as income in the income statement
of the company that had previously recorded the impairment loss.
The reciprocal receivables and payables shall be eliminated from the
acquirer’s accounting records at the acquisition date.
Replacement of remuneration arrangements with the employees or
b) 
former owners of the acquiree
If as a result of the business combination payment commitments with
employees based on equity instruments of the acquiree are voluntarily or
obligatorily replaced by payment commitments based on equity instruments of
the acquirer, the amount of the replacement arrangements included in the cost
of the business combination shall be equivalent to the part of the acquiree’s
arrangement that is attributable to services rendered prior to the acquisition
date. This amount shall be determined by applying to the fair value on the
date of acquisition of the acquired agreements, the percentage resulting from
comparing the vesting period completed on that date and the higher between
the initial period and the new vesting period resulting from the agreements
reached.
If the new arrangements require employees to render additional services,
any excess of the fair value of the new arrangement over the aforementioned
cost shall be recognised as a personnel expense in accordance with the
standard on share-based payment transactions. Otherwise, any excess shall be
recognised as a personnel expense at the acquisition date.
However, when the acquirer voluntarily replaces share-based payment
arrangements that expire as a result of the business combination, the entire
acquisition-date value of the new incentives shall be recognised as a personnel
expense in accordance with the standard on share-based payment transactions.
– 130 –
In this scenario, therefore, the aforementioned incentives shall not form part of
the consideration transferred in the business combination.
c) Indemnification for receiving a loss-making business
If the acquirer receives an asset or the commitment to receive an asset as
indemnification for assuming a loss-making business (for example, to cover the
cost of a future personnel restructuring plan), it shall account for this agreement
as a separate transaction from the business combination, recognising a provision
against the aforementioned asset at the date on which that asset qualifies for
recognition and measurement.

2.9. Subsequent measurement

After initial measurement, and notwithstanding the adjustments required

by section 2.6 of this standard, the liabilities and equity instruments issued as
a cost of the business combination, and the identifiable assets acquired and
liabilities assumed in the business combination, shall generally be accounted for
in accordance with the relevant recognition and measurement standards, based
on the nature of the transaction or of the asset or liability.
However, as an exception to the aforementioned rule, the following criteria
shall apply to the transactions and items indicated below:
Liabilities recognised as contingencies. After initial measurement, and
a) 
until the liability is cancelled, settled or expires, these liabilities shall be
measured at the higher of the following amounts:
1. The amount resulting from application of the standard on provisions
and contingencies.
2. The amount initially recognised, less, where applicable, the portion
taken to the income statement as accrued income, in accordance
with the standard that is applicable based on the nature of the
liability.
Indemnification assets shall be measured on a basis that is consistent with
b) 
the item that gives rise to the contingency or uncertainty, subject to any
contractual limitation on the amount and, in the case of indemnification
assets that are not subsequently measured at fair value, considering
management’s assessment of the circumstances relating to collection.
The acquirer shall only derecognise such assets when the associated
right is collected, sold or otherwise extinguished.
A reacquired right recognised as an intangible asset shall be amortised
c) 
over the remaining term of the initial assignment.
– 131 –
 Contingent consideration. After provisional recognition of the business
d) 
combination, the following criterion shall be applied to subsequent
changes in the fair value of contingent consideration:
1. Contingent consideration classified as equity shall not be remeasured
and subsequent settlement shall be accounted for in equity.
2. Contingent consideration classified as an asset or a liability that is
a financial instrument and falls within the scope of the standard
on financial instruments shall be measured at fair value, with any
gain or loss recognised in the income statement. If it does not
fall within the scope of the aforementioned standard, it shall be
accounted for in accordance with the standard on provisions and
contingencies, or the standard that is applicable based on the nature
of the consideration.
In particular, in the case of contingent assets that have not been
recognised because they give rise to negative goodwill, subsequent
recognition and measurement shall be on a basis that is consistent
with the item that gives rise to the contingency or uncertainty.

20th Joint ventures

1. Scope of application

A joint venture is an economic activity that is jointly controlled by two

or more individuals or entities. Joint control is a statutory or contractual
arrangement whereby two or more individuals, hereinafter referred to as
“venturers” for the purposes of this standard, agree to share the power to
govern the financial and operating policies of an economic activity so as to obtain
economic benefits, in such a way that strategic financial and operating decisions
relating to the activity require the unanimous consent of all the venturers.

2. Categories of joint venture

Joint ventures can be categorised as follows:

Joint ventures that do not arise from the incorporation of a company
a) 
or the establishment of a financial structure that is separate from
the venturers, such as temporary joint ventures and co-ownerships,
distinguishing between the following:
– 132 –
 a1) Jointly controlled operations: activities entailing the use of assets
and other resources owned by each of the venturers.
a2) Jointly controlled assets: assets jointly controlled or owned by the
venturers.
Joint ventures arising through the incorporation of a separate legal
b) 
entity or jointly controlled entities.

2.1. Jointly controlled operations and assets

A venturer shall recognise its share of jointly controlled operations

or assets in the balance sheet based on its percentage ownership of jointly
controlled assets and its proportional share of liabilities incurred jointly with
other venturers. Assets controlled by the venturer used in jointly controlled
operations and liabilities incurred in respect of joint ventures are also recognised
in the venturer’s balance sheet.
A venturer shall recognise in the income statement its share of income
earned and expenses incurred by the joint venture, as well as expenses relating
to its interest in the joint venture, which under this General Accounting Plan
should be taken to profit and loss.
The venturer’s statement of changes in equity and statement of cash flows
shall also reflect its proportional share of the joint venture items based on its
contractual percentage ownership.
Any unrealised gains and losses on transactions between the venturer and
the joint venture should be eliminated in proportion to the venturer’s interest.
Reciprocal assets, liabilities, income, expenses and cash flows shall also be
eliminated.
If the joint venture prepares financial statements for management purposes,
these may be integrated into the individual annual accounts of the venturers
in proportion to their percentage ownership, provided that the recognition
requirements set out in article 28 of the Commercial Code are met. The financial
statements shall be integrated after the required timing and measurement
adjustments have been made for harmonisation with the venturer’s balance
sheet date, financial year and measurement criteria, and once the necessary
reconciliations and reclassifications have been completed.

2.2. Jointly controlled entities

The venturer shall recognise its interest in a jointly controlled entity

in accordance with the criteria applicable to equity investments in group
– 133 –
companies, jointly controlled entities and associates in section 2.5 of the
standard on financial instruments.

21st Transactions between group companies

1. Scope and general rules

This standard shall apply to transactions carried out between companies

of the same group, as defined in standard 13 on the preparation of annual
accounts.
Transactions between group companies shall be accounted for in accordance
with the general standards, irrespective of the type of relationship of the entities
forming the group.
Therefore, notwithstanding the content of the following section, items
involved in a transaction shall initially be recognised at fair value. If the agreed
transaction price were not the fair value, the difference shall be recognised
based on the economic reality of the transaction and subsequently measured in
accordance with the applicable standards.

2. Specific standards

The specific standards shall only apply when the items included in the
transaction must be classified as a business. For this purpose, equity investments
that grant control over a company that constitutes a business shall also be
classified as a business.
The value of these investments in consolidated accounts is the amount
that represents the percentage ownership of the assets and liabilities of the
subsidiary recognised in the consolidated balance sheet, less non-controlling
interests.

2.1. Non-monetary contributions

In non-monetary contributions to a group company, the contributing

company shall measure its investment at the carrying amount at which the
contributed items are recognised in the consolidated annual accounts at the
transaction date, in accordance with the standards for the preparation of
consolidated annual accounts that implement the precepts of the Code of
Commerce.
– 134 –
 The acquirer shall recognise those items at the same amount.
The consolidated annual accounts used for this purpose shall be those of the
largest Spanish-parented group or subgroup into which the items are integrated.
In the event that preparation of those consolidated annual accounts is not
required, pursuant to any of the exemptions provided for in the consolidation
standards, the amounts recognised in the individual annual accounts of the
contributing company prior to the transaction shall be used.

2.2. Mergers and spin-offs

2.2.1. Recognition and measurement criteria

The following rules shall apply to mergers and spin-offs:

In transactions between group companies involving the parent company
a) 
of the group or the parent of a subgroup and its direct or indirect
subsidiary, the assets and liabilities acquired shall be measured at the
amount at which they would be recognised in the consolidated annual
accounts of the group or subgroup after the transaction, in accordance
with the aforementioned standards for the preparation of consolidated
annual accounts.

Any accounting differences arising due to application of the above
criteria shall be recognised in reserves.
Notwithstanding the above, the purchase method shall apply when the
pre- merger relationship between the parent and the subsidiary results
from the transfer of shares or equity holdings of the subsidiary between
group companies, and this transaction does not give rise to a new
subgroup that is obliged to consolidate, provided that the consideration
given is not in the form of equity instruments of the acquirer. The date
on which the aforementioned relationship arises shall be taken as the
reference date.
This criterion shall also apply in the case of indirect control, when the
parent company must compensate other group companies not involved
in the transaction for the loss that those group companies would
otherwise incur in their equity.
In the case of transactions between other group companies, the assets
b) 
and liabilities acquired shall also be measured at their carrying amount
in the consolidated annual accounts at the transaction date.
– 135 –
 In the particular case of a merger, any difference between the net value
of the assets and liabilities of the acquiree, adjusted for the amount that
should be recognised in subgroups A-2) and A-3) in equity, and any
amount relating to capital or share premium issued by the absorbing
company, shall be accounted for in reserves.
This criterion shall also apply to spin-offs.
The consolidated annual accounts used for this purpose shall be those
of the largest Spanish parented group or subgroup into which the assets
and liabilities are integrated. In the event that preparation of those
consolidated annual accounts is not required, pursuant to any of the
exemptions provided for in the consolidation standards, the amounts
recognised in the individual annual accounts of the contributing company
prior to the transaction shall be used.

Notwithstanding the above, when the absorbing company must
compensate other group companies not involved in the transaction
for the loss that those group companies would otherwise incur in
their equity, the assets and liabilities of the absorbed company shall be
accounted for in accordance with the general rules.

2.2.2. Date for accounting purposes

In mergers and spin-offs between group companies, the date for accounting
purposes shall be the first day of the year in which the merger is approved,
provided that this is subsequent to the date on which the companies were
incorporated into the group. If one of the companies is incorporated into the
group during the year in which the merger or spin-off is carried out, the date
for accounting purposes shall be the acquisition date.
In the event that the companies involved in the transaction formed part
of the same group before the beginning of the immediately prior year, the
information on the accounting effect of the merger shall not extend to the
comparative information.
If a balance sheet date falls between the approval date of the merger and
the date on which the merger is filed at the Business Registry, the companies
involved in the transaction are still required to prepare annual accounts. The
content of these annual accounts shall be that specified in the general criteria
set out in section 2.2 of the 19th recognition and measurement standard, on
business combinations.
– 136 –
 2.3. 
Share capital reductions, distributions of dividends and company
dissolutions

The criteria described below shall apply to share capital reductions,

distributions of dividends and company dissolutions, provided that the business
in which the share capital reduction is carried out, the dividend payment is
declared or the equity holder’s or owner’s liquidation payment is settled
remains within the group.
The assigner company shall account for the difference between the amount
payable to the equity holder or owner and the carrying amount of the business
transferred as a credit to reserves.
The assignee shall account for the difference using the criteria set forth in
section 2.2 of this standard.

22nd Changes in accounting criteria, errors and accounting estimates

Changes in accounting criteria, which can only be made in accordance with

the consistency principle, shall be applied retrospectively and the effect shall be
calculated from the earliest reporting period for which information is available.
Income or expenses for prior periods deriving from application of this
principle shall give rise to an adjustment in the reporting period in which the
change in criteria occurs for the accumulated effect of changes in assets and
liabilities, which shall be recognised directly in equity as reserves, except where
it relates to an expense or income recognised directly in another equity item
in previous reporting periods. The comparative information for the reporting
periods to which the change in accounting criteria relates shall also be adjusted.
The same rules shall apply to the correction of errors from prior reporting
periods as to changes in accounting criteria. Errors are considered to be
omissions and misstatements in annual accounts for prior reporting periods
arising from a failure to use, or the misuse of, reliable information that was
available when the annual accounts were prepared and which the company
could reasonably have obtained and taken into account in the preparation of
those annual accounts.
However, adjustments to the carrying amount of assets or liabilities or to
the future consumption of an asset as a result of additional information, more
experience or knowledge of new events shall qualify as changes in accounting
estimates. Changes in accounting estimates shall be applied prospectively and
the effect shall be recognised in accordance with the nature of the transaction
– 137 –
as income or an expense in profit or loss for the reporting period, or directly
in equity, as appropriate. The impact on future reporting periods shall be
recognised over the course of those periods.
Details of changes in accounting criteria and the correction of errors
relating to prior reporting periods shall be disclosed in the notes to the annual
accounts.
The notes to the annual accounts shall also include information on changes
in accounting estimates having a significant effect on the current reporting
period or which are expected to have an impact on future periods.

23rd Events after the balance sheet date

Events after the balance sheet date that bring to light conditions existing
at the balance sheet date shall be taken into consideration when preparing the
annual accounts. Such subsequent events shall give rise to an adjustment or a
disclosure in the annual accounts, or both, in accordance with their nature.
Events after the balance sheet date that bring to light conditions that did
not exist at the balance sheet date shall not require any adjustment to the
annual accounts. However, when the events are of such a material nature that
non-disclosure could affect the user’s capacity to evaluate the annual accounts,
information on the nature of the event shall be disclosed in the notes to the
annual accounts together with an estimate of the effect or, where applicable, a
statement that such an estimate cannot be made.
All information that could affect the preparation of the annual accounts
on a going concern basis shall be taken into account. Therefore, the company
shall not prepare its annual accounts on a going concern basis if management
determines, even after the balance sheet date, that it intends to liquidate the
company or cease trading, or that it has no realistic alternative but to do so.

– 138 –
 PART THREE

ANNUAL ACCOUNTS
I. STANDARDS FOR THE PREPARATION OF
ANNUAL ACCOUNTS
1st Documents comprising the annual accounts

The annual accounts include the balance sheet, the income statement,
the statement of changes in equity, the statement of cash flows and the
notes thereto. These documents form a single unit and should be prepared
in compliance with the Commercial Code, the revised Companies Act, and
this General Accounting Plan, with particular reference to the Accounting
Conceptual Framework, in order to present fairly the equity, financial position
and the results of the company.
The statement of cash flows and the statement of changes in equity shall
not be obligatory when the balance sheet and the notes to the accounts can be
prepared in abbreviated format.

2nd Preparation of annual accounts

1. The annual accounts shall be prepared every twelve months, except in

cases where the company has been recently incorporated, has changed
its financial year end or is being dissolved.
2. The annual accounts shall be drawn up within three months of the balance
sheet date by the owner or the directors, who shall be responsible for
the veracity of the content. The annual accounts shall bear the date on
which they were drawn up and shall be signed by the owner, all equity
holders with unlimited liability for corporate debt, or all directors of the
company. If any of the aforementioned is unable to sign, the reason shall
be expressly indicated in each of the unsigned documents.
3. The balance sheet, income statement, statement of changes in equity,
statement of cash flows and the notes thereto shall each be clearly
identified by indicating the name of the statement, the name of the
reporting entity and the period to which it refers.
4. The annual accounts shall be expressed in euros. Nonetheless, figures
may be expressed in thousands or millions of euros where this is
advisable due to their magnitude, in which case the level of rounding in
presentation should be disclosed in the annual accounts.

3rd Structure of the annual accounts

The annual accounts of corporations (sociedades anónimas) including

those that are employee-owned, limited liability companies (sociedades de
– 143 –
responsibilidad limitada) including those that are employee-owned, partnerships
limited by shares and cooperatives shall be prepared using the standard format.
When, at the balance sheet date, all partners of general and limited partnerships
are Spanish or foreign companies, these partnerships shall also prepare their
annual accounts using the standard format.

4th Abbreviated annual accounts

1. The companies mentioned in the preceding standard may use the

abbreviated format for annual accounts in the following cases:
a) Abbreviated balance sheet and abbreviated notes thereto:
companies that meet at least two of the following conditions at the
balance sheet date:
– Total assets do not exceed four million euros. Total assets shall
be those disclosed in the standard format balance sheet.
– Total annual revenue does not exceed eight million euros.
– The average number of employees during the reporting period
does not exceed 50.
b) Abbreviated income statement: companies that meet at least two of
the following conditions at the balance sheet date:
– Total assets do not exceed eleven million four hundred thousand
euros. Total assets shall be those disclosed in the standard
format balance sheet.
– Total annual revenue does not exceed twenty-two million eight
hundred thousand euros.
– The average number of employees during the reporting period
does not exceed 250.
The above is applicable only when at least two of the conditions are met
or are no longer met by a company on two consecutive annual balance
sheet dates.
If the company forms part of a group of companies under the terms
described in the 13th standard for the preparation of the annual
accounts. For group companies, multi-group and associated companies
contained in this third part, the calculation of the amounts will take
into consideration, the sum of the assets, the net turnover and the
average number of employees in all the entities that make up the
– 144 –
 group. Eliminations and incorporations regulated in the consolidation
standards passed in the development of the principles contained in the
Commercial Code will also be taken into account. This rule will not
apply when the financial information of the company is included in the
consolidated annual accounts of the parent company.
2. Types of companies other than those listed in the above standard and
individual independent professionals shall be required to prepare, as a
minimum, abbreviated annual accounts.
3. The entities classified as entities of public interest in article 3.5 of
Law 22/2015, of July 20, on Auditing of Accounts, may not formulate
abbreviated annual accounts.
4. The provisions of the following standards for normal models must be
adapted to the characteristics of the abbreviated models.
5. When the content of the abbreviated notes to the accounts included
in the section relating to abbreviated models is not sufficient to give a
fair presentation of the equity, financial situation and the results of the
company, then additional information will be provided to achieve the
required result.

5th Standards commonly applicable to the balance sheet, the

income statement, the statement of changes in equity and the
statement of cash flows

Notwithstanding the specific standards for preparation of the balance sheet,

income statement, statement of changes in equity and statement of cash flows,
the following rules shall be followed:
1. Each line item shall present amounts for the current reporting period
and the immediately preceding reporting period. When these figures
are not comparable due to an amendment to the structure, a change
in accounting policies or correction of an error, the prior period
figures shall be adjusted for the purposes of comparison with the actual
reporting period and this adjustment shall be disclosed in detail in the
notes.
2. Items for which the amount is zero in both the current and prior period
shall be omitted.
– 145 –
3. The structure may not be amended from one reporting period to the
next, other than in exceptional circumstances which shall be disclosed
in the notes.
4. Additional line items to those foreseen in the standard and abbreviated
formats may be included provided that their content is not covered by
existing line items.
5. Additional subclassifications may be made to the line items in the
standard and abbreviated formats.
6. The numbered classes of line items disclosed in the balance sheet and
statement of changes in equity and the lettered items in the income
statement and statement of cash flows may only be grouped if they
represent an amount that is not material to fair presentation or where
this would improve clarity.
7. When appropriate, each item shall be cross-referenced to the related
information in the notes.
8. Loans and debts with group companies and associates, as well as the
related income and expenses, shall be disclosed separately from loans
and debts not related to group companies or associates. Line items
relating to associates shall also include balances with jointly controlled
entities.
9. Companies with an interest in one or more joint ventures which do
not have legal entity (temporary joint ventures, co-ownerships, etc.)
shall disclose this information in accordance with the recognition
and measurement standard on joint ventures, reflecting the amounts
associated with the joint ventures in each of the statements and including
details in the notes.
10. In accordance with the criteria set forth in the recognition and
measurement standard on business combinations, the annual accounts
resulting from a reverse acquisition shall be prepared by the acquiree.
Therefore, the share capital that must be recognised in equity will be
that of the acquiree. However, the annual accounts shall be considered
an extension of the acquirer’s and, consequently:
a) The comparative information for periods prior to the combination
shall refer to the acquirer. The acquiree’s capital and reserves without
valuation adjustments should therefore be adjusted retrospectively
to show the amount that would theoretically have corresponded
to the acquirer. This adjustment shall be made considering that the
relative variation in share capital should reconcile with the variation
– 146 –
 that would have arisen if the acquirer, for legal and economic
purposes, were the same company.
b) In the year in which the acquisition takes place, the income statement
and the statement of changes in equity shall include the income and
expenses of the acquirer for that year and the income and expenses
of the acquiree from the transaction date until the balance sheet
date. These criteria shall also apply when preparing the statement
of cash flows.

6th Balance sheet

The balance sheet comprises assets, liabilities and equity of the company,
which shall be disclosed separately, and shall be prepared considering the
following:
1. Items shall be classified as current or non-current based on the following
criteria:
a) Current assets shall comprise:
– Assets associated with the company’s normal operating cycle
which it expects to sell, consume or realise within that cycle.
The normal operating cycle shall generally not exceed one year.
The normal operating cycle is considered to be the time
between the acquisition of assets for inclusion in the production
process and the realisation of the finished product into cash or
cash equivalents. When the normal operating cycle is not clearly
identifiable, its duration shall be assumed to be one year.
– Assets other than those indicated in the previous point that are
expected to mature or to be sold or realised in the short term;
that is, within one year of the balance sheet date. Consequently,
the current portion of non-current financial assets shall be
classified as current.
– Financial assets classified as held for trading, except financial
derivatives that will be settled in more than one year.
– Cash and cash equivalents, unless they are restricted from being
exchanged or used to settle a liability for at least one year after
the balance sheet date.
All other assets shall be classified as non-current.
– 147 –
6. When the company has invested in assets that meet the definition of
financial assets included in section 2 of the recognition and measurement
standard on financial instruments, but to which that standard is not
applicable and which are not specifically presented in other balance
sheet line items, these assets shall be recognised as “Other investments”
within the line items A.IV, A.V, B.IV and B.V in the standard format
balance sheet, depending on whether the investments are non-current
or current and whether they relate to group companies and associates
or otherwise. Examples of such assets are those associated with defined
benefit post-employment remuneration, to be recognised in accordance
with the recognition and measurement standard on liabilities arising
from long-term employee benefits.
7. If the company has inventories with a production cycle of more than
one year, items with a short production cycle and those with a long
production cycle shall be disclosed separately within the asset line item
B.II as 3. “Work in progress” and 4. “Finished goods” in the standard
format balance sheet.
8. Trade receivables that fall due in more than one year shall be disclosed
separately as current and non-current trade receivables within the asset
line item B.III in the balance sheet. Balances falling due in periods that
exceed the normal operating cycle shall be recognised as a non-current
asset in A.VII “Non-current trade receivables”.
9. Share capital and any share premium or additional paid-in capital
for shares and equity holdings having the nature of equity shall be
recognised in A-1.I. “Capital” and A-1.II. “Share premium”, provided
that transactions involving these items have been filed at the Business
Registry before the annual accounts are drawn up as established in the
consolidated text of the Companies Act. If they have not been filed
at the Business Registry at the date on which the annual accounts are
drawn up, these amounts shall be recognised within the current liability
line item C.III “Current payables” in 5. “Other financial liabilities” or
3. “Other current payables” in the standard or abbreviated format,
respectively.
10. Uncalled capital shall be recognised either in A-1.I.2 “Uncalled capital”
or as a reduction in “Payables of a special nature”, in accordance with
the accounting classification of the contributions.
11. Notwithstanding the disclosure requirement in the notes, own equity
instruments acquired by the company shall be recognised in “Equity” as
follows:
– 149 –
 a) Equity instruments having the nature of capital shall be accounted
for in A-1.IV. “Own shares” as a negative amount.
b) In all other cases, these items shall be recognised as a deduction in
A-1.IX “Other equity instruments”.
12. Compound financial instruments issued shall be classified in “Equity” and
“Liabilities” in the proportions specified in section 5.2 of the recognition
and measurement standard on financial instruments.
13. If the company has classified assets or liabilities as “Non-current assets
held for sale” or “Liabilities associated with non-current assets held
for sale” for which changes in value must be accounted for directly in
equity, a specific line item “Non-current assets and associated liabilities
held for sale” shall be created in the equity subgroup A-2. “Valuation
adjustments” in the standard format balance sheet.
14. If, exceptionally, the company has a functional currency or currencies
other than the euro, changes in value arising on translation to the
presentation currency of the annual accounts shall be recognised as
“Translation differences”, within the equity subgroup A-2. “Valuation
adjustments” in the standard format balance sheet. This line item shall
also include changes in value of hedges of a net investment in a foreign
operation, which must be recognised in equity in accordance with the
recognition and measurement standards.
15. Non-refundable grants, donations and bequests awarded by third parties
other than equity holders or owners that are pending recognition in
profit and loss shall be included in the company’s equity, in subgroup
A-3. “Grants, donations and bequests received”. Non-refundable grants,
donations and bequests awarded by equity holders or owners shall be
recognised in capital and reserves without valuation adjustments in
equity, in A-1.VI. “Other equity holders’ contributions”.
16. Balances payable to suppliers that fall due in more than one year shall
be disclosed separately as non-current and current payables to suppliers
within the liability line item C.V. Balances falling due in periods that
exceed the normal operating cycle shall be recognised as a non-current
liability in B.VI “Non-current trade payables”.
17. Financial instruments issued by the company that should be recognised
as financial liabilities but, given their particular characteristics, could be
subject to other standards, shall be recognised in “Non-current payables
of a special nature” and “Current payables of a special nature” in non-
– 150 –
 current and current liabilities, respectively. Details of instruments issued
shall be disclosed in the notes.
18. The company shall disclose, separately from other assets and liabilities
in the balance sheet, any non-current assets held for sale and any assets
included in a disposal group held for sale in the asset line item B.I., and
liabilities included in a disposal group held for sale in the liability line
item C.I. These assets and liabilities shall not be offset or presented as a
single amount.

7th Income statement

The income statement reflects the profit or loss for the reporting period,
comprising income and expenses for the period, except those recognised directly
in equity in accordance with the recognition and measurement standards. The
income statement shall be prepared considering the following:
1. Income and expenses shall be classified according to their nature.
2. Amounts relating to sales, services rendered and other operating
income shall be disclosed in the income statement net of returns and
discounts.
3. Amounts relating to activities carried out by other companies as part of
the production process shall be disclosed in 4.c) “Subcontracted work”.
4. Grants, donations and bequests received to finance assets used or
expenses incurred in the normal operating cycle shall be recognised in 5.
b). “Operating grants taken to income”. Grants, donations and bequests
that finance intangible assets, property, plant and equipment or investment
property shall be taken to income, under 9. “Non-financial and other
capital grants”, in accordance with the recognition and measurement
standard. Grants, donations and bequests awarded without a specific
purpose and used to cancel debts shall also be recognised under “Non-
financial and other capital grants”. If awarded to finance either an asset
or expense of a financial nature, the corresponding income shall be
recorded as finance income and disclosed separately within “Financial
grants, donations and bequests” if the amount is material.
5. Provisions released during the reporting period shall be disclosed in 10.
“Provision surpluses”, except those relating to personnel, which are
disclosed in 6. “Personnel expenses”, and those associated with trade
transactions, which are reflected in 7.c).
– 151 –
6. In the exceptional event of a business combination in which the value
of the identifiable assets acquired less the liabilities assumed exceeds
the cost of the business combination, the difference shall be disclosed
in “Negative goodwill on business combinations” as part of results from
operating activities.
7. Gains and losses on hedging instruments that should be taken to profit
or loss in accordance with the recognition and measurement standards
shall be recognised as income or expense in the same line items as the
hedged item. Details shall be disclosed in the notes.
8. Restructuring costs shall be classified in accordance with their nature.
Details of total restructuring costs and any significant line item amounts
shall be disclosed in the notes.
9. Significant exceptional income or expenses shall be disclosed in “Other
results”, within results from operating activities, and details shall be
disclosed in the notes. Examples of exceptional income and expenses
could be amounts resulting from floods, fire, fines or penalties.
10. Changes in the fair value of financial instruments classified as “Financial
assets (liabilities) at fair value through profit and loss” shall be recorded
in 14.a) “Changes in the fair value of financial instruments. Fair value
through profit and loss”, in accordance with the recognition and
measurement standard on financial instruments. Accrued interest
calculated and accrued dividends receivable may be classified in the
corresponding items, in accordance with their nature.
11. The company shall recognise a single amount in 18. “Profit/(loss) from
discontinued operations, net of income tax” in the standard format
income statement, comprising the following:
• Profit or loss after tax from discontinued operations; and
• Profit or loss after tax from measuring the assets or disposal groups
comprising the discontinued operation at fair value less costs to sell,
or on the disposal of these items.
Prior reporting period figures for line item 18 shall include the amounts
from the prior year related to the operations considered discontinued
at the current balance sheet date.
A discontinued operation is any component of a company that has been
sold or disposed of or is classified as held for sale and:
a) Represents a separate major line of business or geographical area of
operations;
– 152 –
1.3. If, exceptionally, the company has a functional currency or currencies
other than the euro, changes in value arising on translation to the
presentation currency of the annual accounts shall be disclosed in
“Translation differences”, within B. “Income and expense recognised
directly in equity” and C. “Amounts transferred to the income
statement”. These line items shall also include changes in value of hedges
of a net investment in a foreign operation, which must be recognised in
equity in accordance with the recognition and measurement standards.
2. The second part, “Statement of total changes in equity”, reflects all
changes in equity due to the following:
a) Total recognised income and expense.
b) Changes in equity due to transactions with equity holders or owners
of the company when acting as such.
c) All other changes in equity.
d) Adjustments to equity in light of changes in accounting policies and
corrections of errors.
If, in the reporting period, an error is detected corresponding to a period
prior to the comparative period, this fact shall be disclosed in the notes
and the pertinent adjustment shall be made in A.II. in the “Statement of
total changes in equity”. The opening equity balance for the comparative
reporting period shall be restated to reflect the correction of this error.
If the error relates to the comparative reporting period, the adjustment
shall be recognised in C.II. in the “Statement of total changes in equity”.
The same rules shall apply to changes in accounting policies.
This document shall be prepared considering the following:
2.1. Profit or loss for one reporting period shall be carried forward in
the subsequent year as profit or loss of prior reporting periods.
2.2. Distribution of profit or application of losses for the prior reporting
period shall be reflected in the following line items:
– B.II or D.II “Transactions with equity holders or owners”, in 4.
“Distribution of dividends”.
– B.III or D.III “Other changes in equity” for other applications
entailing reclassifications of equity items.
– 154 –
9th Statement of cash flows

The statement of cash flows discloses the origin and use of monetary assets
representing cash and cash equivalents. Movements are classified by activity,
indicating the net change in the balance for the reporting period.
Cash and cash equivalents are those items disclosed in asset line item B.VII
of the balance sheet: cash in hand, demand deposits at banks and financial
instruments that are convertible to cash and have a maturity of three months
or less from the date of acquisition, provided that there is no significant
risk of changes in value and that they form part of the company’s usual cash
management policy.
For the purposes of the statement of cash flows, cash may also include
occasional overdrafts when these form an integral part of the company’s cash
management.
This document shall be prepared considering the following:
1. Cash flows from operating activities are essentially those generated
by the main revenue-producing activities of the company and other
activities that are not investing or financing activities. Changes in cash
flows from operating activities shall be reflected on a net basis, except
for cash flows from interest, dividends received and income tax, which
shall be disclosed separately.
Profit or loss for the period before tax shall be corrected to eliminate
income and expenses that have not produced cash movements and to
incorporate transactions from prior reporting periods that have been
collected or settled in the current reporting period. The following ítems
shall be classified separately:
a) Adjustments to eliminate:
– Valuation allowances, such as amortisation and depreciation,
impairment losses, gains or losses due to fair value measurement
and changes in provisions.
– Transactions that must be classified as investing or financing
activities, such as profit or loss from disposal of fixed assets or
financial instruments.
– Remuneration from financial assets and financial liabilities for
which the cash flows must be disclosed separately, in accordance
with section c) below.
– 155 –
 
 8. Cash flows from the different activities of discontinued operations shall
be disclosed in the relevant note.
9. In the case of non-monetary transactions, details of significant investing
and financing activities not included in the statement of cash flows
because they have not led to changes in cash (for example, conversion
of debt into equity instruments or acquisition of an asset through a
finance lease) shall be disclosed in the notes.
For investing transactions entailing consideration partly in the form of
cash and cash equivalents and partly other items, the non-monetary
portion shall be disclosed separately from the information on cash or
cash equivalents included in the statement of cash flows.
10. Changes in cash and cash equivalents due to the acquisition or disposal
of assets and liabilities comprising a business or a line of activity shall be
recognised in investing activities as a single item in “Business unit” within
investments or sales of investments, as applicable.
11. If the company has payables of a special nature, cash flows from these
payables shall be recognised as cash flows from financing activities within
“Payables of a special nature” in 10. “Proceeds from and payments for
financial liability instruments”.

10th Notes

The notes complement and expand upon the information provided in the
other documents comprising the annual accounts. The notes shall be prepared
considering the following:
1. The model of the notes reflects the minimum disclosure requirements.
However, where the required information is not significant, the
corresponding sections need not be completed.
2. Any other information not included in the model of the notes but which
is necessary to report the company’s situation and activity during the
reporting period shall also be disclosed, to facilitate comprehension of
the annual accounts and for these to present fairly the equity, financial
position and results of the company. Qualitative data reflecting the
position for the prior reporting period shall be included when significant.
Any disclosures required in accordance with other regulations shall also
be included in the notes.
– 157 –
 3. The quantitative information to be disclosed in the notes should relate
to the present reporting period as well as to the comparative prior
reporting period, except where specifically indicated otherwise by an
accounting standard.
4. Disclosure requirements in the notes relating to associates shall also be
considered to apply to jointly controlled entities.
5. The requirements of note 4 within the notes shall be adapted to enable
a concise and clear presentation.

11th Revenue for the period

Revenue for the period shall be calculated as revenue from sales of goods
and the rendering of services or other income generated by the company’s
ordinary activities, less any trade discounts (volume rebates and other sales
reductions), value added tax and other directly related taxes that must be
passed on to customers.

12th Average number of employees

The average number of employees shall be calculated taking into

consideration all persons having a professional relationship with the company
during the reporting period, averaged based on the duration of their service.

13th Group companies, jointly controlled entities and associates

For the purposes of presentation of a company’s annual accounts, another

company shall be considered to form part of the group when there is a
relationship of direct or indirect control between the two companies similar to
that foreseen in article 42 of the Commercial Code for groups of companies, or
when the companies are controlled by any means, by one or more individuals
or legal entities in conjunction or which are solely managed in accordance with
statutory clauses or agreements.
An associate is an entity that is not a group company, in the terms described
above, over which the company or one or more group companies, including
the parent entities or controlling individuals, exercise significant influence as a
result of an interest held therein which creates a long-term relationship and
entitles the company to contribute to its activity.
– 158 –
 Significant influence in the management of another company is considered
to exist when the following two requirements are met:
a) The company or one or more group companies, including the parent
entities or controlling individuals, hold an interest in the company and
b) Have the power to participate in the financial and operating policy
decisions of the investee, without having control over those policies.
The existence of significant influence can be evidenced in one or more of
the following ways:
1. Representation on the board of directors or equivalent governing body
of the investee;
2. Participation in policy-making processes;
3. Material transactions with the investee;
4. Interchange of managerial personnel; or
5. Provision of essential technical information.
Unless there is evidence to the contrary, significant influence shall be
presumed to exist when the company or one or more group companies,
including the parent entities or controlling individuals, hold at least 20 per cent
of the voting rights of another company.
Jointly controlled entities are those which are jointly controlled by the
company or one or more group companies, including parent entities or
controlling individuals, and one or more third parties.

14th Interim financial statements

The interim financial statements shall be presented using the format and
criteria established for the annual accounts.

15th Related parties

1. A party is considered to be related to another party when one of the

two, or several parties acting together, exercises or has the possibility
to exercise control over the other party, directly, indirectly or through
shareholder or equity holder agreements, or has a significant influence
in the financial and operating policy decisions of the other party.
– 159 –
2. The following shall be considered related parties:
a) Entities that are considered group companies, associates or jointly
controlled entities, as described in standard 13 on the preparation
of annual accounts.
However, a company shall be exempt from disclosing the information
on transactions with related parties when it is controlled or
significantly influenced by a local, regional or national government
and the other company is also controlled or significantly influenced
by that public entity, provided that there are no indications of
influence between the two companies. Such influence shall be
considered to exist when, for example, transactions are not at arm’s
length (except where these conditions are imposed by a specific
regulation).
b) Individuals holding a direct or indirect interest in the voting rights
of the company or its parent entity, enabling them to exercise
significant influence over one or the other. This shall also include
close family members of these individuals.
c) Key personnel of the company or its parent; i.e. those persons
having authority and responsibility for planning, directing and
controlling the activities of thecompany, directly or indirectly,
including management and directors. This shall also include close
family members of these individuals.
d) Companies over which any of the persons mentioned in b) and c)
can exercise significant influence.
e) Companies that share a director with the company, unless that
director does not have significant influence in the financial and
operating policies of both companies.
f) Persons considered as close family members of the representative of
the director of the company, when that director is not an individual.
g) Pension plans for employees of the company or of a related entity.
3. For the purposes of this standard, close family members of an individual
are those family members who may be expected to influence, or be
influenced by, that individual in decisions relating to the company,
including the following:
a) The individual’s husband, wife or domestic partner;
– 160 –
II STANDARD FORMAT FOR ANNUAL ACCOUNTS
BALANCE
 BALANCE SHEET AT XX XXXX 200X

ACCOUNTS ASSETS NOTES 200X 200X

A) NON CURRENT ASSETS

I. Intangible assets
201, (2801), (2901) 1. Development
202, (2802), (2902) 2. Concessions
203, (2803), (2903) 3. Patents, licences, trademarks and similar rights
204, (2804) 4. Goodwill
206, (2806), (2906) 5. Computer software
205, 209, (2805), (2905) 6. Other intangible assests
II. Property, plant and equipment
210, 211, (2811), (2910), (2911) 1. Land and buildings
212,213,214,215,216,217,218,219,(2812),(2813),(2814), 2. Technical installations and other items
(2815),(2816), (2817),(2818),(2819),(2912),
(2913),(2914),(2915),(2916),(2917),(2918),(2919)
23 3. Under construction and advances
III. Investment property

– 166 –
220,(2920) 1. Land
221,(282),(2921) 2. Buildings

IV. Non-current investments in group companies

and associates
2403,2404,(2493),(2494),(2933),(2934) 1. Equity instruments
2423,2424,(2953),(2954) 2. Loans to companies
2413,2414,(2943),(2944) 3. Debt securities
4. Derivatives
5. Other Financial assets
V. Non-current investments
2405,(2495),250,(259),(2935),(2936) 1. Equity instruments
2425,252,253,254,(2955),(298) 2. Loans to third parties
2415,251,(2945),(297) 3. Debt securities
255 4. Derivatives
258,26 5. Other financial assets
474 VI. Deferred tax assets.
 B) CURRENT ASSETS

580,581,582,583,584,(599) I. Non-current assets held for sale

II. lnventories
30,(390) 1. Goods for resale
31,32,(391),(392) 2. Raw materials and other supplies
33,34,(393),(394) 3. Work in progress
35,(395) 4. Finished goods
36,(396) 5. By-produces, waste and recovered materials
407 6. Advances to suppliers
III. Trade and other receivables
430,431,432,435,436,(437),(490), (4935) 1. Trade receivables
433,434,(4933),(4934) 2. Trade receivables from group companies and
associates
44 3. Other receivables
460,544 4. Personnel
4709 5. Current tax assets
4700,4708,471,472 6. Public entities, other
5580 7. Receivable on calledup capital

IV. Current investments in group companies and

– 167 –
associates
5303,5304,(5393),(5394),(5933),(5934) 1. Equity instruments
5323,5324,5343,5344,(5953),(5954) 2. Loans to companies
5313,5314, 5333,5334,(5943),(5944) 3. Debt securities
4. Derivatives
5353,5354,5523,5524 5. Other finalcial assets
V. Current investments
5305,540,(5395),(549),(5935),(5936) 1. Equity instruments
5325,5345,542,543,547,(5955),(598), 2. Loans to companies
5315,5335,541,546,(5945),(597) 3. Debt securities
5590,5593 4. Derivatives
5355,545,548,551,5525,565,566 5. Other financial assets
480,567 VI. Prepayments for current assets
VII. Cash and cash equivalents
570,571,572,573,574,575 1. Cash
576 2.. Cash equivalents
TOTAL ASSETS (A + B)
 ACCOUNTS EQUITY AND LIABILITIES NOTES 200X 200X-1

A) EQUITY
A-1) Capital and reserves without valuation adjustments
I. Capital
100, 101, 102 1. Registered capital
(1030), (1040) 2. (Uncalled capital)
110 II. Share premium
III. Reserves
112, 1141 1. Legal and statutory reserves
113,1140,1142,1143,1144,115,119 2. Other reserves
(108), (109) IV. (Own shares and equity holdings)
V. Prior periods’ prof it and loss
120 1. Retained earnings
(121) 2. (Prior periods’ losses)
118 VI. Other equity holder contributions
129 VII. Profit/(loss) for the period
(557) VIII. (lnterim dividend)
111 IX. Other equity instruments

A-2) Valuation adjustments

133 I. Financial assets at fair value

– 168 –
1340 II. Hedging transactions
137 III. Other

130, 131, 132 A-3) Grants, donations and bequests received

B) NON-CURRENT LIABILITIES
I. Non -current provisions
140 1. Long-term employee benefits
145 2. Environmental actions
146 3. Restructuring costs
141,142,143,147 4. Other provisions
II. Non -current payables
177,178,179 1. Bonds and other marketable securities
1605,170 2. Debt with financial institution s
1625,174 3. Finance lease payables
176 4. Derivatives
1615,1635,171,172,173,175,180,185,189 5. Other financia! iabilities
1603,1604,1613,1614,1623,1624,1633,1634 III. Group companies and associates, non-current
479 IV. Deferred tax liabilities
181 V. Non-current accrual
 C) CURRENT LIABILITIES
585,586,587,588, 589 I. Liabilities associated with non-current assets held for
sale
499,529 II. Current provisions
III. Current payables
500,501,505,506 1. Bonds and other marketable securities
5105,520,527 2. Debt with financia! institutions
5125,524 3. Finance lease payables
5595,5598 4. Derivatives
(1034),(1044) (190),(192),194,509,5115,5135,5145, 5. Other financial liabilities
521,522,523, 525,526,528,551,5525, 555,5565,5566,
560,561,569

5103,5104,5113,5114,5123,5124,5133,5134,5143, IV. Group companies and associates, current

5144,5523, 5524, 5563,5564
V. Trade and other payables
400,401,405,(406) 1. Suppliers
403, 404 2. Suppliers, group companies and associates
41 3. Other payables
465, 466 4. Personnel (salaries payable)
4752 5. Current tax liabilities

– 169 –
4750,4751,4758, 476,477 6. Public entities, other
438 7. Advances from customers
485, 568 VI. Current accruals

TOTAL EQUITY AND LIABILITIES (A+ B + C)

INCOME STATEMENT
 INCOME STATEMENT FOR
THE PERIOD ENDED XX XXXXX 200X
(Debit) Credit
ACCOUNTS
Note 200X 200X-1
A) CONTINUING OPERATIONS

1. Revenue
700,701,702,703,704,(706),(708),(709) a) Sales
705 b) Services rendered
(6930), 71*,7930 2. Changes in inventories of finished godos and work in progress
73 3. Work carried out by the company for assets
4. Supplies
(600), 6060,6080,6090, 610* a) Merchandise used
(601),(602),6061,6062,6081,6082,6091,6092, b) Raw materials and other consumables used
611*,612*
(607) c) Subcontracted work
(6931),(6932),(6933),7931,7932,7933 d) Impairment of merchandise, raw materials and other supplies
5. Other operating income
75 a) Non-trading and other operating income
740, 747 b) Operating grants taken to income

– 172 –
6. Personnel expenses
(640),(641),(6450) a) Salaries and wages
(642),(643),(649) b) Employee benefits expense
(644),(6457),7950,7957 c) Provisions
7. Other operating expenses
(62) a) External services
(631),(634),636,639 b) Taxes
(650),(694),(695),794,7954 c) Losses, impairment and changes in trade provisions
(651),(659) d) Other operating expenses
(68) 8. Amortisation and depreciation
746 9. Non-finalcial and other capital grants
7951,7952,7955,7956 10. Provisions surpluses
11. Impairment and gains (losses) on disposal of fixed assets
(690),(691),(692),790,791,792 a) Impairment and losses
(670),(671),(672),770,771,772 b) Gains (losses) on disposal and other

A.1) RESULTS FROM OPERATING ACTIVITIES

(1+2+3+4+5+6+7+8+9+10+11)
 12. Finance income
a) Dividends
7600, 7601 a1) Group companies and associates
7602,7603 a2) Other
b) Marketable securities and other financial instruments
7610,7611,76200,76201,76210,76211 b1) Group companies and associates
7612,7613,76202,76203,76212,76213,767,769 b2) Other
13. Finance expenses
(6610),(6611),(6615),(6616),(6620),(6621),(6640), a) Group companies and associates
(6641),(6650),(6651), (6654), (6655)
(6612),(6613),(6617),(6618),(6622),(6623), b) Other
(6624),(6642),(6643),(6652),(6653),(6656),
(6657),(669)
(660) c) Provision adjustments
14. Change in fair value of financial instruments
(6630),(6631),(6633),(6634),7630,7631,7633,7634 a) Fair value changes through profit and loss
(6632),7632 b) Fair value changes through equity

(668),768 15. Exchange gains/(losses)

16. Impairment and gains/(losses) on disposal of financial instruments
(696),(697),(698),(699),796,797,798,799 a) lmpairment and losses
(666),(667),(673),(675),766,773,775 b) Gains/(bsses) on disposal and other

– 173 –
A.2) NET FINANCE INCOME/(EXPENSE) ( 12+ 13+ 14+ 15+ 16)
A.3) PROFIT/(LOSS) BEFORE INCOMETAX (A.l+A.2)
(6300)*,6301*,(633),638 17. lncome tax expense
A.4) PROFIT/(LOSS) FROM CONTINUING OPERATIONS (A.3+
17)
B) DISCONTINUED OPERATIONS
18. Profit/(loss) from discontinued operations, net of income tax

A.5) PROFIT/(LOSS) FOR THE PERIOD (A.4+ 18)

* May be a positive or negative figure

STATEMENT OF CHANGES IN EQUITY
 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD
ENDED XX XXXX 200X
A) STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE PERIOD
ENDED XX XXXX 200X
ACCOUNTS Notes 200X 200X-1

A) Profit/(loss) for the period

Income and expense reognised directly in equity

I. Measurement of finalcial instruments
(800),(89),900,991,992 1. Financial assets at fair value through equity
2. Other income/expenses
(810),910 II. Cash flow hedges
94 III. Grants, donations and bequests received
(85),95 IV. Actuarial gains and losses and other adjustments
(8300)*,8301*,(833),834, V. Tax effect
835,838

B) Total income and expense recognised directly in equity

– 176 –
(I+II+III+IV+V)
Amounts transferred to the income statement
VI. Measurement of finalcial instruments
(802),902,993,994 1. Financial assets at fair value through equity
2. Other income/expenses
(812),912 VII. Cash Flow hedges
(84) VIII. Grants, donations and bequests received
8301*,(836),(837) IX. Tax effect

C) Total amounts transferred to the income statement

(VI+VII+VIII+IX)
TOTAL RECOGNISED INCOME AND EXPENSE (A + B + C)

* May be a positive or negative figure

 B) STATEMENT OF TOTAL CHANGES IN EQUITY FOR THE PERIOD
ENDED XX XXXX 200X
Prior
Capital Share Other equity Profit/(loss) Grants, donations
(Own shares and periods’ (Interim Other equity Valuation
premiun Reserves holder for the and bequests TOTAL
equity holdings) profit and dividend) instruments adjustments
Registered Uncalled contribution period received
loss

A. BALANCE AT 31 XXXX 200X – 2

I. Adjustments for changes in criteria 200X – 2 and
prior period
II. Adjustments for errors 200X – 2 and prior periods
B. ADJUSTED BALANCE AT I XXXX 200X-1
I. Total reconigsed income and expense
II. Transactions with equity holders or owners
1. Capital increases.
2. ( - ) Capital reductions.
3. Conversion of finalcial liabilities into equity
(conversión of bonds, pardoning of debts)..
4. ( - ) Distribution of dividends.
5. Transations with own shares and equity holdings
(net).
6. Increase (decrease) in equity resulting from a
business combination..

– 177 –
7. Other transaction with equity holders or owners.

III. Other changes in equity.

C. BALANCE AT I XXXX 200X
I. Adjustments for changes in 200X-I criteria..
II. Adjustments for 200X-I errors.
D. ADJUSTED BALANCE AT I XXXX 200X
I. Total recognised income and expense.
II. Transactions with equity holders or owners.

1. Capital increases.
2. ( - ) Capital reductions.
3. Conversion of financial liabilities into equity
(conversión of bonds, pardoning of debts).
4. ( - ) Distribution of dividends.
5. Transactions with own shares and equity holdings
(net).
6. Increase (decrease) in equity resulting from a
business combination.
7. Other transaction with equity holders or owners.
III. Other changes in equity.
E. BALANCE AT 3I XXXX 200X
STATEMENT OF CASH FLOWS
 STATEMENT OF CASH FLOWS FOR THE PERIOD
ENDED XXX 200X
NOTES 200X 200X-1
A) CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit/(loss) for the period before tax
2. Adjustments for:
a) Amortisation and depreciation (+)
b) Valuation allowances for impairment losses (+/-)
c) Change in provisions (+/-)
d) Grants recognised in the income statement (-)
e) Proceeds from disposals of fixed assets (+/-)
f) Proceeds from disposals of financial instruments (+/-)
g) Finance income (-)
h) Finance expenses (+)
i) Exchange gains/losses (+/-)
j) Change in fair value of financial instruments (+/-)
k) Other income and expenses (-/+)
3. Changes in operating assets and liabilities
a) Inventories (+/-)
b) Trade and other receivables (+/-)
c) Other current assets (+/-)
d) Trade and other payables (+/-)
e) Other current liabilities (+/-)
f) Other non-current assets and liabilities (+/-)
4. Other cash flows from operating activities
a) Interest paid (-)
b) Dividends received (+)
c) Interest received (+)
d) Income tax received (paid) (+/-)
e) Other amounts paid (received) (-/+)
5. Cash flows from/used in operating activities (+/-1+/-2+/-3+/-4)
B) CASH FLOWS FROM INVESTING ACTIVITIES
6. Payments for investments (-)
a) Group companies and associates
b) Intangible assets
c) Property, plant and equipment
d) Investment property
e) Other financial assets
f) Non-current assets held for sale
g) Other assets
7. Proceeds from sale of investments (+)
a) Group companies and associates
b) Intangible assets
c) Property, plant and equipment
d) Investment property
e) Other financial assets
f) Non-current assets held for sale
g) Other assets
8. Cash flows from/used in investing activities (7-6)
C) CASH FLOWS FROM FINANCING ACTIVITIES
9. Proceeds from and payments for equity instruments
a) Issue of equity instruments (+)
b) Redemption of equity instruments (-)
c) Acquisition of own equity instruments (-)
d) Disposal of own equity instruments (+)
e) Grants, donations and bequests received (+)
10. Proceeds from and payments for financial liability instruments
a) Issue
1. Bonds and other marketable securities (+)
2. Debt with financial institutions (+)
3. Group companies and associates (+)
4. Other payables (+)
b) Redemption and repayment of
1. Bonds and other marketable securities (-)
2. Debt with financial institutions (-)
3. Group companies and associates (-)
4. Other payables (-)
11. Dividends and interest on other equity instruments paid
a) Dividends (-)
b) Interest on other equity instruments (-)
12. Cash flows from/used in financing activities (+/-9+/-10-11)
D) EFFECT OF EXCHANGE RATE FLUCTUATIONS
E) NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (+/-5+/-8+/-12+/- D)
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

– 181 –
NOTES TO THE ANNUAL ACCOUNTS
 CONTENT OF THE NOTES TO THE ANNUAL ACCOUNTS

1. Activity of the company

This section shall include a description of the statutory activity and principal
activities of the company, particularly the following:
1. Address of the company’s registered offices and details of its legal form,
and the address at which it carries out its activities if this is different
from the corporate headquarters.
2. Description of the nature of the company’s operations and its principal
activities.
3. Obligation to prepare consolidated annual accounts
3.1. If the company is the parent of a group of companies, under
the terms of article 42 of the Code of Commerce, the fact that
consolidated annual accounts have been prepared or, where
applicable, details of which of the exemptions specified in article
43 of the Code of Commerce supports the company having not
prepared consolidated annual accounts, shall be disclosed.
3.2. If the company is part of a group of companies under the terms of
article 42 of the Code of Commerce, the name of the group, the
direct parent company and the ultimate parent of the group shall
be disclosed, even when the parent company’s registered offices
are located outside Spain. Details of the registered offices of these
companies shall also be included, as well as the Business Registry at
which the consolidated annual accounts have been filed, the date on
which the consolidated annual accounts were authorised for issue
or, where applicable, the circumstances that exempt the company
from the obligation to prepare consolidated accounts.
4. If the functional currency is different from the euro, this circumstance
shall be clearly stated, indicating the criteria considered when determining
that currency.

2. Basis of presentation of the annual accounts

1. Fair presentation:
a) The company shall make an explicit statement that the annual
accounts present fairly the equity, financial position and results
– 185 –
 of the company and shall attest to the veracity of the cash flows
included in the statement of cash flows.
b) Exceptional circumstances, whereby to achieve a fair presentation
the company has departed from the requirements of mandatory
accounting standards, indicating the title of the standards not
applied and the qualitative and quantitative impact of the departure
on the equity, financial position and the results of the company for
each reporting period presented.
c) Additional information when compliance with mandatory accounting
standards is not sufficient to achieve a fair presentation, and an
indication of where this information is disclosed in the notes to the
annual accounts.
2. Non-mandatory accounting principles applied.
3. Critical issues regarding the measurement and estimation of uncertainties.
a) Notwithstanding the indications of each specific note, key
assumptions concerning the future and other relevant data on the
uncertainty of estimates at the balance sheet date, which could entail
a considerable risk of significant changes in the value of assets and
liabilities in the subsequent reporting period, shall be disclosed in
this section. Information on the nature of these assets and liabilities
and their carrying amount at the balance sheet date shall also be
included.
b) Details of the nature and amount of any significant changes in
accounting estimates that affect the current reporting period or
are expected to affect future reporting periods shall be disclosed.
Where it is impracticable to estimate the effect on future reporting
periods that fact shall also be indicated.
c) When management is aware of material uncertainties related to
events or conditions that may cast significant doubt upon the
company’s ability to continue as a going concern, those uncertainties
shall be disclosed in this section. When the annual accounts are
not prepared on a going concern basis, that fact shall be explicitly
disclosed together with the alternative assumptions on which the
annual accounts are prepared, and the reasons why the company is
not regarded as a going concern.
4. Comparative information.
Notwithstanding the subsequent sections on changes in accounting
criteria and correction of errors, the following information shall be
disclosed in this section:
– 186 –
 
 2. The amount of any interim dividend distributed during the reporting
period should be specified and included in the provisional accounting
statement prepared in accordance with statutory requirements to
demonstrate that sufficient cash is available for distribution of that
dividend. The provisional accounting statement shall encompass a period
of one year from the date on which the interim dividend was declared.
3. Restrictions on the distribution of dividends.

4. Recognition and measurement standards

Details of the accounting criteria applied to the following items shall be

provided:
1. Intangible assets, indicating the criteria used for capitalisation, activation,
amortisation and adjustments for impairment.
Details shall be disclosed, where appropriate, of the measurement
criteria used to calculate the recoverable amount of the cash-generating
units to which goodwill has been assigned.
2. Property, plant and equipment, indicating the criteria used for
depreciation, impairment and reversals thereof, capitalisation of
borrowing costs, extension, modernisation and improvement costs,
dismantlement or removal costs and the cost of restoring the site on
which an asset is located, as well as the criteria used to determine the
cost of work carried out by the company for assets.
3. Details of the criteria used to classify land and buildings as investment
property, specifying the criteria indicated in the preceding section.
4. Leases, indicating the criteria used to account for finance lease contracts
and similar transactions.
5. Exchanges, indicating the criteria used and the reasons supporting
application of those criteria and, particularly, the reasons for determining
the exchange as having commercial substance.
6. Financial instruments, stating the following:
a) The criteria used to classify and measure the different categories
of financial assets and financial liabilities and to recognise changes in
fair value. If the company has issued securities that should have been
– 189 –
 classified as equity instruments in accordance with their legal form,
but instead these have been accounted for as financial instruments,
an explanation shall be provided.
b) The nature of financial assets and financial liabilities initially
designated as at fair value through profit or loss, the criteria used
to designate these assets as such, and an explanation of how the
company has met the requirements specified in the recognition and
measurement standard on financial instruments.
c) The criteria used to determine whether there is objective evidence
of impairment, to recognise impairment and reversals thereof and
to derecognise impaired financial assets. In particular, the criteria
used to calculate impairment of trade and other receivables shall be
disclosed. Details of the accounting criteria applied to rescheduled
payment terms of financial assets which would otherwise be past
due or impaired shall also be provided.
d) The criteria used to derecognise financial assets and financial
liabilities.
e) Hybrid financial instruments, indicating the criteria used to measure
the component instruments separately based on their characteristics
and economic risks or, where applicable, indicating that the
components cannot be separated. The measurement criteria used
shall be disclosed, with particular reference to impairment.
f) Compound financial instruments, indicating the measurement
criteria used to quantify the financial liability component of these
instruments.
g) Financial guarantee contracts, indicating the criteria used for initial
and subsequent measurement.
h) Investments in group companies, jointly controlled entities and
associates, indicating the criteria used to measure these investments
and recognise impairment.
i) The criteria used to calculate income and expenses arising on the
different financial instrument categories: interest, premiums or
discounts, dividends, etc.
j) Own equity instruments held by the company, indicating the
measurement and recognition criteria used.
– 190 –
7. Accounting hedges, indicating the measurement criteria applied by the
company to its hedging transactions, distinguishing between fair value
hedges, cash flow hedges and hedges of a net investment in foreign
operations, as well as the measurement criteria used to recognise the
accounting effect of discontinuing the hedge accounting and the reasons
therefore.
8. Inventories, indicating the measurement criteria used and, particularly,
those applied to impairment and the capitalisation of borrowing costs.
9. Foreign currency transactions, indicating the following:
a) Measurement criteria used for foreign currency transactions and
criteria for recognising exchange differences.
b) Any change in the functional currency and the reasons for that
change shall be disclosed.
c) The procedure used to calculate the euro exchange rate shall be
disclosed for any items in the annual accounts currently or originally
expressed in a foreign currency.
d) The criteria used to translate the foreign currency to the
presentation currency.
10. Income tax, indicating the criteria used to recognise and measure
deferred tax assets and liabilities.
11. Revenue and expenses, indicating the general criteria applied. In
particular, in relation to revenue from the delivery of goods and the
provision of services, the criterion followed to conclude that the
obligations assumed by the company are fulfilled over time or at a
specific moment in time; Specifically, in relation to those that are fulfilled
over time, the methods used to determine the degree of progress will
be indicated and where application of these methods was impracticable
shall be disclosed also.
12. Provisions and contingencies, indicating the measurement criteria
applied and the treatment of any third-party compensation receivable
on settlement of the obligation. In the case of provisions, a general
description of the method used to estimate and calculate each risk shall
be provided.
– 191 –
 13. Assets or liabilities of an environmental nature, indicating the following:
a) The criteria for measuring and recognising in profit and loss amounts
earmarked for environmental activities. In particular, details shall
be provided of the criteria used to decide whether these amounts
should be considered as expenses for the reporting period or as an
increase in the value of the related asset.
b) Description of the method used to estimate and calculate provisions
for environmental impact.
14. The criteria used to recognise and measure personnel expenses,
particularly those relating to pension commitments.
15. Share-based payments, indicating the recognition criteria used.
16. Grants, donations and bequests, indicating the classification criteria used
and, where applicable, the criteria for recognition in profit and loss.
17. Business combinations, indicating the recognition and measurement
criteria used.
18. Joint ventures, indicating the criteria used by the company to account
for balances related to the joint venture in which it holds an interest.
19. The criteria used for transactions between related parties.
20. Non-current assets held for sale, indicating the criteria used to classify
and measure these assets or groups of items as held for sale, including
the associated liabilities.
21. Discontinued operations, indicating the criteria used to identify and
classify an activity as discontinued and the treatment of associated
income and expenses.

5. Property, plant and equipment

1. Analysis of movement in each item of property, plant and equipment,

as well as accumulated depreciation and impairment, indicating the
following:
a) Opening balance.
b) Additions and charges, specifying acquisitions made through
business combinations and non-monetary contributions and those
relating to extensions or improvements.
c) Reversals of impairment.
– 192 –
 

 
 
 
 3. Description and reasoning of the factors that have contributed to the
recognition of goodwill, and the amount of goodwill and other intangible
assets attributed to each cash-generating unit.
In particular, information will be given on the estimations made to
determine the useful life of the goodwill and the amortization method
used.
4. The following details shall be provided for each significant goodwill
impairment loss:
a) Description of the cash-generating unit that includes goodwill and
other intangible assets or items of property, plant and equipment,
and details of the method used to aggregate assets for identifying
the cash-generating group if this has changed compared to prior
reporting periods.
b) Amount, and the events and circumstances leading to recognition
of impairment.
c) Criteria used to determine fair value less costs to sell, where
applicable.
d) If the value in use method has been used, the discount rate or rates
applied to the latest and previous estimates shall be disclosed, as
well as a description of the key assumptions on which the cash
flow projections are based and how these have been calculated, the
period encompassed by the cash flow projections and the growth
rate applied from the fifth year onwards.
5. In the case of aggregated impairment losses for which the information
specified in the preceding paragraph is not disclosed, details of the main
events and circumstances leading to recognition of this impairment shall
be provided.
6. The assumptions used to determine the recoverable amount of the
assets or cash-generating units.

8. Leases and similar transactions

The disclosure requirements specified below for lease transactions shall

also apply to other similar transactions carried out by the company.
8.1. Finance leases
– 199 –
1. Lessors shall disclose the following:
a) A reconciliation of the total gross investment in leases classified as
finance leases (indicating any purchase options, if applicable) and
the present value at the balance sheet date. Details of the minimum
lease payments receivable and the present value of minimum lease
payments receivable on these leases shall also be provided for each
of the following periods:
– Less than one year
– One year to five years
– More than five years
b) A reconciliation of the total amount of finance lease contracts at
the start and the end of the reporting period.
c) A general description of the lessor’s material finance lease
arrangements.
d) Unearned finance income and the allocation criteria used for the
financial component of the transaction.
e) Contingent rents recognised as income for the period.
f) Impairment of uncollectible lease payments receivable.
2. Lessees shall disclose the following:
a) For each class of asset, the amount at which the asset was initially
recognised, indicating whether this reconciles with the asset’s fair
value or the present value of the minimum lease payments, as
applicable.
b) A reconciliation of total future minimum lease payments (indicating
any purchase options, if applicable) and their present value at the
balance sheet date. Details of the minimum lease payments for these
leases and the present value of these minimum lease payments shall
also be provided for each of the following periods:
– Less than one year
– One year to five years
– More than five years
c) Contingent rents recognised as an expense for the period.
d) The total future minimum sublease payments expected to be
received under non-cancellable subleases at the balance sheet date.
– 200 –
 
 The carrying amount of each category of financial assets and financial
liabilities specified in the 9th recognition and measurement standard shall be
disclosed, as indicated below.
a.1) Financial assets, except equity investments in group companies, jointly
controlled entities and associates
Classes Non-current financial instruments Current financial instruments Total

Credits Credits
Equity in- Debt Equity in- Debt
Derivatives Derivatives
struments securities struments securities
Others Others
Year Year Year Year Year Year Year Year Year Year Year Year Year Year
Categories x x-1 x x-1 x x-1 x x-1 x x-1 x x-1 x x-1
Assets at fair value through profit
or loss
– Held for trading
– Designated
– Others
Financial assets at amortised cost
Financial assets at cost
Assets at fair value through
equity
Hedging derivatives
Total

a.2) Financial liabilities

Classes Non-current financial instruments Current financial instruments Total
Bonds Bonds
Debt with Debt with
and other Derivatives and other Derivatives
financial financial
marketable Others marketable Others
institutions institutions
securities securities
Year Year Year Year Year Year Year Year Year Year Year Year Year Year
Categories x x-1 x x-1 x x-1 x x-1 x x-1 x x-1 x x-1
Financial liabilities at amortised cost
or cost
Liabilities at fair value through profit
or loss
– Held for trading
– Designated
– Other
Hedging derivatives
Total

b) Financial assets and financial liabilities at fair value through profit or loss
Changes in fair value during the reporting period and accumulated changes
in value since the item was designated shall be disclosed, as well as details of the
calculation method used.
– 203 –
 The company shall disclose the nature of derivative financial instruments,
other than those classified as hedging instruments, and the significant terms
and conditions that could affect the amount, timing and certainty of future cash
flows.
If the company has opted to designate financial assets or financial liabilities
at fair value through profit or loss, it shall disclose this fact, specifying that it has
complied with the recognition and measurement standard.
If the company has designated a financial liability in exercise of the fair value
option with changes in the profit and loss account, it will report on:
1. The amount of the change, for the period and accumulated, in the fair
value of the liability that is attributable to changes in credit risk.
2. The difference between the carrying amount of the liability and the
amount that the company would be obliged to pay at the time of
maturity.
c) Reclassifications
If in accordance with the 9 th recognition and measurement standard where
a financial asset has been reclassified, the amount of the reclassification shall
be disclosed and the reasons supporting the change specified for each financial
asset category. In particular, a detailed explanation will be given of the change in
the management of the financial assets and a qualitative description of its effect
on the company’s annual accounts will be made.
d) Compensating financial assets and financial liabilities
The company must include information to allow users of the annual accounts
to understand the effect or potential effect on their financial situation of the
compensation agreements referred to in section 2 of the 6 th standard for
preparing the annual accounts 6 th Balance Sheet.
To meet this objective, the company will include separately for recognized
financial assets and recognized financial liabilities the following information:
1. The gross amounts of recognized financial assets and recognized financial
liabilities.
2. The amounts that are compensated in accordance with the criteria of
the aforementioned section 2.
3. The net amounts presented in the balance sheet.
– 204 –
 e) Assets pledged as collateral
The company shall disclose the carrying amount of financial assets pledged
as collateral, the class of assets and the terms and conditions relating to the
pledge.
If the company holds third party assets as collateral, whether financial or
non-financial assets, and which may be disposed of and even if no default on
payment has occurred, the company shall disclose the following information:
1. The fair value of the collateral held;
2. The fair value of any asset pledged as collateral that the company has
used and whether the company has an obligation to return it; and
3. The terms and conditions associated with the company’s use of the
collateral.
f) Compound financial instruments with multiple embedded derivatives
When a company has issued an instrument that contains a liability and
an equity component, and the instrument incorporates several embedded
derivatives whose values are interdependent (as is the case of a convertible
debt instrument with a redemption option), it will report on the existence of
those characteristics.
g) Impairment due to credit risk
For each class of financial asset, the company shall provide an analysis of
movement in allowance accounts due to impairment losses arising on credit
risk.
h) Defaults and breaches of contractual conditions
The company shall disclose the following information for all loans outstanding
at the balance sheet date:
1. Details of any defaults of the principal or interest during the reporting
period;
2. The carrying amount of loans in default at the balance sheet date; and
3. Whether the default was remedied or the terms of the loan were
renegotiated before the annual accounts were authorised for issue.
If there are breaches of contractual conditions during the reporting period
other than defaults, the company shall disclose the same information as required
in the preceding paragraph if those breaches permitted the lender to demand
early repayment, unless the breaches were remedied or the terms of the loan
were renegotiated before the balance sheet date.
– 205 –
 i) Payables of a special nature
The company shall disclose the nature, amount and characteristics of any
payables of a special nature stating, where applicable, whether they are payable
to group companies or associates.

9.2.2. Information relating to the income statement and equity

The company shall disclose the following:

a) Net gains and losses on the different categories of financial instruments
defined in the 9th recognition and measurement standard.
b) The gain or loss recognized in the profit and loss account arising from
the derecognition of financial assets measured at amortized cost,
showing separately the gains and losses arising from the derecognition
of those financial assets. This information will include the reasons for
derecognising those financial assets.
c) Finance income and expenses calculated using the effective interest rate
method.

9.2.3. Other disclosures in the notes to the annual accounts

9.2.3.1. Hedge accounting

The objective of the information to be included on hedge accounting is to

provide the user of the annual accounts with relevant and reliable information
on:
1. The company’s risk management strategy and how it is applied to
manage risk,
2. How the company’s hedging activities may affect the amount, timing and
uncertainty of its future cash flows, and
3. The effect that hedge accounting has had on the balance sheet, the profit
and loss account and the statement of changes in equity.
To meet this objective, the company must include, by types of accounting
hedge, a detailed description of the hedging operations carried out, of the
financial instruments designated as hedging instruments, including their fair
values on the year-end date and the nature of the risks that have been covered.
– 206 –
 The company must justify that the requirements of the 9 th recognition and
valuation standard are met, and, in particular, it must include a description of:
1. How it determines the economic relationship between the
hedged item and the hedging instrument in order to evaluate the
effectiveness of the hedge, and
2. How the coverage ratio is established and what are the sources of
the ineffectiveness of the coverage.
Additionally, in cash flow hedging, the company will report on:
1. The reporting periods when the cash flows are expected to occur
and when they are expected to affect the income statement;
2. The amount recognised in equity during the reporting period and
the amount derecognised from equity and included in profit and
loss, detailing the amounts included in each line item in the income
statement;
3. The amount derecognised from equity during the reporting period
and included in the initial cost or carrying amount of a non-financial
asset or non-financial liability when the hedged item is a highly
probable forecast transaction; and
4. any forecast transaction for which hedge accounting had previously
been used, but which is no longer expected to occur.
In fair value hedges the company shall disclose the amount of gains or losses
on the hedging instrument and gains and losses on the hedged item attributable
to the hedged risk.
Likewise, the amount of ineffectiveness recognised in the profit and
loss account on cash flow hedges and hedges on net investments in foreign
operations will be disclosed.

9.2.3.2. Fair value

a) Purpose of the information

For financial instruments valued at fair value, the following will be
reported:
1. The valuation techniques and the variables used to develop
valuations made after initial recognition;
– 207 –
 result of the valuation. For these purposes, a significant variable is
one that has a decisive influence on the result of the measurement.
In evaluating the importance of a specific variable for measurement,
the specific conditions of the asset or liability being valued will be
taken into consideration.
3. The amounts of transfers between level 1 and 2 financial instruments
that are valued at fair value on a recurring basis provided that they
are maintained at year end; the reasons for the transfers, and the
entity’s policy to determine them, distinguishing the inputs from the
outputs at each level.
4. A description of the valuation techniques, the changes in those
techniques, and the variables used to determine the fair value, for
the financial instruments classified in levels 2 and 3.
5. Quantitative information on the significant unobservable variables
used to determine the fair value of financial instruments classified at
level 3.
6. Reconciliation of the initial and final balances of financial instruments
whose valuations are classified in level 3, showing the items in which
they are located, purchases, sales, issues and settlements, as well
as the amounts transferred to or from level 3. The company will
distinguish the amounts recognized in the profit and loss account
between realised and unrealised. In particular, the policy and the
reasons for such transfers to or from level 3 will be detailed.
7. A description of the valuation processes used for those valuations
classified at level 3.
8. For recurring valuations classified at level 3, a description of the
sensitivity of those valuations to changes in unobservable variables
if a change in these variables could lead to a significantly different
valuation. If these variables are related to other unobservables used
in the valuation, a description of these relationships and how they
may affect the valuation will be provided.
9. For fair value measurements of financial instruments classified
in level 3, the company will report on whether a change in one
or more unobservable variables to reflect reasonably possible
alternative assumptions would significantly change the fair value and
include the effect of these changes. For these purposes, relevance
will be judged with respect to the profit or loss for the year, total
assets or liabilities or total equity.
– 209 –
 9.2.3.3. Group, jointly controlled entities and associate companies

Disclosures on group companies, jointly controlled entities and associates

shall include the following:
a) Name, address of registered offices and legal form of group companies,
specifying the following for each one:
1. Activities carried out.
2 Proportion of capital and voting rights held directly or indirectly,
distinguishing between the two.
3. Amount of capital, reserves, other equity items and profit and loss
for the latest reporting period calculated using the criteria set out
in the Commercial Code and the implementation standards. If
the company is required to disclose profit or loss from operating
activities, continuing operations and discontinued operations in its
individual annual accounts, these shall be presented separately.
4. Carrying amount of the investment.
5. Dividends received during the reporting period.
6. Indication of whether the shares are listed on a regulated market
and, if applicable, the average quoted price for the last quarter and
at the balance sheet date.
b) The same information as that required in the preceding point shall be
disclosed for jointly controlled entities, associates, entities in which an
interest of more than 20% is held but over which the company does not
have significant influence and entities in which the company is a general
partner. Contingencies incurred in relation to those entities shall also
be disclosed. If the company has significant influence over another entity
while holding an interest of 20% or less in that entity, or if it holds an
interest of more than 20% but does not have significant influence, the
circumstances affecting these relationships shall be explained.
c) Acquisitions during the reporting period that have led to the classification
of a company as a subsidiary, indicating the proportion of capital and the
percentage of voting rights acquired.
d) Notifications issued, in compliance with article 155 of the consolidated
Companies Act, to investees in which the company obtains a direct or
indirect interest of more than 10%.
– 210 –
 9.3.2. Quantitative information

9.3.2.1. For each type of risk, a summary of the quantitative information

regarding the risk exposure at the year-end shall be included. This information
will be based on that used internally by the company’s board of directors or
equivalent governing body.
In particular, for each type of risk, at least the information indicated below
shall be included:
a) Credit risk.
In all cases, information shall be given about:
1. The definitions of non-compliance that the company uses, including
the reasons for selecting those definitions.
2. How the instruments are grouped if impairment losses are measured
on a collective basis.
3. The main characteristics of the modifications or restructuring of
credits that have taken place in the year.
4. The policy for cancellation or derecognition by the company, including
the indicators that show that there is no reasonable expectation of
recovery, as well as information on the policy for financial assets that are
cancelled, but that are still subject to an activity requiring compliance.
For each class of financial assets in default or impaired, the following shall
be reported on:
1. The age of financial assets in arrears at the end of the reporting period.
2. The amounts of impairment recognised, as well as the amount
of any financial income recognized in the profit and loss account
related to such assets.
3. The amount that best represents the company’s maximum level of
exposure to credit risk at the end of the reporting period and a
description of the guarantees available to the company and other
credit upgrades, as well as their financial effect (for example, a
quantification of the extent to which collaterals and other credit
upgrades mitigate credit risk), relative to the amount that best
represents the highest level of credit risk exposure.
When a company has obtained during the year, financial or non-financial
assets through the execution of guarantees that ensured their collection, or by
executing other credit upgrades (for example, guarantees), and such assets meet
– 212 –
the recognition criteria, the entity will disclose at the year-end the following
information in relation to balances held on these assets:
1. The nature and book value of the assets.
2. When the assets are not easily convertible into cash, the company policy
on disposal or other disposal procedures for such assets, or their use in
company activities.
b) Liquidity risk.
For financial liabilities that have a specific or determinable maturity date,
the amounts that mature in each of the five years following the year-end and
the balance until the last maturity date shall be reported. These indications will
appear separately for each of the financial liability items in accordance with the
balance sheet model.
Additionally, the company must include an explanation of how it manages
the liquidity risk inherent for the aforementioned liabilities.
c) Market risk.
Unless an entity complies with the provisions of the following paragraph, it
will report on the following points:
1. A sensitivity analysis for each type of market risk to which the entity
is exposed at the year end, showing how profit or loss for the period
and equity could be affected due to changes in the relevant risk variable,
which are reasonably possible on that date.
2. The methods and hypotheses used when preparing the sensitivity
analysis.
3. The changes that have occurred since the previous period in the
methods and assumptions used, as well as the reasons for such changes.
If a company carries out a sensitivity analysis, such as that of value at
risk, that reflects the interdependencies between risk variables (for example,
between interest and exchange rates) and uses it to manage financial risks, it
can use that sensitivity analysis instead of that specified in the points above. In
this case, it will also include:
1. An explanation of the method used in preparing the sensitivity analysis,
as well as the main parameters and underlying hypotheses in the data
provided.
2. An explanation of the objective of the method used, as well as the
limitations that could affect the information not fully reflecting the fair
value of the assets and liabilities involved.
– 213 –
 9.3.2.2. Information on risk concentrations will be included for each type
of risk, which will include a description of how to determine the concentration,
the common characteristics of each concentration (geographic area, currency,
market, counterparty, etc.), and the amount of exposures to the risk associated
with financial instruments that share such characteristics.

9.4. Financial asset transfers

For the purposes of applying the requirements set out below, a company
transfers all or part of a financial asset (the transferred financial asset) if and
only if at least one of the following conditions is met:
1. Transfers the contractual rights to receive the cash flows of that financial
asset; or
2. It retains the contractual rights to receive the cash flows of that financial
asset, but assumes in an agreement, a contractual obligation to pay the
said cash flows to one or more recipients.
When the company made transfers of financial assets in such a way that part
of them, or all of them, do not meet the conditions for derecognition, indicated
in section 2.7 of the 9th recognition and valuation standard, it will provide the
following information grouped by asset class:
1. The nature of the transferred assets.
2. The nature of the risks and benefits inherent to ownership to which the
company remains exposed.
3. The book value of the transferred assets and the associated liabilities
that the company had registered, and
4. When the company recognizes the assets based on its continued
involvement, the book value of the assets that initially appeared on the
balance sheet, the book value of the assets that the company continues
to recognise, and the book value of the associated liabilities should be
disclosed.

9.5. Capital and reserves without valuation adjustments

The company shall disclose the following:

a) Number of shares or equity holdings and the par value per share or
unit held, by class, as well as the rights and restrictions attached to
that class. Where applicable, the company shall disclose the amount
– 214 –
 receivable on called-up capital for each class and the date on which
payment may be demanded. And, where appropriate, the required
disbursements pending and in arrears, as well as the actions followed by
the company within the framework of commercial legislation to recover
the required disbursements. This information shall also be disclosed for
equity instruments other than capital.
b) Capital increases underway, indicating the number of shares or equity
holdings to be subscribed, their par value, share premium or additional
paid-in capital, the initial disbursement, the rights and restrictions
attached, the existence of any pre-emptive rights available to equity
holders, shareholders or bondholders, and the subscription term.
c) The amount of capital authorised by the shareholders at their general
meeting that the directors may make outstanding, indicating the period
for which such authorisation is granted.
d) Rights attached to founder bonds, dividend-right certificates, convertible
bonds and similar financial instruments, indicating the number and extent
of the rights conferred.
e) Specific circumstances restricting the availability of reserves.
f) Number, par value and average purchase price of own shares or equity
holdings held by the company or by a third party operating on behalf
of the company, specifying the purpose for which they have been
earmarked and the amount of the reserve for the acquisition of parent
company shares. The company shall also disclose the number and par
value, as well as the amount of the related reserve, for own shares
pledged as collateral, and provide details of equity instruments other
than capital, where applicable.
g) The proportion of capital held by another company, directly or through
subsidiaries, when this interest amounts to 10% or more.
h) Shares of the company that are listed on the stock exchange.
i) Options issued by the company or other contracts relating to its
own shares which should be classified as capital and reserves without
valuation adjustments, with a description of the terms and conditions
and the associated amounts.
j) Specific circumstances relating to grants, donations and bequests
awarded by equity holders or owners.
– 215 –
10. Inventories

The company shall disclose the following:

a) Reasons for the recognition, and reversal where applicable, of
impairment during the reporting period, and the amount.
b) The amount of borrowing costs capitalised during the reporting
period as inventories with a production cycle of more than one
year, and the criteria used to determine their capitalisation.
c) Firm purchase commitments and binding sale agreements and
details of futures or options contracts associated with inventories.
d) Restrictions on the availability of inventories due to warranties,
pledges, guarantees and similar arrangements, identifying the
affected items, their amount and the duration of the restrictions.
e) Any other circumstance of a substantive nature affecting the
ownership, availability or measurement of inventories, such as
litigation, insurance, attachments, etc.

11. Foreign currency

1. The overall amount of assets and liabilities denominated in foreign

currency, disclosing the most significant items by currency. Amounts
relating to purchases, sales and services received and rendered shall
also be disclosed.
2. The company shall disclose the following:
a) Exchange differences recognised in profit or loss for the period by
class of financial instrument. Amounts deriving from transactions
settled during the period shall be presented separately from
balances that are outstanding or have not fallen due at the balance
sheet date, except those arising on financial instruments measured
at fair value through profit or loss.
b) Translation differences classified as a separate component of equity
in “Translation differences”, and a reconciliation of these differences
at the start of the reporting period and at the balance sheet date.
3. Any change in the functional currency, either in the reporting company
or in a significant foreign operation, and the reasons for that change,
shall be disclosed.
– 216 –
 4. In the exceptional event that the company has more than one functional
currency, the amount of assets, revenue and profit or loss expressed in
each of these functional currencies shall be disclosed.
5. Where applicable, the functional currency of a foreign operation shall
be disclosed, specifying the net investment therein, when this is not the
same as the presentation currency of the annual accounts.
6. When the company has foreign operations that are subject to
hyperinflation, it shall disclose the following:
a) The fact that the annual accounts and the figures for prior reporting
periods have been adjusted for the changes in the general purchasing
power of the functional currency and, as a result, are stated in terms
of the current monetary unit at the balance sheet date; and
b) The identity and level of the price index at the balance sheet date and
movement in the index during the current and the prior reporting
period.

12. Taxation

12.1. Income tax

An explanation of the difference between net income and expenses for

the reporting period and the taxable income/(tax loss). The company shall
include the following reconciliation, taking into consideration that differences
not identified as temporary differences in accordance with the recognition and
measurement standard shall be classified as permanent differences.

RECONCILIATION OF NET INCOME AND EXPENSES FOR THE PERIOD

WITH THE TAXABLE INCOME/(TAX LOSS)
Income and expense
Income statement
recognised directly in equity
Income and expense for the
period Increases Decreases Increases Decreases ............
Income tax ............ ............ ............ ........... ............
Permanent differences ............ ............ ............ ............ ............
Temporary differences:
– originating in current period
– originating in prior periods
Offset of tax loss carryforwards (-----------) (-----------)
Taxable income/(tax loss) ............ ............

– 217 –
 The company shall provide an explanation and numerical reconciliation of
the income tax expense (income) with the result of multiplying total recognised
income and expense, as opposed to profit or loss, by the applicable tax rates.
The company shall also disclose the following:
1. Details of the income tax expense (income) recognised in profit or loss,
presenting current tax and the variation in deferred taxes separately
as well as amounts recognised directly in equity. The effect on each
item in the statement of other comprehensive income shall be disclosed
separately. If a company is required to disclose profit or loss on
discontinued operations, these shall be disclosed separately from profit
or loss on continuing operations.
2. The variation in deferred taxes shall be disclosed, distinguishing between
assets (temporary differences, tax loss carryforwards and other credits)
and liabilities (temporary differences).
3. The amount and expiry date of deductible temporary differences, tax
loss carryforwards and other tax credits for which no deferred tax asset
is recognised in the balance sheet.
4. The amount of deferred tax assets, indicating the nature of the evidence
supporting their recognition, including any tax planning, when the
realisation of the deferred tax asset is dependent on future taxable
profits in excess of the income from the reversal of existing taxable
temporary differences, or when the company has incurred a loss in
either the current or preceding reporting period in the tax jurisdiction
to which the deferred tax asset relates.
5. The nature and amount of tax benefits applied during the reporting
period (such as credits, deductions and certain permanent differences),
associated commitments undertaken and tax benefits pending application.
The company shall in particular disclose tax benefits subject to accrual,
specifying the amount recognised during the reporting period and the
amount pending recognition.
6. Taxes payable in the different tax jurisdictions, with details of withholdings
and payments on account.
7. The amount and nature of other permanent differences.
8. Changes in the applicable tax rates compared to the prior reporting
period, indicating the effect on deferred taxes recognised in previous
reporting periods.
– 218 –
 9. Information on income tax provisions, tax contingencies and changes
in tax law after the balance sheet date that affect the tax assets and
liabilities recognised. The company shall in particular disclose the
reporting periods open to inspection.
10. Any other circumstance of a substantive nature relating to taxation.

12.2. Other taxes

Details of any significant tax-related circumstances shall be disclosed,

particularly tax contingencies and reporting periods open to inspection.

13. Revenue and expenses

13.1. General considerations and objective

1. The objective of the information requirements to be included in

this note to the accounts in relation to revenue is for the company
to provide sufficient information that allows users of the annual
accounts to understand the nature, amount, timing and uncertainty of
revenue from ordinary activities and cash flows arising from contracts
with customers. To achieve this objective, the company will provide
qualitative and quantitative information on the following aspects:
a) Contracts with clients,
b) Significant judgments and changes in those judgments, made on the
above-mentioned contracts, and
c) Assets recognized by the costs to obtain or fulfil a contract with a
customer.
2. In providing this information, the company will consider the level of detail
necessary to satisfy the disclosure objective and how much emphasis
needs to be placed on each of the requirements. To do this, it will
aggregate or disaggregate the information to be disclosed so that the
useful information is not masked by the inclusion of a large volume of
insignificant details or by the aggregation of items that have substantially
different characteristics.

13.2. Information on contracts with clients

1. Breakdown of revenue from ordinary activities.

– 219 –
 
 
  





– 223 –
 – Closing balance
Comparative information is not required in this section.
b) Information on the increase during the reporting period in balances
discounted to reflect the time value of money and the effect of any
change in the discount rate.
Comparative information is not required in this section.
c) A description of the nature of the obligation assumed.
d) A description of the estimates and calculation procedures applied
when measuring the amounts and any uncertainties arising in
relation to those estimates.
e) The amount of any reimbursement rights, specifying any balances
recognised in respect of these rights under assets in the balance
sheet.
2. Unless the possibility of an outflow of economic benefits is extremely
remote, the company shall disclose the following for each type of
contingency:
a) A brief description of the nature.
b) Foreseen developments and determining factors.
c) A quantified estimate of the possible impact on the financial
statements or, where this is impracticable, a statement to that effect
and information on the uncertainties preventing such a calculation,
indicating the maximum and minimum risks.
d) The existence of any reimbursement rights.
e) In the exceptional event that a provision has not been recognised in
the balance sheet because this could not be estimated reliably, the
reasons why such an estimate cannot be made.
3. When it is probable that economic benefits from assets not qualifying for
recognition will flow to the company, the following shall be disclosed:
a) A brief description of the nature.
b) Foreseen developments and determining factors.
c) Information on the estimation criteria applied and the possible
impact on the financial statements or, where this is impracticable,
a statement to that effect and information on the uncertainties
preventing such a calculation.
– 224 –
 4. In the rare cases when disclosure of the information required in the
above sections can be expected to seriously prejudice the company’s
position in a dispute with a third party, this information may be omitted.
However, the nature of the dispute, omission of the information and
reasons for that omission shall be stated.

15. Environmental information

The company shall disclose the following:

a) Description and characteristics of the most significant systems, equipment
and installations in the company’s property, plant and equipment used
to minimise the environmental impact of its activity and protect and
improve the environment, indicating the nature and usage, the carrying
amount and accumulated depreciation, where this can be determined
separately, and any impairment recognised during the reporting period
and accumulated allowances.
b) Expenses incurred during the reporting period to protect and improve
the environment, indicating the application of such expenditure.
c) Risks covered by environmental provisions, specifically indicating those
relating to litigation in progress, indemnities and other items. For each
provision the company shall disclose the information required for
provisions recognised in the balance sheet in accordance with section 1
of note 14.
d) Contingencies relating to the protection and improvement of the
environment, including the disclosures required in section 2 of note 14.
e) Environment-related investments made during the reporting period.
f) Compensation receivable from third parties.

16. Long-term employee benefits

1. When the company grants long-term employee remuneration under

defined contribution or defined benefit plans, a general description of
the type of plan shall be included.
2. For long-term employee remuneration under defined benefit plans, the
company shall also disclose the information required in section 1 of note
14 for provisions recognised in the balance sheet, and the following:
– 225 –
– 226 –
 4. When the fair value of the goods and services received cannot be
estimated reliably, in accordance with the recognition and measurement
standard, this fact and the reasons why shall be explained.

18. Grants, donations and bequests

The company shall disclose the following:

1. The amount and characteristics of the grants, donations and bequests
accounted for in the balance sheet, and those taken to income.
2. Analysis and movement of the content of the relevant subgroup in
the balance sheet, indicating the opening and closing balance as well
as increases and decreases. In particular, amounts received and, where
applicable, reimbursed shall be disclosed.
3. Information on the origin of grants, donations and bequests. In the case
of grants, the awarding body shall be disclosed, specifying whether it is
a local, regional, national or international institution.
4. Information on compliance, or otherwise, with the conditions attached
to the grants, donations and bequests.

19. Business combinations

1. For each business combination occurring during the reporting period,

the acquirer shall disclose the following:
a) The name and a description of the acquiree or acquirees.
b) The acquisition date.
c) The legal form of the transaction.
d) The main reasons for the business combination and a qualitative
description of the factors giving rise to the recognition of goodwill,
such as synergies expected to arise from the combination of
acquiree and acquirer, intangible assets that do not qualify for
separate recognition or other factors.
e) The acquisition date fair value of the total consideration transferred
and the acquisition-date fair value of each main type of consideration,
such as:
– Cash
– 227 –



 that all business combinations carried out during the reporting period
had been completed at the beginning of the period.
If disclosure of this information would be impracticable, that fact shall be
disclosed, together with an explanation of why this is the case.
6. The following information shall be disclosed for business combinations
carried out during the reporting period or in prior periods:
a) If the initial accounting for a business combination was determined
only provisionally, the company shall disclose the reasons why initial
recognition is not complete, the assets acquired and commitments
assumed for which the measurement period is open and the amount
and nature of any valuation adjustments made during the reporting
period.
b) A description of events or circumstances subsequent to the
acquisition which have given rise to the recognition during the
reporting period of deferred taxes acquired as part of the business
combinations.
c) The amount and an explanation of any gains or losses recognised
during the reporting period in relation to assets acquired and
liabilities assumed, when the nature, size or incidence of these
amounts makes this information relevant to an understanding of
the annual accounts of the combined entity.
d) Until the entity collects, sells or otherwise loses the right to
a contingent consideration asset, or until the entity settles a
contingent consideration liability, or that liability is cancelled or
expires, it shall disclose any changes in the recognised amounts,
including any differences arising upon settlement, any changes in
the range of possible outcomes (undiscounted) and the reasons for
those changes, as well as the valuation techniques used to measure
the contingent consideration.

20. Joint ventures

1. The company shall specify and describe significant interests in joint

ventures, distinguishing between:
a) Jointly controlled operations, and
b) Jointly controlled assets.
– 230 –
 2. Irrespective of the information required in section 2 of note 14, unless
the possibility of incurring losses is remote the aggregate amount of the
following contingencies shall be disclosed separately from the amount of
other contingent liabilities:
a) Any contingency that the company has incurred, as a venturer, in
relation to its investments in joint ventures, and its share of each
contingency incurred jointly with other venturers;
b) Its share of the contingencies of the joint ventures for which it
could be liable; and
c) Contingencies that arise because the company, as a venturer, could
be liable for the liabilities of other venturers in the joint venture.
3. The company shall disclose the total amount of the following
commitments separately from other arrangements:
a) Any capital commitments of the venturer in relation to its interests
in joint ventures and its share in the capital commitments that have
been incurred jointly with other venturers; and
b) Its share of the capital commitments of the joint ventures themselves.
4. Amounts relating to joint ventures shall be disclosed separately in each
significant line item in the balance sheet, income statement, statement
of cash flows and statement of changes in equity. This information shall
be shown as an aggregate amount for all joint ventures in which the
company holds an interest.

21. Non-current assets held for sale and discontinued operations

1. The following shall be disclosed for each activity classified as discontinued:

a) The revenue, expenses and pre-tax profit or loss of discontinued
operations recognised in the income statement.
b) The related income tax expense.
c) The net cash flows attributable to the operating, investing and
financing activities of discontinued operations.
d) A detailed description of the assets and liabilities associated with the
discontinued operation, stating the amount and the circumstances
surrounding their classification.
– 231 –
 the impact of the event cannot be estimated, the company shall disclose
this fact, explaining the reasons and circumstances preventing such an
estimate.
3. Events after the balance sheet date that affect the application of the
going concern principle, disclosing the following:
a) Description of the subsequent event and its nature (the factor that
casts doubt upon the company’s ability to continue operating as a
going concern).
b) Potential impact of the subsequent event on the company’s position.
c) Any mitigating factors relating to the subsequent event.

23. Related-party transactions

1. Disclosures on related-party transactions shall be made separately for

each of the following categories:
a) Parent.
b) Other group companies.
c) Joint ventures in which the company is a venturer.
d) Associates.
e) Companies with joint control or significant influence over the
company.
f) Key management personnel of the company or its parent.
g) Other related parties.
2. The company shall disclose the information necessary to ensure that
related-party transactions and the effects of these transactions on its
financial statements are readily understandable, including the following
aspects:
a) Identification of the individuals or companies with which the related-
party transactions have been carried out, specifying the nature of
the relationship with each party involved.
b) Details and amount of the transaction, specifying the pricing policy
applied and comparing this with the company’s usual pricing policies
for similar transactions with unrelated parties. When no similar
transactions have been carried out with unrelated parties, the
– 233 –
 criteria and basis for determining the amount of the transaction
shall be disclosed.
c) The gain or loss for the company on the transaction and a description
of the functions and risks assumed in the transaction by each related
party.
d) The amount of outstanding balances receivable and payable, their
terms and conditions and the nature of the consideration to be
provided in settlement. Assets and liabilities shall be grouped by type
of financial instrument (based on the structure of the company’s
balance sheet) and by guarantees extended or received.
e) Provisions for doubtful debts related with the aforementioned
outstanding balances.
f) Expenses recognised during the reporting period in respect of
irrecoverable or doubtful debts due from related parties.
3. The following types of related-party transaction shall be disclosed:
a) Sales and purchases of current and non-current assets.
b) Services rendered and received.
c) Finance lease contracts.
d) Transfers of research and development.
e) Licence agreements.
f) Finance arrangements, including loans and capital contributions in
cash or in kind. In equity instrument sale and purchase transactions,
the company shall specify the number, par value and average price
of the instruments and the gain or loss on the transaction, indicating
the purpose for which the instruments have been earmarked in
each case.
g) Interest paid and received, and accrued interest payable or
receivable.
h) Dividends and other benefits distributed.
i) Guarantees and collateral.
j) Remuneration and indemnities.
k) Contributions to pension and life insurance plans.
l) Benefits to be settled with own financial instruments.
– 234 –
 and details of any guarantees extended on their behalf. These requirements
will also be applicable when the members of the board of directors are
companies, in which case, in addition to reporting the advances and credits
granted to the managing legal entity, the latter must report the specific
amounts that correspond to the individual who represent the entity. This
information may be given globally for each category, disclosing separately
the amounts corresponding to senior management personnel from those
relating to members of the board of directors.
7. Companies established under the legal form of a capital company must
report situations of conflict of interest incurred by company directors
or persons related to them, according to the terms regulated in article
229 of the revised Companies Act.
8. If the company forms part of a group, the financial structure of that
group shall be described.

24. Other information

The company shall disclose the following:

1. The average number of employees during the reporting period, by
category.
The distribution of company personnel by gender at the balance sheet
date, divided into sufficient categories and levels, including senior
management and directors.
The average number of employees during the reporting period with a
disability greater than or equal to thirty-three percent, indicating the
categories to which they belong.
2. Companies which have issued securities that are admitted to trading on a
regulated market of any European Union member state, and which only
prepare individual annual accounts, in accordance with prevailing legislation,
shall disclose the main changes in equity and profit or loss if they have
applied International Financial Reporting Standards adopted by European
Union regulations, and shall specify the measurement criteria used.
3. The amount disclosed in respect of audit fees and other services
rendered by the auditors of the annual accounts, differentiating within
other services, on the one hand, the tax services that could be performed
in accordance with the applicable regulations and, on the other hand,
– 236 –
 those that correspond to the services provided by the auditors of the
accounts and which is required by the applicable regulations.
The same breakdown of information will be given for the fees
corresponding to services provided by any company belonging to the
same network to which the auditor belongs, in accordance with the
regulations governing the activity of auditing accounts.
4. The nature and business purpose of the company’s agreements that are
not presented in the balance sheet or disclosed in any other note to
the annual accounts, as well as the possible financial impact, provided
that this information is significant and helps in determining the financial
position of the company.
5. When the company holds the largest proportion of the assets of a
group of companies domiciled in Spain that report to the same decision-
making unit because they are controlled, by any means, by one or
more individuals or legal entities acting in conjunction, although not
required to consolidate, or which are solely managed in accordance
with statutory clauses or agreements, a description of these companies
shall be included, explaining why they report to the same decision-
making unit, disclosing the aggregate amount of assets, liabilities, equity,
revenue and profit or loss of those companies.
The company holding the highest proportion of the total assets of a
decision-making unit is considered to be the major asset holder.
6. When the company is not the major asset holder of a group of companies
that report to the same decision-making unit under the terms described
in the preceding paragraph, it shall specify the decision-making unit to
which it belongs and the Business Registry at which the annual accounts
of the company that has disclosed the information specified in the
preceding paragraph are filed.
7. The conclusion, amendment or early termination of any contract
between a commercial company and any of its partners or directors or
any person acting on their behalf, in the case of an operation outside
the normal activity of the company or operations not performed under
normal conditions.

25. Segment information

The company shall disclose the distribution of net revenue from its ordinary
activities, by category of activity and geographical market, insofar as these
– 237 –
categories and markets are structured very differently in terms of the sale of
products and rendering of services and other income from ordinary activities
of the company.
Companies eligible to prepare abbreviated annual accounts can omit this
information.

– 238 –
III. ABBREVIATED FORMAT FOR ANNUAL ACCOUNTS
ABBREVIATED BALANCE
 ABBREVIATED BALANCE SHEET AT 31 XXXX 200X

ACCOUNTS ASSETS NOTES 200X 200X-1

A) NON CURRENT ASSETS

20,(280),(290) I. Intangible assets

21,(281),(291),23 II. Property, plant and equipment
22,(282),(292) III. Investment property
2403,2404,2413,2414,2423,2424,(2493),(2494),(2933), IV. Non-current investments in group
(2934) (2943),(2944),(2953),(2954) companies and associates
2405,2415,2425,(2495),250,251,252,253,254,255,257,258, V. Non-current investments
(259),26,(2935),(2936),(2945),(2955),(297),(298)
474 VI. Deferred tax assets

B) CURRENT ASSETS

580,581,582,583,584,(599) I. Non-current assets held for sale

30,31,32,33,34,35,36,(39),407 II. Inventories

– 242 –
III. Trade and other receivables
430,431,432,433,434,435,436, (437),(490),(493) 1. Trade receivables
5580 2. Receivable on called-up share capital
44,460,470,471,472, 544 3. Other receivables
5303,5304,5313,5314,5323,5324,5333,5334, IV. Current investments in group companies and
5343,5344,5353,5354,(5393),(5394),5523,5524, associates
(5933),(5934),(5943),(5944),(5953),(5954)
5305,5315,5325,5335, V. Current financial investments
5345,5355,(5395),540,541,542,543,545,546,547,548,(549),551,
5525,5590,5593,565,566,(5935),(5936),(5945),(5955),(597),(598)
480, 567 VI. Prepayments for current assets
57 VII. Cash and cash equivalents

TOTAL ASSETS (A + B)
 ACCOUNTS EQUITY AND LIABILITIES NOTES 200X 200X-1
A) EQUITY

A-1) Capital and reserves without

valuation adjustments
I. Capital
100,101,102 1. Registered capital
(1030), (1040) 2. (Uncalled capital)
110 II. Share premium
112,113,114,115,119 III. Reserves
(108),(109) IV. (Own shares and equity holdings)
120,(121) V. Prior periods’ profit and loss
118 VI. Other equity holder contributions
129 VII. Profit/(loss) for the period
(557) VIII. (Interim dividend)
111 IX. Other equity instruments

133,1340,137 A-2) Valuation adjustments

130,131,132 A-3) Grants, donations and bequests

– 243 –
received

B) NON-CURRENT LIABILITIES

14 I. Non-current provisions
II. Non-current payables
1605, 170 1. Debt with financial institutions
1625,174 2. Finance lease payables
1615,1635,171,172,173,175,176,177,178,179,180,185,189 3. Other non-current payables
1603,1604,1613,1614,1623,1624,1633,1634 III. Group companies and associates, non-
current
479 IV. Deferred tax liabilities
181 V. Non-current accruals
 C) CURRENT LIABILITIES

585,586,587,588,589 I. Liabilities associated with non-current

assets held for sale
499, 529 II. Current provisions
III. Current payables
5105,520,527 1. Debt with financial institutions
5125,524 2. Finance lease payables
(1034),(1044),(190),(192),194,500,501,505,506,509,5115, 3. Other current payables
5135,5145, 521,522, 523,525,526,528,551,5525,
555,5565,5566,5595,5598,560,561,569

5103,5104,5113,5114,5123,5124,5133,5134,5143,5144,5523, IV. Current debts with group and

5524,5563,5564 associated companies
V.Trade and other payables
400,401,403,404,405,(406) 1. Suppliers
41,438,465,466,475,476,477 2. Other payables
485, 568 VI. Current accruals.
TOTAL EQUITY AND LIABILITIES

– 244 –
(A + B + C)
ABBREVIATED INCOME STATEMENT
 ABBREVIATED INCOME STATEMENT FOR
THE PERIOD ENDED 31 XXXX 200X

(Debit) Credit
ACCOUNTS Note
200X 200X-1
700,701,702,703,704, 705,(706),(708),(709) 1. Revenue
(6930), 71*,7930 2. Changes in inventories of finished goods and work in pro-
gress
73 3. Work carried out by the company for assets
(600),(601),(602),606,(607),608,609,61*,(6931), 4. Supplies
(6932),(6933),7931,7932,7933
740,747,75 5. Other operating income
(64),7950,7957 6. Personnel expenses
(62),(631),(634),636,639,(65),(694),(695),794, 7954 7. Other operating expenses
(68) 8. Amortisation and depreciation
746 9. Non-financial and other capital grants
7951,7952,7955,7956 10. Provision surpluses
(670),(671),(672),(690),(691),(692),770,771,772, 11. Impairment and gains/(losses) on disposal of fixed assets
790,791,792

– 246 –
A) RESULTS FROM OPERATING ACTIVITIES
(1+2+3+4+5+6+7+8+9+10+11)
760,761,762,767,769 12. Finance income
(660),(661),(662),(664),(665),(669) 13. Finance expenses
(663),763 14. Change in fair value of financial instruments
(668),768 15. Exchange gains/(losses)
(666),(667),(673),(675),(696),(697),(698),(699), 16. Impairment and gains/(losses) on disposal of financial
766,773,775,796,797,798,799 instruments

B) NET FINANCE INCOME/(EXPENSE) (12+13+14+15+16)

C) PROFIT/(LOSS) BEFORE INCOME TAX (A+B)
(6300)*,6301*,(633),638 17. Income tax expense.
D) PROFIT/(LOSS) FOR THE PERIOD (C + 17)
* May be a positive or negative figure
ABBREVIATED STATEMENT OF CHANGES IN EQUITY
 ABBREVIATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 XXXX 200X
A) ABBREVIATED OTHER COMPREHENSIVE INCOME STATEMENT
FOR THE PERIOD ENDED 31 XXXX 200X
ACCOUNTS Notes 200X 200X-.1

A) Profit/(loss) for the period

Income and expense recognised directly in
equity
(800),(89),900, 991,992 I. Measurement of financial
instruments
(810),910 II. Cash flow hedges
94 III. Grants, donations and bequests
received
(85),95 IV. Actuarial gains and losses and
other adjustments
(8300)*,8301*,(833),834,835,838 V.Tax effect

– 248 –
B) Total income and expense recognised
directly in equity (I+II+III+IV+V)
Amounts transferred to the income
statement
(802),902,993,994 VI. Measurement of financial
instruments
(812),912 VII. Cash flow hedges
(84) VIII. Grants, donations and bequests
received
8301*,(836),(837) IX.Tax effect

C) Total amounts transferred to the income

statement (VI+VII+VIII+IX)
TOTAL RECOGNISED INCOME AND
EXPENSE (A+ B + C)
* May be a positive or negative figure
 B) ABBREVIATED STATEMENT OF TOTAL CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 XXXX 200X
Capital
(Own shares Other equity Valuation
Share Prior periods’ Profit/(loss) (Interim Other equity Grants, donations and
Reserves and equity holder contri- ad- TOTAL
Registe- premium profit and loss for the period dividend) instruments bequests received
Uncalled holdings) bution justments
red

A. BALANCE AT 31 XXXX 200X-2

I. Adjustments for changes in criteria 200X-2 and
prior periods
II. Adjustments for errors 200X-2 and prior
periods

B. ADJUSTED BALANCE AT 1 XXXX

200X-1
I. Total recognised income and expense
II. Transactions with equity holders or owners
1. Capital increases
2. ( - ) Capital reductions
3. Other transactions with equity holders or
owners.
III. Other changes in equity

– 249 –
C. BALANCE AT 31 XXXX 200X-1

I. Adjustments for changes in 200X-1 criteria

II. Adjustments for 200X-1 errors

D. ADJUSTED BALANCE AT 1 XXXX

200X

I. Total recognised income and expense

II. Transactions with equity holders or owners
1. Capital increases
2. ( - ) Capital reductions
3. Other transactions with equity holders or owners
III. Other changes in equity
E. BALANCE AT 31 XXXX 200X
ABBREVIATED ANNUAL ACCOUNTS
 CONTENT OF THE NOTES TO THE ABBREVIATED ANNUAL
ACCOUNTS

I. Activity of the company

This section shall include a description of the statutory activity and principal
activities of the company, particularly the following:
1. Address of the company’s registered offices and details of its legal form,
and the address at which it carries out its activities if this is different
from the corporate headquarters.
2. Description of the nature of the company’s operations and its principal
activities.
3. If the company is part of a group of companies under the terms of
article 42 of the Commercial Code and even when the parent company
is domiciled outside Spain, the name and address of the parent company
of the group, that formulated the consolidated accounts of the smaller
group of companies and of which the company is considered a dependent
company, shall be disclosed.
4. If the functional currency is different from the euro, this circumstance
shall be clearly stated, indicating the criteria considered when determining
that currency.

2. Basis of presentation of the annual accounts

1. Fair presentation:
a) The company shall make an explicit statement that the annual
accounts present fairly the equity, financial position and results
of the company and shall attest to the veracity of the cash flows
included in the statement of cash flows, if this statement is prepared.
b) Exceptional circumstances, whereby to achieve a fair presentation
the company has departed from the requirements of mandatory
accounting standards, indicating the title of the standards not
applied and the qualitative and quantitative impact of the departure
on the equity, financial position and the results of the company for
each reporting period presented.
– 253 –
 
 costs of dismantling or retirement, as well as the costs of rehabilitation
of the place where an asset is located and the criteria on determining
the cost of the work carried out by the company for its non-current
assets.
In addition, the accounting criteria for financial leasing contracts and
other operations of a similar nature will be specified.
3. Details of the criteria used to classify land and buildings as investment
property, specifying the criteria indicated in the preceding section.
In addition, the accounting criteria for financial leasing contracts and
other operations of a similar nature will be specified.
4. Exchanges, indicating the criteria followed and the reason for its
application, in particular, the circumstances that led the item to qualify
as a commercial exchange.
5. Financial assets and financial liabilities, stating the following:
a) The criteria used to classify and measure the different categories
of financial assets and financial liabilities and to recognise changes in
fair value. If the company has issued securities that should have been
classified as equity instruments in accordance with their legal form,
but instead these have been accounted for as financial liabilities, an
explanation shall be provided.
b) The nature of financial assets and financial liabilities initially
designated at fair value through profit or loss, as well as the criteria
applied to designate these assets as such, and an explanation of how
the company has met the requirements specified in the recognition
and measurement standard on financial instruments.
c) The criteria used to determine whether there is objective
evidence of impairment, as well as the recognition of adjustments
for impairment and reversals thereof and the derecognition of
impaired financial assets. In particular, the criteria used to calculate
impairment for trade and other receivables shall be disclosed.
Details of the accounting criteria applied to rescheduled payment
terms of financial assets which would otherwise be past due date or
impaired shall also be provided.
d) The criteria used to derecognise financial assets and financial
liabilities.
– 256 –
 13. Business combinations, indicating the recognition and measurement
criteria used.
14. Joint ventures, indicating the criteria used by the company to account
for balances related to the joint venture in which it holds an interest.
15. The criteria used for transactions between related parties.

4. Property, plant and equipment, intangible assets and investment

property

1. Analysis of movement during the reporting period in each of these

balance sheet line items, as well as accumulated depreciation,
amortisation and impairment, indicating the following:
a) Opening balance
b) Additions
c) Disposals
d) Closing balance
The company shall also disclose details of investment property, including
a description.
Additional disclosures shall be made for any line items that are significant
in terms of their nature or the amount.
2. Non-current assets under finance leases and similar transactions.
The company shall specifically disclose the initial cost, duration of the
contract, the number of years elapsed, lease payments made in the
current and prior reporting periods, instalments pending and the value
of any purchase option, as per the terms of the contract.

5. Financial assets

1. For each class of non-current financial asset, the company shall provide
an analysis of its movement and of impairment accounts due to
impairment losses arising on credit risk.
2. The following shall be disclosed for financial assets measured at fair
value:
– 258 –
 


 financial statements are readily understandable, including the following
aspects:
a) Identification of the individuals or companies with which the related-
party transactions have been carried out, specifying the nature of
the relationship with each party involved.
b) Details and amount of the transaction, reporting the criteria
followed or methods applied to determine its value.
c) The gain generated or loss incurred by the company on the
transaction and a description of the functions and risks assumed in
the transaction by each related party.
d) The amount of outstanding receivable and payable balances, their
terms and conditions and the nature of the consideration to be
provided in settlement. Assets and liabilities shall be grouped in
accordance with line items in the company’s balance sheet and by
guarantees extended or received.
e) Provisions for doubtful debts related with the aforementioned
outstanding balances.
3. The above information may be disclosed in aggregate for items of a
similar nature. Disclosures shall be made separately for each related-
party transaction of a significant amount or which is relevant for an
understanding of the annual accounts, as well as financial commitments
with related companies.
4. The company need not disclose transactions forming part of its
ordinary activities when these are carried out at arm’s length, are for an
insignificant amount and are not relevant to give a fair presentation of
the equity, financial position and results of the company.
5. Information must be provided on the amount of advances and credits
granted to senior management and members of the board of directors,
indicating the interest rate, its essential characteristics and the amounts
eventually returned or waived, as well as the obligations assumed on
their behalf as a guarantee. These requirements will also be applicable
when the members of the administrative body are legal persons, in which
case, in addition to reporting the advances and credits granted to the
managing legal entity, the latter must report the specific participation
that corresponds to the individual who represent. This information
may be given globally for each category, collecting separately those
corresponding to senior management personnel from those relating to
members of the administrative body.
– 261 –
10. Other information

The company shall disclose the following:

1. The average number of employees during the reporting period.
2. The nature and business purpose of the company’s agreements that are
not presented in the balance sheet or disclosed in any other note to the
annual accounts provided that this information is significant and helps in
determining the financial position of the company.
3. The amount and nature of certain items of income or expenses whose
amount or incidence is exceptional. In particular, the subsidies, donations
or bequests received will be reported, indicating for the former the
public entity that grants them, specifying whether the grantor of the
same is the local, autonomous, state or international Administration.
4. The global amount of financial commitments, guarantees or contingencies
that do not appear in the balance sheet, indicating the nature and form
of the real guarantees provided; Existing pension commitments must be
reported separately.
5. The nature and financial consequences of circumstances of significant
materiality that occur after the balance sheet date and that are not
reflected in the profit and loss account or in the balance sheet, and the
financial effect of such circumstances should be disclosed.
6. Any other information that in the opinion of those responsible for
preparing the annual accounts should be provided so that the annual
accounts as a whole, can show a fair presentation of the equity, financial
position and the results of the company, as well as any other information
that the company considers appropriate to voluntarily provide.

– 262 –
 PART FOUR

CHART OF ACCOUNTS
 GROUP 1

BASIC FINANCING

10. CAPITAL
Share capital
100. 
Assigned capital
101. 
Capital
102. 
Uncalled capital
103. 
1030. Uncalled capital
1034. Uncalled capital pending registration
Uncalled non-monetary contributions
104. 
1040. Uncalled non-monetary contributions, capital
1044. Uncalled non-monetary contributions, capital pending
registration
Own shares or equity holdings in special situations
108. 
Own shares or equity holdings for reduction of capital
109. 

11. RESERVES AND OTHER EQUITY INSTRUMENTS

Share premium or additional paid-in capital
110. 
Other equity instruments
111. 
1110. Equity from issue of compound financial instruments
1111. Other equity instruments
Legal reserve
112. 
Voluntary reserves
113. 
Special reserves
114. 
1140. Reserves for parent company shares or equity holdings
1141. Statutory reserves
– 265 –
 1142. Redeemed capital reserve
1143. Goodwill reserve
1144. Reserves for own shares accepted as collateral
Reserves for actuarial gains and losses and other adjustments
115. 
Contributions from equity holders or owners
118. 
Differences on translation of capital to euros
119. 

12. PROFIT/LOSS PENDING DISTRIBUTION OR APPLICATION

Retained earnings
120. 
Prior periods’ losses
121. 
Profit/loss for the period
129. 

13. GRANTS, DONATIONS AND VALUATION ADJUSTMENTS

Government capital grants
130. 
Capital donations and bequests
131. 
Other grants, donations and bequests
132. 
Valuation adjustments to financial assets at fair value
133. 
through equity
Hedging transactions
134. 
1340. Cash flow hedges
1341. Hedges of a net investment in a foreign operation
Translation differences
135. 
Valuation adjustments to non-current assets and disposal
136. 
groups held for sale
Deferred tax income
137. 
1370. Deferred tax income on permanent differences
1371. Deferred tax income for tax deductions and tax credits

14. PROVISIONS
Provisions for long-term employee benefits
140. 
Provisions for taxes
141. 
Provisions for other liabilities
142. 
Provisions for dismantlement, removal or restoration of
143. 
fixed assets
– 266 –
 Provisions for environmental actions
145. 
Provisions for restructuring costs
146. 
Provisions for share-based payment transactions
147. 

15. NON-CURRENT PAYABLES OF A SPECIAL NATURE

Non-current liability-classified shares or equity holdings
150. 
Liability-classified uncalled share capital or equity holdings
153. 
1533. Uncalled share capital or equity holdings, group companies
1534. Uncalled share capital or equity holdings, associates
1535.  Uncalled share capital or equity holdings, other related
parties
1536. other uncalled share capital or equity holdings
Liability-classified uncalled non-monetary contributions of
154. 
shares or equity holdings
1543. Uncalled non-monetary contributions, group companies
1544. Uncalled non-monetary contributions, associates
1545. Uncalled non-monetary contributions, other related parties
1546. other uncalled non-monetary contributions

16. NON-CURRENT PAYABLES TO RELATED PARTIES

Non-current debt with related financial institutions
160. 
1603. Non-current debt with finalcial institutions, group companies
1604. Non-current debt with finalcial institutions, associates
1605. Non-current debt with other related finalcial institutions
Non-current payables to suppliers of fixed assets, related
161. 
parties
1613. Non-current payables to suppliers of fixed assets, group
companies
1614. Non-current payables to suppliers of fixed assets, associates
1615. Non-current payables to suppliers of fixed assets, other
related parties
Non-current finance lease payables, related parties
162. 
1623. Non-current finance lease payables, group companies
1624. Non-current finance lease payables, associates
– 267 –
 1625. Non-current finance lease payables, other related parties
Other non-current payables to related parties
163. 
1633. Other non-current payables, group companies
1634. Other non-current payables, associates
1635. Other non-current payables, other related parties

17. NON-CURRENT PAYABLES FOR LOANS, DEBENTURES AND OTHER

Non-current debt with financial institutions
170. 
Non-current payables
171. 
Non-current payables convertible into grants, donations
172. 
and bequests
Non-current payables to suppliers of fixed assets
173. 
Non-current finance lease payables
174. 
Non-current bills payable
175. 
Non-current liabilities arising from derivative financial
176. 
instruments
1765. Non-current liabilities arising from derivative financial
instruments, trading portfolio
1768. Non-current liabilities arising from derivative financial
instruments, hedging instruments
Bonds and obligations
177. 
Convertible bonds and obligations
178. 
Other marketable securities
179. 

18. NON-CURRENT GUARANTEES, DEPOSITS AND OTHER LIABILITIES

Non-current guarantees received
180. 
Advances of long-term sales
181. 
Non-current deposits received
185. 
Non-current financial guarantees
189. 

19. TEMPORARY FINANCING

Shares or equity holdings issued
190. 
Subscribed shares
192. 
Issued capital pending registration
194. 
– 268 –
 Liability-classified shares or equity holdings issued
195. 
Liability-classified subscribed shares
197. 
Liability-classified shares or equity holdings issued pending
199. 
registration

– 269 –
 GROUP 2

NON-CURRENT ASSETS

20. INTANGIBLE ASSETS

Research
200. 
Development
201. 
Administrative concessions
202. 
Industrial property
203. 
Goodwill
204. 
Leaseholds
205. 
Computer software
206. 
Advances for intangible assets
209. 

21. PROPERTY, PLANT AND EQUIPMENT

Land and natural resources
210. 
Buildings
211. 
Technical installations
212. 
Machinery
213. 
Equipment
214. 
Other installations
215. 
Furniture
216. 
Information technology equipment
217. 
Motor vehicles
218. 
Other property, plant and equipment
219. 

22. INVESTMENT PROPERTY

Investments in land and natural resources
220. 
– 271 –
 Investments in buildings
221. 

23. PROPERTY, PLANT AND EQUIPMENT UNDER CONSTRUCTION

Preparation of land and natural resources
230. 
Buildings under construction
231. 
Technical installations under assembly
232. 
Machinery under assembly
233. 
Information technology equipment under assembly
237. 
Advances for property, plant and equipment
239. 

24. NON-CURRENT INVESTMENTS IN RELATED PARTIES

240. Non-current investments in related parties
2403. Non-current investments in group companies
2404. Non-current investments in associates
2405. Non-current investments in other related parties
241. Non-current debt securities of related parties
2413. Non-current debt securities of group companies
2414. Non-current debt securities of associates
2415. Non-current debt securities of other related parties
242. Non-current loans to related parties
2423. Non-current loans to group companies
2424. Non-current loans to associates
2425. Non-current loans to other related parties
249. Non-current uncalled equity holdings in related parties
2493. Non-current uncalled equity holdings in group companies
2494. Non-current uncalled equity holdings in associates
2495. Non-current uncalled equity holdings in other related
parties

25. OTHER NON-CURRENT INVESTMENTS

Non-current investments in equity instruments
250. 
Non-current debt securities
251. 
Non-current loans
252. 
Non-current loans for disposal of fixed assets
253. 
– 272 –
 Non-current loans to personnel
254. 
Non-current assets arising from derivative financial
255. 
instruments
2550.  Non-current assets arising from derivative financial
instruments, trading portfolio
2553.  Non-current assets arising from derivative financial
instruments, hedging instruments
Reimbursement rights of insurance contracts for long-term
257. 
employee benefits
Non-current deposits
258. 
Non-current uncalled equity holdings
259. 

26. NON-CURRENT GUARANTEES AND DEPOSITS EXTENDED

Non-current guarantees extended
260. 
Non-current deposits extended
265. 

28. ACCUMULATED AMORTISATION AND DEPRECIATION

Accumulated amortisation of intangible assets
280. 
2800. Accumulated amortisation of research
2801. Accumulated amortisation of development
2802. Accumulated amortisation of administrative concessions
2803. Accumulated amortisation of industrial property
2804. Accumulated amortisation of goodwill
2805. Accumulated amortisation of leaseholds
2806. Accumulated amortisation of computer software
Accumulated depreciation of property, plant and equipment
281. 
2811. Accumulated depreciation of buildings
2812. Accumulated depreciation of technical installations
2813. Accumulated depreciation of machinery
2814. Accumulated depreciation of equipment
2815. Accumulated depreciation of other installations
2816. Accumulated depreciation of furniture
2817.  Accumulated depreciation of information technology
equipment
– 273 –
 2818. Accumulated depreciation of motor vehicles
2819. Accumulated depreciation of other property plant and
equipment
Accumulated depreciation of investment property
282. 

29. IMPAIRMENT OF NON-CURRENT ASSETS

290. Impairment of intangible assets
2900. Impairment of research
2901. Impairment of development
2902. Impairment of administrative concessions
2903. Impairment of industrial property
2905. Impairment of leaseholds
2906. Impairment of computer software
291. Impairment of property, plant and equipment
2910. Impairment of land and natural resources
2911. Impairment of buildings
2912. Impairment of technical installations
2913. Impairment of machinery
2914. Impairment of equipment
2915. Impairment of other installations
2916. Impairment of furniture
2917. Impairment of information technology equipment
2918. Impairment of motor vehicles
2919. Impairment of other property, plant and equipment
292. Impairment of investment property
2920. Impairment of land and natural resources
2921. Impairment of buildings
293. Impairment of non-current investments in related parties
2933. Impairment of non-current investments in group companies
2934. Impairment of non-current investments in associates
2935. Impairment of non-current investments in other related
parties
2936. Impairment of non-current investments in other companies
294. Impairment of non-current debt securities of related parties
– 274 –
 2943. Impairment of non-current debt securities of group
companies
2944. Impairment of non-current debt securities of associates
2945. Impairment of non-current debt securities of other related
parties
Impairment of non-current loans to related parties
295. 
2953. Impairment of non-current loans to group companies
2954. Impairment of non-current loans to associates
2955. Impairment of non-current loans to other related parties
Impairment of non-current debt securities
297. 
Impairment of non-current loans
298. 

– 275 –
 GROUP 3

INVENTORIES

30. GOODS FOR RESALE

Merchandise A
300. 
Merchandise B
301. 

31. RAW MATERIALS

Raw materials A
310. 
Raw materials B
311. 

32. OTHER SUPPLIES

Components
320. 
321. Fuel
Spare parts
322. 
Sundry materials
325. 
Packaging
326. 
Containers
327. 
Office supplies
328. 

33. WORK IN PROGRESS

Work in progress A
330. 
Work in progress B
331. 

34. SEMI-FINISHED GOODS

Semi-finished goods A
340. 
Semi-finished goods B
341. 
– 277 –
35. FINISHED GOODS
Finished goods A
350. 
Finished goods B
351. 

36. BY-PRODUCTS, WASTE AND RECOVERED MATERIALS

By-products A
360. 
By-products B
361. 
Waste A
365. 
Waste B
366. 
Recovered materials A
368. 
Recovered materials B
369. 

39. IMPAIRMENT OF INVENTORIES

Impairment of merchandise
390. 
Impairment of raw materials
391. 
Impairment of other supplies
392. 
Impairment of work in progress
393. 
Impairment of semi-finished goods
394. 
Impairment of finished goods
395. 
Impairment of by-products, waste and recovered materials
396. 

– 278 –
 GROUP 4

TRADE PAYABLES AND TRADE RECEIVABLES

40. SUPPLIERS
Suppliers
400. 
4000. Suppliers (euros)
4004. Suppliers (foreign currency)
4009. Suppliers, pending invoices
Suppliers, trade bills payable
401. 
Suppliers, group companies
403. 
4030. Suppliers, group companies (euros)
4031. Trade bills payable, group companies
4034. Suppliers, group companies (foreign currency)
4036. Containers and packaging returnable to suppliers, group
companies
4039. Suppliers, group companies, pending invoices
Suppliers, associates
404. 
Suppliers, other related parties
405. 
Containers and packaging returnable to suppliers
406. 
Advances to suppliers
407. 

41. OTHER PAYABLES

Payables for the rendering of services
410. 
4100. Payables for the rendering of services (euros)
4104. Payables for the rendering of services (foreign currency)
4109. Payables for the rendering of services, pending invoices
Trade bills payable
411. 
– 279 –
 Payables for profit-sharing agreements
419. 

43. TRADE RECEIVABLES

Trade receivables
430. 
4300. Trade receivables (euros)
4304. Trade receivables (foreign currency)
4309. Trade receivables, pending invoices
Trade receivables, trade bills receivable
431. 
4310. Trade bills in portfolio
4311. Discounted trade bills
4312. Trade bills in debt collection management
4315. Past due trade bills
Trade receivables, factoring
432. 
Trade receivables, group companies
433. 
4330. Trade receivables, group companies (euros)
4331. Trade bills receivable, group companies
4332. Trade receivables, group companies, factoring
4334. Trade receivables, group companies (foreign currency)
4336. Doubtful trade receivables, group companies
4337. Containers and packaging returnable to customers, group
companies
4339. Trade receivables, group companies, pending invoices
Trade receivables, associates
434. 
Trade receivables, other related parties
435. 
Doubtful trade receivables
436. 
Containers and packaging returnable by customers
437. 
Advances from customers
438. 

44. OTHER RECEIVABLES

Receivables
440. 
4400. Receivables (euros)
4404. Receivables (foreign currency)
4409. Receivables, pending invoices
Receivables, trade bills
441. 
– 280 –
 4410. Receivables, trade bills in portfolio
4411. Receivables, discounted trade bills
4412. Receivables, trade bills in debt collection management
4415. Receivables, past due trade bills
Doubtful receivables
446. 
Receivables for profit-sharing agreements
449. 

46. PERSONNEL
Salary advances
460. 
Salaries payable
465. 
Employee benefits payable through defined contribution s
466. 
schemes

47. PUBLIC ENTITIES

Taxation authorities, receivables
470. 
4700. VAT recoverable
4708. Grants receivable
4709. Recoverable taxes
Social Security, receivables
471. 
Input VAT
472. 
Withholdings and payments on account
473. 
Deferred tax assests
474. 
4740. Assets arising from deductible temporary differences
4742. Rights to tax deductions and credits pending application
4745. Tax loss carryforwards
Taxation authorities, taxes payable
475. 
4750. VAT payable
4751. Taxation authorities, withholding tax
4752. Income tax payable
4758. Repayable grants
Social Security, payables
476. 
Output VAT
477. 
Liabilities arising from taxable temporary differences
479. 
– 281 –
48. PREPAID EXPENSES AND DEFERRED INCOME
Prepaid expenses
480. 
Deferred income
485. 

49. IMPAIRMENT OF TRADE RECEIVABLES AND CURRENT PROVISIONS

Impairment of trade receivables
490. 
Impairment of trade receivables from related parties
493. 
4933. Impairment of trade receivables from group companies
4934. Impairment of trade receivables from associates
4935. Impairment of trade receivables from other related parties
Trade provisions
499. 
4994. Provisions for onerous contracts
4999. Provisions for other trade operations

– 282 –
 GROUP 5

FINANCIAL ACCOUNTS

50. CURRENT DEBENTURES, PAYABLES OF A SPECIAL NATURE AND

SIMILAR ISSUANCES
500. Current bonds and obligations
501. Current convertible bonds and obligations
502. Current liability-classified shares or equity holdings
505. Other current marketable securities
506. Current interest on debentures and similar issues
507. Dividends payable on liability-classified instruments
509. Redeemed marketable securities
5090. Redeemed bonds and obligations
5091. Redeemed convertible bonds and obligations
5095. Other redeemed marketable securities

51. CURRENT PAYABLES TO RELATED PARTIES

Current debt with related financial institutions
510. 
5103. Current debt with financial institutions, group companies
5104. Current debt with financial institutions, associates
5105. Current debt with other related financial institutions
Current payables to suppliers of fixed assets, related parties
511. 
5113. Current payables to suppliers of fixed assets, group
companies
5114. Current payables to suppliers of fixed assets, associates
5115. Current payables to suppliers of fixed assets, other related
parties
– 283 –
 Current finance lease payables, related parties
512. 
5123. Current finance lease payables, group companies
5124. Current finance lease payables, associates
5125. Current finance lease payables, other related parties
Other current payables to related parties
513. 
5133. Other current payables, group companies
5134. Other current payables, associates
5135. Other current payables, other related parties
Current interest on payables to related parties
514. 
5143. Current interest on payables, group companies
5144. Current interest on payables, associates
5145. Current interest on payables, other related parties

52. CURRENT PAYABLES FOR LOANS AND OTHER

Current debt with financial institutions
520. 
5200.  Current loans from financial institutions
5201. Current payables for drawdowns on credit facilities
5208. Payables, discounted trade bills
5209. Payables, factoring
Current payables
521. 
Current payables convertible into grants, donations and
522. 
bequests
Current payables to suppliers of fixed assets
523. 
Current finance lease payables
524. 
Current bills payable
525. 
Dividend payable
526. 
Current interest on debt with financial institutions
527. 
Current interest on payables
528. 
Current provisions
529. 
5290. Current provisions for employee benefits
5291. Current provisions for taxes
5292. Current provisions for other liabilities
5293.  Current provisions for dismantlement, removal or
restoration of fixed assets
– 284 –
 5395. Current provisions for environmental actions
5396. Current provisions for restructuring costs
5297. Current provisions for share-based payment transactions

53. CURRENT INVESTMENTS IN RELATED PARTIES

Current investments in related parties
530. 
5303. Current investments in group companies
5304. Current investments in associates
5305. Current investments in other related parties
Current debt securities of related parties
531. 
5313. Current debt securities of group companies
5314. Current debt securities of associates
5315. Current loans to other related parties
Current loans to related parties
532. 
5323. Current loans to group companies
5324. Current loans to associates
5325. Current loans to other related parties
Current interest on debt securities of related parties
533. 
5333. Current interest on debt securities of group companies
5334. Current interest on debt securities of associates
5335. Current interest on debt securities of other related parties
Current interest on loans to related parties
534. 
5343. Current interest on loans to group companies
5344. Current interest on loans to associates
5345. Current interest on loans to other related parties
Dividend receivable on investments in related parties
535. 
5353. Dividend receivable from group companies
5354. Dividend receivable from associates
5355. Dividend receivable from other related parties
Current uncalled equity holdings in related parties
539. 
5393. Current uncalled equity holdings in group companies
5394. Current uncalled equity holdings in associates
5395. Current uncalled equity holdings in other related parties
– 285 –
54. OTHER CURRENT INVESTMENTS
Current investments in equity instruments
540. 
Current debt securities
541. 
Current loans
542. 
Current loans for disposal of fixed assets
543. 
Current loans to personnel
544. 
Dividend receivable
545. 
Current interest on debt securities
546. 
Current interest on loans
547. 
Current deposits
548. 
Current uncalled equity holdings
549. 

55. ACCOUNTS OTHER THAN BANK ACCOUNTS

Current account with owner
550. 
Current account with equity holders and directors
551. 
Current account with other individuals and related entities
552. 
5523. Current account with group companies
5524. Current account with associates
5525. Current account with other related parties
Current accounts in mergers and spin-offs
553. 
5530. Equity holders of the dissolved company
5531. Equity holders, merger account
5532. Equity holders of the spin-off
5533. Equity holders, spin-off account
Current account with temporary joint ventures and co-
554. 
ownerships
Items pending application
555. 
Called-up equity holdings
556. 
5563. Called-up equity holdings, group companies
5564. Called-up equity holdings, associates
5565. Called-up equity holdings, other related parties
5566. Called-up equity holdings of other companies
Interim dividend
557. 
Receivable on called-up capital
558. 
– 286 –
 5580. Receivable on called-up ordinary shares or equity holdings
5585. Receivable on called-up liability-classified shares or equity
holdings
Current derivative financial instruments
559. 
5590. Current assets arising from derivative financial instruments,
trading portfolio
5593. Current assets arising from derivative financial instruments,
hedging instruments
5595.  Current liabilities arising from derivative financial
instruments, trading portfolio
5598.  Current liabilities arising from derivative financial
instruments, hedging instruments

56. 
CURRENT GUARANTEES, DEPOSITS, PREPAID EXPENSES AND
DEFERRED INCOME
Current guarantees received
560. 
Current deposits received
561. 
Current guarantees extended
565. 
Current deposits extended
566. 
Prepaid interest
567. 
Unearned interest received
568. 
Current financial guarantees
569. 

57. CASH
Cash, euros
570. 
Cash, foreign currency
571. 
Banks and financial institutions, demand current accounts,
572. 
euros
Banks and financial institutions, demand current accounts,
573. 
foreign currency
Banks and financial institutions, savings accounts, euros
574. 
Banks and financial institutions, savings accounts, foreign
575. 
currency
Short-term highly-liquid investments
576. 
– 287 –
58. NON-CURRENT ASSETS HELD FOR SALE AND ASSOCIATED ASSETS
AND LIABILITIES
Fixed assets
580. 
Investments with individuals and related entities
581. 
Investments
582. 
Inventories and trade and other receivables
583. 
Other assets
584. 
Provisions
585. 
Payables of a special nature
586. 
Payables to individuals and related entities
587. 
Trade and other payables
588. 
Other liabilities
589. 

59. 
IMPAIRMENT OF CURRENT INVESTMENTS AND NON-CURRENT
ASSETS HELD FOR SALE
Impairment of current investments in related parties
593. 
5933. Impairment of current investments in group companies
5934. Impairment of current investments in associates
5935. Impairment of current investments in other related parties.
5936. Impairment of current investments in other companies
Impairment of current debt securities of related parties
594. 
5943. Impairment of current debt securities of group companies
5944. Impairment of current debt securities of associates
5945. Impairment of current debt securities of other related
parties
Impairment of current loans to related parties
595. 
5953. Impairment of current loans to group companies
5954. Impairment of current loans to associates
5955. Impairment of current loans to other related parties
Impairment of current debt securities
597. 
Impairment of current loans
598. 
Impairment of non-current assets held for sale
599. 
5990. Impairment of non-current intangible assets and property,
plant and equipment held for sale
– 288 –
 5991. Impairment of non-current investments with individuals and
related entities held for sale
5992. Impairment of non-current investments held for sale
5993. Impairment of inventories and trade and other receivables
forming part of a disposal group held for sale
5994. Impairment of other assets held for sale

– 289 –
 GROUP 6

PURCHASES AND EXPENSES

60. PURCHASES
Merchandise purchased
600. 
Raw materials purchased
601. 
Other supplies purchased
602. 
Prompt payment discounts on purchases
606. 
6060. Prompt payment discounts on merchandise purchased
6061. Prompt payment discounts on raw materials purchased
6062. Prompt payment discounts on other supplies purchased
Subcontracted work
607. 
Purchase returns and similar transactions
608. 
6080. Returns of merchandise purchased
6081. Returns of raw materials purchased
6082. Returns of other supplies purchased
Volume discounts
609. 
6090. Volume discounts on merchandise purchased
6091. Volume discounts on raw materials purchased
6092. Volume discounts on other supplies purchased

61. CHANGES IN INVENTORIES

Changes in inventories of merchandise
610. 
Changes in inventories of raw materials
611. 
Changes in inventories of other supplies
612. 

62. EXTERNAL SERVICES

– 291 –
 Research and development expenses for the period
620. 
Leases and royalties
621. 
Repairs and maintenance
622. 
Independent professional services
623. 
Transport
624. 
Insurance premiums
625. 
Banking and similar services
626. 
Advertising, publicity and public relations
627. 
Utilities
628. 
Other services
629. 

63. TAXES
Income tax
630. 
6300. Current tax
6301. Deferred tax
Other taxes
631. 
Negative adjustments to income tax
633. 
Negative adjustments to indirect taxes
634. 
6341. Negative adjustments to VAT on current assets
6342. Negative adjustments to VAT on investments
Tax refunds
636. 
Positive adjustments to income tax
638. 
Positive adjustments to indirect taxes
639. 
6391. Positive adjustments to VAT on current assets
6392. Positive adjustments to VAT on investments

64. PERSONNEL EXPENSES

Salaries and wages
640. 
Termination benefits
641. 
Social Security payable by the company
642. 
Long-term employee benefits payable through defined
643. 
contribution schemes
Long-term employee benefits payable through defined
644. 
benefit schemes
– 292 –
 6440. Annual contributions
6442. Other costs
Equity-based employee benefits
645. 
6450. Equity-settled employee benefits
6457. Cash-settled share-based employee benefits
Employee benefits expense
649. 

65. OTHER EXPENSES

Losses on irrecoverable trade receivables
650. 
Results on profit-sharing agreements
651. 
6510. Profit transferred (trustee)
6511. Losses incurred (non-trustee venturer or associate)
Other operating losses
659. 

66. FINANCE EXPENSES

Finance expenses arising from provision adjustments
660. 
Interest on bonds and obligations
661. 
6610. Interest on non-current bonds and obligations, group
companies
6611. Interest on non-current bonds and obligations, associates
6612. Interest on non-current bonds and obligations, other related
parties
6613. Interest on non-current bonds and obligations, other
companies
6615. Interest on current bonds and obligations, group companies
6616. Interest on current bonds and obligations, associates
6617. Interest on current bonds and obligations, other related
parties
6618. Interest on current bonds and obligations, other companies

Interest on payables
662. 
6620. Interest on payables, group companies
6621. Interest on payables, associates
6622. Interest on payables, other related parties
– 293 –
 6623. Interest on debt with financial institutions
6624. Interest on payables, other companies
Losses on fair value measurement of financial instruments
663. 
6630. Losses on trading portfolio
6631. Losses on financial instruments designated by the company
6632. Losses on financial instruments at fair value through equity
6633. Losses on hedging instruments
6634. Losses on other financial instruments
Expenses arising on dividends payable on liability-classified
664. 
instrument
6640. Dividends on liability-classified instruments, group companies
6641. Dividends on liability-classified instruments, associates
6642. Dividends on liability-classified instruments, other related
parties
6643. Dividends on liability-classified instruments, other companies
Interest on discounted bills and factoring transactions
665. 
6650. Interest on bills discounted by group financial institutions
6651. Interest on bills discounted by associate financial institutions
6652. Interest on bills discounted by other related financial
institutions
6653. Interest on bills discounted by other financial institutions
6654. Interest on factoring transactions with group financial
institutions
6655. Interest on factoring transactions with associate financial
institutions
6656. Interest on factoring transactions with other related financial
institutions
6657. Interest on factoring transactions with other financial
institutions
Losses on investments and debt securities
666. 
6660. Losses on non-current debt securities, group companies
6661. Losses on non-current debt securities, associates
6662. Losses on non-current debt securities, other related parties
6663. Losses on non-current investments and debt securities,
other companies
– 294 –
 6665. Losses on current investments and debt securities, group
companies
6666. Losses on current investments and debt securities, associates
6667. Losses on current debt securities, other related parties
6668. Losses on current debt securities, other companies
Losses on non-trade receivables
667. 
6670. Losses on non-current non-trade receivables, group
companies
6671. Losses on non-current non-trade receivables, associates
6672. Losses on non-current non-trade receivables, other related
parties
6673. Losses on non-current non-trade receivables, other
companies
6675. Losses on current non-trade receivables, group companies
6676. Losses on current non-trade receivables, associates
6677. Losses on current non-trade receivables, other related
parties
6678. Losses on current non-trade receivables, other companies
Exchange losses
668. 
Other finance expenses
669. 

67. LOSSES ON NON-CURRENT ASSETS AND EXCEPTIONAL EXPENSES

Losses on intangible assets
670. 
Losses on property, plant and equipment
671. 
Losses on investment property
672. 
Losses on non-current investments in related parties
673. 
6733. Losses on non-current investments, group companies
6734. Losses on non-current investments, associates
6735. Losses on non-current investments, other related parties
Losses on transactions with own bonds
675. 
Exceptional expenses
678. 

68. AMORTISATION AND DEPRECIATION

Amortisation of intangible assets
680. 
– 295 –
 Depreciation of property, plant and equipment
681. 
Depreciation of investment property
682. 

69. IMPAIRMENT LOSSES AND OTHER CHARGES

Impairment losses on intangible assets
690. 
Impairment losses on property, plant and equipment
691. 
Impairment losses on investment property
692. 
Impairment losses on inventories
693. 
6930. Impairment losses on finished goods and work in progress
6931. Impairment losses on merchandise
6932. Impairment losses on raw materials
6933. Impairment losses on other supplies
Impairment losses on trade receivables
694. 
Trade provisions
695. 
6954. Provisions for onerous contracts
6959. Provisions for other trade operations
Impairment losses on non-current investments and debt
696. 
securities
6960. Impairment losses on non-current investments, group
companies
6961. Impairment losses on non-current investments, associates
6962. Impairment losses on non-current investments, other
related parties
6963. Impairment losses on non-current investments, other
companies
6965. Impairment losses on non-current debt securities, group
companies
6966. Impairment losses on non-current debt securities, associates
6967. Impairment losses on non-current debt securities, other
related parties
6968. Impairment losses on non-current debt securities, other
companies
Impairment losses on non-current loans
697. 
6970. Impairment losses on non-current loans, group companies
6971. Impairment losses on non-current loans, associates
– 296 –
 6972. Impairment losses on non-current loans, other related
parties
6973. Impairment losses on non-current loans, other companies
Impairment losses on current investments and debt
698. 
securities
6980. Impairment losses on current investments, group companies
6981. Impairment losses on current investments, associates
6985. Impairment losses on current debt securities, group
companies
6986. Impairment losses on current debt securities, associates
6987. Impairment losses on current debt securities, other related
parties
6988. Impairment losses on current debt securities, other
companies
Impairment losses on current loans
699. 
6990. Impairment losses on current loans, group companies
6991. Impairment losses on current loans, associates
6992. Impairment losses on current loans, other related parties
6993. Impairment losses on current loans, other companies

– 297 –
 GROUP 7

SALES AND INCOME

70. SALES OF MERCHANDISE, WORK CARRIED OUT BY THE COMPANY

FOR ASSETS, SERVICES, ETC.
Merchandise sold
700. 
Finished goods sold
701. 
Semi-finished goods sold
702. 
By-products and waste sold
703. 
Containers and packaging sold
704. 
Services rendered
705. 
Prompt payment discounts
706. 
7060. Prompt payment discounts on merchandise sold
7061. Prompt payment discounts on finished goods sold
7062. Prompt payment discounts on semi-finished goods sold
7063. Prompt payment discounts on by-products and waste sold
Sales returns and similar transactions
708. 
7080. Returns of merchandise sold
7081. Returns of finished goods sold
7082. Returns of semi-finished goods sold
7083. Returns of by-products and waste sold
7084. Returns of containers and packaging sold
Volume discounts
709. 
7090. Volume discounts on merchandise sold
7091. Volume discounts on finished goods sold
7092. Volume discounts on semi-finished goods sold
7093. Volume discounts on by-products and waste sold
7094. Volume discounts on containers and packaging sold

71. CHANGES IN INVENTORIES

Changes in inventories of work in progress
710. 
Changes in inventories of semi-finished goods
711. 
– 299 –
 Changes in inventories of finished goods
712. 
Changes in inventories of by-products, waste and recovered
713. 
materials

73. WORK CARRIED OUT BY THE COMPANY FOR ASSETS

Work carried out by the company for intangible assets
730. 
Work carried out by the company for property, plant and
731. 
equipment
Work carried out by the company for investment property
732. 
Work carried out by the company for property, plant and
733. 
equipment in progress

74. GRANTS, DONATIONS AND BEQUESTS

Operating grants, donations and bequests
740. 
Capital grants, donations and bequests taken to income
746. 
Other grants, donations and bequests taken to income
747. 

75. OTHER INCOME

Results on profit-sharing agreements
751. 
7510. Losses transferred (trustee)
7511. Attributable profit (non-trustee venturer or associate)
Income from lease agreements
752. 
Income from transfer of industrial property rights
753. 
Commission income
754. 
Income from services to personnel
755. 
Income from other services
759. 

76. FINANCE INCOME

Dividends
760. 
7600. Dividends, group companies
7601. Dividends, associates
7602. Dividends, other related parties
7603. Dividends, other companies
Income from debt securities
761. 
– 300 –
 7610. Income from debt securities, group companies
7611. Income from debt securities, associates
7612. Income from debt securities, other related parties
7613. Income from debt securities, other companies
Income from loans
762. 
7620. Income from non-current loans, group companies
76200. Income from non-current loans, group companies
76201. Income from non-current loans, associates
76202.  Income from non-current loans, other related
parties
76203. Income from non-current loans, other companies
7621. Income from current loans
76210. Income from current loans, group companies
76211. Income from current loans, associates
76212. Income from current loans, other related parties
76213. Income from current loans, other companies
Gains on fair value measurement of financial instruments
763. 
7630. Gains on trading portfolio
7631. Gains on financial instruments designated by the company
7632. Gains on financial instruments at fair value through equity
7633. Gains on hedging instruments
7634. Gains on other financial instruments
Gains on investments and debt securities
766. 
7660. Gains on non-current debt securities, group companies
7661. Gains on non-current debt securities, associates
7662. Gains on non-current debt securities, other related parties
7663. Gains on non-current investments and debt securities, other
companies
7665. Gains on current investments and debt securities, group
companies
7666. Gains on current investments and debt securities, associates
7667. Gains on current debt securities, other related parties
7668. Gains on current debt securities, other companies
– 301 –
 Income from related assets and reimbursement rights from
767. 
long-term employee benefits
Exchange gains
768. 
Other finance income
769. 

77. GAINS ON NON-CURRENT ASSETS AND EXCEPTIONAL INCOME

Gains on intangible assets
770. 
Gains on property, plant and equipment
771. 
Gains on investment property
772. 
Gains on non-current investments in related parties
773. 
7733. Gains on non-current investments, group companies
7734. Gains on non-current investments, associates
7735. Gains on non-current investments, other related parties
Negative goodwill on business combinations
774. 
Gains on transactions with own bonds
775. 
Exceptional income
778. 

79. SURPLUS AND USE OF PROVISIONS AND IMPAIRMENT LOSSES

Reversal of impairment of intangible assets
790. 
Reversal of impairment of property, plant and equipment
791. 
Reversal of impairment of investment property
792. 
Reversal of impairment of inventories
793. 
7930.  Reversal of impairment of finished goods and work in
progress
7931. Reversal of impairment of merchandise
7932. Reversal of impairment of raw materials
7933. Reversal of impairment of other supplies
Reversal of impairment of trade receivables
794. 
Provision surpluses
795. 
7950. Surplus provisions for employee benefits
7951. Surplus provisions for taxes
7952. Surplus provisions for other liabilities
7954. Surplus trade provisions
79544. Surplus provisions for onerous contracts
– 302 –
 79549. Surplus provisions for other trade operations
7955. Surplus provisions for environmental actions
7956. Surplus provisions for restructuring costs
7957. Surplus provisions for share-based payment transactions
Reversal of impairment of non-current investments and
796. 
debt securities
7960. Reversal of impairment of non-current investments, group
companies
7961. Reversal of impairment of non-current investments,
associates
7965. Reversal of impairment of non-current debt securities,
group companies
7966. Reversal of impairment of non-current debt securities,
associates
7967. Reversal of impairment of non-current debt securities, other
related parties
7968. Reversal of impairment of non-current debt securities, other
companies
Reversal of impairment of non-current loans
797. 
7970.  Reversal of impairment of non-current loans, group
companies
7971. Reversal of impairment of non-current loans, associates
7972. Reversal of impairment of non-current loans, other related
parties
7973. Reversal of impairment of non-current loans, other
companies
Reversal of impairment of current investments and debt
798. 
securities
7980.  Reversal of impairment of current investments, group
companies
7981. Reversal of impairment of current investments, associates
7985. Reversal of impairment of current debt securities, group
companies
7986. Reversal of impairment of current debt securities, associates
7987. Reversal of impairment of current debt securities, other
related parties
– 303 –
 7988. Reversal of impairment of current debt securities, other
companies
799. Reversal of impairment of current loans
7990. Reversal of impairment of current loans, group companies
7991. Reversal of impairment of current loans, associates
7992. Reversal of impairment of current loans, other related
parties
7993. Reversal of impairment of current loans, other companies

– 304 –
 GROUP 8

EXPENSES RECOGNISED IN EQUITY

80. FINANCE EXPENSES ARISING ON MEASUREMENT OF ASSETS AND

LIABILITIES
Losses on financial assets at fair value through equity
800. 
Transfer of gains on financial assets at fair value through
802. 
equity

81. EXPENSES ARISING ON HEDGING TRANSACTIONS

Losses on cash flow hedges
810. 
Losses on hedges of a net investment in a foreign operation
811. 
Transfer of gains on cash flow hedges
812. 
Transfer of gains on hedges of a net investment in a foreign
813. 
operation

82. EXPENSES ARISING ON TRANSLATION DIFFERENCES

Negative translation differences
820. 
Transfer of positive translation differences
821. 

83. INCOME TAX

Income tax
830. 
8300. Current tax
8301. Deferred tax
Negative adjustments to income tax
833. 
Tax income on permanent differences
834. 
Tax income for tax deductions and credits
835. 
Transfer of permanent differences
836. 
– 305 –
 Transfer of tax deductions and credits
837. 
Positive adjustments to income tax
838. 

84. TRANSFERS OF GRANTS, DONATIONS AND BEQUESTS

Transfer of government capital grants
840. 
Transfer of capital donations and bequests
841. 
Transfer of other grants, donations and bequests
842. 

85. ACTUARIAL LOSSES AND ADJUSTMENTS TO LONG-TERM DEFINED

BENEFIT ASSETS
Actuarial losses
850. 
Negative adjustments to long-term defined benefit assets
851. 

86. EXPENSES ARISING ON NON-CURRENT ASSETS HELD FOR SALE

Losses on non-current assets and disposal groups held for
860. 
sale
Transfer of gains on non-current assets and disposal groups
862. 
held for sale

89. EXPENSES ARISING ON INVESTMENTS IN GROUP COMPANIES OR

ASSOCIATES WITH PRIOR POSITIVE VALUATION ADJUSTMENTS
Impairment of investments, group companies
891. 
Impairment of investments, associates
892. 

– 306 –
 GROUP 9

INCOME RECOGNISED IN EQUITY

90. 
FINANCE INCOME FROM MEASUREMENT OF ASSETS AND
LIABILITIES
Gains on financial assets at fair value through equity
900. 
Transfer of losses on financial assets at fair value through
902. 
equity

91. INCOME FROM HEDGING TRANSACTIONS

Gains on cash flow hedges
910. 
Gains on hedges of a net investment in a foreign operation
911. 
Transfer of losses on cash flow hedges
912. 
Transfer of losses on hedges of a net investment in a foreign
913. 
operation

92. INCOME FROM TRANSLATION DIFFERENCES

Positive translation differences
920. 
Transfer of negative translation differences
921. 

94. INCOME FROM GRANTS, DONATIONS AND BEQUESTS

Income from government capital grants
940. 
Income from capital donations and bequests
941. 
Income from other grants, donations and bequests
942. 

95. ACTUARIAL GAINS AND ADJUSTMENTS TO LONG-TERM DEFINED

BENEFIT ASSETS
Actuarial gains
950. 
– 307 –
 Positive adjustments to long-term defined benefit assets
951. 

96. INCOME FROM NON-CURRENT ASSETS HELD FOR SALE

Gains on non-current assets and disposal groups held for
960. 
sale
Transfer of losses on non-current assets and disposal groups
962. 
held for sale

99. 
INCOME FROM INVESTMENTS IN GROUP COMPANIES OR
ASSOCIATES WITH PRIOR NEGATIVE VALUATION ADJUSTMENTS
Reversal of prior negative valuation adjustments, group
991. 
companies
Reversal of prior negative valuation adjustments, associates
992. 
Transfer for impairment of prior negative valuation adjus
993. 
tments, group companies
Transfer for impairment of prior negative valuation adjus
994. 
tments, associates

– 308 –
 PART FIVE

DEFINITIONS AND ACCOUNTING ENTRIES

 GROUP 1

BASIC FINANCING

Basic financing comprises the company’s equity and its long-term third-party
financing, generally used to fund non-current assets and to cover a reasonable
margin of current assets. This also includes transitory financing situations.
In particular, the following rules shall apply:
a) Financial liabilities included in this group shall be classified, for
measurement purposes, as “Financial liabilities at amortised cost”.
However, they may also be classified as “Financial liabilities at fair value
through profit or loss” in the terms established in the recognition and
measurement standards. Both hedging derivatives and trading derivatives
are included in this group when they are to be settled in over one year.
b) In accordance with the standards on the preparation of the annual
accounts, this group may not include non-current financial liabilities
that, exceptionally, meet the definition of liabilities that are held for
trading, except for financial derivatives to be settled in over one year.
When for measurement purposes financial liabilities are classified in
c) 
more than one category, the necessary accounts of four or more dig its
shall be created to identify the specific category in which they have been
included.
In the case of hybrid financial liabilities for which the entire hybrid
d) 
is designated at fair value in accordance with the recognition and
measurement standards, the item shall be recorded in an account
corresponding to the nature of the host contract. Accounts of four
or more digits shall be created with an appropriate breakdown to
distinguish the item as a non-current hybrid financial liability measured
as a whole. When the host contract and the embedded derivative are
recognised separately, the embedded derivative shall be treated as if it
– 311 –
 had been contracted independently and included in the corresponding
account in group 1, 2 or 5, while the host contract shall be included
in the account corresponding to its nature. Accounts of four or more
digits shall be created, with an appropriate breakdown, to distinguish the
item as the host contract of a non-current hybrid financial instrument.
Changes in the fair value of financial liabilities classified as “Financial
e) 
liabilities at fair value through profit and loss” shall be credited or
debited to the account in which these liabilities are recognised with a
debit or credit to accounts 663 and 763.
An account comprising financial liabilities which, in accordance with the
f) 
recognition and measurement standards, form part of a disposal group
held for sale shall be debited when the conditions for such classification
are met, with a credit to the corresponding account in subgroup 58.
The difference between the carrying amount of financial liabilities on
g) 
initial recognition and their redemption value shall be credited or
debited to the account in which the financial liability is recorded, with
a debit or credit to the account in subgroup 66 corresponding to the
nature of the instrument.

– 312 –
10. CAPITAL
100. Share capital
101.  Assigned capital
102.  Capital
103.  Uncalled capital
1030. Uncalled capital
1034. Uncalled capital pending registration
104.  Uncalled non-monetary contributions
1040. Uncalled non-monetary contributions, capital
1044. 
Uncalled non-monetary contributions, capital pending
registration
108. Own shares or equity holdings in special situations
109.  Own shares or equity holdings for reduction of capital
The accounts in this subgroup shall be classified under equity in the balance
sheet, as part of capital and reserves without valuation adjustments, except for
those cases foreseen in accounts 103 and 104.

100. Share capital
Registered capital of commercial companies, except where the capital
should be treated as a financial liability due to the economic characteristics of
the issue.
The issue and subscription of shares or equity holdings of corporations,
limited liability companies and partnerships limited by shares shall be recorded
in accordance with the rules governing subgroup 19 until the public deed is filed
at the Business Registry.
Movements in this account are as follows:
Initial capital and subsequent capital increases shall be credited to this
a) 
account with a debit to account 194 when the public deed is filed at the
Business Registry.
Reductions in capital and the dissolution of the company shall be debited
b) 
to this account.

101. Assigned capital

Capital of non-commercial entities.
Movements in this account are in line with those indicated for account 100.
– 313 –
102. Capital
Capital relates to individual companies.
Movements in this account are as follows:
The account shall be credited:
a) 
For initial capital.
a1) 
For profits capitalised, with a debit to account 129.
a2) 
The account shall be debited:
b) 
For sale or termination of a line of business.
b1) 
For losses not recorded in account 121, with a credit to account 129.
b2) 
The balance of account 550 shall be credited or debited to this account
c) 
at the balance sheet date, with a debit or credit to that account.

103. Uncalled capital
Registered capital on which the company has not requested payment from
the equity holders or shareholders, except for uncalled payments relating to
financial instruments classified as financial liabilities for accounting purposes.
Uncalled capital shall be classified under equity, as a reduction in capital,
except for amounts that relate to issued capital for which the public deed has
yet to be filed at the Business Registry, which shall be recognised as a reduction
in current liabilities.
1030. Uncalled capital
Movements in this account are as follows:
The par value of uncalled subscribed shares or equity holdings shall be
a) 
debited to this account when the public deed is filed at the Business
Registry with a credit to account 1034.
The account shall be credited as payments are called, with a debit to
b) 
account 5580.
1034. Uncalled capital pending registration
Movements in this account are as follows:
The par value of uncalled subscribed shares or equity holdings shall be
a) 
debited to this account, generally with a credit to account 190 or 192.
The account shall be credited when the public deed is filed at the
b) 
Business Registry, with a debit to account 1030.
– 314 –
104. Uncalled non-monetary contributions
Uncalled registered capital corresponding to non-monetary contributions,
except for pending contributions relating to liability-classified financial
instruments.
Uncalled non-monetary contributions shall be presented under equity, as a
reduction in capital, except for amounts that relate to issued capital for which
the public deed has yet to be filed at the Business Registry, which shall be
recognised as a reduction in current liabilities.
Uncalled non-monetary contributions, capital
1040. 
Movements in this account are as follows:
The par value of uncalled subscribed shares or equity holdings shall be
a) 
debited to this account with a credit to account 1044 when the public
deed is filed at the Business Registry.
The account shall be credited as payments are made, with a debit to the
b) 
accounts representing contribution in kind.
Uncalled non-monetary contributions, capital pending
1044. 
registration
Movements in this account are as follows:
The par value of uncalled subscribed shares or equity holdings shall be
a) 
debited to this account with a credit to account 190 or 192.
The account shall be credited, with a debit to account 1040, when the
b) 
public deed is filed at the Business Registry.

108. Own shares or equity holdings in special situations

Own shares or equity holdings acquired by the company (chapter IV, section
4 of the revised Companies Act or the Limited Liability Companies Act).
This account shall be presented as a reduction in equity.
Movements in this account are as follows:
The acquisition amount of shares or equity holdings shall be debited to
a) 
this account, generally with a credit to accounts in subgroup 57.
The account shall be credited:
b) 
For disposal of shares or equity holdings, generally with a debit
b1) 
to accounts in subgroup 57. The difference between the amount
obtained on the disposal of own shares or equity holdings and their
– 315 –
 carrying amount shall be debited or credited, as appropriate, to
accounts in subgroup 11.
For capital reductions, with a debit to account 100 for the par
b2) 
value of the shares or equity holdings. The difference between the
acquisition amount of the shares or equity holdings and their par
value shall be debited or credited, as appropriate, to accounts in
subgroup 11.

109. Own shares or equity holdings for reduction of capital

Own shares or equity holdings acquired by the company by virtue of a capital
reduction resolution adopted at the company’s general meeting (article 170 of
the revised Companies Act and article 40 of the Limited Liability Companies
Act).
This account shall be presented as a reduction in equity.
Movements in this account are as follows:
The acquisition amount of the shares shall be debited to this account,
a) 
generally with a credit to accounts in subgroup 57.
A capital reduction shall be credited to this account with a debit to
b) 
account 100 for the par value of the shares or equity holdings. The
difference between the acquisition amount of the shares or equity
holdings and their par value shall be debited or credited, as appropriate,
to accounts in subgroup 11.

11. RESERVES AND OTHER EQUITY INSTRUMENTS

110.  Share premium or additional paid-in capital
111.  Other equity instruments
1110. Equity from issue of compound financial instruments
1111. Other equity instruments
112. Legal reserve
113.  Voluntary reserves
114.  Special reserves
1140. Reserves for parent company shares or equity holdings
1141. Statutory reserves
1142. Redeemed capital reserve
1143. Goodwill reserve
– 316 –
 1144. Reserve for own shares accepted as collateral
Reserves for actuarial gains and losses and other adjus
115. 
tments
Contributions from equity holders or owners
118. 
Differences on translation of capital to euros
119. 
The accounts in this subgroup shall be classified under equity in the balance
sheet, as part of capital and reserves without valuation adjustments.

110. Share premium or additional paid-in capital

Contribution made by shareholders or equity holders in the case of issue
and placement of shares or equity holdings at a price above the par value. In
particular, this account includes any differences that may arise between the
values at which the shares or equity holdings are included in the public deed
filed at the Business Registry and the values at which the assets received as
non-monetary contributions should be recognised in accordance with the
recognition and measurement standards.
Movements in this account are as follows:
The account shall be credited, generally with a debit to account 111 or
a) 
194.
Any amounts drawn against this premium shall be debited to this
b) 
account.
In the case of a reverse acquisition, in accordance with the recognition and
measurement standard on business combinations, at the date on which the
merger or spin-off is filed at the Business Registry the income and expenses of
the acquired business (that is, the legal acquirer) accrued up to the acquisition
date shall be cancelled, with a debit or credit, as appropriate, to this account.

111. Other equity instruments

1110. Equity from issue of compound financial instruments
Equity component that arises from the issue of a compound financial
instrument, particularly bonds that can be converted into shares.
Movements in this account are as follows:
The equity component of the compound financial instrument shall be
a) 
credited to this account, generally with a debit to accounts in subgroup
57.
– 317 –
 The account shall be debited with a credit to account 100 or 110, upon
b) 
conversion.
1111. Other equity instruments
This account comprises the equity instruments that do not qualify for clas
-sification under other accounts, such as options on own shares.
Movements in this account are as follows:
The part of the instrument qualifying as equity shall be credited to this
a) 
account, generally with a debit to accounts in group 6 or in subgroup 57.
The account shall be debited when the other equity instruments are
b) 
conveyed, with a credit to the corresponding equity account.

112. Legal reserve
This account shall reflect the reserve established in article 214 of the revised
Companies Act.
Movements in this account are as follows:
The account shall be credited, generally, with a debit to account 129.
a) 
Amounts drawn down on this reserve shall be debited to this account.
b) 

113. Voluntary reserves
The reserves made by the company at its own discretion.
Movements in this account are in line with those indicated for account 112,
without prejudice to the following paragraphs:
When there is a change in an accounting policy or when an error is
corrected, the adjustment calculated at the beginning of the reporting period for
the accumulated effect of the variations in the assets, liabilities and equity items
affected by the retrospective application of the new policy or the correction of
the error shall be charged to unrestricted reserves. In general, this adjustment
shall be charged to voluntary reserves, as follows:
The net creditor balance of the changes arising on application of the
a) 
new accounting criteria compared with the former criteria or on the
correc tion of the error shall be credited to this account, with a debit
or credit, as appropriate, to the respective accounts representing the
assets, liabilities and equity items affected, including those used to
account for the tax effect of the adjustment.
– 318 –
 The net debtor balance of the changes arising on application of the new
b) 
accounting criteria compared with the former criteria or on the correc
tion of the error shall be debited to this account with a credit or debit,
as appropriate, to the respective accounts representing the assets, liabi
lities and equity items affected, including those used to account for the
tax effect of the adjustment.
Transaction costs on own equity instruments shall be charged to unrestricted
reserves. In general, these costs shall be charged to voluntary reserves, as
follows:
The amount of the costs shall be debited to this account, with a credit
a) 
to accounts in subgroup 57.
The income tax expense related with the transaction costs shall be cre
b) 
dited to this account with a debit to account 6301.

114. Special reserves
Reserves appropriated to comply with any mandatory legal requirement,
other than the reserves recognised in other accounts in this subgroup.
In particular, this account includes the reserve for cross holdings required
by article 84 of the revised Companies Act.
In general, the content and movements of these four-digit accounts are as
follows:
1140. Reserves for parent company shares or equity holdings
Reserves required by law in the case of acquisition of shares or equity
holdings in the parent company. These reserves must be held for as long as
the company retains ownership of the equity instruments (article 79.3ª of the
revised Companies Act and article 40 bis of the Limited Liability Companies
Act). Reserves that must be created in the event shares of the parent company
are lodged as collateral (article 80.1 of the revised Companies Act) shall be
classified in this account with the appropriate breakdown into five-digit accounts.
These reserves shall be restricted for as long as these situations prevail.
Movements in this account are as follows:
The acquisition amount of the shares or equity holdings in the parent
a) 
company or for the amount secured through the shares shall be credited
to this account, with a debit to any of the available reserves accounts or
to account 129.
– 319 –
 The same amount shall be debited to this account when the shares or
b) 
equity holdings are sold or when the guarantee expires, with a credit to
account 113.
1141. Statutory reserves
Reserves established in the company’s articles of association.
Movements in this account are in line with those indicated for account 112.
1142. Redeemed capital reserve
Par value of the own shares or equity holdings acquired by the company
and redeemed against the company’s profits or available reserves. This account
shall also include the par value of own shares or equity holdings redeemed, if
they were acquired by the company at no charge. Allowances to this account
and restrictions to the reserve shall be governed by article 167.3 of the revised
Companies Act and by article 80.4 of the Limited Liability Companies Act,
respectively.
Movements in this account are as follows:
The account shall be credited with a debit to any of the available reser
a) 
ve accounts or to account 129.
Any reductions made to this reserve shall be debited to this account.
b) 
1143. Goodwill reserve
The reserve required by law in the event goodwill has been recognised
under assets in the balance sheet (article 213.4 of the revised Companies Act).
The reserve shall be restricted for as long as goodwill remains on the balance
sheet.
Movements in this account are as follows:
The account shall be credited with a debit to any of the available reser
a) 
ve accounts or to account 129.
The account shall be debited for any amounts drawn against this reserve.
b) 
1144. Reserves for own shares accepted as collateral
Reserves that must be made in the event own shares are accepted as
collateral (article 80.1 of the revised Companies Act). The reserve shall be
restric ted for as long as this situation prevails.
Movements in this account are as follows:
The amount secured by the own shares shall be credited to this account
a) 
with a debit to any of the available reserve accounts or to account 129.
– 320 –
 The same amount shall be debited to this account when the guarantee
b) 
expires, with a credit to account 113.

Reserves for actuarial gains and losses and other adjustments

115. 
Equity component that arises on recognition of actuarial gains, actuarial los
ses and adjustments to the value of assets for defined post-employment bene
fits in accordance with the recognition and measurement standards.
Movements in this account are as follows:
The account shall be credited:
a) 
At the balance sheet date, for the amount of the gain recognised,
a1) 
with a debit to accounts in subgroup 95.
For the related income tax expense, with a debit to accounts in sub
a2) 
group 83.
The account shall be debited:
b) 
At the balance sheet date, for the amount of loss recognised, with a
b1) 
credit to accounts in subgroup 85.
For the related income tax expense, with a credit to accounts in
b2) 
subgroup 83.

Contributions from equity holders or owners

118. 
Assets, liabilities and equity items received from equity holders or owners
in their capacity as such and for transactions not recorded in other accounts,
provided that these items do not constitute compensation for goods delivered
or services rendered by the company and that they do not have the nature of
a liability. In particular, this account includes the amounts received from equity
holders or owners in order to offset losses.
Movements in this account are as follows:
The account shall be credited, generally, with a debit to accounts in sub
a) 
group 57 or to the accounts representing contribution in kind.
The account shall be debited:
b) 
With a credit, generally, to account 121.
b1) 
For any amounts drawn against or for any use made of the
b2) 
contribution received.
– 321 –
 Differences on translation of capital to euros
119. 
Differences arising on the translation of capital to euros in accordance with
Law 46/1998 of 17 December 1998 governing the introduction of the euro.

12. PROFIT/LOSS PENDING DISTRIBUTION OR APPLICATION

Retained earnings
120. 
Prior periods’ losses
121. 
129. Profit/loss for the period
The accounts in this subgroup shall be classified under equity in the balance
sheet, as part of capital and reserves without valuation adjustments, either as a
negative or a positive amount, as appropriate.

Retained earnings
120. 
Profits not specifically distributed or applied to any other account following
approval of the annual accounts and the distribution of profit for the reporting
period.
Movements in this account are as follows:
The account shall be credited with a debit to account 129.
a) 
The account shall be debited:
b) 
For application or use of funds in the account, generally with a credit
b1) 
to accounts in subgroup 57.
For transfer of funds in the account, with a credit to accounts in sub
b2) 
group 11.

Prior periods’ losses

121. 
Losses incurred in prior reporting periods.
Movements in this account are as follows:
The account shall be debited with a credit to account 129.
a) 
The account shall be credited with a debit to the account or accounts
b) 
against which the balance is cancelled.
Losses for each reporting period shall be disclosed in the appropriate four-
digit accounts.
– 322 –
 Profit/loss for the period
129. 
Profit or loss at the last balance sheet date, pending distribution or appli
cation.
Movements in this account are as follows:
The account shall be credited:
a) 
To determine the profit or loss for the reporting period, with a
a1) 
debit to the accounts in groups 6 and 7 that have a creditor balance
at the balance sheet date.
For the transfer of losses, with a debit to account 121.
a2) 
The account shall be debited:
b) 
To determine the profit or loss for the reporting period, with a cre
b1) 
dit to the accounts in groups 6 and 7 that have a debtor balance at
the balance sheet date.
When profit is distributed in accordance with the distribution
b2) 
agreement, with a credit to the corresponding accounts.

13. GRANTS, DONATIONS AND VALUATION ADJUSTMENTS

Government capital grants
130. 
Capital donations and bequests
131. 
Other grants, donations and bequests
132. 
Valuation adjustments to financial assets at fair value
133. 
through equity
Hedging transactions
134. 
1340. Cash flow hedges
1341. Hedges of a net investment in a foreign operation
Translation differences
135. 
Valuation adjustments to non-current assets and disposal
136. 
groups held for sale
Deferred tax income
137. 
1370. Deferred tax income on permanent differences
1371. Deferred tax income for tax deductions and tax credits
Non-repayable grants, donations and bequests awarded to the company
by third parties other than equity holders or owners as well as other income
– 323 –
and expenses recognised directly in equity until they are taken to the income
statement in accordance with the recognition and measurement standards.
The accounts in this subgroup shall be classified under equity.

Government capital grants

130. 
Non-repayable grants awarded by Spanish or international public entities
for the establishment or acquisition of non-current assets, in accordance with
the recognition and measurement standards.
Movements in this account are as follows:
The account shall be credited:
a) 
At the balance sheet date, for the grant awarded, with a debit to the
a1) 
corresponding account in subgroup 94.
For the related income tax expense taken to the income statement,
a2) 
with a debit to accounts in subgroup 83.
The account shall be debited:
b) 
At the balance sheet date, for transfer to the income statement of
b1) 
the grant received, with a credit to the corresponding account in
subgroup 84.
For the related income tax expense recognised directly in equity,
b2) 
with a credit to accounts in subgroup 83.

Capital donations and bequests

131. 
Non-repayable donations and bequests awarded by companies or individuals
for the establishment or acquisition of non-current assets, in accordance with
the recognition and measurement standards.
Movements in this account are in line with those indicated for account 130.

Other grants, donations and bequests

132. 
Non-repayable grants, donations and bequests awarded that are not inclu
ded in the preceding accounts and that are pending transfer to the income
sta tement in accordance with the recognition and measurement standards.
This account includes grants received to finance programmes that will generate
future expenses.
Movements in this account are in line with those indicated for account 130.
– 324 –
 Valuation adjustments to financial assets at fair value through
133. 
equity
Adjustments arising on the measurement at fair value of financial assets
classified as financial assets at fair value through equity, in accordance with the
recognition and measurement standard on financial instruments.
In general, movements in this account are as follows:
The account shall be credited:
a) 
At the balance sheet date, for the gains in the fair value of financial
a1) 
assets at fair value through equity, with a debit to account 900.
At the balance sheet date, for the transfers of losses on financial
a2) 
assets at fair value through equity, with a debit to account 902.
At the balance sheet date when investments had been made before
a3) 
the companies were considered to be group companies, jointly-
controlled entities or associates, for the recovery or the transfer
to the income statement of valuation adjustments made to reflect
reductions in value and recognised directly in equity, with a debit to
the corresponding accounts in subgroup 99.
For the income tax expense arising from these adjustments, with a
a4) 
debit to accounts in subgroup 83.
The account shall be debited:
b) 
At the balance sheet date, for losses in the fair value of financial
b1) 
assets at fair value through equity, with a credit to account 800.
At the balance sheet date, for the transfer of gains on financial assets
b2) 
at fair value through equity, with a credit to account 802.
At the balance sheet date, for impairment of equity investments in
b3) 
group companies, jointly-controlled entities and associates that had
previously given rise to valuation adjustments due to an increase in
value, with a credit to the corresponding account in subgroup 89.
For the income tax expense arising from these adjustments, with a
b4) 
credit to accounts in subgroup 83.

Hedging transactions
134. 
Amount of the loss or gain on the part of the hedging instrument designated
to be an effective hedge, in the case of cash flow hedges or hedges of a net
investment in a foreign operation.
– 325 –
 1340. Cash flow hedges
In general, movements in this account are as follows:
The account shall be credited:
a) 
At the balance sheet date, for gains in cash flow hedges, with a debit
a1) 
to account 910.
At the balance sheet date, for losses transferred in cash flow hedges,
a2) 
with a debit to 912.
For the income tax expense arising from these transactions, with a
a3) 
debit to accounts in subgroup 83.
The account shall be debited:
b) 
At the balance sheet date, for losses on cash flow hedges, with a cre
b1) 
dit to account 810.
At the balance sheet date, for gains transferred in cash flow hedges,
b2) 
with a credit to account 812.
For the income tax expense arising from these transactions, with a
b3) 
credit to accounts in subgroup 83.
1341. Hedges of a net investment in a foreign operation
Hedges of a net investment in a foreign operation include hedges of
monetary items considered part of the net investment because settlement of
the items is neither envisaged nor likely in the foreseeable future in the terms
set out in the recognition and measurement standard.
Movements in this account are in line with account 1340.

Translation differences
135. 
Difference arising on the translation of balance sheet and income statement
items to the presentation currency (the euro), in the event the functional
currency differs from the presentation currency.
In general, movements in this account are as follows:
The account shall be credited:
a) 
At the balance sheet date, for income arising on translation diffe
a1) 
rences, with a debit to account 920.
At the balance sheet date, for the transfer of negative translation dif
a2) 
ferences, with a debit to account 921.
– 326 –
 For the income tax expense related to the translation differences,
a3) 
with a debit to accounts in subgroup 83.
The account shall be debited:
b) 
At the balance sheet date, for expenses arising on translation diffe
b1) 
rences, with a credit to account 820.
At the balance sheet date, for the transfer of positive translation dif
b2) 
ferences, with a credit to account 821.
For the income tax expense related to translation differences, with
b3) 
a credit to accounts in subgroup 83.

Valuation adjustments to non-current assets and disposal groups

136. 
held for sale
Fair value adjustments to non-current assets held for sale and to directly-
related assets and liabilities classified as disposal groups held for sale, for which
changes in value, prior to classification as held-for-sale, were charged to another
account in subgroup 13.
In general, movements in this account are as follows:
Upon classification as held-for-sale, the change in value recognised
a) 
directly in equity until that moment shall be credited or debited to
this account, with a debit or credit to the corresponding accounts in
subgroup 13.
Subsequently, the change in value of the non-current assets held for
b) 
sale and directly-related assets and liabilities classified as disposal groups
held for sale shall be credited or debited to this account, with a debit or
cre dit, respectively, to accounts in groups 96 and 86.
Tax shall be debited or credited to this account in line with the criteria
c) 
indicated for account 133.

Deferred tax income

137. 
Tax incentives in the form of permanent differences and tax deductions and
credits which, due to their economic nature, are considered similar to grants
and therefore taken to the income statement over several reporting periods.
Permanent differences generally take the form of income that is not included
in taxable income used for calculating income tax and does not reverse in
subsequent periods.
Movements in these four-digit accounts are as follows:
– 327 –
 1370. Deferred tax income on permanent differences
The tax effect of permanent differences to be charged over several
a) 
reporting periods shall be credited to this account at the balance sheet
date, with a debit to account 834.
The tax effect of the permanent difference charged during the reporting
b) 
period shall be debited to this account at the balance sheet date with a
credit to account 836.
1371. Deferred tax income for deductions and tax credits
Movements in this account are in line with those indicated for account
1370.

14. PROVISIONS
Provisions for long-term employee benefits
140. 
Provisions for taxes
141. 
Provisions for other liabilities
142. 
Provisions for dismantlement, removal or restoration of
143. 
fixed assets
Provisions for environmental actions
145. 
Provisions for restructuring costs
146. 
Provisions for share-based payment transactions
147. 
Explicit or implicit non-current obligations for which the nature is clearly
specified but the exact amount or the date on which they will materialise is not
certain at the balance sheet date.
The accounts in this subgroup shall be classified as non-current liabilities in
the balance sheet.
The part of provisions that is expected to be used in the short term shall be
recognised in “Current provisions” under current liabilities in the balance sheet.
The current portion of provisions shall be transferred to the corresponding
four-digit accounts in account 529.

Provisions for long-term employee benefits

140. 
Legal, contractual or implicit obligations to company employees, other than
those included in accounts 146 and 147, where the amount or settlement date
is uncertain, such as defined post-employment benefits and disability benefits.
– 328 –
 The provision for long-term defined benefits shall be quantified taking into
account any assets assigned to these obligations, as set out in the recognition
and measurement standard.
Any asset arising on application of this standard shall be recognised in
“Other investments” in non-current assets in group 2.
The rationale for debiting and crediting this asset is in line with that indica
ted for account 140.
Movements in this account are as follows:
The account shall be credited:
a) 
For estimates of the annual amounts accrued, with a debit to
a1) 
accounts in subgroup 64.
For recognition of actuarial losses, with a debit to account 850 in the
a2) 
case of post-employment benefits, and with a debit to an account in
subgroup 64 for the remaining long-term employee benefits.
For the amount of adjustments related to the unwinding of the
a3) 
discount with a debit to account 660.
For the amount taken to the income statement for past service
a4) 
costs, with a debit to account 6442.
The account shall be debited:
b) 
For amounts drawn against the provision, generally with a credit to
b1) 
accounts in subgroup 57.
For recognition of actuarial gains, with a credit to account 950 in the
b2) 
case of post-employment benefits, and with a credit to an account in
subgroup 64 for the remaining long-term employee benefits.
For the expected returns on assets assigned to the obligations, with
b3) 
a credit to account 767.
For any provision surplus, with a credit to account 7950.
b4) 

Provisions for taxes

141. 
Estimated amount of tax payable, the exact amount or payment date of
which is uncertain as this is subject to compliance with certain conditions.
Movements in this account are as follows:
– 329 –
 The estimated amounts accrued each year shall be credited to this
a) 
account, with a debit to the expense accounts to which the different
components have been charged. In particular:
To accounts in subgroup 63, for the part of the provision corre
a1) 
sponding to tax for the reporting period.
To accounts in subgroup 66, for overdue interest corresponding to
a2) 
the reporting period.
To account 678, where appropriate, for any associated penalties.
a3) 
To account 113, for tax and interest payable corresponding to prior
a4) 
reporting periods.
The account shall be debited:
b) 
When the provision is applied, with a credit to accounts in subgroup
b1) 
47.
For any provision surplus, with a credit to account 7951.
b2) 

Provisions for other liabilities

142. 
Non-financial liabilities arising on obligations for which the amount
is uncertain and which are not recognised under any other account in this
subgroup, including obligations relating to litigations underway, indemnities or
obligations deriving from bank or other similar guarantees for which the com
pany is responsible.
Movements in this account are as follows:
The account shall be credited:
a) 
Upon inception of the obligation giving rise to the indemnity or
a1) 
pay ment, or for subsequent changes in these amounts that result
in an increase in the provision, with a debit to the corresponding
accounts in group 6.
For the amount of adjustments related to the unwinding of the
a2) 
discount, with a credit to account 660.
The account shall be debited:
b) 
When a final ruling is issued on litigation or when the definitive
b1) 
amount of the indemnity or payment becomes known, generally
with a credit to accounts in subgroup 57.
For any provision surplus, with a credit to account 7952.
b2) 
– 330 –
 Provisions for dismantlement, removal or restoration of fixed
143. 
assets
Estimated cost of dismantling or removing fixed assets and/or of restoring
the site on which the assets were located. The company may incur this type
of obligation upon acquiring assets or in order to use them during a specific
period of time.
When this obligation is incurred upon acquisition of assets or when it aris
es as a consequence of using assets for a purpose other than the production of
inventory, movements in the account are as follows:
The account shall be credited:
a) 
Upon inception of the obligation or for subsequent changes in these
a1) 
amounts which result in an increase in the provision, generally with
a debit to accounts in subgroup 21.
For the amount of adjustments related to the unwinding of the
a2) 
discount, with a debit to account 660.
The account shall be debited:
b) 
At the balance sheet date, for decreases in the amount of the
b1) 
provision resulting from a re-estimate of the provision, generally
with a credit to accounts in subgroup 21.
When the provision is applied, generally with a credit to accounts in
b2) 
subgroup 57.
When the obligation is incurred as a result of having used the assets to
produce inventories, the movements are in line with those indicated for
account 142.

Provisions for environmental actions

145. 
Unquantified legal, contractual or implicit obligations or commitments assu
med by the company in order to prevent or repair damage to the environment,
except for those obligations arising from dismantlement, removal or restoration
of fixed assets, which are recognised as set out in account 143.
Movements in this account are as follows:
The account shall be credited:
a) 
When the obligation arises or for subsequent changes in the amount
a1) 
that result in an increase in the provision, with a debit to account
622 or account 623.
– 331 –
 For the amount of adjustments related to the unwinding of the
a2) 
discount, with a debit to account 660.
The account shall be debited:
b) 
When the provision is applied, generally with a credit to accounts in
b1) 
subgroup 57.
For any provision surplus, with a credit to account 7955.
b2) 

Provisions for restructuring costs

146. 
Estimated amount of costs directly arising from restructuring, providing the
following two conditions are met:
– The costs are necessary expenditures for the restructuring
– They are not associated with the ongoing activities of the company.
For these purposes, restructuring is understood to be actions planned and
controlled by the company that result in a significant change in:
– The scope of the activity carried out by the company, or
– The way in which the company’s activity is managed
In general, movements in this account are as follows:
The account shall be credited:
a) 
When the obligation arises or for subsequent changes in these
a1) 
amounts which result in an increase in the provision, generally with
a debit to accounts in subgroups 62 and 64.
For the amount of adjustments related to the unwinding of the
a2) 
discount, with a debit to account 660.
The account shall be debited:
b) 
When the provision is applied, generally with a credit to accounts in
b1) 
subgroup 57.
For any provision surplus, with a credit to account 7956.
b2) 

Provisions for share-based payment transactions

147. 
Estimated amount of the obligation assumed by the company as a result of a
transaction based on equity instruments, where payments are made with a cash
amount referenced to the value of these instruments.
Movements in this account are as follows:
– 332 –
 The account shall be credited:
a) 
When the obligation arises or for subsequent changes in these
a1) 
amounts which result in an increase in the provision, generally with
a debit to accounts in subgroup 62 or 64.
For the amount of adjustments related to the unwinding of the
a2) 
discount, with a debit to account 660.
The account shall be debited:
b) 
When the provision is applied, generally with a credit to accounts in
b1) 
subgroup 57.
For any provision surplus, with a credit to account 7957.
b2) 

15. NON-CURRENT PAYABLES OF A SPECIAL NATURE

150. Non-current liability-classified shares or equity holdings
Liability-classified uncalled share capital or equity holdings
153. 
1533. Uncalled share capital or equity holdings, group companies
1534. Uncalled share capital or equity holdings, associates
1535.  Uncalled share capital or equity holdings, other related
parties
1536. Other uncalled share capital or equity holdings
Liability-classified uncalled non-monetary contributions of
154. 
shares or equity holdings
1543. Uncalled non-monetary contributions, group companies
1544. Uncalled non-monetary contributions, associates
1545. Uncalled non-monetary contributions, other related parties
1546. Other uncalled non-monetary contributions
Shares or other equity holdings in the capital of the company which, based
on the economic characteristics of the issue, should be considered financial
liabilities.
The part of non-current payables of a special nature maturing in the short
term shall be recognised in “Current payables of a special nature” under current
liabilities in the balance sheet. The current portion of non-current payables of
a special nature shall be transferred to account 502.
– 333 –
 Non-current liability-classified shares or equity holdings
150. 
Registered capital and, where applicable, any share premium or additional
paid-in capital in commercial companies which, based on the characteristics
of the issue, should be accounted for as a financial liability. In particular, this
includes certain redeemable shares and non-voting shares and equity holdings.
The account shall be classified in “Non-current payables of a special nature”
under non-current liabilities in the balance sheet.
Movements in this account are as follows:
The initial capital and subsequent capital increases shall be credited to
a) 
this account, with a debit to account 199 when the public deed is filed
at the Business Registry.
The account will be charged for cancellations or reductions and at the
b) 
dissolution of the company, once the winding-up period has elapsed.

Liability-classified uncalled share capital or equity holdings

153. 
Uncalled registered capital corresponding to financial instruments accounted
for as financial liabilities.
The account shall be classified under non-current liabilities in the balance
sheet as a reduction in “Non-current payables of a special nature”.
Movements in these four-digit accounts are as follows:
1533/1534/1535/1536
The par value of the uncalled shares or equity holdings subscribed shall
a) 
be debited to these accounts, generally with a credit to account 195 or
197.
Payments called shall be credited to these accounts, with a debit to
b) 
account 5585.

Liability-classified non-monetary contributions of shares or

154. 
equity holdings
Registered capital to be paid up through non-monetary contributions, cor-
responding to financial instruments accounted for as financial liabilities.
Liability-classified non-monetary contributions of shares or equity holdings
shall be classified under non-current liabilities in the balance sheet as a reduction
in “Non-current payables of a special nature”.
Movements in these four-digit accounts are as follows:
1543/1544/1545/1546
– 334 –
 The par value of the unpaid shares or equity holdings subscribed shall
a) 
be debited to these accounts, generally with a credit to account 195 or
197.
The accounts shall be credited when payments are made, with a debit
b) 
to the accounts representing contribution in kind.

16. NON-CURRENT PAYABLES TO RELATED PARTIES

Non-current debt with related financial institutions
160. 
1603. Non-current debt with financial institutions, group companies
1604. Non-current debt with financial institutions, associates
1605. Non-current debt with other related financial institutions
Non-current payables to suppliers of fixed assets, related
161. 
parties
1613. Non-current payables to suppliers of fixed assets, group
companies
1614. Non-current payables to suppliers of fixed assets, associates
1615. Non-current payables to suppliers of fixed assets, other rela
ted parties
Non-current finance lease payables, related parties
162. 
1623. Non-current finance lease payables, group companies
1624. Non-current finance lease payables, associates
1625. Non-current finance lease payables, other related parties
Other non-current payables to related parties
163. 
1633. Other non-current payables, group companies
1634. Other non-current payables, associates
1635. Other non-current payables, other related parties
Payables to group companies, jointly-controlled entities, associates and
other related parties, maturing in over one year, including interest accrued the
reon also maturing in over one year. Payables which, due to their nature, should
be recognised in subgroup 17 or 18 shall also be disclosed in this subgroup in
accounts of three or more digits.
In the event the payables accrue explicit interest maturing in over one year,
the necessary accounts to identify the interest shall be set up, classified under
the same line item as the liability generating the interest.
– 335 –
 The accounts in this subgroup shall be classified under non-current liabilities
in the balance sheet.
The part of non-current payables that matures in the short term shall
be recognised in “Group companies and associates, current” under current
liabilities in the balance sheet. The current portion of non-current payables
shall be transferred to the corresponding accounts in subgroup 51.

Non-current debt with related financial institutions

160. 
Payables to related-party financial institutions for loans and borrowings,
maturing in over one year.
Movements in these four-digit accounts are as follows:
1603/1604/1605
The accounts shall be credited:
a) 
Upon arrangement of the debt or loan, for the amount received less
a1) 
any transaction costs, generally with a debit to accounts in subgroup
57.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Early full or partial repayments shall be debited to these accounts, with
b) 
a credit to accounts in subgroup 57.
Non-current payables for discounted bills shall be included in accounts of
five or more digits, with an appropriate breakdown.

Non-current payables to suppliers of fixed assets, related parties

161. 
Payables to related parties which are suppliers of assets defined in group 2,
including trade bills payable, maturing in over one year.
Movements in these four-digit accounts are as follows:
1613/1614/1615
The accounts shall be credited:
a) 
For the receipt and acceptance of the assets supplied, with a debit
a1) 
to accounts in group 2.
For accrued finance expenses, up to the redemption value, with a
a2) 
debit, generally to account 662.
– 336 –
 Early full or partial settlements shall be debited to these accounts, gene
b) 
rally with a credit to accounts in subgroup 57.

Non-current finance lease payables, related parties

162. 
Payables to related parties which are lessors of assets under finance lease
agreements as defined in the recognition and measurement standards, maturing
in over one year.
Movements in these four-digit accounts are as follows:
1623/1624/1625
The accounts shall be credited:
a) 
For the receipt and acceptance of the right to use the assets sup
a1) 
plied, with a debit to accounts in group 2.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Early full or partial settlements shall be debited to these accounts, gene
b) 
rally with a credit to accounts in subgroup 57.

Other non-current payables to related parties

163. 
Payables to related parties for loans received and other debts not included
in other accounts in this subgroup, maturing in over one year.
1633/1634/1635
Movements in these four-digit accounts are in line with those indicated for
account 160.

17. NON-CURRENT PAYABLES FOR LOANS, DEBENTURES AND OTHER

Non-current debt with financial institutions
170. 
Non-current payables
171. 
Non-current payables convertible into grants, donations
172. 
and bequests
Non-current payables to suppliers of fixed assets
173. 
Non-current finance lease payables
174. 
Non-current bills payable
175. 
Non-current liabilities arising from derivative financial ins
176. 
truments
– 337 –
 1765. 
Non-current liabilities arising from derivative financial
instruments, trading portfolio
1768. 
Non-current liabilities arising from derivative financial
instruments, hedging instruments
Bonds and obligations
177. 
Convertible bonds and obligations
178. 
Other marketable securities
179. 
Long-term financing from non-related third parties, including accrued
interest, maturing in over one year. Companies may recognise the issue and
subscription of marketable securities as they deem most appropriate during the
subscription period.
When the payables accrue explicit interest maturing in over one year, the
necessary accounts to identify this interest shall be set up, classified under the
same line item as the liability generating the interest.
Accounts in this subgroup shall be classified under non-current liabilities in
the balance sheet.
The part of non-current payables that matures in the short term shall
be recognised in “Current payables” under current liabilities in the balance
sheet. The current portion of non-current payables shall be transferred to the
corresponding accounts in subgroups 50 and 52.

Non-current debt with financial institutions

170. 
Payables to financial institutions for loans and borrowings, maturing in over
one year.
Movements in this account are as follows:
The account shall be credited:
a) 
Upon arrangement of the debt or loan, for the amount received less
a1) 
any transaction costs, generally with a debit to accounts in subgroup
57.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Early full or partial repayments shall be debited to this account, generally
b) 
with a credit to accounts in subgroup 57.
Payables for discounted bills shall be disclosed in accounts with four or
more digits, with an appropriate breakdown.
– 338 –
 Non-current payables
171. 
Payables to third parties for loans received and other debts not included in
other accounts in this subgroup, maturing in over one year.
Movements in this account are as follows:
The account shall be credited:
a) 
Upon arrangement of the debt or loan, for the amount received less
a1) 
any transaction costs, generally with a debit to accounts in subgroup
57.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
The account shall be debited:
b) 
For acceptance of bills payable, with a credit to account 175.
b1) 
For early full or partial settlement, generally with a credit to accounts
b2) 
in subgroup 57.

Non-current payables convertible into grants, donations and

172. 
bequests
Amounts extended by Spanish or international public entities, companies or
individuals, where these amounts are considered repayable grants, donations
or bequests, maturing in over one year.
Movements in this account are as follows:
Amounts granted to the company shall be credited to this account,
a) 
generally with a debit to accounts in subgroup 47 or 57.
The account shall be debited:
b) 
For any circumstance which results in full or partial reduction of
b1) 
amounts granted, in accordance with the terms governing the
award, generally with a credit to account 4758.
In the event repayment of these amounts is no longer required, with
b2) 
a credit to account 940, 941 or 942 or to accounts in subgroup 74.

Non-current payables to suppliers of fixed assets

173. 
Payables to suppliers of assets defined in group 2, maturing in over one year.
Movements in this account are as follows:
The account shall be credited:
a) 
– 339 –
 For the receipt and acceptance of the assets supplied, with a debit
a1) 
to accounts in group 2.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
The account shall be debited:
b) 
For acceptance of bills payable, with a credit to account 175.
b1) 
For early full or partial settlement, generally with a credit to accounts
b2) 
in subgroup 57.

Non-current finance lease payables

174. 
Payables to other entities which are lessors of assets under finance lease
agreements as defined in the recognition and measurement standards, maturing
in over one year.
The account shall be credited:
a) 
For the receipt and acceptance of the right to use the assets supplied,
a1) 
with a debit to accounts in group 2.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Early full or partial settlements shall be debited to this account, generally
b) 
with a credit to accounts in subgroup 57.

Non-current bills payable

175. 
Bills payable for loans received and other debts, maturing in over one year,
including those arising from the supply of fixed assets.
Movements in this account are as follows:
The account shall be credited:
a) 
When the company accepts the bills, generally with a debit to
a1) 
accounts in this subgroup.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Early payment of the bills shall be debited to the accounts, generally
b) 
with a credit to accounts in subgroup 57.
– 340 –
 Non-current liabilities arising from derivative financial instru
176. 
ments
Amount corresponding to transactions with derivatives that are out of the
money for the company, to be settled in over one year. Embedded derivatives in
hybrid financial instruments acquired, issued or assumed that meet the criteria
for recognition in this account shall be disclosed in accounts of four or more
digits to identify the embedded derivative.
In particular, this account shall include premiums collected on transactions
involving options, as well as changes in the fair value of liabilities for financial
derivatives with which the company operates, such as options, futures, swaps,
currency forwards, etc.
Non-current liabilities arising from derivative financial
1765. 
instru- ments, trading portfolio
Movements in this account are as follows:
The account shall be credited:
a) 
For the amount received when the instrument is contracted,
a1) 
generally with a debit to accounts in subgroup 57.
For the losses incurred during the reporting period, with a debit to
a2) 
account 6630.
The account shall be debited:
b) 
For gains generated during the reporting period, up to the amount
b1) 
at which the derivative was carried under liabilities in the prior
reporting period, with a credit to account 7630.
For the amounts paid at settlement, generally with a credit to
b2) 
accounts in subgroup 57.
Non-current liabilities arising from derivative financial
1768. 
instru- ments, hedging instruments
Movements in this account are as follows:
The amount received when the instrument is contracted shall be credi
a) 
ted to this account, generally with a debit to accounts in subgroup 57.
When the derivative is used as a hedging instrument in a fair value hedge:
b) 
The account shall be debited:
b1) 
   i) 
For the gains generated during the reporting period from
application of hedge accounting, up to the amount at which the
– 341 –
 deriv ative was carried under liabilities in the prior reporting
period, with a credit to the income statement item in which
the losses incurred on the hedged items are recognised upon
measuring the hedged risk at fair value.
   ii) Upon acquisition of the hedged asset or assumption of the hedged
liability, with a credit to the accounts in which these items are
recorded.
Losses incurred in the reporting period from application of hedge
b2) 
accounting shall be credited to this account, with a debit to the
income statement item in which the gains generated on the hedged
items are recognised upon measuring the hedged risk at fair value.
When the derivative is used as a hedging instrument in other hedging
c) 
transactions, the gain generated or loss incurred on the effective portion
during the reporting period from application of hedge accounting shall
be credited or debited to this account, with a credit or debit to accounts
in subgroups 91 and 81, respectively, and to accounts 7633 and 6633 for
the ineffective portion.
The amounts paid at settlement shall be debited to this account, generally
d) 
with a credit to accounts in subgroup 57.

Bonds and obligations

177. 
Bonds and obligations in circulation which are not convertible into shares.
Movements in this account are as follows:
The account shall be credited:
a) 
Upon issue, for the amount received less transaction costs, with a
a1) 
debit to accounts in subgroup 57.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 661.
The account shall be debited for the amount to be paid upon early
b) 
redemption, in part or in full, of the bonds, generally with a credit to
account 509 and, where applicable, to account 775.

Convertible bonds and obligations

178. 
Financial liability component of bonds and obligations that are convertible
into shares and that are classified as compound financial instruments.
Movements in this account are in line with those indicated for account 177.
– 342 –
 Other marketable securities
179. 
Other financial liabilities represented by marketable securities, offered as a
savings investment for the public, other than those indicated above.
The contents and movements of this account are in line with those indica
ted for account 178 or 177, depending on whether or not the liability is a com
pound financial instrument.

18. NON-CURRENT GUARANTEES, DEPOSITS AND OTHER LIABILITIES

180. Non-current guarantees received
181. Advances of long-term sales
185. Non-current deposits received
189. Non-current financial guarantees
The accounts in this subgroup shall be classified under non-current liabilities
in the balance sheet.
The part of non-current guarantees, advances and deposits received and of
non-current financial guarantees extended that is expected to mature or expi
re in the short term shall be recognised in “Current payables” or “Current
accruals” under current liabilities in the balance sheet. The current portion of
non-current guarantees, advances and deposits received and of non-current
financial guarantees extended shall be transferred to the corresponding
accounts in subgroup 48 or 56.

Non-current guarantees received

180. 
Cash amounts received to guarantee compliance with an obligation, with a
term of over one year.
In general, movements in this account are as follows:
The account shall be credited:
a) 
Upon creation of the guarantee, for the fair value of the financial lia
a1) 
bility, with a debit to accounts in subgroup 57.
For accrued finance expenses, up to the redemption value of the
a2) 
guarantee, generally with a debit to account 662.
The account shall be debited:
b) 
For early cancellation, with a credit to accounts in subgroup 57.
b1) 
– 343 –
 For failure to comply with the obligation guaranteed, where this
b2) 
results in the loss of part or all of the guarantee, with a credit to
account 759.

Advances of long-term sales

181. 
Amounts received “on account” of future sales or services to be rendered.
In general, movements in this account are as follows:
The account shall be credited:
a) 
For the amount received, with a debit to accounts in subgroup 57.
a1) 
For the amount of revaluation adjustments, generally with a debit to
a2) 
account 662.
The account shall be debited when the income is accrued, with a credit
b) 
to accounts in subgroup 70.

Non-current deposits received

185. 
Cash amounts received as an irregular deposit, with a term of over one
year.
In general, movements in this account are as follows:
The account shall be credited:
a) 
Upon creation of the deposit, for the fair value of the financial liabi
a1) 
lity, with a debit to accounts in subgroup 57.
For accrued finance expenses, up to the redemption value of the
a2) 
deposit, generally with a debit to account 662.
The account shall be debited upon early cancellation, with a credit to
b) 
accounts in subgroup 57.

Non-current financial guarantees

189. 
Financial guarantees extended by the company, with a term of over one
year. In particular, bank guarantees extended, providing they should not be
recorded in subgroup 14.
In general, movements in this account are as follows:
The account shall be credited:
a) 
Upon creation of the financial guarantee, for the fair value of the
a1) 
financial liability, with a debit to accounts in subgroup 57.
– 344 –
 For accrued finance expenses, generally with a debit to account 662.
a2) 
For an increase in the obligation, with a debit to account 669.
a3) 
The account shall be debited:
b) 
For a decrease in the obligation and for accrued income, with a cre
b1) 
dit to account 769.
Upon early cancellation, with a credit to accounts in subgroup 57.
b2) 

19. TEMPORARY FINANCING

190. Shares or equity holdings issued
192. Subscribed shares
Issued capital pending registration
194. 
Liability-classified shares or equity holdings issued
195. 
Liability-classified subscribed shares
197. 
Liability-classified shares or equity holdings issued pending
199. 
registration

Shares or equity holdings issued

190. 
Capital and, where applicable, share premium or additional paid-in capital
for shares or equity holdings with the nature of equity, issued and pending
subscription.
This account shall be classified as a reduction in “Current payables” under
current liabilities in the balance sheet.
Movements in this account are as follows:
The par value and, where applicable, the share premium or additional
a) 
paid-in capital of shares and equity holdings issued and pending
subscription shall be debited to this account with a credit to account
194.
The account shall be credited as the shares or the equity holdings are
b) 
subscribed:
When the company is incorporated under the simultaneous
b1) 
procedure (deed of incorporation executed and capital subscribed
simultaneously), generally with a debit to accounts in subgroup 57
or to accounts 1034 and 1044.
– 345 –
 When the company is incorporated under the successive procedure
b2) 
(shares offered to the public prior to execution of the deed of
incorporation), with a debit to account 192.
Where the shares or equity holdings issued are not subscribed, with
b3) 
a debit to account 194.

Subscribed shares
192. 
The company’s right to require subscribers to pay the amount of shares
subscribed that have the nature of equity.
This account shall be classified as a reduction in “Current payables” under
current liabilities in the balance sheet.
Movements in this account are as follows:
The par value and, where applicable, the share premium of the shares
a) 
subscribed, shall be debited to this account with a credit to account 190.
When the subscription of the shares is approved, a credit shall be made
b) 
to this account, generally with a debit to accounts in subgroup 57 or to
accounts 1034 and 1044.

Issued capital pending registration

194. 
Capital and, where applicable, the share premium or additional paid-in capi
tal of shares and equity holdings issued for which the public deed has yet to be
filed at the Business Registry.
The account shall be classified under current liabilities in the balance sheet
if the public deed has yet to be filed at the Business Registry at the date of pre
paration of the annual accounts.
Movements in this account are as follows:
The par value and, where applicable, the share premium or additional
a) 
paid-in capital of shares and equity holdings issued for which the public
deed has yet to be filed at the Business Registry shall be credited to this
account, with a debit to account 190.
The account shall be debited:
b) 
When the public deed is filed at the Business Registry, with a credit
b1) 
to accounts 100 and 110.
Where the shares or equity holdings issued are not subscribed, with
b2) 
a credit to account 190.
– 346 –
 Liability-classified shares or equity holdings issued
195. 
Capital and, where applicable, the share premium or additional paid-in capi
tal of shares and equity holdings considered financial liabilities, issued and pen
ding subscription.
This account shall be classified as a reduction in “Current payables of a spe
cial nature” under current liabilities in the balance sheet.
Movements in this account are as follows:
The par value and, where applicable, the share premium or additional
a) 
paid-in capital of shares and equity holdings issued and pending
subscription shall be debited to this account with a credit to account
199.
The account shall be credited as the shares or the equity holdings are
b) 
subscribed:
When the company is incorporated under the simultaneous
b1) 
procedure, generally with a debit to accounts in subgroup 57 or to
accounts 153 and 154.
When the company is incorporated under the successive procedure,
b2) 
with a debit to account 197.
Where the shares or equity holdings issued are not subscribed, with
b3) 
a debit to account 199.

Liability-classified subscribed shares

197. 
The company’s right to require subscribers to pay up the amount of sha res
subscribed that are considered financial liabilities.
This account shall be classified as a reduction in “Current payables of a spe
cial nature” under current liabilities in the balance sheet.
Movements in this account are as follows:
The par value and, where applicable, the share premium of the shares
a) 
subscribed shall be debited to this account with a credit to account 195.
When the subscription of the shares is approved, this account shall
b) 
be credited, generally with a debit to accounts in subgroup 57 or to
accounts 153 and 154.
– 347 –
 Liability-classified shares or equity holdings issued pending
199. 
registration
Capital and, where applicable, the share premium or additional paid-in capi
tal of shares and equity holdings issued considered as financial liabilities, for
which the public deed has yet to be filed at the Business Registry.
This account shall be classified in “Current payables of a special nature”
under current liabilities in the balance sheet.
Movements in this account are as follows:
The par value and, where applicable, the share premium or additional
a) 
paid-in capital of shares and equity holdings issued for which the public
deed has yet to be filed at the Business Registry shall be credited to this
account with a debit to account 195.
The account shall be debited:
b) 
When the public deed is filed at the Business Registry, with a credit
b1) 
to accounts 150 and 502.
Where the shares or equity holdings issued are not subscribed, with
b2) 
a credit to account 195.

– 348 –
 GROUP 2

NON-CURRENT ASSETS

Group 2 comprises assets to be used over time in the company’s activity,

including investments that will mature, be disposed of or sold in over one year.
In particular, the following rules shall apply:
This group also includes both hedging derivatives and trading derivatives
a) 
that are in the money for the company, when they are to be settled in
over one year.
In accordance with the standards on the preparation of the annual
b) 
accounts, this group may not include non-current financial assets
that meet the definition of assets held for trading, except for financial
derivatives to be settled in over one year.
The necessary accounts of four or more digits shall be created to iden
c) 
tify the specific category in which the financial assets have been included
in accordance with the recognition and measurement standards.
In the case of acquisition of hybrid financial assets for which the entire
d) 
hybrid is designated at fair value in accordance with recognition and
measurement standards, these assets shall be recorded in an account
corresponding to the nature of the host contract. Accounts of four
or more digits shall be created with an appropriate breakdown to
distinguish the item as a non-current hybrid financial asset or liability
measured as a whole.
Changes in the fair value of financial assets classified as “Financial assets
e) 
at fair value through profit and loss” shall be debited or credited to the
account in which these assets are recognised with a credit or debit to
accounts 763 and 663.
An account comprising a non-current asset which, in accordance with
f) 
the recognition and measurement standards, must be classified as held-
– 349 –
 for-sale or forms part of a disposal group held for sale shall be credited
when the conditions for such classification are met, with a debit to the
respective account in subgroup 58.
The difference between the initial recognition value of financial assets
g) 
and their redemption value shall be debited or credited to the account
in which the financial asset is recorded, with a credit or debit to the
account in subgroup 76 that corresponds to the nature of the instrument.

– 350 –
20. INTANGIBLE ASSETS
200. Research
201. Development
202. Administrative concessions
203. Industrial property
204. Goodwill
205. Leaseholds
206. Computer software
209. Advances for intangible assets
Intangible assets are identifiable non-monetary assets without physical
substance that can be assigned an economic value, as well as advances paid to
suppliers on account of these intangible assets.
Other items of this nature shall also be recorded as intangible assets in the
balance sheet, providing they meet the conditions set out in the Accounting
Framework and the requirements specified in the recognition and measurement
standards. These items include commercial rights, intellectual property and
licences. An account shall be created in this subgroup to recognise these assets
with similar movements to those described below for the remaining intangible
asset accounts.
The accounts in this subgroup shall be classified under non-current assets
in the balance sheet.

Research
200. 
Original and planned investigation attempting to discover new knowledge
and to extend existing knowledge in scientific and/or technical areas. This
account includes research expenses capitalised by the company in accordance
with the recognition and measurement standards set out herein.
Movements in this account are as follows:
Applicable expenses shall be debited to this account, with a credit to
a) 
account 730.
Derecognition of assets shall be credited to this account, where
b) 
applicable, with a debit to account 670.
In the case of research work outsourced to other companies or to
universities or other scientific or technological research institutes, movements
in account 200 shall remain as indicated above.
– 351 –
201. Development
Specific application of achievements in research, or of any other type of
scientific knowledge, to a particular plan or design for the production of new
or substantially improved materials, products, methods, processes or systems,
until commercial production is commenced.
This account also includes development expenditure capitalised by the
company in accordance with the recognition and measurement standards set
out herein.
Movements in this account are as follows:
Applicable expenses shall be debited to this account, with a credit to
a) 
account 730.
The account shall be credited:
b) 
On derecognition, where applicable, with a debit to account 670.
b1) 
For positive results filed, where applicable, at the corresponding
b2) 
public registry, with a debit to account 203 or 206, as appropriate.
In the case of development work outsourced to other companies or to uni
versities or other scientific or technological research institutes, movements in
account 201 shall remain as indicated above.

Administrative concessions
202. 
Expenditure made to obtain research or operating rights extended by
the Spanish government or by other public entities, or the price of acquiring
transferrable concessions.
Movements in this account are as follows:
Expenses incurred on obtaining the concession or the price of acquisition
a) 
shall be debited to this account, generally with a credit to accounts in
subgroup 57.
Disposals and, in general, derecognitions shall be credited to this
b) 
account, generally with a debit to accounts in subgroup 57 and, in the
case of losses, to account 670.

Industrial property
203. 
Amount paid for ownership or the right to use or the concession to use
different types of industrial property, in cases where, on the basis of the contract
conditions, they are to be included in assets of the acquiring company.
– 352 –
 This includes, among others, invention patents, certificates protecting public
utility models and patents of importation.
This account shall also include expenditure on development when the
projects undertaken by the company have yielded positive results and, in
compliance with the pertinent legal provisions, these results have been filed at
the corresponding registry.
Movements in this account are as follows:
The account shall be debited:
a) 
For acquisitions from other companies, generally with a credit to
a1) 
accounts in subgroup 57.
For the positive results of development activities, when these
a2) 
results are filed at the corresponding public registry, with a credit
to account 201.
For payments required for filing at the corresponding registry, gene
a3) 
rally with a credit to accounts in subgroup 57.
Disposals and, in general, derecognitions shall be credited to this
b) 
account, generally with a debit to accounts in subgroup 57 and, in the
case of losses, to account 670.

Goodwill
204. 
The excess, at the acquisition date, of the cost of a business combination
over the value of the identifiable assets acquired less the value of the identifia
ble liabilities assumed. Consequently, goodwill shall only be recognised when it
has been acquired onerously and when it represents future economic benefits
that will flow from assets that cannot be identified individually and recognised
separately.
Movements in this account are as follows:
Amounts resulting from application of the purchase method shall be
a) 
debited to this account, generally with a credit to accounts in subgroup
57 or to account 553.
The account shall be credited:
b) 
For the estimated impairment, with a debit to account 690.
b1) 
For disposals and derecognitions, generally with a debit to accounts
b2) 
in subgroup 57 and, in the case of losses, to account 670.
– 353 –
 Leaseholds
205. 
Amount paid for rights to lease premises, whereby the acquiree/new lessee
assumes the rights and obligations of the transferor/former lessee that are set
out in an earlier contract.
Movements in this account are as follows:
The acquisition amount shall be debited to this account, generally with
a) 
a credit to accounts in subgroup 57.
Disposals and derecognitions shall be credited to this account, generally
b) 
with a debit to accounts in subgroup 57 and, in the case of losses, to
account 670.

Computer software
206. 
Amount paid for ownership or for rights to use computer programmes,
including both those acquired from third parties and those developed internally
by the company. This account also includes the cost of creating websites, pro
viding the sites are expected to be used over several years.
Movements in this account are as follows:
The account shall be debited:
a) 
For acquisitions from other companies, generally with a credit to
a1) 
accounts in subgroup 57.
For internal development, with a credit to account 730 and, where
a2) 
applicable, to account 201.
Disposals and derecognitions shall be credited to this account, generally
b) 
with a debit to accounts in subgroup 57 and, in the case of losses, to
account 670.

Advances for intangible assets

209. 
Payments, normally in cash, to suppliers of intangible assets “on account” of
future supplies or work.
In general, movements in this account are as follows:
Cash paid to suppliers shall be debited to this account, with a credit to
a) 
accounts in subgroup 57.
Assets received and accepted shall be credited to this account, generally
b) 
with a debit to accounts in this subgroup.
– 354 –
21. PROPERTY, PLANT AND EQUIPMENT
Land and natural resources
210. 
Buildings
211. 
Technical installations
212. 
Machinery
213. 
Equipment
214. 
Other installations
215. 
Furniture
216. 
Information technology equipment
217. 
Motor vehicles
218. 
Other property, plant and equipment
219. 
Items of property, plant and equipment comprising moveable property and
immovable property, except those that should be classified in other subgroups,
particularly in subgroup 22.
The accounts in this subgroup shall be classified under non-current assets
in the balance sheet.
Movements in these accounts are as follows:
The purchase price or cost of production or for a change in use, shall
a) 
be debited to these accounts, generally with a credit to accounts in sub
group 22 or 57, to account 731 or, where applicable, to accounts in sub
group 23.
Disposals, changes in use and, in general, derecognitions shall be credited
b) 
to these accounts, generally with a debit to accounts in subgroup 22 or
57 and, in the case of losses, to account 671.

Land and natural resources

210. 
Development plots, rural land, other non-development land, mines and
quarries.

Buildings
211. 
Building structures in general, irrespective of how they are used within the
company’s production activity.
– 355 –
 Technical installations
212. 
Complex units for specialised use in the production process, comprising
buildings, machinery, materials, parts or components, including information
systems which, even if they can be separated by nature, are clearly interrelated
in terms of use and are subject to the same rate of depreciation. Technical
installations also include spare parts exclusively for use in this type of installation.

Machinery
213. 
Set of machines or capital goods with which products are extracted or pre
pared.
This account shall also comprise company vehicles used for transporting
people, animals, materials and merchandise exclusively within the confines of
the company’s factories, workshops, premises, etc.

Equipment
214. 
Tools and other instruments that can be used alone or in conjunction with
machinery, including moulds and templates.
Adjustments arising from the annual inventory count required by recognition
and measurement standards shall be credited to this account, with a debit to
account 659.

Other installations
215. 
Items which, based on their use, are clearly interrelated and are subject to
the same rate of depreciation, other than those indicated in account 212. This
account also includes spare parts exclusively for use in this type of installation.

Furniture
216. 
Office equipment, material and furniture, except for items included in
account 217.

Information technology equipment

217. 
Computers and other electronic devices.

Vehicles
218. 
All types of vehicles that can be used for land, sea or air transport of persons,
animals, materials or merchandise, except for items recorded in account 213.
– 356 –
 Other property, plant and equipment
219. 
Any other items of property, plant and equipment not included in other
accounts in subgroup 21. This account includes containers and packaging which,
based on their characteristics, should be considered fixed assets, as well as
spare parts for fixed assets that are stored for over one year.

22. INVESTMENT PROPERTY

Investments in land and natural resources
220. 
Investments in buildings
221. 
Non-current real estate assets held to earn rental income or for capital
appreciation, or both, and that are not held:
– For use in the production or supply of goods and services, or for admi
nistration purposes; or
– For sale in the ordinary course of business
The accounts in this subgroup shall be classified under non-current assets
in the balance sheet.
Movements in these accounts are as follows:
The purchase price or cost of production or a change in use shall be
a) 
debited to this account, generally with a credit to accounts in subgroup
21 or 57 or to account 732.
Disposals, changes in use and derecognitions shall be credited to these
b) 
accounts, generally with a debit to accounts in subgroup 21 or 57 and,
in the case of losses, to account 672.

23. PROPERTY, PLANT AND EQUIPMENT UNDER CONSTRUCTION

230. Preparation of land and natural resources
231. Buildings under construction
232. Technical installations under assembly
233. Machinery under assembly
237. Information technology equipment under assembly
239. Advances for property, plant and equipment
The accounts in this subgroup shall be classified under non-current assets
in the balance sheet.
230/237
– 357 –
 Adaptation, construction or assembly work underway at the balance sheet
date and carried out in order to bring different items of property, plant and
equipment to operating conditions, including works carried out on buildings.
Movements in these accounts are as follows:
The accounts shall be debited:
a) 
For the receipt of works corresponding to the assets under
a1) 
construction.
For works carried out by the company itself, with a credit to account
a2) 
733.
The accounts shall be credited upon completion of the works, with a
b) 
debit to accounts in subgroup 21.

Advances for property, plant and equipment

239. 
Payments, normally in cash, to suppliers of items of property, plant and
equipment “on account” of future supplies or work.
In general, movements in this account are as follows:
Cash paid to suppliers shall be debited to this account, generally with a
a) 
credit to accounts in subgroup 57.
Assets received and accepted shall be credited to this account, generally
b) 
with a debit to accounts in this subgroup and in subgroup 21.

24. NON-CURRENT INVESTMENTS IN RELATED PARTIES

Non-current investments in related parties
240. 
2403. Non-current investments in group companies
2404. Non-current investments in associates
2405. Non-current investments in other related parties
Non-current debt securities of related parties
241. 
2413. Non-current debt securities of group companies
2414. Non-current debt securities of associates
2415. Non-current debt securities of other related parties
Non-current loans to related parties
242. 
2423. Non-current loans to group companies
2424. Non-current loans to associates
2425. Non-current loans to other related parties
– 358 –
 249. Non-current uncalled equity holdings in related parties
2493. Non-current uncalled equity holdings in group companies
2494. Non-current uncalled equity holdings in associates
2495. 
Non-current uncalled equity holdings in other related
parties
Non-current investments in group companies, jointly-controlled entities,
associates and other related parties, irrespective of how these investments
are instrumented, maturing in over one year or with no set maturity (such
as equity instruments) that the company does not intend to sell in the short
term, including accrued interest. This subgroup shall also comprise non-current
guarantees and deposits made and other types of non-current investments and
financial assets with these individuals or entities. These investments shall be
included in accounts of three or more digits.
Where debt securities or loans generate explicit interest maturing in over
one year, the necessary accounts shall be created to identify this interest. The
interest shall be recognised in the same balance sheet line item as the asset
generating the interest.
The part of non-current investments in related individuals or entities that
matures in the short term shall be disclosed in “Current investments in group
companies and associates” under current assets in the balance sheet. The
current portion of non-current investments, including any accrued interest,
shall be transferred to the corresponding accounts in subgroup 53.

Non-current investments in related parties

240. 
Non-current investments in the equity rights of either listed or non-listed
related parties, generally shares issued by corporations or equity holdings in
limited liability companies.
This account shall be classified under non-current assets in the balance
sheet.
Non-current investments in group companies / asso
2403/2404 
ciates
Movements in these four-digit accounts are as follows:
The accounts shall be debited:
a) 
Upon subscription or purchase, generally with a credit to accounts
a1) 
in subgroup 57 and, where applicable, to account 249.
– 359 –
 Where applicable, when the recoverable amount of an investment
a2) 
exceeds its carrying amount, up to the limit of the prior negative
valuation adjustments recognised directly in equity, with a credit to
account 991 or 992.
The accounts shall be credited:
b) 
Where applicable, for estimated impairment, up to the limit of the
b1) 
prior positive valuation adjustment recognised directly in equity,
with a debit to account 891 or 892.
For disposal and derecognitions, generally with a debit to accounts
b2) 
in subgroup 57 or, in the event of pending payments, to account 249
or, where applicable, to account 539 and, in the case of losses, to
account 673.
2405. Non-current investments in other related parties
Movements in this account are as follows:
The account shall be debited upon subscription or purchase, generally
a) 
with a credit to accounts in subgroup 57 and, where applicable, to
account 249.
The account shall be credited for disposal and derecognitions, generally
b) 
with a debit to accounts in subgroup 57 or, in the event of pending
payments, to account 249 or, where applicable, to account 539 and, in
the case of losses, to account 673.
If the investments are classified as financial assets at fair value through
c) 
equity, changes in the fair value of investments shall be debited or
credited to this account, with a credit or debit, respectively, to accounts
900 and 800.

Non-current debt securities of related parties

241. 
Non-current investments in obligations, bonds or other debt securities,
including those for which returns are pegged to indices or similar systems,
issued by related parties and maturing in over one year.
This account shall be classified under non-current assets in the balance
sheet.
2413/2414/2415
In general, movements in these four-digit accounts are as follows:
The accounts shall be debited:
a) 
– 360 –
 Upon subscription or purchase, for the purchase price, excluding
a1) 
explicit accrued interest not yet due, with a credit to accounts in
subgroup 57.
For accrued finance income, up to the redemption value of the secu
a2) 
rity, generally with a credit to account 761.
The accounts shall be credited for disposal, early redemption or
b) 
derecognition of the securities, with a debit to accounts in subgroup 57
and, in the case of losses, to account 666.
If the securities are classified as “Financial assets at fair value through
c) 
equity”, changes in the fair value of the securities shall be debited or
credited to these accounts, with a balancing entry in accounts 900
and 800, except for the portion relating to exchange gains or losses,
which shall be recorded with a credit or debit to accounts 768 and 668.
Impairment of the securities shall be debited to these accounts for the
negative balance accumulated in equity, with a credit to account 902.

Non-current loans to related parties

242. 
Non-current investments in loans and other non-trade credit to related
parties, including those arising from disposals of fixed assets, finance lease
transactions and non-current deposits maturing in over one year irrespective
of whether they are trade bills. Such receivables shall be recognised in five-digit
accounts.
This account shall be classified under non-current assets in the balance
sheet.
2423/2424/2425
Movements in these four-digit accounts are as follows:
The accounts shall be debited
a) 
Upon arrangement, for the amount of the loan, generally with a cre
a1) 
dit to accounts in subgroup 57.
For accrued finance income, up to the redemption value, generally
a2) 
with a credit to account 762.
Early full or partial repayments or derecognitions shall be credited to
b) 
these accounts, generally with a debit to accounts in subgroup 57 and,
in the case of losses, to account 667.

Non-current uncalled equity holdings in related parties

249. 
– 361 –
 Uncalled payments on equity holdings in related parties.
This account shall be classified under non-current assets in the balance
sheet, as a reduction in the item in which the corresponding investments are
recorded.
2493/2494/2495
Movements in these four-digit accounts are as follows:
The unpaid amount upon acquisition or subscription of the equity
a) 
instruments shall be credited to these accounts, with a debit to account
240.
As payments are called these accounts are debited, with a credit to
b) 
account 556 or to account 240 for any balances pending upon the sale
of equity instruments that are not fully paid in.

25. OTHER NON-CURRENT INVESTMENTS

Non-current investments in equity instruments
250. 
Non-current debt securities
251. 
Non-current loans
252. 
Non-current loans for disposal of fixed assets
253. 
Non-current loans to personnel
254. 
Non-current assets arising from derivative financial
255. 
instruments
2550. Non-current assets arising from derivative financial instru
ments, trading portfolio
2553. Non-current assets arising from derivative financial instru
ments, hedging instruments
Reimbursement rights of insurance contracts for long-term
257. 
employee benefits
Non-current deposits
258. 
Non-current uncalled equity holdings
259. 
Non-current investments in non-related parties, irrespective of how these
investments are instrumented, maturing in over one year or with no set matu
rity (such as equity instruments) that the company does not intend to sell in the
short term, including accrued interest.
Where debt securities or loans generate explicit interest maturing in over
one year, the necessary accounts shall be created to identify this interest.
– 362 –
These accounts shall be classified in the same balance sheet line item as the
asset generating the interest.
The part of non-current investments that matures in the short term shall
be recognised in “Current investments” under current assets in the balance
sheet. The current portion of non-current investments, including any accrued
interest, shall be transferred to the corresponding accounts in subgroup 54.

Non-current investments in equity instruments

250. 
Non-current investments in the equity rights of entities not considered
related parties, namely shares listed or not listed on a regulated market and
other securities, such as holdings in collective investment undertakings and
equity holdings in limited liability companies.
This account shall be classified under non-current assets in the balance
sheet.
Movements in this account are as follows:
The account shall be debited upon subscription or purchase, generally
a) 
with a credit to accounts in subgroup 57 and, where applicable, to
account 259.
The account shall be credited for disposal and derecognitions, generally
b) 
with a debit to accounts in subgroup 57 or, in the event of pending
payments, to account 259 or, where applicable, to account 549 and, in
the case of losses, to account 666.
If the investment is classified as a financial asset at fair value through
c) 
equity, changes in the fair value of the asset shall be debited or credited
to this account, with a credit or debit, respectively, to accounts 900 and
800.

Non-current debt securities

251. 
Non-current investments in obligations, bonds or other debt securities,
including those for which returns are pegged to indices or similar systems.
When the securities subscribed or acquired have been issued by related
parties, the investment shall be recognised in account 241.
This account shall be classified under non-current assets in the balance
sheet.
In general, movements in this account are as follows:
The account shall be debited:
a) 
– 363 –
 Upon subscription or purchase, for the purchase price, excluding
a1) 
explicit accrued interest not yet due, with a credit to accounts in
subgroup 57.
For accrued finance income, up to the redemption value of the secu
a2) 
rity, generally with a credit to account 761.
Disposal, early redemption or derecognition of the securities shall be
b) 
credited to this account with a debit to accounts in subgroup 57 and, in
the case of losses, to account 666.
If the securities are classified as “Financial assets at fair value through
c) 
equity”, changes in the fair value of the securities shall be debited or
credited to this account, with a balancing entry in accounts 900 and
800, except for the portion relating to exchange gains or losses, which
shall be recorded with a credit or debit to accounts 768 and 668. The
account shall also be debited upon impairment of the security, for the
negative balan ce accumulated in equity, with a credit to account 902.

Non-current loans
252. 
Loans and other non-trade credit to third parties, including trade bills,
maturing in over one year.
When the loans have been arranged with related parties, the investment
shall be recognised in account 242.
This account shall be classified under non-current assets in the balance
sheet.
Movements in this account are as follows:
The account shall be debited:
a) 
Upon arrangement, for the amount of the loan, generally with a cre
a1) 
dit to accounts in subgroup 57.
For accrued finance income, up to the redemption value, generally
a2) 
with a credit to account 762.
Early full or partial repayment or derecognition shall be credited to the
b) 
account, generally with a debit to accounts in subgroup 57 and, in the
case of losses, to account 667.

Non-current loans for disposal of fixed assets

253. 
Loans to third parties that mature in over one year, arising on the disposal
of fixed assets.
– 364 –
 When the loans for disposal of fixed assets have been extended to related
parties, the investment shall be recognised in account 242.
This account shall be classified under non-current assets in the balance
sheet.
Movements in this account are as follows:
The account shall be debited:
a) 
For the amount of the loans, excluding any interest agreed, with a
a1) 
credit to accounts in group 2.
For accrued finance income, up to the redemption value, generally
a2) 
with a credit to account 762.
Early full or partial repayment or derecognition shall be credited to this
b) 
account, generally with a debit to accounts in subgroup 57 and, in the
case of losses, to account 667.

Non-current loans to personnel

254. 
Loans extended to company employees that are not considered related
parties, when the loans mature in over one year.
This account shall be classified under non-current assets in the balance
sheet.
Movements are in line with those indicated for account 252.

Non-current assets arising from derivative financial instru

255. 
ments
Amounts corresponding to transactions with financial derivatives that are in
the money for the company, to be settled in over one year. This account also
includes embedded derivatives in hybrid financial instruments acquired, issued
or assumed that meet the criteria to be included in this account. Accounts of
four or more digits shall be created to identify the embedded derivative.
In particular, this account shall comprise premiums paid on transactions
involving options, as well as changes in the fair value of financial derivative assets
with which the company operates, such as options, futures, swaps, currency
forwards, etc.
This account shall be classified under non-current assets in the balance
sheet.
2550. Non-current assets arising from derivative financial ins
truments, trading portfolio
– 365 –
Movements in this account are as follows:
The account shall be debited:
a) 
For the amounts paid when the instrument is contracted, generally
a1) 
with a credit to accounts in subgroup 57.
For gains generated during the reporting period, with a credit to
a2) 
account 7630.
The account shall be credited:
b) 
For losses incurred during the reporting period, up to the amount at
b1) 
which the derivative was carried under assets in the prior reporting
period, with a debit to account 6630.
For the amount received at settlement, generally with a debit to
b2) 
accounts in subgroup 57.
2553. Non-current assets arising from derivative financial ins
truments, hedging instruments
Movements in this account are as follows:
The amount paid when the instrument is contracted shall be debited to
a) 
this account with a credit, generally to accounts in subgroup 57.
When the derivative is used as a hedging instrument in a fair value hedge:
b) 
Gains generated during the reporting period upon application of
b1) 
hedge accounting shall be debited to this account, with a credit to
the income statement item that includes the losses incurred on the
hedged items upon measuring the hedged risk at fair value.
The account shall be credited:
b2) 
       i) 
For the losses incurred during the reporting period from
applica tion of hedge accounting, up to the amount at which
the derivative was carried under assets in the prior reporting
period, with a debit to the income statement item that includes
the gains gene rated on the hedged items upon measuring the
hedged risk at fair value.
      ii) 
Upon acquisition of the hedged asset or assumption of the
hedged liability, with a debit to the accounts in which these items
are recorded.
When the derivative is used as a hedging instrument in other hedging
c) 
transactions the gain generated or loss incurred on the effective portion
during the reporting period from application of hedge accounting shall
– 366 –
 be credited or debited to this account, with a credit or debit to accounts
in subgroups 91 and 81, respectively, and to accounts 7633 and 6633 for
the ineffective portion.
The amount received at settlement shall be credited to this account,
d) 
generally with a debit to accounts in subgroup 57.

Reimbursement rights of insurance contracts for long-term

257. 
employee benefits
Reimbursement rights callable from an insurance company that should be
recognised as assets in the balance sheet but do not meet the criteria to be
classified as assets associated with insurance policies in accordance with the
recognition and measurement standards.
Movements in this account are as follows:
The account shall be debited:
a) 
For the amounts paid as premiums, generally with a credit to
a1) 
accounts in subgroup 57.
For recognition of actuarial gains, with a credit to account 950 in the
a2) 
case of post-employment benefits, or with a credit to an account in
subgroup 64 for other long-term employee benefits.
For the expected income on reimbursement rights, with a credit to
a3) 
account 767.
The account shall be credited:
b) 
For any amounts drawn against the reimbursement rights, with a
b1) 
debit to account 140 or with a debit to accounts in subgroup 57.
For recognition of actuarial losses, with a debit to account 850 in
b2) 
the case of post-employment benefits, or with a debit to an account
in subgroup 64 for other long-term employee benefits.
For any excess in the value of the reimbursement right that results
b3) 
in a direct reimbursement, with a debit to accounts in subgroup 57.

Non-current deposits
258. 
Time deposits or similar deposits at banks and financial institutions matu
ring in over one year, contracted in accordance with market conditions.
When time deposits have been made in related financial institutions, the
investment shall be recognised in account 242.
– 367 –
 This account shall be classified under non-current assets in the balance
sheet.
Movements in this account are as follows:
Upon arrangement of the deposit, the amount placed shall be debited to
a) 
this account.
The account shall be credited upon recovery or early transfer of the
b) 
funds.

Non-current uncalled equity holdings

259. 
Uncalled payments on equity holdings in entities not considered related
parties.
This account shall be classified under non-current assets in the balance
sheet, as a reduction in the item in which the corresponding equity instruments
are recognised.
Movements in this account are as follows:
Upon acquisition or subscription of the equity instruments the amount
a) 
pending payment shall be credited to this account, with a debit to
account 250.
The account shall be debited as payments are called, with a credit to
b) 
account 556 or, for any balances pending upon the sale of equity instru
ments that are not fully paid in, to account 250.

26. NON-CURRENT GUARANTEES AND DEPOSITS EXTENDED

260. Non-current guarantees extended
265. Non-current deposits extended
The accounts in this subgroup shall be classified under non-current assets
in the balance sheet.
The part of non-current guarantees and non-current deposits that matures
in the short term shall be recognised in “Current investments” under current
assets in the balance sheet. The current portion of non-current guarantees and
non-current deposits shall be transferred to the corresponding accounts in
subgroup 56.

Non-current guarantees extended

260. 
Cash amounts conveyed to guarantee compliance with an obligation, with
a term of over one year.
– 368 –
 In general, movemenin this account are as follows:
The account shall be debited:
a) 
Upon arrangement of the guarantee, for the fair value of the finan
a1) 
cial asset, with a credit to accounts in subgroup 57.
For accrued finance income, up to the redemption value of the gua
a2) 
rantee, generally with a credit to account 762.
The account shall be credited:
b) 
For early cancellation, with a debit to accounts in subgroup 57.
b1) 
For failure to comply with the obligation guaranteed, where this
b2) 
results in the loss of part or all of the guarantee, with a debit to
account 659.

Non-current deposits extended

265. 
Cash amounts conveyed as an irregular deposit, with a term of over one
year.
In general, movements in this account are as follows:
The account shall be debited:
a) 
Upon arrangement of the deposit, for the cash amount conveyed,
a1) 
with a credit to accounts in subgroup 57.
For accrued finance income, up to the redemption value of the
a2) 
deposit, generally with a credit to account 762.
The account shall be credited upon early cancellation, with a debit to
b) 
accounts in subgroup 57.

28. ACCUMULATED AMORTISATION AND DEPRECIATION

Accumulated amortisation of intangible assets
280. 
Accumulated depreciation of property, plant and equipment
281. 
Accumulated depreciation of investment property
282. 
Accounting expression of the distribution of the cost of an investment in a
fixed asset over the time it is expected to be used in the production process,
or that distributes the cost of investment property over time.
Accumulated amortisation and depreciation recorded in this subgroup shall
be classified under assets in the balance sheet, as a reduction in the item in
which the corresponding asset is recorded.
– 369 –
 Accumulated amortisation of intangible assets
280. 
Systematic valuation adjustment to reflect the decline in value of intangible
assets.
Movements in this account are as follows:
The annual allowance shall be credited to this account, with a debit to
a) 
account 680.
The account shall be debited when the intangible asset is disposed of
b) 
or derecognised for any other reason, with a credit to accounts in
subgroup 20.

Accumulated depreciation of property, plant and equipment

281. 
Systematic valuation adjustment to reflect the decline in value of items of
property, plant and equipment.
Movements in this account are as follows:
The annual allowance shall be credited to this account, with a debit to
a) 
account 681.
The account shall be debited when the item of property, plant and
b) 
equipment is disposed of or derecognised for any other reason, with a
credit to accounts in subgroup 21.

Accumulated depreciation of investment property

282. 
Systematic valuation adjustment to reflect the decline in value of investment
property.
Movements in this account are as follows:
The annual allowance shall be credited to this account, with a debit to
a) 
account 682.
The account shall be debited when the investment property is disposed
b) 
of or derecognised for any other reason, with a credit to accounts in
subgroup 22.

29. IMPAIRMENT OF NON-CURRENT ASSETS

Impairment of intangible assets
290. 
Impairment of property, plant and equipment
291. 
Impairment of investment property
292. 
Impairment of non-current investments in related parties
293. 
– 370 –
 2933. Impairment of non-current investments in group companies
2934. Impairment of non-current investments in associates
2935. Impairment of non-current investments in other related
parties
2936. Impairment of non-current investments in other companies.
Impairment of non-current debt securities of related parties
294. 
2943. Impairment of non-current debt securities of group
companies
2944. Impairment of non-current debt securities of associates
2945. Impairment of non-current debt securities of other related
parties
Impairment of non-current loans to related parties
295. 
2953. Impairment of non-current loans to group companies
2954. Impairment of non-current loans to associates
2955. Impairment of non-current loans to other related parties
Impairment of non-current debt securities
297. 
Impairment of non-current loans
298. 
Accounting expression of valuation adjustments to reflect losses arising on
impairment of non-current assets.
These losses shall be estimated on a systematic basis over time. In the event
of subsequent recoveries in value as defined in the applicable recognition and
measurement standards, valuation adjustments previously made for impairment
shall be reduced to the limit of the total amount recovered, where permitted
by the provisions of those standards.
The accounts in this subgroup shall be classified under non-current assets
in the balance sheet, as a reduction in the value of the item in which the
corresponding asset is recorded.

Impairment of intangible assets / property, plant and

290/291/292. 
equipment / investment property
Amount of valuation adjustments to reflect impairment of intangible assets,
items of property, plant and equipment and investment property.
Movements in these accounts are as follows:
The estimated impairment shall be credited to the accounts, with a
a) 
debit to account 690, 691 or 692.
– 371 –
 The accounts shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to account 790, 791 or 792.
When the asset is disposed of or derecognised for any other reason,
b2) 
with a credit to accounts in subgroup 20, 21 or 22.

Impairment of non-current investments in related parties

293. 
Amount of valuation adjustments to reflect impairment of non-current
investments in group companies, associates, other related parties and other
companies included in the category “Financial assets at amortised cost”.
2933/2934/2935/2936
Movements in these four-digit accounts are as follows:
The estimated impairment taken to the income statement in accordance
a) 
with the recognition and measurement standards shall be credited to
these accounts with a debit to account 696.
The accounts shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to account 796.
When financial non-current assets are disposed of or derecognised
b2) 
for any other reason, with a credit to accounts in subgroup 24 or to
account 250.

Impairment of non-current debt securities of related parties

294. 
Amount of valuation adjustments to reflect impairment of non-current
investments in debt securities issued by individuals or entities considered
related parties.
2943/2944/2945
Movements in these four-digit accounts are as follows:
The estimated impairment shall be credited to these accounts, with a
a) 
debit to account 696.
The accounts shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to account 796.
– 372 –
 When the debt securities are disposed of or derecognised for any
b2) 
other reason, with a credit to accounts in subgroup 24.

Impairment of non-current loans to related parties

295. 
Amount of valuation adjustments to reflect impairment of non-current
loans extended to related parties.
2953/2954/2955
Movements in these four-digit accounts are as follows:
The estimated impairment shall be credited to this account, with a debit
a) 
to account 697.
The accounts shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to account 797.
For the irrecoverable part of the loan, with a credit to account 242.
b2) 

Impairment of non-current debt securities

297. 
Amount of valuation adjustments to reflect impairment of non-current
investments in debt securities issued by individuals or entities not considered
related parties.
Movements are in line with those indicated for account 294.

Impairment of non-current loans

298. 
Amount of valuation adjustments to reflect impairment of loans in subgroup
25.
Movements are in line with those indicated for account 295.

– 373 –
 GROUP 3

INVENTORIES

Inventories are assets held to be sold in the ordinary course of business,

those under production, and materials or supplies to be used in the production
process or in the rendering of services.
Inventories comprise merchandise, raw materials, other supplies, work
in progress, semi-finished goods, finished goods and by-products, waste and
recovered materials.
An account including inventories which, in accordance with the recognition
and measurement standards, form part of a disposal group held for sale shall be
credited when the conditions for this classification are met, with a debit to the
respective account in subgroup 58.

– 375 –
30. GOODS FOR RESALE
Merchandise A
300. 
Merchandise B
301. 
Goods acquired by the company and intended for sale without any further
transformation.
Accounts 300/309 shall be classified under current assets in the balance
sheet. These accounts shall only be credited or debited at the balance sheet
date.
Movements in these accounts are as follows:
The amount of inventory held at the beginning of the reporting period
a) 
shall be credited to these accounts at the balance sheet date, with a
debit to account 610.
The amount of inventory held at the balance sheet date shall be debited
b) 
to these accounts with a credit to account 610.
If, at the balance sheet date, merchandise in transit in accordance with the
corresponding contract conditions is owned by the company, this merchandise
shall be recorded as inventory in the respective accounts in subgroup 30. This
rule shall also apply when products, materials, etc. included in the following
groups are in transit.

32. RAW MATERIALS

Raw materials A
310. 
Raw materials B
311. 
Materials that will form part of manufactured goods after appropriate
preparation or transformation.
Accounts 310/319 shall be classified under current assets in the balance
sheet. Movements in these accounts are in line with those indicated for accounts
300/309.

33. OTHER SUPPLIES

320. Components
321. Fuel
322. Spare parts
325. Sundry materials
Packaging
326. 
– 376 –
 Containers
327. 
Office supplies
328. 
320. Components
Components normally manufactured outside the company and acquired by
the company for incorporation in production, with no further transformation.

Fuel
321. 
Storable materials for providing energy.

Spare parts
322. 
Parts to be assembled as part of installations, equipment or machines in
substitution of other similar parts including spare parts that are stored for less
than one year.

Sundry materials
325. 
Other consumable materials that will not be incorporated into the finished
product.

Packaging
326. 
Covers, casings and wrappings, generally not recoverable, used to protect
products or merchandise during transit.

Containers
327. 
Receptacles or vessels normally sold along with the product contained the
rein.

Office supplies
328. 
Supplies used in offices, except where the company opts to consider that
office materials acquired during the reporting period are used within that same
period.
Accounts 320/329 shall be recognised under current assets in the balance
sheet. Movements in these accounts are in line with those indicated for accounts
300/309.

33. WORK IN PROGRESS

Work in progress A
330. 
– 377 –
 Work in progress B
331. 
Goods or services being formed or transformed in an activity centre at the
balance sheet date, which should not be recorded in accounts in subgroup 34
or 36.
Accounts 330/339 shall be classified under current assets in the balance
sheet. These accounts shall only be debited or credited at the balance sheet
date.
Movements in these accounts are as follows:
The amount of inventory held at the beginning of the reporting period
a) 
shall be credited to these accounts at the balance sheet date, with a
debit to account 710.
The amount of inventory held at the balance sheet date shall be debited
b) 
to these accounts with a credit to account 710.

34. SEMI-FINISHED GOODS

Semi-finished goods A
340. 
Semi-finished goods B
341. 
Products manufactured by the company and not normally sold until they are
subject to further preparation, incorporation or transformation.
Accounts 340/349 shall be classified under current assets in the balance
sheet. Movements in these accounts are in line with those indicated for accounts
330/339.

35. FINISHED GOODS

Finished goods A
350. 
Finished goods B
351. 
Goods manufactured by the company for use by end consumers or by other
companies.
Accounts 350/359 shall be classified under current assets in the balance
sheet. Movements in these accounts are in line with those indicated for accounts
330/339.

36. BY-PRODUCTS, WASTE AND RECOVERED MATERIALS

360. By-products A
361. By-products B
– 378 –
 365. Waste A
366. Waste B
368. Recovered materials A
369. Recovered materials B
By-products: secondary or incidental products resulting from primary
manufacturing.
Waste: materials inevitably obtained in conjunction with products and by-
products, providing they have intrinsic value and can be used or sold.
Recovered materials: materials which, on the basis of their intrinsic value,
are returned to storage after having been used in the production process.
Accounts 360/369 shall be classified under current assets in the balance
sheet. Movements in these accounts are in line with those indicated for accounts
330/339.

39. IMPAIRMENT OF INVENTORIES

Impairment of merchandise
390. 
Impairment of raw materials
391. 
Impairment of other supplies
392. 
Impairment of work in progress
393. 
Impairment of semi-finished goods
394. 
Impairment of finished goods
395. 
Impairment of by-products, waste and recovered materials
396. 
Accounting expression of reversible losses revealed during the inventory
count performed at the balance sheet date.
Accounts in this subgroup shall be classified under current assets in
the balance sheet, as a reduction in the value of the line item in which the
corresponding asset is recorded.
Movements in these accounts are as follows:
The impairment estimated for the reporting period shall be credited to
a) 
these accounts with a debit to account 693.
The impairment estimated at the balance sheet date of the prior
b) 
reporting period shall be debited to these accounts, with a credit to
account 793.

– 379 –
 GROUP 4

TRADE PAYABLES AND TRADE RECEIVABLES

Financial instruments and accounts originating in the company’s ordinary

business, as well as balances with public entities, including balances maturing in
over one year. Companies may classify the latter balances in subgroups 42 or
45, or reclassify them within the same accounts.
In particular, the following rules shall apply:
In general, financial assets and financial liabilities included in this group
a) 
shall be classified for measurement purposes as “Financial assets at
amortised cost” and “Financial liabilities at amortised cost, respectively.
If the financial assets and financial liabilities are classified for measurement
b) 
purposes in more than one category, accounts of four or more digits
shall be created as necessary to differentiate the category in which they
have been included.
An account including financial assets classified as financial assets at
c) 
fair value through profit and loss, or as financial liabilities at fair value
through profit or loss, shall be credited or debited for changes in the fair
value of the financial assets or financial liabilities, with a debit or credit,
respectively, to accounts 663 and 763.
An account including trade payables or trade receivables which, in
d) 
accordance with the recognition and measurement standards, form
part of a disposal group with held for sale elements shall be debited
or credited, respectively, when the conditions for this classification are
met, with a credit or debit to the respective account in subgroup 58.

– 381 –
40. SUPPLIERS
Suppliers
400. 
Suppliers, trade bills payable
401. 
Suppliers, group companies
403. 
Suppliers, associates
404. 
Suppliers, other related parties
405. 
Containers and packaging returnable to suppliers
406. 
Advances to suppliers
407. 
400. Suppliers
Payables to suppliers of merchandise and other goods defined in group 3.
This account shall include payables to suppliers of services used in the
production process.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
The account shall be credited:
a) 
For the receipt and acceptance of shipments from suppliers, with a
a1) 
debit to accounts in subgroup 60.
For returnable containers and packaging charged in supplier invoices,
a2) 
with a debit to account 406.
Where applicable, for the accrued finance expenses, generally with
a3) 
a debit to account 662.
The account shall be debited:
b) 
For arrangement of accepted trade bills, with a credit to account
b1) 
401.
For the full or partial cancellation of the company’s payables to sup
b2) 
pliers, with a credit to accounts in subgroup 57.
For volume discounts extended to the company by suppliers, with a
b3) 
credit to account 609.
For prompt payment discounts extended to the company by sup
b4) 
pliers and not included in the invoice, with a credit to account 606.
For returns of items purchased, with a credit to account 608.
b5) 
For returnable containers and packaging charged in supplier invoices
b6) 
and sent back to suppliers, with a credit to account 406.
– 382 –
 Suppliers, trade bills payable
401. 
Payables to suppliers in the form of accepted trade bills.
This account shall be classified under current liabilities in the balance sheet.
In general, movements in this account are as follows:
The account shall be credited:
a) 
For the receipt and acceptance of shipments from suppliers, through
a1) 
acceptance of trade bills, with a debit to accounts in subgroup 60.
When the company formalises the obligation to suppliers by accep
a2) 
ting trade bills, generally with a debit to account 400.
Payment of the trade bills on maturity shall be debited to this account,
b) 
with a credit to the corresponding accounts in subgroup 57.

Suppliers, group companies

403. 
Payables to group companies which are suppliers, including trade bills
payable.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are in line with those indicated for account 400.

Suppliers, associates
404. 
Payables, including trade bills payable, to jointly-controlled entities or
associates that are suppliers.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are in line with those indicated for account 400.

Suppliers, other related parties

405. 
Payables, including trade bills payable, to other related individuals or entities
which are suppliers.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are in line with those indicated for account 400.

Containers and packaging returnable to suppliers

406. 
Amount of returnable containers and packaging charged in supplier invoices.
This account shall be classified under current liabilities in the balance sheet,
as a reduction in account 400.
– 383 –
 Movements in this account are as follows:
The amount of the containers and packaging shall be debited to this
a) 
account upon receipt of the merchandise contained therein, with a
credit to account 400.
The account shall be credited:
b) 
For the amount of the containers and packaging returned, with a
b1) 
debit to account 400.
For the amount of the containers and packaging that the company
b2) 
decides to retain for its own use and of any misplaced or damaged
containers and packaging, with a debit to account 602.

Advances to suppliers
407. 
Payments, normally in cash, to suppliers on account of future supplies.
When these payments are made to group companies, jointly-controlled
entities, associates or other related parties they shall be recognised in the cor
responding three-digit accounts.
This account shall be classified in the line item “Inventories” under current
assets in the balance sheet.
In general, movements in this account are as follows:
Cash paid to suppliers shall be debited to these accounts, with a credit
a) 
to accounts in subgroup 57.
Merchandise or other goods received and accepted from suppliers
b) 
shall be credited to this account, generally with a debit to accounts in
subgroup 60.

41. OTHER PAYABLES

410. Payables for the rendering of services
411. Trade bills payable
419. Payables for profit-sharing agreements
When the amounts are payable to group companies, jointly-controlled
entities, associates or other related parties, three-digit accounts shall be
created to specifically disclose the payables to these parties, including trade
bills payable.
– 384 –
 Payables for the rendering of services
410. 
Payables to parties providing services that are not strictly considered sup
pliers.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
The account shall be credited:
a) 
For the receipt and acceptance of services, generally with a debit to
a1) 
accounts in subgroup 62.
Where applicable, to recognise accrued finance expenses, generally
a2) 
with a debit to account 662.
The account shall be debited:
b) 
For arrangement of accepted trade bills payable, with a credit to
b1) 
account 411.
For the full or partial cancellation of the company’s payables, with a
b2) 
credit to the corresponding accounts in subgroup 57.

Trade bills payable

411. 
Payables in the form of accepted trade bills to parties providing services
that are not strictly considered suppliers.
This account shall be classified under current liabilities in the balance sheet.
In general, movements in this account are as follows:
The account shall be credited:
a) 
For the receipt and acceptance of the services through acceptance
a1) 
of trade bills, generally with a debit to accounts in subgroup 62.
When the company formalises the obligation by accepting trade bills
a2) 
payable, generally with a debit to account 410.
Payment of the trade bills on maturity shall be debited to this account,
b) 
with a credit to the corresponding accounts in subgroup 57.

Payables for profit-sharing agreements

419. 
Payables to venturers in the operations governed by articles 239 to 243 of
the Commercial Code and in other similar profit-sharing agreements.
This account shall be classified under liabilities in the balance sheet.
– 385 –
 Movements in this account are as follows:
The account shall be credited:
a) 
For contributions received by the company as trustee venturer,
a1) 
generally with a debit to accounts in subgroup 57.
Where the company is the trustee venturer, for the gain to be
a2) 
attributed to non-trustee venturers, with a debit to account 6510.
For the loss corresponding to the company as a non-trustee
a3) 
venturer, when its balance in the profit-sharing agreement becomes
a credit balance, with a debit to account 6511.
The account shall be debited:
b) 
For settlement of the payables, with a credit to accounts in subgroup
b1) 
57.
Where the company is the trustee venturer, for the loss to be
b2) 
attributed to non-trustee venturers, while its balance in the profit-
sharing agreement remains a credit balance, with a credit to account
7510.
For gains corresponding to the company as a non-trustee venturer,
b3) 
with a credit to account 7511.

43. TRADE RECEIVABLES

Trade receivables
430. 
Trade receivables, trade bills receivable
431. 
Trade receivables, factoring
432. 
Trade receivables, group companies
433. 
Trade receivables, associates
434. 
Trade receivables, other related parties
435. 
Doubtful trade receivables
436. 
Containers and packaging returnable by customers
437. 
Advances from customers
438. 
430. Trade receivables
Receivables from purchasers of merchandise and other goods defined in
group 3, as well as recipients of services rendered by the company, providing
they relate to a principal activity of the company.
This account shall be classified under current assets in the balance sheet.
– 386 –
 Movements in this account are as follows:
The account shall be debited:
a) 
For sales made, with a credit to accounts in subgroup 70.
a1) 
For returnable containers and packaging charged in customer
a2) 
invoices, with a credit to account 437.
Where applicable, to recognise accrued finance income, generally
a3) 
with a credit to account 762.
The account shall be credited:
b) 
For arrangement of trade bills accepted by the customer, with a
b1) 
debit to account 431.
For full or partial settlement of the receivable by the customer or
b2) 
the final transfer of collection rights to third parties, generally with
a debit to accounts in subgroup 57.
For classification as a doubtful trade receivable, with a debit to
b3) 
account 436.
For the irrecoverable part of a receivable, with a debit to account
b4) 
650.
For volume discounts extended to customers, with a debit to
b5) 
account 709.
For prompt payment discounts not included in the customer invoice,
b6) 
with a debit to account 706.
For returns of items sold, with a debit to account 708.
b7) 
For returned containers and packaging which were charged in
b8) 
customer invoices as returnable containers and packaging, with a
debit to account 437.
For the transfer of collection rights in factoring operations in which
b9) 
the company substantially retains the risks and rewards, with a debit
to account 432.

Trade receivables, trade bills receivable

431. 
Trade receivables in the form of accepted trade bills.
This account shall comprise trade bills held, trade bills discounted, trade
bills submitted for collection and defaulted trade bills. Defaulted trade bills shall
– 387 –
only be recognised in this account when they should not be included in account
436.
This account shall be classified under current assets in the balance sheet.
In general, movements in this account are as follows:
The account shall be debited:
a) 
For sales or services rendered in the course of the company’s
a1) 
principal activity, where customers have accepted the related trade
bills, with a credit to accounts in subgroup 70.
For arrangement of trade bills accepted by the customer, generally
a2) 
with a credit to account 430.
The account shall be credited:
b) 
For collection of the trade bills on maturity, with a debit to accounts
b1) 
in subgroup 57.
For classification as a doubtful trade receivable, with a debit to
b2) 
account 436.
For any irrecoverable part of the receivable, with a debit to account
b3) 
650.
Financing obtained on discounting trade bills constitutes a payable that
must generally be included in the corresponding accounts in subgroup 52.
Consequently, upon maturity of the trade bills honoured account 4311 shall be
credited, with a debit to account 5208.

Trade receivables, factoring

432. 
Trade receivables transferred in factoring operations in which the company
substantially retains the risks and rewards of the collection rights.
This account shall comprise the collection rights on trade receivables
transferred in factoring operations, except when they should be disclosed in
account 436.
This account shall be classified under current assets in the balance sheet.
In general, movements in this account are as follows:
The account shall be debited when the collection rights are transferred,
a) 
generally with a credit to account 430.
The account shall be credited:
b) 
– 388 –
 For classification as a doubtful trade receivable, with a debit to
b1) 
account 436.
For the irrecoverable part of the receivable, with a debit to account
b2) 
650.
Financing obtained on these operations constitutes a payable that
should generally be included in the corresponding accounts in subgroup 52.
Consequently, upon maturity of the collection rights honoured this account
shall be credited, with a debit to account 5209.

Trade receivables, group companies

433. 
Receivables from group company customers, including trade bills or balances
transferred as part of factoring operations in which the company substantially
retains the risks and rewards of the collection rights.
This account shall be classified under current assets in the balance sheet.
Movements in this account are in line with those indicated for account 430.

Trade receivables, associates

434. 
Receivables from jointly-controlled entities and associates which are
customers, including trade bills or balances transferred as part of factoring
operations in which the company substantially retains the risks and rewards of
the collection rights.
This account shall be classified under current assets in the balance sheet.
Movements are in line with those indicated for account 430.

Trade receivables, other related parties

435. 
Receivables from other related party customers, including trade bills or
balances transferred as part of factoring operations in which the company
substantially retains the risks and rewards of the collection rights.
This account shall be classified under current assets in the balance sheet.
Movements are in line with those indicated for account 430.

Doubtful trade receivables

436. 
Balances receivable from customers, including trade bills or balances
transferred as part of factoring operations in which the company substantially
retains the risks and rewards of the collection rights, where circumstances
reasonably indicate doubtful collection.
– 389 –
 This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The balance considered doubtful shall be debited to this account, with a
a) 
credit to account 430, 431 or 432.
The account shall be credited:
b) 
For write-off of trade receivables with a debit to account 650.
b1) 
For collection in full of balances, with a debit to accounts in subgroup
b2) 
57.
Upon partial collection, with a debit to accounts in subgroup 57
b3) 
for the portion collected and to account 650 for any irrecoverable
amounts.

Containers and packaging returnable by customers

437. 
Amount of the returnable containers and packaging included in customer
invoices.
This account shall be classified under current assets in the balance sheet, as
a reduction in account 430.
Movements in this account are as follows:
The amount of the containers and packaging upon shipment of the
a) 
merchandise contained therein shall be credited to this account, with a
debit to account 430.
The account shall be debited:
b) 
Upon receipt of the containers and packaging returned, with a credit
b1) 
to account 430.
Upon expiry of the return period, if no returns have been made,
b2) 
with a credit to account 704.

Advances from customers

438. 
Payments received from customers, normally in cash, on account of future
supplies.
When these payments are received from group companies, jointly-
controlled entities, associates or other related parties, the corresponding
three-digit accounts shall be created.
This account shall be classified under current liabilities in the balance sheet.
– 390 –
 Movements in this account are as follows:
Cash received shall be credited to this account, with a debit to the
a) 
corresponding account in subgroup 57.
Shipments of merchandise and other goods to customers shall be
b) 
debited to this account, generally with a credit to accounts in subgroup
70.

44. OTHER RECEIVABLES

440. Receivables
441. Receivables, trade bills
446. Doubtful receivables
449. Receivables for profit-sharing agreements
When the amounts are receivable from group companies, jointly-controlled
entities, associates or other related parties, three-digit accounts shall be created
to specifically disclose the receivables from these parties, including trade bills.

Receivables
440. 
Receivables from purchasers of services that are not strictly considered
customers and from other trade debtors not included in other accounts in this
group.
This account shall also include the amount of donations and bequests
gran ted to the company for its operations, to be settled through cash or
other financial assets, excluding grants that should be recorded in accounts in
subgroup 47.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The account shall be debited:
a) 
For the rendering of services, with a credit to accounts in subgroup
a1) 
75.
For the donation or bequest awarded for operations, with a credit
a2) 
to accounts in subgroup 74.
Where applicable, to recognise accrued finance income, generally
a3) 
with a credit to account 762.
The account shall be credited:
b) 
– 391 –
 For arrangement of trade bills accepted by the debtor, with a debit
b1) 
to account 441.
For the full or partial settlement of receivables, generally with a
b2) 
debit to accounts in subgroup 57.
For classification as a doubtful receivable, with a debit to account
b3) 
446.
For the irrecoverable part of the receivable, with a debit to account
b4) 
650.

Receivables, trade bills

441. 
Receivables in the form of accepted trade bills.
This account shall comprise trade bills held, trade bills discounted, trade
bills submitted for collection and defaulted trade bills. Defaulted trade bills shall
only be disclosed in this account when they should not be included in account
446.
This account shall be classified under current assets in the balance sheet.
In general, movements in this account are as follows:
The account shall be debited:
a) 
For the rendering of services, when the recipient has accepted the
a1) 
related trade bills, with a credit to accounts in subgroup 75.
For arrangement of the collection right through trade bills accepted
a2) 
by the recipient of the service or the debtor, generally with a credit
to account 440.
The account shall be credited:
b) 
For collection of the trade bills on maturity, with a debit to accounts
b1) 
in subgroup 57.
For classification as a doubtful receivable, with a debit to account
b2) 
446.
For the irrecoverable part of the receivable, with a debit to account
b3) 
650.
Financing obtained on discounting trade bills constitutes a payable that
should generally be included in the corresponding accounts in subgroup 52.
Consequently, upon maturity of the trade bills honoured, account 4411 shall be
credited, with a debit to account 5208.
– 392 –
 Doubtful receivables
446. 
Receivables included in this subgroup, including trade bills, where
circumstances reasonably indicate doubtful collection.
This account shall be classified under current assets in the balance sheet.
Movements are in line with those indicated for account 436.

Receivables for profit-sharing agreements

449. 
Receivables from venturers in operations governed by articles 239 to 243
of the Commercial Code and in other similar profit-sharing agreements.
This account shall be classified under assets in the balance sheet.
Movements in this account are as follows:
The account shall be debited:
a) 
For contributions made by the company as a non-trustee venturer,
a1) 
generally with a credit to accounts in subgroup 57.
Where the company is the trustee venturer, for the loss to be
a2) 
attributed to non-trustee venturers, when the balance in the profit-
sharing agreement becomes a debtor balance, with a credit to
account 7510.
For gains corresponding to the company as a non-trustee venturer,
a3) 
with a credit to account 7511.
The account shall be credited:
b) 
For collection of the receivables, with a debit to accounts in subgroup
b1) 
57.
Where the company is the trustee venturer, for the gains to be
b2) 
attributed to non-trustee venturers, while the balance in the profit-
sharing agreement remains a debtor balance, with a debit to account
6510.
For losses corresponding to the company as a non-trustee venturer,
b3) 
with a debit to account 6511.

46. PERSONNEL
460. Salary advances
465. Salaries payable
– 393 –
 Employee benefits payable through defined contribution
466. 
schemes
Balances with individuals that render services to the company, or with
companies with which post-employment benefit commitments are instrumented,
and whose remuneration is accounted for in subgroup 64.

Salary advances
460. 
Amounts paid on account of remuneration of company personnel.
Any other advances considered loans to personnel shall be included in
account 544 or in account 254, depending on the maturity date.
This account shall be classified under current assets in the balance sheet.
In general, movements in this account are as follows:
The account shall be debited when the above-mentioned amounts are
a) 
paid, with a credit to accounts in subgroup 57.
The account shall be credited when the advances are offset against
b) 
accrued remuneration, with a debit to accounts in subgroup 64.

Salaries payable
465. 
Payables to company employees for the items specified in accounts 640 and
641.
This account shall be classified under current liabilities in the balance sheet.
In general, movements in this account are as follows:
The account shall be credited for accrued salaries payable, with a debit
a) 
to accounts 640 and 641.
The account shall be debited when salaries are paid, with a credit to
b) 
accounts in subgroup 57.

Employee benefits payable through defined contribution

466. 
schemes
Amounts payable to a separate entity for long-term employee benefits,
such as pensions and other retirement benefits, which are considered defined
contributions in accordance with the recognition and measurement standards.
This account shall be classified under current liabilities in the balance sheet.
In general, movements in this account are as follows:
– 394 –
 Accrued amounts payable shall be credited to this account, with a debit
a) 
to account 643.
The account shall be debited when pending contributions are paid, with
b) 
a credit to accounts in subgroup 57.

47. PUBLIC ENTITIES

Taxation authorities, receivables
470. 
4700. VAT recoverable
4708. Grants receivable
4709. Recoverable taxes
Social Security, receivables
471. 
Input VAT
472. 
Withholdings and payments on account
473. 
Deferred tax assets
474. 
4740. Assets arising from deductible temporary differences
4742. Rights to tax deductions and credits pending application
4745. Tax loss carryforwards
Taxation authorities, taxes payable
475. 
4750. VAT payable
4751. Taxation authorities, withholding tax
4752. Income tax payable
4758. Repayable grants
Social Security, payables
476. 
Output VAT
477. 
Liabilities arising from taxable temporary differences
479. 

Taxation authorities, receivables

470. 
Subsidies, compensation, tax relief, tax refunds and, in general, any amounts
receivable in connection with taxation or support for development promoted
by public entities, excluding Social Security authorities.
This account shall be classified under assets in the balance sheet.
Content and movements in these four-digit accounts are as follows:
4700. VAT recoverable
The excess, in each tax period, of deductible input VAT over output VAT.
– 395 –
 At the end of each tax period, the excess shall be debited to this account,
a) 
with a credit to account 472.
The account shall be credited:
b) 
In the case of offsetting in subsequent tax returns, with a debit to
b1) 
account 477.
In the case of VAT recovered from the taxation authorities, with a
b2) 
debit to accounts in subgroup 57.
4708. Grants receivable
Receivables from the taxation authorities for grants awarded.
The account shall be debited when the grants are awarded, generally
a) 
with a credit to account 172 or 740 or to accounts in subgroup 94.
The account shall be credited upon collection, generally with a debit to
b) 
accounts in subgroup 57.
4709. Recoverable taxes
Receivables from the taxation authorities for recoverable tax
The account shall be debited:
a) 
For withholdings and payments on account to be recovered by the
a1) 
company, with a credit to account 473.
For tax paid in prior reporting periods that the company recovers
a2) 
as a result of income or other tax settlements, with a credit to
account 6300 or, where applicable, to account 8300.
In the case of other taxes recoverable that had been taken to
a3) 
expense, with a credit to account 636. In the event these amounts
were debited to accounts in group 2, the recoverable amount shall
be credited to those same group 2 accounts.
The account shall be credited upon collection, with a debit to accounts
b) 
in subgroup 57.

Social Security, receivables

471. 
Receivables from the various Social Security agencies in connection with
the social benefits the Company provides.
This account shall be classified under assets in the balance sheet.
Movements in this account are as follows:
– 396 –
 Benefits to be provided by the Social Security authorities shall be debited
a) 
to the account, generally with a credit to accounts in subgroup 57.
The account shall be credited upon cancellation of the receivable.
b) 

Input VAT
472. 
Deductible VAT accrued on the acquisition of goods and services and on
other transactions subject to applicable tax legislation.
Movements in this account are as follows:
The account shall be debited:
a) 
For the amount of deductible VAT when the tax is accrued, with
a1) 
a credit to payable or supplier accounts in group 1, 4 or 5 or to
accounts in subgroup 57. In the case of changes in the use of assets
that entail a transfer between line items, with a credit to account
477.
For any positive differences in deductible VAT corresponding to
a2) 
goods or services transactions involving current assets or capital
goods upon performing the restatements set out in the Pro Rata
Rule, with a credit to account 639.
The account shall be credited:
b) 
For the amount of deductible VAT offset in the tax return for the tax
b1) 
period, with a debit to account 477. In the event a balance remains
in account 472 after making this entry, this amount shall be debited
to account 4700.
For any negative differences in deductible VAT corresponding to
b2) 
goods or services transactions involving current assets or capital
goods upon performing the restatements set out in the Pro Rata
Rule, with a debit to account 634.
The account shall be debited or credited, with a credit or debit to
c) 
accounts in group 1, 2, 4 or 5, for the amount of corresponding deductible
VAT in the event of price changes after the taxable transactions were
carried out, or when these transactions are rendered fully or partially
ineffective, or when the tax base should be reduced due to discounts
and credits granted after the tax was accrued.

Withholdings and payments on account

473. 
– 397 –
 Amounts withheld by the company and payments made by the company on
account of taxes.
In general, movements in this account are as follows:
The account shall be debited for the amount of the withholding or
a) 
payment on account, generally with a credit to accounts in group 5 and
to accounts in subgroup 76.
The account shall be credited:
b) 
For the amount of withholdings and payments on account of income
b1) 
tax, up to the amount of the tax payable for the period, with a debit
to account 6300 or, where applicable, to account 8300.
For the amount of withholdings and payments on account of income
b2) 
tax that should be returned to the company, with a debit to account
4709.

Deferred tax assets

474. 
Assets arising from deductible temporary differences, tax loss carryforwards
pending offset in subsequent reporting periods and unused deductions and
other tax benefits that are pending application in future income tax returns.
This account shall comprise the full amount of deferred tax assets
corresponding to income tax. Deferred tax assets may not be offset against
deferred tax liabilities, even within the same period. The foregoing is without
prejudice to the provisions of part three of this General Accounting Plan, for
the purpose of presentation in a company’s annual accounts.
This account shall be classified under non-current assets in the balance
sheet.
The content and movements of these four-digit accounts are as follows:
4740. Assets arising from deductible temporary differences
Tax assets for differences that will result in lower tax payments or higher
recoverable tax in future years when the carrying amount of the assets or
liabilities from which they arise is recovered or settled.
The account shall be debited:
a) 
For the amount of assets arising from deductible temporary
a1) 
differences originated in the period, generally with a credit to
account 6301.
– 398 –
 For the amount of assets arising from deductible temporary
a2) 
differences generated on a transaction or event previously
recognised directly in equity, with a credit to account 8301.
For the increase in assets arising from deductible temporary
a3) 
differences, generally with a credit to account 638.
For the increase in assets arising from deductible temporary
a4) 
differences generated on a transaction or event previously
recognised directly in equity, with a credit to account 838.
The account shall be credited:
b) 
For the reductions in assets arising from deductible temporary
b1) 
differences, generally with a debit to account 633.
For the reductions in assets arising from deductible temporary
b2) 
differences generated on a transaction or event previously
recognised directly in equity, with a debit to account 833.
When the assets arising from deductible temporary differences are
b3) 
recognised, generally with a debit to account 6301.
When the assets arising from deductible temporary differences
b4) 
generated on a transaction or event previously recognised directly
in equity are recognised, with a debit to account 8301.
4742. Rights to tax deductions and credits pending application
Amount of the decrease in future income tax payable derived from income
tax deductions or credits pending application.
The account shall be debited:
a) 
For the tax credit derived from the income tax deduction obtained
a1) 
in the period, generally with a credit to account 6301.
For the increase in the tax credit, generally with a credit to account
a2) 
638.
The account shall be credited:
b) 
For the decrease in the tax credit, generally with a debit to account
b1) 
633.
For the application of tax deductions from prior reporting periods,
b2) 
generally with a debit to account 6301.
4745. Tax loss carryforwards
– 399 –
 Amount of the reduction in future income tax payable derived from the
existence of income tax loss carryforwards pending offset.
The account shall be debited:
a) 
For the tax credit derived from the income tax loss carryforwards
a1) 
generated in the period, generally with a credit to account 6301.
For the increase in the tax credit, generally with a credit to account
a2) 
638.
The account shall be credited:
b) 
For reductions in the tax credit, generally with a debit to account
b1) 
633.
When tax loss carryforwards from prior reporting periods are off
b2) 
set, generally with a debit to account 6301.

Taxation authorities, taxes payable

475. 
Taxes payable to public entities, where the company is either the tax payer,
acting in substitution of the taxpayer or is the withholder.
This account shall be classified under liabilities in the balance sheet.
The content and movements of these four-digit accounts are as follows:
4750. VAT payable
The excess, in each tax period, of output VAT over deductible input VAT.
The amount of the excess shall be credited to this account at the end of
a) 
each tax period, with a debit to account 477.
The amount of the excess shall be debited to this account when payment
b) 
is made, with a credit to accounts in subgroup 57.
4751. Taxation authorities, withholding tax
Amount of tax withholdings payable to the taxation authorities.
The account shall be credited upon accrual of the tax, when the company
a) 
is substituting the taxpayer or is the withholder, with a debit to accounts
in group 4, 5 or 6.
The account shall be debited when payment is made, with a credit to
b) 
accounts in subgroup 57.
4752. Income tax payable
Amount of income tax payable.
– 400 –
 The amount of tax payable shall be credited to this account, gene rally
a) 
with a debit to account 6300 and, where applicable, to account 8300.
The account shall be debited when payment is made, with a credit to
b) 
accounts in subgroup 57.
4758. Repayable grants
Payables to the taxation authorities for repayable grants.
The account shall be credited for the amount of the grant to be repaid,
a) 
generally with a debit to account 172 or 522.
The account shall be debited upon repayment, with a credit to accounts
b) 
in subgroup 57.

Social Security, payable

476. 
Payables to Social Security agencies in connection with the social benefits
they provide.
This account shall be classified under liabilities in the balance sheet.
Movements in this account are as follows:
The account shall be credited:
a) 
For the contributions corresponding to the company, with a debit
a1) 
to account 642.
For withholdings of contributions corresponding to company
a2) 
employees, with a debit to account 465 or 640.
The account shall be debited when the payable is settled, with a credit
b) 
to accounts in subgroup 57.

Output VAT
477. 
VAT accrued on the delivery of goods or the rendering of services and on
other transactions subject to applicable tax legislation.
Movements in this account are as follows:
The account shall be credited:
a) 
For the amount of output VAT, when the tax is accrued, with a
a1) 
debit to receivables or trade receivables accounts in group 2, 4 or
5 or to accounts in subgroup 57. In the case of changes in the use
of assets that entail a transfer between line items, with a debit to
account 472 and to the pertinent asset account.
– 401 –
 For the amount of output VAT, when the tax is accrued, in the
a2) 
case of retirement of capital goods or current assets and transfer
of these amounts to the personal property of the owner of the
operation or for end use by the owner, with a debit to account 550.
The amount of deductible input VAT offset in the tax return for the tax
b) 
period shall be debited to this account, with a credit to account 472. In
the event a balance remains in account 477 after making this entry, this
amount shall be credited to account 4750.
The account shall be credited or debited, with a debit or credit to
c) 
accounts in group 2, 4 or 5, for the amount of corresponding output
VAT in the event of price changes after the taxable transactions were
carried out, or when these transactions are rendered fully or partially
ineffective, or when the tax base should be reduced due to discounts
and credits granted after the tax was accrued.

Liabilities arising from taxable temporary differences

479. 
Differences that will result in higher tax payments or lower recoverable tax
in future reporting periods when the carrying amount of the assets or liabilities
from which they arise is recovered or settled.
This account shall include the full amount of deferred tax liabilities. Deferred
tax liabilities may not be offset against deferred tax assets. The foregoing is
without prejudice to the provisions of part three of this General Accounting
Plan, for the purpose of presentation in a company’s annual accounts.
This account shall be classified under non-current liabilities in the balance
sheet.
Movements in this account are as follows:
The account shall be credited:
a) 
For the amount of liabilities arising from taxable temporary
a1) 
differences originated in the period, generally with a debit to account
6301.
For the amount of liabilities arising from taxable temporary differences
a2) 
generated on a transaction or event previously recognised directly
in equity, with a debit to account 8301.
For the increase in liabilities arising from taxable temporary
a3) 
differences, generally with a debit to account 633.
– 402 –
 For the increase in liabilities arising from taxable temporary
a4) 
differences generated on a transaction or event previously
recognised directly in equity, with a debit to account 833.
The account shall be debited:
b) 
For the reductions in liabilities arising from taxable temporary
b1) 
differences, generally with a credit to account 638.
For the reductions in liabilities arising from taxable temporary
b2) 
differences generated on a transaction or event previously
recognised directly in equity, with a credit to account 838.
When the liabilities arising from taxable temporary differences are
b3) 
cancelled, generally with a credit to account 6301.
When the liabilities arising from taxable temporary differences gene
b4) 
rated on a transaction or event previously recognised directly in
equity are cancelled, with a credit to account 8301.

48. PREPAID EXPENSES AND DEFERRED INCOME

480. Prepaid expenses
485. Deferred income
480. Prepaid expenses
Expenses accounted for during the reporting period for which the related
expense corresponds to subsequent reporting periods.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The account shall be debited at the balance sheet date, with a credit
a) 
to the accounts in group 6 in which the expenses to be charged to
subsequent reporting periods were recognised.
The account shall be credited, at the beginning of the subsequent
b) 
reporting period, with a debit to accounts in group 6.

Deferred income
485. 
Income accounted for during the reporting period which corresponds to
subsequent reporting periods.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
– 403 –
 The account shall be credited at the balance sheet date, with a debit
a) 
to the accounts in group 7 in which the income corresponding to
subsequent reporting periods was recognised.
The account shall be debited at the beginning of the subsequent reporting
b) 
period, with a credit to accounts in group 7.

49. IMPAIRMENT OF TRADE RECEIVABLES AND CURRENT PROVISIONS

490. Impairment of trade receivables
493. Impairment of trade receivables from related parties
4933. Impairment of trade receivables from group companies
4934. Impairment of trade receivables from associates
4935. Impairment of trade receivables from other related parties
499. Trade provisions
4994. Provisions for onerous contracts
4999. Provisions for other trade operations
Adjustments to reflect impairment of financial assets arising on trade
operations due to underlying situations of insolvency of trade and other debtors
included in subgroups 43 and 44, as well as current obligations, at the balance
sheet date, for expenses to be incurred subsequent to delivery of goods or
rendering of services, such as expenses for returns of items sold, warranties on
products sold and other similar items.
The accounts in this subgroup, except for account 499 “Trade provisions”,
shall be classified under assets in the balance sheet, as a reduction in the item
in which the corresponding asset is recognised.

Impairment of trade receivables

490. 
Amount of valuation adjustments to reflect impairment of irrecoverable
receivables originating on trade operations.
Movements in this account are as follows, as per the option selected by the
company:
1. When, at the balance sheet date, the company calculates the amount of
impairment using a global estimate of the risk of default existing for the
balances of trade and other debtors, provided that these amounts are
not significant when considered individually:
The estimate made shall be credited to this account at the balance
a) 
sheet date, with a debit to account 694.
– 404 –
 The adjustment made at the balance sheet date of the prior
b) 
reporting period shall be debited to this account with a credit to
account 794.
2. When the company determines the amount of impairment by individually
monitoring the balances of trade and other debtors:
The amount of losses estimated shall be credited to this account
a) 
over the course of the reporting period, with a debit to account
694.
The account shall be debited as the trade and other receivables for
b) 
which the adjustment was made individually are derecognised, or
when the estimated loss deceases as a result of a subsequent event,
with a credit to account 794.

Impairment of trade receivables from related parties

493. 
Amount of valuation adjustments to reflect impairment of irrecoverable
receivables originating on trade operations performed with related parties.
4933/4934/4935
Movements in these four-digit accounts are in line with those indicated for
account 490.

Trade provisions
499. 
Provisions made to reflect current obligations arising in the course of the
company’s trade activities.
These accounts shall be classified under liabilities in the balance sheet.
Trade provisions that are expected to be used in the long term shall be
recognised in “Non-current provisions” under non-current liabilities in the
balance sheet.
4994. Provisions for onerous contracts
Provision made when the costs involved in fulfilling the terms and conditions
of a contract are higher than the economic benefits expected to flow from the
contract.
Movements in this account are as follows:
The amount of the estimate made shall be credited to this account at
a) 
the balance sheet date, with a debit to account 6954.
The account shall be debited:
b) 
– 405 –
 At the balance sheet date, if the company opts to fulfil the terms of
b1) 
the contract, for the surplus in the provision recorded, with a credit
to account 79544.
If the company opts to terminate the contract, generally with a
b2) 
credit to accounts in subgroup 57.
4999. Provisions for other trade operations
Provision to cover the expenses arising on returns of items sold, repair
warranties, servicing and other similar items.
Movements in this account are as follows:
The estimate made shall be credited to this account at the balance sheet
a) 
date, with a debit to account 6959.
The provision made in the prior period shall be debited to this account
b) 
at the balance sheet date, with a credit to account 79549.

– 406 –
 GROUP 5

FINANCIAL ACCOUNTS

Financial instruments for non-trade operations, namely transactions outside

the normal course of business which are expected to mature or to be sold or
realised within one year, and available liquid resources.
In particular, the following rules shall apply:
This group shall include both hedging and trading financial derivatives
a) 
that are to be settled within one year.
In general, financial instruments held for trading will be included in this
b) 
group. In particular, the group includes investments in equity instruments
of companies not considered group companies, joint-controlled entities
or associates, which have been acquired with the intention of selling
them in the short term.
Accounts of four or more digits shall be created to differentiate between
c) 
the categories in which the financial assets and financial liabilities have
been included in accordance with the recognition and measurement
standards.
In the case of acquisition of hybrid financial assets or where hybrid
d) 
financial liabilities are issued or assumed and for which the entire
hybrid is designated at fair value in accordance with recognition and
measurement standards, the item shall be recorded in an account
corresponding to the nature of the host contract. Accounts of four
or more digits shall be created, with an appropriate breakdown, to
distinguish the item as a current hybrid financial asset or a current
hybrid financial liability measured as a whole. When the host contract
and the embedded derivative are recognised separately, the embedded
derivative shall be treated as if it had been contracted independently
and included in the corresponding account in group 5, while the host
contract shall be included in the account corresponding to its nature.
Accounts of four or more digits shall be created, with an appropriate
breakdown, to disclose the item as the host contract of a current hybrid
financial instrument.
An account that includes financial assets or financial liabilities classified in
e) 
the category of “Financial assets at fair value through profit and loss”, as
– 407 –
 well as in the category of “Financial liabilities at fair value through profit
and loss, shall be credited or debited to the account in which these
assets and liabilities are recognised, with a debit or credit, respectively,
to accounts 663 and 763.
An account comprising liabilities or assets included in this group which,
f) 
in accordance with the recognition and measurement standards, form
part of a held for sale disposal group shall be debited or credited,
respectively, when the conditions for such classification are met, with a
credit or debit to the respective account in subgroup 58.
The difference between the initial recognition value of financial assets
g) 
or financial liabilities and their redemption value shall be debited or
credited, or where appropriate, shall be credited or debited to the
account in which the financial asset or financial liability is recorded, with
a balancing entry in the account in subgroup 76 or 66, depending on the
nature of the instrument.

– 408 –
50. CURRENT DEBENTURES, PAYABLES OF A SPECIAL NATURE AND
SIMILAR ISSUANCES
500. Current bonds and obligations
Current convertible bonds and obligations
501. 
Current liability-classified shares or equity holdings
502. 
Other current marketable securities
505. 
Current interest on debentures and similar issues
506. 
Dividends payable on liability-classified instruments
507. 
Redeemed marketable securities
509. 
Third-party financing through marketable securities and shares or other
holdings in the capital of the company which, in accordance with the economic
characteristics of the issue, should be considered a financial liability, where
these instruments mature within one year.
The accounts in this subgroup shall be classified under current liabilities in
the balance sheet.
The part of non-current payables that matures in the short term shall be
recognised under current liabilities in the balance sheet. The current portion
of non-current payables shall be transferred to this subgroup from the
corresponding accounts in subgroups 15 and 17.

Current bonds and obligations

500. 
Bonds and obligations in circulation that are not convertible into shares and
that will mature within one year.
In general, movements in this account are as follows:
The account shall be credited:
a) 
Upon issue, for the amount received less any transaction costs, with
a1) 
a debit to accounts in subgroup 57.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 661.
The account shall be debited for the amount to be paid upon redemption
b) 
of the bonds, with a credit to account 509.

Current convertible bonds and obligations

501. 
Financial liability component of bonds and obligations that are convertible
into shares that will mature within one year and are classified as compound
financial instruments.
– 409 –
 Movements in this account are in line with those indicated for account 500.

Current liability-classified shares or equity holdings

502. 
Registered capital and, where applicable, the share premium or additional
paid-in capital in commercial companies which, based on the characteristics of
the issue, should be accounted for as a financial liability and are to be redeemed
in the short term. In particular, this includes certain redeemable shares and
non-voting shares and equity holdings.
Movements in this account are as follows:
The account shall be credited for the initial capital and subsequent
a) 
capital increases, when the public deed is filed at the Business Registry,
with a debit to account 199.
The account will be charged for cancellations or reductions and at the
b) 
dissolution of the company, once the winding-up period has elapsed.

Other current marketable securities

505. 
Other financial liabilities maturing within one year, represented by
marketable securities, offered as a savings investment for the public, other than
those stated above.
The content and movements of this account are in line with those indicated
for account 501 or 500, depending on whether or not the liability is a com
pound financial instrument.

Current interest on debentures and similar issues

506. 
Interest payable in the short term on debentures and other similar issues.
Movements in this account are as follows:
Explicit interest accrued during the reporting period, including interest
a) 
not yet due, shall be credited to this account, with a debit to account
661.
The account shall be debited:
b) 
For withholdings on account of taxes, where applicable, with a credit
b1) 
to account 475.
Upon payment, with a credit to accounts in subgroup 57.
b2) 
– 410 –
 Dividends payable on liability-classified instruments
507. 
Dividends payable in the short term on shares or equity holdings classified
as liabilities.
Movements in this account are as follows:
The account shall be credited for the amount of dividends accrued
a) 
during the reporting period, with a debit to account 664.
The account shall be debited:
b) 
For withholdings on account of taxes, where applicable, with a credit
b1) 
to account 475.
Upon payment, with a credit to accounts in subgroup 57.
b2) 

Redeemed marketable securities

509. 
Payables for redeemed marketable securities.
In general, movements in this account are as follows:
The account shall be credited for the redemption value of the redeemed
a) 
securities, with a debit to accounts in this subgroup or in subgroup 17.
The account shall be debited for the redemption value of the redeemed
b) 
securities, with a credit to accounts in subgroup 57.

51. CURRENT PAYABLES TO RELATED PARTIES

510. Current debt with related financial institutions
5103. Current debt with financial institutions, group companies
5104. Current debt with financial institutions, associates
5105. Current debt with other related financial institutions
511. Current payables to suppliers of fixed assets, related parties
5113. Current payables to suppliers of fixed assets, group
companies
5114. Current payables to suppliers of fixed assets, associates
5115. Current payables to suppliers of fixed assets, other related
parties
512. Current finance lease payables, related parties
5123. Current finance lease payables, group companies
5124. Current finance lease payables, associates
5125. Current finance lease payables, other related parties
– 411 –
 Other current payables to related parties
513. 
5133. Other current payables, group companies
5134. Other current payables, associates
5135. Other current payables, other related parties
Current interest on payables to related parties
514. 
5143. Current interest on payables, group companies
5144. Current interest on payables, associates
5145. Current interest on payables, other related parties
Payables to group companies, jointly-controlled entities, associates and
other related parties, maturing within one year. Payables which, due to their
nature, should be recognised in subgroup 50 or 52, current guarantees and
deposits received in subgroup 56 and financial derivatives that should be
recognised in account 559 shall also be disclosed in this subgroup in accounts
of three or more digits.
The accounts in this subgroup shall be classified under current liabilities in
the balance sheet.
The part of non-current payables to related parties that matures in the
short term shall be recognised in “Group companies and associates, current”,
under current liabilities in the balance sheet. The current portion of non-
current payables shall be transferred to this subgroup from the corresponding
accounts in subgroup 16.

Current debt with related financial institutions

510. 
Payables to related-party financial institutions for loans and borrowings,
maturing within one year.
5103/5104/5105
Movements in these four-digit accounts are as follows:
The accounts shall be credited:
a) 
Upon arrangement of the debt or loan, for the amount received less
a1) 
any transaction costs, generally with a debit to accounts in subgroup
57.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Full or partial repayments, on maturity, shall be debited to these
b) 
accounts, with a credit to accounts in subgroup 57.
– 412 –
 Current payables for discounted bills shall be included in accounts of five or
more digits, with an appropriate breakdown.

Current payables to suppliers of fixed assets, related parties

511. 
Payables to related parties which are suppliers of assets defined in group 2,
including trade bills payable, maturing within one year.
5113/5114/5115
Movements in these four-digit accounts are as follows:
The accounts shall be credited:
a) 
For the receipt and acceptance of the assets supplied, with a debit
a1) 
to accounts in group 2.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Full or partial settlements shall be debited to these accounts, generally
b) 
with a credit to accounts in subgroup 57.

Current finance lease payables, related parties

512. 
Payables to related parties which are lessors of assets under finance lease
agreements as defined in the recognition and measurement standards, maturing
within one year.
Movements in these four-digit accounts are as follows:
5123/5124/5125
The accounts shall be credited:
a) 
For the receipt and acceptance of the right to use the assets supplied,
a1) 
with a debit to accounts in group 2.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Full or partial settlements shall be debited to these accounts, generally
b) 
with a credit to accounts in subgroup 57.

Other current payables to related parties

513. 
Payables to related parties for loans received and other debts not included
in other accounts in this subgroup, maturing within one year.
5133/5134/5135
– 413 –
 Movements in these four-digit accounts are in line with those indicated for
account 510.

Current interest on payables to related parties

514. 
Interest payable in the short term on payables to related parties.
5143/5144/5145
Movements in these four-digit accounts are as follows:
Explicit interest accrued during the reporting period, including interest
a) 
not yet due, shall be credited to these accounts, with a debit to account
662.
The accounts shall be debited:
b) 
For withholdings on account of taxes, where applicable, with a credit
b1) 
to account 475.
Upon payment, with a credit to accounts in subgroup 57.
b2) 

52. CURRENT PAYABLES FOR LOANS AND OTHER

Current debt with financial institutions
520. 
5200. Current loans from financial institutions
5201. Current payables for drawdowns on credit facilities
5208. Payables, discounted trade bills
5209. Payables, factoring
Current payables
521. 
Current payables convertible into grants, donations and
522. 
bequests
Current payables to suppliers of fixed assets
523. 
Current finance lease payables
524. 
Current bills payable
525. 
Dividend payable
526. 
Current interest on debt with financial institutions
527. 
Current interest on payables
528. 
Current provisions
529. 
5290. Current provisions for employee benefits
5291. Current provisions for taxes
5292. Current provisions for other liabilities
– 414 –
 5293. Current provisions for dismantlement, removal or
restoration of non-current assets
5295. Current provisions for environmental actions
5296. Current provisions for restructuring costs
5297. Current provisions for share-based payment transactions
Short-term third-party financing not instrumented through marketable
securities or contracted with individuals or entities considered related parties,
including dividends payable. This subgroup also includes provisions that are
expected to be used in the short term.
Accounts in this subgroup shall be classified under current liabilities in the
balance sheet.
The part of non-current payables that matures in the short term shall be
disclosed under current liabilities in the balance sheet. The current portion of
non-current payables and non-current provisions shall be transferred to this
subgroup from the corresponding accounts in subgroups 14 and 17.

Current debt with financial institutions

520. 
Payables to financial institutions for loans and borrowings, maturing within
one year.
The content and movements of these four-digit accounts are as follows:
5200. Current loans from financial institutions
Amount of current loans from financial institutions, in accordance with the
contract stipulations.
The account shall be credited:
a) 
Upon arrangement of the loan, for the amount received less any
a1) 
transaction costs, generally with a debit to accounts in subgroup 57.
For accrued borrowing costs, up to the redemption value, generally
a2) 
with a debit to account 662.
Full or partial repayments shall be debited to this account, with a credit
b) 
to accounts in subgroup 57.
5201. Current payables for drawdowns on credit facilities
Payables for amounts drawn down on credit facilities.
The account shall be credited:
a) 
– 415 –
 For the amounts drawn down, generally with a debit to accounts in
a1) 
subgroup 57.
For the accrued finance expenses, up to the redemption value, gene
a2) 
rally with a debit to account 662.
The account shall be debited for full or partial repayment, with a credit
b) 
to accounts in subgroup 57.
5208. Payables, discounted trade bills
Current payables to financial institutions as a result of discounting of bills.
The account shall be credited:
a) 
When bills are discounted, for the amount received, generally with
a1) 
a debit to accounts in subgroup 57 and, for interest and expenses
borne, with a debit to account 665.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
The account shall be debited:
b) 
Upon maturity of the bills honoured, generally with a credit to
b1) 
accounts 431 and 441.
For the amount of bills not honoured at maturity, with a credit to
b2) 
accounts in subgroup 57.
5209. Payables, factoring
Current payables to financial institutions as a result of factoring operations in
which the company substantially retains the risks and rewards of the collection
rights.
The account shall be credited:
a) 
For the financing obtained, generally with a debit to accounts in sub
a1) 
group 57 and, for the interest and expenses borne, with a debit to
account 665.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
The account shall be debited:
b) 
Upon maturity of the collection rights honoured, generally with a
b1) 
credit to account 432.
For the amount of the collection rights not honoured at maturity,
b2) 
with a credit to accounts in subgroup 57.
– 416 –
 Current payables
521. 
Payables to third parties for loans received and other debts not included in
other accounts in this subgroup, maturing within one year.
Movements in this account are as follows:
The account shall be credited:
a) 
Upon arrangement of the debt or loan, for the amount received less
a1) 
any transaction costs, generally with a debit to accounts in subgroup
57.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Full or partial repayments shall be debited to this account, with a credit
b) 
to accounts in subgroup 57.

Current payables convertible into grants, donations and bequests

522. 
Amounts extended by Spanish or international public entities, companies or
individuals, where these amounts are considered repayable grants, donations
or bequests, maturing within one year.
Movements in this account are as follows:
Amounts awarded to the company shall be credited to this account,
a) 
generally with a debit to accounts in subgroup 47 or 57.
The account shall be debited:
b) 
For any circumstance which results in full or partial reduction of
b1) 
amounts granted, in accordance with the terms governing the
award, generally with a credit to account 4758.
In the event repayment of these amounts is no longer required, the
b2) 
balance shall be debited to this account, with a credit to account
940, 941 or 942 or to accounts in subgroup 74.

Current payables to suppliers of fixed assets

523. 
Payables to suppliers of assets defined in group 2, maturing within one year.
Movements in this account are as follows:
The account shall be credited:
a) 
For receipt and acceptance of goods supplied, with a debit to
a1) 
accounts in group 2.
– 417 –
 For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
The account shall be debited:
b) 
For arrangement of bills payable, with a credit to account 525.
b1) 
For full or partial settlement, with a credit to accounts in subgroup 57.
b2) 

Current finance lease payables

524. 
Payables to other entities which are lessors of assets under finance lease
agreements as defined in the recognition and measurement standards, maturing
within one year.
Movements in this account are as follows:
The account shall be credited:
a) 
For the receipt and acceptance of the right to use the assets supplied,
a1) 
with a debit to accounts in group 2.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Full or partial settlements shall be debited to this account, generally
b) 
with a credit to accounts in subgroup 57.

Current bills payable

525. 
Bills payable for loans received and other debts, maturing within one year,
including those arising from the supply of fixed assets.
Movements in this account are as follows:
The account shall be credited:
a) 
When the company accepts the bills, generally with a debit to
a1) 
accounts in this subgroup.
For accrued finance expenses, up to the redemption value, generally
a2) 
with a debit to account 662.
Payments of the bills on maturity shall be debited to this account, with
b) 
a credit to accounts in subgroup 57.

Dividend payable
526. 
Dividends payable to shareholders, either as final dividends or interim
dividends on account of profits for the reporting period.
– 418 –
 Movements in this account are as follows:
The account shall be credited:
a) 
For the interim dividend approved, with a debit to account 557.
a1) 
For the final dividend, excluding any interim dividends, upon approval
a2) 
of the distribution of profits, with a debit to account 129.
In the event of approval of the distribution of amounts from
a3) 
unrestricted reserves, with a debit to accounts in subgroup 11.
The account shall be debited:
b) 
For withholdings on account of taxes, with a credit to account 475.
b1) 
Upon payment, with a credit to accounts in subgroup 57.
b2) 

Current interest on debt with financial institutions

527. 
Interest due on debt with financial institutions.
Movements in this account are as follows:
Explicit interest accrued during the reporting period, including interest
a) 
not yet due, shall be credited to this account, with a debit to account
662.
The account shall be debited when payment is made, with a credit to
b) 
accounts in subgroup 57.

Current interest on payables

528. 
Interest payable in the short term on debts, excluding balances that should
be recorded in account 527.
Movements in this account are as follows:
Explicit interest accrued during the reporting period, including interest
a) 
not yet due, shall be credited to this account, with a debit to account
662.
The account shall be debited:
b) 
For withholdings on account of taxes, where applicable, with a credit
b1) 
to account 475.
Upon payment, with a credit to accounts in subgroup 57.
b2) 
– 419 –
 Current provisions
529. 
Provisions included in subgroup 14 that are expected to be used in the
short term shall be classified in “Current provisions” under current liabilities in
the balance sheet. The current portion of the non-current obligation shall be
transferred to this subgroup from the corresponding accounts in subgroup 14.
Movements in these four-digit accounts are in line with those indicated for
the corresponding accounts in subgroup 14.

53. CURRENT INVESTMENTS IN RELATED PARTIES

530. Current investments in related parties
5303. Current investments in group companies
5304. Current investments in associates
5305. Current investments in other related parties
531. Current debt securities of related parties
5313. Current debt securities of group companies
5314. Current debt securities of associates
5315. Current debt securities of other related parties
532. Current loans to related parties
5323. Current loans to group companies
5324. Current loans to associates
5325. Current loans to other related parties
533. Current interest on debt securities of related parties
5333. Current interest on debt securities of group companies
5334. Current interest on debt securities of associates
5335. Current interest on debt securities of other related parties
534. Current interest on loans to related parties
5343. Current interest on loans to group companies
5344. Current interest on loans to associates
5345. Current interest on loans to other related parties
535. Dividend receivable on investments in related parties
5353. Dividend receivable from group companies
5354. Dividend receivable from associates
5355. Dividend receivable from other related parties
539. Current uncalled equity holdings in related parties
– 420 –
 5393. Current uncalled equity holdings in group companies
5394. Current uncalled equity holdings in associates
5395. Current uncalled equity holdings in other related parties
Current investments in group companies, jointly-controlled entities,
associates and other related parties, irrespective of how these investments are
instrumented, including dividends and interest accrued, maturing within one
year or with no set maturity (such as equity instruments) that the company
intends to sell in the short term. This subgroup shall also comprise current
guarantees and deposits extended and other types of current investments and
financial assets with these individuals or entities. These investments shall be
included in the appropriate accounts of three or more digits.
The part of non-current investments with related individuals or entities
that matures in the short term shall be disclosed in “Current investments in
group companies and associates” under current assets in the balance sheet.
The current portion of non-current investments shall be transferred to this
subgroup from the corresponding accounts in subgroup 24.

Current investments in related parties

530. 
Current investments in the equity rights of either listed or non-listed
related parties, generally shares issued by corporations or equity holdings in
limited liability companies.
This account shall be classified under current assets in the balance sheet.
5303/5304. Current investments in group companies / associates
Movements in these four-digit accounts are as follows:
The accounts shall be debited:
a) 
Upon subscription or purchase, generally with a credit to accounts
a1) 
in subgroup 57 and, where applicable, to account 539.
Where applicable, when the recoverable amount of an investment
a2) 
exceeds its carrying amount, up to the limit of the prior negative
valuation adjustments recognised directly in equity, with a credit to
account 991 or 992.
The accounts shall be credited:
b) 
Where applicable, for estimated impairment, up to the limit of the
b1) 
prior positive valuation adjustments recognised directly in equity,
with a debit to account 891 or 892.
– 421 –
 For disposal and derecognition, generally with a debit to accounts in
b2) 
subgroup 57 or, in the event of pending payments, to account 539
and, in the case of losses, to account 666.
5305. Current investments in other related parties
Movements in this account are as follows:
The account shall be debited:
a) 
Upon subscription or purchase, generally with a credit to accounts
a1) 
in subgroup 57 and, where applicable, to account 539.
For changes in fair value, with a credit to account 763.
a2) 
The account shall be credited:
b) 
For changes in fair value, with a debit to account 663.
b1) 
For disposal and derecognitions, generally with a debit to accounts
b2) 
in subgroup 57 and, in the event of pending payments, to account
539.

Current debt securities of related parties

531. 
Current investments in obligations, bonds or other debt securities, including
those for which returns are pegged to indices or similar systems, issued by
related parties and maturing within one year.
This account shall be classified under current assets in the balance sheet.
5313/5314/5315
In general, movements in these four-digit accounts are as follows:
The accounts shall be debited:
a) 
Upon subscription or purchase, for the purchase price, excluding
a1) 
explicit accrued interest not yet due, with a credit to accounts in
subgroup 57.
For accrued finance income, up to the redemption value of the
a2) 
security, generally with a credit to account 761.
The accounts shall be credited for disposal, redemption or derecognition
b) 
of the securities, generally with a debit to accounts in subgroup 57 and,
in the case of losses, to account 666.
If the securities are classified as financial assets at fair value through
c) 
equity, changes in the fair value of the securities shall be debited or
credited to these accounts with a credit or debit, respectively, to
– 422 –
 accounts 900 and 800, except for the portion relating to exchange gains
or losses, which shall be recorded with a credit or debit to accounts
768 and 668. Impairment of the securities shall be debited to these
accounts, for the negative balance accumulated in equity, with a credit
to account 902.

Current loans to related parties

532. 
Current investments in loans and other non-trade credit to related parties,
including balances arising from disposals of fixed assets, finance lease transactions
and current deposits maturing within one year, irrespective of whether they
are trade bills. These receivables shall be recognised in five-digit accounts.
This account shall be classified under current assets in the balance sheet.
5323/5324/5325
Movements in these four-digit accounts are as follows:
The accounts shall be debited:
a) 
Upon arrangement, for the amount of the loan, with a credit to
a1) 
accounts in subgroup 57.
For accrued finance income, up to the redemption value, generally
a2) 
with a credit to account 762.
Full or partial repayments or derecognitions shall be credited to these
b) 
accounts, generally with a debit to accounts in subgroup 57 and, in the
case of losses, to account 667.

Current interest on debt securities of related parties

533. 
Interest receivable, maturing within one year, on debt securities from
related parties.
This account shall be classified under current assets in the balance sheet.
5333/5334/5335
Movements in these four-digit accounts are as follows:
The accounts shall be debited:
a) 
Upon subscription or purchase of the securities, for the amount of
a1) 
the explicit accrued interest not yet due, maturing within one year,
generally with a credit to accounts in subgroup 57.
For explicit accrued interest, maturing within one year, with a credit
a2) 
to account 761.
– 423 –
 The accounts shall be credited:
b) 
For the amount of interest collected, with a debit to accounts in sub
b1) 
group 57.
Upon disposal, redemption or derecognition of the securities, gene
b2) 
rally with a debit to accounts in subgroup 57 and, in the case of
losses, to account 666.

Current interest on loans to related parties

534. 
Interest receivable, maturing within one year, on loans to related parties.
This account shall be classified under current assets in the balance sheet.
5343/5344/5345
Movements in these four-digit accounts are as follows:
Explicit accrued interest, maturing within one year, shall be debited to
a) 
this account, with a credit to account 762.
The accounts shall be credited:
b) 
For the amount of interest collected, with a debit to accounts in
b1) 
subgroup 57.
For full or partial repayment or derecognition, generally with a debit
b2) 
to accounts in subgroup 57 and, in the case of losses, to account
667.

Dividend receivable on investments in related parties

535. 
Receivables for final and/or interim dividends pending collection on
investments in related parties.
This account shall be classified under current assets in the balance sheet.
5353/5354/5355
Movements in these four-digit accounts are as follows:
The amount accrued shall be debited to these accounts, with a credit to
a) 
account 760.
The amount received shall be credited to these accounts, generally
b) 
with a debit to accounts in subgroup 57 and, for withholdings made, to
account 473.
– 424 –
 Current uncalled equity holdings in related parties
539. 
Uncalled payments on equity holdings in related parties, when these are
considered current investments.
This account shall be classified under current assets in the balance sheet, as
a reduction in the item in which the corresponding investments are recorded.
5393/5394/5395
Movements in these four-digit accounts are as follows:
Upon acquisition or subscription of the shares the amount pending
a) 
payment shall be credited to this account, with a debit to account 530.
The accounts shall be debited as payments are called, with a credit
b) 
to account 556 or, for any balances pending upon the sale of equity
instruments that are not fully paid in, to account 530.

54. OTHER CURRENT INVESTMENTS

Current investments in equity instruments
540. 
Current debt securities
541. 
Current loans
542. 
Current loans for disposal of fixed assets
543. 
Current loans to personnel
544. 
Dividend receivable
545. 
Current interest on debt securities
546. 
Current interest on loans
547. 
Current deposits
548. 
Current uncalled equity holdings
549. 
Current investments in non-related parties, irrespective of how these
investments are instrumented, maturing within one year or with no set maturity
(such as equity instruments) that the company intends to sell in the short term,
including accrued interest.
The part of non-current investments that matures in the short term shall be
recognised in “Current investments” under current assets in the balance sheet.
The current portion of non-current investments shall be transferred to this
subgroup from the corresponding accounts in subgroup 25.
– 425 –
 Current investments in equity instruments
540. 
Current investments in the equity rights of entities not considered related
parties, namely shares listed or not listed on a regulated market and other
securities, such as holdings in collective investment undertakings and equity
holdings in limited liability companies.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The account shall be debited:
a) 
Upon subscription or purchase, with a credit to accounts in subgroup
a1) 
57 and, where applicable, to account 549.
For changes in fair value, with a credit to account 763.
a2) 
The account shall be credited:
b) 
For changes in fair value, with a debit to account 663.
b1) 
For disposal and derecognition, generally with a debit to accounts
b2) 
in subgroup 57 and, in the event of amounts not paid in, to account
549.

Current debt securities

541. 
Current investments through subscription or acquisition of obligations,
bonds or other fixed-income securities, including those for which returns are
pegged to indices or similar systems.
When the securities subscribed or acquired have been issued by related
parties, the investment shall be recognised in account 531.
This account shall be classified under current assets in the balance sheet.
In general, movements in this account are as follows:
The account shall be debited:
a) 
Upon subscription or purchase, for the purchase price, excluding
a1) 
explicit accrued interest not yet due, with a credit to accounts in
subgroup 57.
For accrued finance income, up to the redemption value of the
a2) 
security, generally with a credit to account 761.
Disposal, redemption or derecognition of the securities shall be credited
b) 
to this account, generally with a debit to accounts in subgroup 57 and, in
the case of losses, to account 666.
– 426 –
 If the securities are classified as “Financial assets at fair value through
c) 
equity”, changes in the fair value of the securities shall be debited or
credited to this account, with a balancing entry in accounts 900 and
800, except for the portion relating to exchange gains or losses, which
shall be recorded with a credit or debit to accounts 768 and 668. The
account shall also be debited upon impairment of the security, for the
negative balance accumulated in equity, with a credit to account 902.

Current loans
542. 
Loans and other non-trade credits to third parties, including trade bills,
maturing within one year.
When loans have been arranged with related parties, the investment shall
be disclosed in account 532.
This account shall also include both repayable and non-repayable capital
donations and bequests awarded to the company and receivable in the short
term where these amounts are settled in cash or other financial instruments,
and excluding grants that should be recorded in accounts in subgroup 44 or 47.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The account shall be debited:
a) 
Upon arrangement, for the amount of the loan, generally with a
a1) 
credit to accounts in subgroup 57.
For accrued finance income, up to the redemption value, generally
a2) 
with a credit to account 762.
Full or partial repayment or derecognitions shall be credited to this
b) 
account, generally with a debit to accounts in subgroup 57 and, in the
case of losses, to account 667.

Current loans for disposal of fixed assets

543. 
Loans to third parties that mature within one year, arising on the disposal
of fixed assets.
When the loans for disposal of fixed assets have been extended to related
parties, the investment shall be disclosed in account 532.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
– 427 –
 The account shall be debited:
a) 
For the amount of the loans, excluding any interest agreed, with a
a1) 
credit to accounts in group 2.
For accrued finance income, up to the redemption value, generally
a2) 
with a credit to account 762.
Full or partial repayment or derecognitions shall be credited to this
b) 
account, generally with a debit to accounts in subgroup 57 and, in the
case of losses, to account 667.

Current loans to personnel

544. 
Loans extended to company employees that are not considered related
parties, maturing within one year.
This account shall be classified under current assets in the balance sheet.
Movements in this account are in line with those indicated for account 542.

Dividend receivable
545. 
Final or interim dividends receivable on account of profits for the reporting
period.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The amount accrued shall be debited to this account with a credit to
a) 
account 760.
The amount collected shall be credited to this account, generally with a
b) 
debit to accounts in subgroup 57 and, for withholdings made, to account
473.

Current interest on debt securities

546. 
Interest receivable, maturing within one year, on debt securities.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The account shall be debited:
a) 
Upon subscription or purchase of securities, for the amount of the
a1) 
explicit accrued interest not yet due, maturing within one year,
generally with a credit to accounts in subgroup 57.
– 428 –
 For explicit accrued interest, maturing within one year, with a credit
a2) 
to account 761.
The account shall be credited:
b) 
For the amount of interest collected, with a debit to accounts in sub
b1) 
group 57.
Upon disposal, redemption or derecognition of the securities, gene
b2) 
rally with a debit to accounts in subgroup 57 and, in the case of los
ses, to account 666.

Current interest on loans

547. 
Interest receivable on loans, maturing within one year.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
Explicit accrued interest maturing within one year shall be debited to
a) 
this account, with a credit to account 762.
The account shall be credited:
b) 
For the amount of interest collected, with a debit to accounts in sub
b1) 
group 57.
For full or partial repayment or derecognition, generally with a debit
b2) 
to accounts in subgroup 57 and, in the case of losses, to account
667.

Current deposits
548. 
Time deposits or similar deposits at banks and financial institutions maturing
within one year contracted under market conditions. This account shall
also include interest receivable in the next twelve months on time deposits,
disclosed in four-digit accounts.
When the time deposits have been made in related financial institutions the
investment shall be recognised in account 532.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
Upon arrangement the amount of the deposit shall be debited to this
a) 
account.
The account shall be credited upon recovery or transfer of the funds.
b) 
– 429 –
 Current uncalled equity holdings
549. 
Uncalled payments on equity holdings in entities not considered related
parties, when these are current investments.
This account shall be classified under current assets in the balance sheet,
as a reduction in the item in which the corresponding equity instruments are
recognised.
Movements in this account are as follows:
Upon acquisition or subscription of the equity instruments, the amount
a) 
pending payment shall be credited to this account, with a debit to
account 540.
The account shall be debited as payments are called, with a credit
b) 
to account 556 or, for any balances pending upon the sale of equity
instruments that are not fully paid in, to account 540.

55. ACCOUNTS OTHER THAN BANK ACCOUNTS

550. Current account with owner
551. Current account with equity holders and directors
552. Current account with other individuals and related entities
5523. Current account with group companies
5524. Current account with associates
5525. Current account with other related parties
553. Current accounts in mergers and spin-offs
5530. Equity holders of the dissolved company
5531. Equity holders, merger account
5532. Equity holders of the spin-off
5533. Equity holders, spin-off account
Current account with temporary joint ventures and co-
554. 
ownerships
Items pending application
555. 
Called-up equity holdings
556. 
Interim dividend
557. 
Receivable on called-up capital
558. 
5580. Receivable on called-up ordinary shares or equity holdings
– 430 –
 5585. Receivable on called-up liability-classified shares or equity
hol dings
Current derivative financial instruments
559. 
5590. Current assets arising from derivative financial instruments,
trading portfolio
5593. Current assets arising from derivative financial instruments,
hedging instruments
5595.  Current liabilities arising from derivative financial
instruments, trading portfolio
5598.  Current liabilities arising from derivative financial
instruments, hedging instruments

Current account with owner

550. 
Current account held with the owner of the operation, where this account
expresses the flows between the personal property of the owner and the
company over the course of the reporting period.
Movements in this account are as follows:
The account shall be credited:
a) 
For the assets and rights transferred from the owner’s personal
a1) 
property to the company.
For gains which have not been capitalised, with a debit to account
a2) 
129.
The account shall be debited for the assets and rights withdrawn from
b) 
the company and transferred to the owner for use or for inclusion in
the owner’s personal property.
At the balance sheet date the account shall be credited or debited,
c) 
depending on the balance, with a debit or credit to account 102.

551/552. Current account with....

Current cash accounts with equity holders, directors or any individual or
company other than a bank, banker or credit institution or a trade debtor or
supplier of the company, and which are not joint accounts.
The sum of the balances receivable shall be classified under current assets in
the balance sheet and the sum of the balances payable shall be classified under
current liabilities.
In general, movements in these accounts are as follows:
– 431 –
 Outflows from the company are debited to these accounts and inflows to
the company are credited to the accounts, with a credit and debit, respectively,
to accounts in subgroup 57.

Current accounts in mergers and spin-offs

553. 
Current accounts used to record the transfer of assets, liabilities and equity
items, the payment of consideration and the corresponding changes in equity
of companies undergoing mergers and spin-offs.
This account shall be classified under assets or liabilities in the balance
sheet, as appropriate.
In general, the content and movements of these four-digit accounts are as
follows:
5530. Equity holders of the dissolved company
Current account of the absorbing company or the newly-created company
with the equity holders of the company dissolved in a merger.
The account shall be credited upon receipt of the transfer of assets
a) 
acquired and liabilities assumed.
The account shall be debited when equity holders receive the shares
b) 
or equity holdings issued, with a credit to accounts 100 and 110 and,
where applicable, to the corresponding accounts in subgroup 57.
5531. Equity holders, merger account
Current account of companies dissolved in a merger.
The account shall be debited upon transfer of the assets acquired and
a) 
the liabilities assumed to the absorbing company or the newly-created
company.
The account shall be credited when equity holders receive the shares
b) 
or equity holdings issued, with a debit to the corresponding equity
accounts of the dissolved company.
5532. Equity holders of the spin-off
Current account of the beneficiary or the absorbing or newly-created
company to record the transfer from the spun-off company of the assets
acquired and liabilities assumed.
Movements in this account are similar to those indicated for account 5530.
5533. Equity holders, spin-off account
– 432 –
 Current account of the spun-off company, created in order to transfer the
assets, liabilities and equity items spun off to the beneficiary or the absorbing
or newly-created company, and to cancel the corresponding equity accounts of
the spun-off company, upon the reduction in capital in the case of a partial spin
off or, in the case of total spin off, the dissolution of the company.
Movements in this account are similar to those indicated for account 5531.

Current account with temporary joint ventures and co-

554. 
ownerships
Movements with the temporary joint ventures and co-ownerships in which
the company participates derived from monetary contributions, including
contributions made on creation, monetary returns from joint ventures,
reciprocal use of resources, services and other supplies and allocations of
results obtained in these arrangements.
Movements in this account are as follows:
Outflows from the company shall be debited to this account, with a
a) 
credit to the corresponding accounts in groups 2, 5 and 7.
Inflows to the company shall be credited to this account, with a debit to
b) 
the corresponding accounts in groups 2, 5 and 6.

Items pending application

555. 
Funds received by the company for reasons that, a priori, are not identifiable,
providing that the funds do not relate to transactions which, due to their nature,
should be included in other subgroups. Such funds shall remain in this account
only for as long as strictly necessary to clarify the reason they were received.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
Funds received shall be credited to this account, with a debit to accounts
a) 
in subgroup 57.
The account shall be debited upon application, with a credit to the
b) 
account in which the amount should actually be recorded.

Called-up equity holdings

556. 
Equity holdings called up and pending payment.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
– 433 –
 The account shall be credited when the payment is called, with a debit
a) 
to accounts in subgroup 24, 25, 53 or 54.
The payments made shall be debited to this account, with a credit to
b) 
accounts in subgroup 57.

Interim dividend
557. 
Amounts on account of profits that the pertinent governing body agrees to
distribute.
This account shall be classified in equity, as a reduction in capital and
reserves without valuation adjustments.
Movements in this account are as follows:
The account shall be debited when the distribution is approved, with a
a) 
credit to account 526.
The balance shall be credited to this account when the decision to dis
b) 
tribute and apply profits is made, with a debit to account 129.

Receivable on called-up capital

558. 
5580. Receivable on called-up ordinary shares or equity holdings
Registered capital receivable, as the amount has been called from share-
holders or equity holders.
Details of unpaid calls on capital shall be provided in the appropriate five-
digit accounts.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
Payments called shall be debited to this account, with a credit to account
a) 
1030.
The account shall be credited as these payments are made, with a debit
b) 
to accounts in subgroup 57.
5585. Receivable on called-up liability-classified shares or equity
holdings
Amount called and pending collection from subscribers on issued and
subscribed shares or equity holdings considered financial liabilities.
Details of unpaid calls on capital shall be provided in the appropriate five-
digit accounts.
– 434 –
 This account shall be classified under non-current liabilities in the balance
sheet as a reduction in “Non-current payables of a special nature”.
Movements in this account are as follows:
Payments called shall be debited to this account, with a credit to account
a) 
153.
The account shall be credited as these payments are made, with a debit
b) 
to accounts in subgroup 57.

Current derivative financial instruments

559. 
Amount relating to transactions with financial derivatives that will be
settled within one year. In particular, this account shall include premiums paid
or collected on transactions involving options, as well as changes in the fair
value of financial derivatives with which the company operates, such as options,
futures, swaps, currency forwards, etc. Embedded derivatives of hybrid financial
instruments acquired, issued or assumed that meet the criteria for recognition
in this account shall be disclosed in accounts of four or more digits to identify
the embedded derivatives.
Movements in these four-digit accounts are as follows:
5590. Current assets arising from derivative financial instruments,
trading portfolio
This account shall be classified under current assets in the balance sheet.
The account shall be debited:
a) 
For the amounts paid when the instrument is contracted, generally
a1) 
with a credit to accounts in subgroup 57.
For the gains generated during the reporting period, with a credit to
a2) 
account 7630.
The account shall be credited:
b) 
For the losses incurred during the reporting period, up to the
b1) 
amount at which the derivative was carried under assets in the prior
reporting period, with a debit to account 6630.
For the amount received at settlement, generally with a debit to
b2) 
accounts in subgroup 57.
5593.Current assets arising from derivative financial instruments,
hedging instruments
This account shall be classified under current assets in the balance sheet.
– 435 –
 The amounts paid when the instrument is contracted shall be debited to
a) 
this account, generally with a credit to accounts in subgroup 57.
When the derivative is used as a hedging instrument in a fair value hedge:
b) 
The gains generated during the reporting period from application
b1) 
of hedge accounting shall be debited to this account, with a credit
to the income statement item in which the losses incurred on the
hedged items are recognised upon measuring the hedged risk at fair
value.
The account shall be credited:
b2) 
For the losses incurred in the reporting period from application
    i) 
of hedge accounting, up to the amount at which the derivative
was carried under assets in the prior reporting period, with a
debit to the income statement item in which the gains generated
on the hedged items are recognised upon measuring the hedged
risk at fair value.
Upon acquisition of the hedged asset or assumption of the hedged
   ii) 
liability, with a debit to the accounts in which these items are
recorded.
When the derivative is used as a hedging instrument in other hedging
c) 
transactions the gain generated or loss incurred on the effective portion
during the reporting period from application of hedge accounting shall
be debited or credited to this account, with a credit or debit to accounts
in subgroups 91 and 81, respectively, and to accounts 7633 and 6633 for
the ineffective portion.
The amount received at settlement shall be credited to this account,
d) 
generally with a debit to accounts in subgroup 57.
5595. Current liabilities arising from derivative financial
instruments, trading portfolio
This account shall be classified under current liabilities in the balance sheet.
The account shall be credited:
a) 
For the amount received when the instrument is contracted, gene
a1) 
rally with a debit to accounts in subgroup 57.
For the losses incurred during the reporting period, with a debit to
a2) 
account 6630.
The account shall be debited:
b) 
– 436 –
 For the gains generated during the reporting period, up to the
b1) 
amount at which the derivative was carried under liabilities in the
prior reporting period, with a credit to account 7630.
For the amounts paid at settlement, generally with a credit to
b2) 
accounts in subgroup 57.
5598. Current liabilities arising from derivative financial
instruments, hedging instruments
This account shall be classified under current liabilities in the balance sheet.
The amount received when the instrument is contracted shall be credi
a) 
ted to this account, generally with a debit to accounts in subgroup 57.
When the derivative is used as a hedging instrument in a fair value hedge:
b) 
The account shall be debited:
b1) 
For the gains generated during the reporting period from
   i) 
application of hedge accounting, up to the amount at which the
derivative was carried under liabilities in the prior reporting
period, with a credit to the income statement item in which
the losses incurred on the hedged items are recognised upon
measuring the hedged risk at fair value.
Upon acquisition of the hedged asset or assumption of the hedged
   ii) 
liability, with a credit to the accounts in which these items are
recorded.
Losses incurred during the reporting period from application of
b2) 
hedge accounting shall be credited to this account, with a debit to
the income statement item in which the gains generated on the
hedged items are recognised upon measuring the hedged risk at fair
value.
When the derivative is used as a hedging instrument in other hedging
c) 
transactions the gain generated or loss incurred on the effective portion
during the reporting period from application of hedge accounting shall
be debited or credited to this account, with a credit or debit to accounts
in subgroups 91 and 81, respectively, and to accounts 7633 and 6633 for
the ineffective portion.
The amounts paid at settlement shall be debited to this account, generally
d) 
with a credit to accounts in subgroup 57.
– 437 –
56. CURRENT GUARANTEES, DEPOSITS, PREPAID EXPENSES AND DEFE
RRED INCOME
Current guarantees received
560. 
Current deposits received
561. 
Current guarantees extended
565. 
Current deposits extended
566. 
Prepaid interest
567. 
Unearned interest received
568. 
Current financial guarantees
569. 
The part of non-current guarantees and deposits received or extended and
of non-current financial guarantees extended that matures in the short term
shall be recognised under current liabilities or current assets in the balance
sheet. The current portion of non-current deposits, guarantees and financial
guarantees shall be transferred to this subgroup from the corresponding
accounts in subgroups 18 and 26.

Current guarantees received

560. 
Cash amounts received to guarantee compliance with an obligation, with a
term of no longer than one year.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
The amount received shall be credited to this account when the
a) 
guarantee is created, with a debit to accounts in subgroup 57.
The account shall be debited:
b) 
Upon cancellation, with a credit to accounts in subgroup 57.
b1) 
For failure to comply with the obligation guaranteed, where this
b2) 
results in the loss of part or all of the guarantee, with a credit to
account 759.

Current deposits received

561. 
Cash amounts received as an irregular deposit, with a term of up to one
year.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
– 438 –
 The cash received shall be credited to this account when the deposit is
a) 
made, with a debit to accounts in subgroup 57.
The account shall be debited upon cancellation, with a credit to accounts
b) 
in subgroup 57.

Current guarantees extended

565. 
Cash amounts conveyed to guarantee compliance with an obligation, with a
term of up to one year.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The cash amount conveyed when the guarantee is created shall be
a) 
debited to this account, with a credit to accounts in subgroup 57.
The account shall be credited:
b) 
Upon cancellation, with a debit to accounts in subgroup 57.
b1) 
For failure to comply with the obligation guaranteed, where this
b2) 
results in the loss of part or all of the guarantee, with a debit to
account 659.

Current deposits extended

566. 
Cash amounts conveyed as an irregular deposit, with a term of up to one
year.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The cash amount conveyed shall be debited to this account when the
a) 
deposit is made, with a credit to accounts in subgroup 57.
The account shall be credited upon cancellation, with a debit to accounts
b) 
in subgroup 57.

Prepaid interest
567. 
Interest paid by the company that corresponds to subsequent periods.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
The account shall be debited at the balance sheet date, with a credit to
a) 
the accounts in subgroup 66 in which the interest has been recorded.
– 439 –
 The account shall be credited at the beginning of the subsequent period,
b) 
with a debit to accounts in subgroup 66.

Unearned interest received

568. 
Interest collected by the company that corresponds to subsequent periods.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
The account shall be credited at the balance sheet date, with a debit to
a) 
the accounts in subgroup 76 in which the interest has been recorded.
The account shall be debited at the beginning of the subsequent period,
b) 
with a credit to accounts in subgroup 76.

Current financial guarantees

569. 
Financial guarantees extended by the company, with a term of up to one
year. In particular, bank guarantees extended, providing they should not be
recognised in account 529.
This account shall be classified under current liabilities in the balance sheet.
Movements in this account are as follows:
The account shall be credited:
a) 
When the financial guarantee is made, for the amount received, with
a1) 
a debit to accounts in subgroup 57.
For an increase in the obligation, with a debit to account 669.
a2) 
The account shall be debited:
b) 
For a decrease in the obligation and for interest accrued, with a
b1) 
credit to account 769.
Upon cancellation, with a credit to accounts in subgroup 57.
b2) 

57. CASH
570. Cash, euros
571. Cash, foreign currency
572. Banks and financial institutions, demand current accounts,
euros
573. Banks and financial institutions, demand current accounts,
foreign currency
– 440 –
 574. Banks and financial institutions, savings accounts, euros
575. Banks and financial institutions, savings accounts, foreign
currency
576. Short-term highly-liquid investments

570/571. Cash, ...

Liquid amounts available on hand.
These accounts shall be classified under current assets in the balance sheet.
Movements in these accounts are as follows:
The accounts shall be debited for inflows of liquid resources and credited
for outflows, with a credit and debit to the accounts in which balancing entries
should be made, depending on the nature of the transaction giving rise to the
collection or payment.

572/573/574/575. Banks and financial institutions............

Current demand accounts and current savings accounts immediately
available to the company in banks and financial institutions, understood to
include savings banks, rural savings banks and credit cooperatives for balances
held in Spain and similar entities in the case of balances held abroad.
This account shall not include balances in the aforementioned banks and
financial institutions that are not immediately available, or balances that are
immediately available but that are not held by the aforementioned banks or
institutions. The account shall also exclude bank overdrafts, which shall be
classified under current liabilities in the balance sheet.
The accounts shall be classified under current assets in the balance sheet.
Movements in these accounts are as follows:
Cash deposited in the accounts and transfers shall be debited to these
a) 
accounts, with a credit to the account serving as a balancing entry,
in accordance with the nature of the transaction giving rise to the
collection.
Balances partially or fully drawn down shall be credited to these
b) 
accounts, with a debit to the account in which the balancing entry should
be made, in accordance with the nature of the transaction giving rise to
the payment.
– 441 –
 Short-term highly-liquid investments
576. 
Financial investments convertible into cash, maturing within three months
from the date of acquisition, that do not entail significant risks of fluctuation in
value and that fall within the company’s normal cash management policy.
This account shall be classified under current assets in the balance sheet.
Movements in this account are as follows:
Inflows and outflows of financial investments shall be debited and credited
to this account with a credit and debit to the accounts in which balancing
entries should be made.

58. NON-CURRENT ASSETS HELD FOR SALE AND ASSOCIATED ASSETS

AND LIABILITIES
Fixed assets
580. 
Investments with individuals and related entities
581. 
Investments
582. 
Inventories and trade and other receivables
583. 
Other assets
584. 
Provisions
585. 
Payables of special nature
586. 
Payables to individuals and related entities
587. 
Trade and other payables
588. 
Other liabilities
589. 
Individual non-current assets, as well as other non-current or current assets
and liabilities included in a disposal group, that are expected to be recovered
primarily through sale instead of through ongoing use, including items that form
part of a discontinued operation classified as held-for-sale.
580/584
These accounts shall be classified under current assets in the balance sheet.
In general, movements in these accounts are as follows:
The accounts shall be debited:
a) 
When conditions for this classification are met, in accordance with
a1) 
the recognition and measurement standards set out in part two
of this General Accounting Plan, with a credit to the respective
current asset and non-current asset accounts.
– 442 –
 For changes in fair value in the case of financial assets which, for
a2) 
measurement purposes, were classified as financial assets at fair
value through profit or loss, with a credit to account 763.
For changes in fair value in the case of financial assets which, for
a3) 
measurement purposes, were classified as financial assets at fair
value through equity, with a credit to account 960, except for the
part relating to exchange gains or losses on monetary items, which
shall be recorded with a credit to account 768.
Where applicable, for accrued finance income, with a credit to the
a4) 
corresponding account in subgroup 76.
The accounts shall be credited:
b) 
When the non-current asset or disposal group is sold or disposed
b1) 
of in any other way, generally with a debit to accounts in subgroup
57 and, in the case of losses, to the account in subgroup 67
corresponding to the nature of the asset.
For changes in fair value in the case of financial assets which, for
b2) 
measurement proposes, were classified as financial assets at fair
value through profit or loss, with a debit to account 663.
For changes in fair value in the case of financial assets which, for
b3) 
measurement purposes, were classified as financial assets at fair
value through equity, with a debit to account 860, except for the
part relating to exchange gains or losses on monetary items, which
shall be recorded with a debit to account 668.
If the non-current asset or the disposal group ceases to meet the
b4) 
requirements to be classified as held-for-sale in accordance with
the recognition and measurement standards set out in part two of
this General Accounting Plan, with a debit to the respective current
assets and non-current asset accounts.
585/589
These accounts shall be classified under current liabilities in the balance
sheet.
In general, movements in these accounts are as follows:
The accounts shall be credited:
a) 
When conditions for this classification are met, in accordance with
a1) 
the recognition and measurement standards set out in part two of
– 443 –
 this General Accounting Plan, with a debit to the respective current
liability and non-current liability accounts.
For changes in fair value in the case of financial liabilities which,
a2) 
for measurement purposes, were classified financial liabilities at fair
value through profit or loss, with a debit to account 663.
Where applicable, for accrued finance expenses, with a debit to the
a3) 
corresponding account in subgroup 66.
The accounts shall be debited:
b) 
When the disposal group is sold or disposed of in any other way.
b1) 
For changes in fair value in the case of financial liabilities which, for
b2) 
measurement purposes, were classified as financial liabilities at fair
value through profit or loss, with a credit to account 763.
If the disposal group ceases to meet the requirements to be classified
b3) 
as held-for-sale in accordance with the recognition and measurement
standards set out in part two of this General Accounting Plan, with a
credit to the respective current liabilities and non- current liabilities
accounts.

59. 
IMPAIRMENT OF CURRENT INVESTMENTS AND NON-CURRENT
ASSETS HELD FOR SALE
593. Impairment of current investments in related parties
5933. Impairment of current investments in group companies
5934. Impairment of current investments in associates
5935. Impairment of current investments in other related parties.
5936. Impairment of current investments in other companies.
Impairment of current debt securities of related parties
594. 
5943. Impairment of current debt securities of group companies
5944. Impairment of current debt securities of associates
5945. Impairment of current debt securities of other related
parties
Impairment of current loans to related parties
595. 
5953. Impairment of current loans to group companies
5954. Impairment of current loans to associates
5955. Impairment of current loans to other related parties
Impairment of current debt securities
597. 
– 444 –
 Impairment of current loans
598. 
Impairment of non-current assets held for sale
599. 
Accounting expression of valuation adjustments to reflect losses arising on
impairment of assets included in group 5.
In the event of subsequent recoveries in value, as set out in the applicable
recognition and measurement standards, valuation adjustments previously made
for impairment shall be reduced to the limit of the total amount recovered,
where permitted by the provisions of those standards.
The accounts in this subgroup shall be classified under current assets in the
balance sheet, as a reduction in the value of the item in which the corresponding
asset is recorded.

Impairment of current investments in related parties

593. 
Amount of valuation adjustments to reflect impairment of current
investments in group companies, associates, other related parties and other
companies, included in the category of “Financial assets at cost”.
5933/5934/5935/5936
Movements in these four-digit accounts are as follows:
The amount of estimated impairment that should be taken to the
a) 
income statement in accordance with the recognition and measurement
standards shall be credited to these accounts, with a debit to account
698.
The accounts shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to account 798.
When the equity instruments are disposed of or derecognised for
b2) 
any other reason, with a credit to accounts in subgroup 53 or to
account 540.

Impairment of current debt securities of related parties

594. 
Amount of valuation adjustments for impairment of current investments in
debt securities issued by individuals or entities considered related parties.
5943/5944/5945
Movements in these four-digit accounts are as follows:
– 445 –
 The amount of estimated impairment shall be credited to these accounts,
a) 
with a debit to account 698.
The accounts shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to account 798.
When the debt securities are disposed of or derecognised for any
b2) 
other reason, with a credit to accounts in subgroup 53.

Impairment of current loans to related parties

595. 
Amount of valuation adjustments to reflect impairment of current loans
extended to related parties.
5953/5954/5955
Movements in these four-digit accounts are as follows:
The amount of estimated impairment shall be credited to these accounts,
a) 
with a debit to account 699.
The accounts shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to account 799.
For the irrecoverable part of the loan, with a credit to accounts in
b2) 
subgroup 53.

Impairment of current debt securities

597. 
Amount of valuation adjustments to reflect impairment of current
investments in debt securities issued by individuals or entities not considered
related parties.
Movements are in line with those indicated for account 594.

Impairment of current loans

598. 
Amount of valuation adjustments to reflect impairment of loans in sub
group 54.
Movements are in line with those indicated for account 595.

Impairment of non-current assets held for sale

599. 
Amount of valuation adjustments to reflect impairment of non-current
assets held for sale or in assets that form part of a disposal group held for sale.
– 446 –
Movements in this account are as follows:
The amount of estimated impairment shall be credited to this account,
a) 
with a debit to the corresponding account in subgroup 69.
The account shall be debited:
b) 
When the causes that led to recognition of impairment cease to
b1) 
exist, with a credit to the corresponding account in subgroup 79.
When the asset is disposed of or derecognised for any other reason,
b2) 
with a credit to accounts in subgroup 58.

– 447 –
 GROUP 6

PURCHASES AND EXPENSES

Supplies of merchandise and other goods acquired by the company for sub
sequent resale, either making no changes to the form and substance of the goods
or submitting them to industrial adaptation, transformation or construction
processes prior to resale. This group also comprises all expenses incurred
during the reporting period, including acquisitions of services and consumable
materials, the change in inventories acquired and other expenses and losses
over the period.
In general, all accounts in group 6 shall be credited at the balance sheet
date, with a debit to account 129. Consequently, the movements described for
these accounts, set out below, refer only to how the accounts shall be debited.
In the case of any exceptions, the reasons for the credit and the balancing entry
accounts shall also be specified.

– 449 –
60. PURCHASES
600. Merchandise purchased
601. Raw materials purchased
602. Other supplies purchased
606. Prompt payment discounts on purchases
607. Subcontracted work
608. Purchase returns and similar transactions
609. Volume discounts
Companies shall adapt the accounts in subgroup 60 and the names of these
accounts to reflect the characteristics of the transactions they carry out.
600/601/602/607. purchased / Subcontracted work
Procurement by the company of goods included in subgroups 30, 31 and 32.
This also includes works that form part of the company’s own production
process but are outsourced to other companies.
The amount of the purchases shall be debited to these accounts, either
upon receipt of goods from suppliers or upon shipment if the merchandise
and goods are shipped on behalf of the company, with a credit to accounts in
subgroup 40 or 57.
In particular, account 607 shall be debited upon receipt of the works out-
sourced to other companies.

606. Prompt payment discounts on purchases

Discounts and similar reductions for prompt payment granted to the
company by its suppliers and not included in the invoice.
Movements in this account are as follows:
Discounts and similar reductions granted to the company shall be
a) 
credited to this account, generally with a debit to accounts in subgroup
40.
The balance at the balance sheet date shall be debited to this account,
b) 
with a credit to account 129.

Purchase returns and similar transactions

608. 
Shipments of merchandise and goods returned to suppliers, normally
because they do not meet the conditions of the order. This account shall also
– 450 –
include discounts and similar reductions for returns, subsequent to receipt of
the invoice.
Movements in this account are as follows:
The amount of purchases returned and discounts and similar reductions
a) 
for returns shall be credited to this account, with a debit to accounts in
subgroup 40 or 57.
The balance at the balance sheet date shall be debited to this account,
b) 
with a credit to account 129.

Volume discounts
609. 
Discounts and similar reductions granted to the company for having reached
a certain volume of orders.
In general, movements in this account are as follows:
Volume discounts granted to the company by suppliers shall be credited
a) 
to this account, with a debit to accounts in subgroup 40 or 57.
The balance at the balance sheet date shall be debited to this account,
b) 
with a credit to account 129.

61. CHANGES IN INVENTORIES

Changes in inventories of merchandise
610. 
Changes in inventories of raw materials
611. 
Changes in inventories of other supplies
612. 
610/611/612. Change in inventories of...
Changes between the closing and opening balances of subgroups 30, 31
and 32 (merchandise, raw materials and other supplies) are recorded in these
accounts at the balance sheet date.
Movements in these accounts are as follows:
The accounts shall be debited for the amount of the inventories held at the
beginning of the reporting period and credited for the amount of inventories
held at the balance sheet date, with a credit and debit, respectively, to accounts
in subgroups 30, 31 and 32. The balance resulting in these accounts shall be
debited or credited, as applicable, to account 129.
– 451 –
62. EXTERNAL SERVICES
Research and development expenses for the period
620. 
Leases and royalties
621. 
Repairs and maintenance
622. 
Independent professional services
623. 
Transport
624. 
Insurance premiums
625. 
Banking and similar services
626. 
Advertising, publicity and public relations
627. 
Utilities
628. 
Other services
629. 
Sundry services contracted by the company, not included in subgroup 60
or that do not form part of the purchase price of fixed assets or of current
financial investments.
Debits to accounts 620/629 shall normally be made with a credit to account
410, to accounts in subgroup 57, to provisions in subgroup 14 or account 529
or, where applicable, to account 475.

Research and development expenses for the period

620. 
Expenditure on research and development services outsourced to other
companies.

Leases and royalties

621. 
Leases
Amounts accrued on rental agreements or operating leases relating
to moveable property and immovable property used by or available to the
company.
Royalties
Fixed or variable amounts paid for the right to use or the concession to use
different types of industrial property.

Repairs and maintenance

622. 
Amounts relating to the upkeep of assets included in group 2.
– 452 –
 Independent professional services
623. 
Amount paid to professionals for services rendered to the company,
including fees charged by economists, lawyers, auditors, notaries, etc., as well
as commissions charged by independent intermediaries.

Transport
624. 
Transport services rendered by third parties on behalf of the company,
when these amounts may not be included in the purchase price of the assets or
inventories. This account shall also include the transport of items sold.

Insurance premiums
625. 
Amounts paid for insurance premiums, except those relating to company
personnel and those of a financial nature.

Banking and similar services

626. 
Amounts paid for banking and similar services that are not considered
finance expenses.

Advertising, publicity and public relations

627. 
Amount of expenses paid for advertising, publicity and public relations.

Utilities
628. 
Amounts paid for electricity and any other supplies that cannot be stored.

Other services
629. 
Services not included in the foregoing accounts.
This account shall reflect, among other items, travel expenses incurred
by company employees, including transportation, and office expenses not
recognised in other accounts.

63.  TAXES
630. Income tax
6300. Current tax
6301. Deferred tax
631. Other taxes
633. Negative adjustments to income tax
– 453 –
 634. Negative adjustments to indirect taxes
6341. Negative adjustments to VAT on current assets
6342. Negative adjustments to VAT on investments
636. Tax refunds
638. Positive adjustments to income tax
639. Positive adjustments to indirect taxes
6391. Positive adjustments to VAT on current assets
6392. Positive adjustments to VAT on investments
630. Income tax
Amount of income tax accrued during the reporting period, except tax on
transactions or events recognised directly in equity or in connection with a
business combination.
In general, the content and movements of these four-digit accounts are as
follows:

6300. Current tax

The account shall be debited:
a) 
For the amount of tax payable, with a credit to account 4752.
a1) 
For withholdings and payments on account of tax, up to the amount
a2) 
of tax payable for the period, with a credit to account 473.
Tax paid in prior periods that the company recovers through its current
b) 
tax or income tax returns shall be credited to this account, with a debit
to account 4709.
The account shall be credited or debited, with a debit or credit to
c) 
account 129.

6301. Deferred tax

The account shall be debited:
a) 
For the amount of liabilities arising from taxable temporary
a1) 
differences originated during the reporting period, with a credit to
account 479.
For the application of assets arising from deductible temporary
a2) 
differences from prior reporting periods, with a credit to account
4740.
– 454 –
 For the application of tax credits resulting from the offset of tax loss
a3) 
carryforwards from prior reporting periods in the reporting period,
with a credit to account 4745.
For the tax effect on permanent differences to be charged over
a4) 
several reporting periods, with a credit to account 834.
For the tax effect of deductions and credits to be charged over
a5) 
several reporting periods, with a credit to account 835.
For the tax application of deductions or credits from prior reporting
a6) 
periods, with a credit to account 4742.
For the tax effect of the transfer to the income statement of income
a7) 
recognised directly in equity which gave rise to the corresponding
current tax in prior periods, with a credit to account 8301.
The account shall be credited:
b) 
For the amount of assets arising from deductible temporary
b1) 
differences originated during the reporting period, with a debit to
account 4740.
For the tax credits generated during the reporting period as a result
b2) 
of the existence of tax loss carryforwards pending offset, with a
debit to account 4745.
For the cancellation of liabilities arising from taxable temporary
b3) 
differences in prior reporting periods, with a debit to account 479.
For deferred permanent differences applied during the period, with
b4) 
a debit to account 836.
For deferred tax deductions and credits charged to the period, with
b5) 
a debit to account 837.
For unused assets for deductions and other tax benefits pending
b6) 
application, with a debit to account 4742.
For the tax effect of the transfer to the income statement of expenses
b7) 
recognised directly in equity which gave rise to the corresponding
current tax in prior periods, with a debit to account 8301.
The account shall be credited or debited, with a debit or credit to account 129.

Other taxes
631. 
Taxes applicable to the company which are not specifically recognised in
other accounts in this subgroup or in account 477.
– 455 –
 This account excludes taxes that should be recognised in other accounts in
accordance with the account definitions, such as the taxes recorded in accounts
600/602 and in subgroup 62.
This account shall be debited when the taxes are due, with a credit to
accounts in subgroups 47 and 57. The account shall also be debited for the
amount of the provision made during the reporting period, with a credit to
accounts 141 and 5291.

Negative adjustments to income tax

633. 
Decreases in deferred tax assets or increases in deferred tax liabilities
for the reporting period compared to the deferred tax assets and deferred
tax liabilities previously generated, except where these balances result from
transactions or events recognised directly in equity.
The account shall be debited:
For the reduction in assets arising from deductible temporary differences,
a1) 
with a credit to account 4740.
For the reduction in the tax credit for loss carryforwards, with a credit
a2) 
to account 4745.
For the reduction in assets arising from tax deductions and credits
a3) 
pending application, with a credit to account 4742.
For the increase in liabilities arising from taxable temporary differences,
a4) 
with a credit to account 479.

Negative adjustments to indirect taxes

634. 
Increase in indirect tax expense resulting from restatements and changes in
the company’s tax situation.
6341/6342. Negative adjustments to VAT on....
Amount of the negative differences coming from deductible input VAT
corresponding to transactions for goods and services involving current or
investment assets which is shown on the annual statements as a result of the
Pro Rata Rule.
The amount of the annual statement shall be debited to these accounts,
with a credit to account 472.
– 456 –
 Tax refunds
636. 
Amount of tax that may be claimed back by the company as a result of
payments unduly made, including those debited to accounts in group 2.
Movements in this account are as follows:
The account shall be credited when the tax refunds are claimed, with a
a) 
debit to account 4709.
This account shall be debited for the balance at the balance sheet date,
b) 
with a credit to account 129.

Positive adjustments to income tax

638. 
Increases in deferred tax assets or decreases in deferred tax liabilities
for the reporting period compared to the deferred tax assets and deferred
tax liabilities previously generated, except where these balances result from
transactions or events recognised directly in equity.
In general, movements in this account are as follows:
The account shall be credited:
a) 
For the increase in assets arising from deductible temporary
a1) 
differences, with a debit to account 4740.
For the increase in the tax credits or loss carryforwards, with a
a2) 
debit to account 4745.
For the increase in assets arising from tax deductions and credits
a3) 
pending application, with a debit to account 4742.
For the decrease in liabilities arising from taxable temporary
a4) 
differences, with a debit to account 479.
This account shall be debited for the balance at the reporting date, with
b) 
a credit to account 129.

Positive adjustments to indirect taxes

639. 
Decrease in indirect tax expense resulting from restatements and changes
in the company’s tax situation.
6391/6392. Positive adjustments to VAT on...
Amount of the positive differences coming from deductible input VAT
corresponding to transactions for goods and services involving current or
investment assets which is shown on the annual statements as a result of the
Pro Rata Rule.
– 457 –
 Movements in these accounts are as follows:
The amount of the annual restatement shall be credited to these
a) 
accounts, with a debit to account 472.
This account shall be debited for the balance at the reporting date, with
b) 
a credit to account 129.

64. PERSONNEL EXPENSES

640. Salaries and wages
641. Termination benefits
642. Social Security payable by the company
643. Long-term employee benefits payable through defined
contribution schemes
644. Long-term employee benefits payable through defined
benefit schemes
6440.  Annual contributions
6442. Other costs
645. Equity-based employee benefits
6450. Equity-settled employee benefits
6457. Cash-settled share-based employee benefits
649. Employee benefits expense
All types of employee remuneration, Social Security contributions payable
by the company and other employee benefits expenses.

Salaries and wages

640. 
Fixed and variable remuneration of company employees.
The full amount of remuneration accrued shall be debited to this account:
For cash payment, with a credit to accounts in subgroup 57.
a1) 
For accrued remuneration payable, with a credit to account 465.
a2) 
For compensation of pending debt, with a credit to accounts 254, 460
a3) 
and 544, as appropriate.
For personnel tax withholdings and Social Security contributions, with
a4) 
a credit to accounts in subgroup 47.
– 458 –
 Termination benefits
641. 
Amounts paid to company employees for damages or detrimental situations.
This account specifically includes indemnity payments for dismissal and early
retirement.
The amount of the indemnity payments shall be debited to this account,
generally with a credit to accounts in subgroup 14, 46, 47 or 57.

Social Security payable by the company

642. 
The company’s contributions to Social Security agencies in connection with
the social benefits they provide.
Accrued contributions shall be debited to this account, with a credit to
account 476.

Long-term employee
643.  benefits payable through defined
contribution schemes
Amount of contributions accrued for long-term remunerations to company
employees, such as pensions or other retirement benefits, instrumented
through a defined contribution scheme.
The account shall be debited:
a) 
For the amount of the annual cash contributions to pension plans
a1) 
or other similar institutions outside the company, with a credit to
accounts in subgroup 57.
For the amount of accrued premiums payable, with a credit to
a2) 
account 466.

Long-term employee benefits payable through defined benefit

644. 
schemes
Amount of contributions accrued for long-term remunerations to company
employees, such as pensions or other retirement benefits, instrumented
through a defined benefit scheme.
6440. Annual contributions
Amount of the annual contribution to the defined benefit scheme.
The service cost for the current reporting period in respect of pension
plans or other similar institutions outside the company, paid in cash, shall be
debited to this account, generally with a credit to accounts in subgroup 57 or
to account 140.
– 459 –
 6442. Other costs
Past service costs recognised in the income statement in connection with
the establishment of a long-term defined benefit plan or for an improvement to
an existing plan.
The amount required in accordance with the recognition and measurement
standard applicable to long-term benefit plans shall be debited to this account,
with a credit to account 140.

Equity-based employee benefits

645. 
Amounts settled by the company through equity instruments or through
cash amounts based on the value of equity instruments in exchange for services
rendered by employees.
Movements in these four-digit accounts are as follows:
6450/6457
The accounts shall be debited:
a) 
For the amount of accrued employee remuneration settled with
a1) 
the company’s own equity instruments, with a credit to accounts in
subgroups 10 and 11.
For the amount of accrued employee remuneration, to be settled in
a2) 
cash, with a credit to account 147.

Employee benefits expense

649. 
Employee benefits expenses incurred by the company either voluntarily or
through compliance with a legal provision.
This includes subsidies for company stores and canteen, support for schools
and professional training institutions, scholarships, and premiums for life
insurance, accident insurance and health insurance policies, etc. Social Security
contributions are not included in this account.
Expenses shall be debited to this account, with a credit to accounts in group
5 or 7, depending on whether they are paid in cash or in merchandise or other
products.

65. OTHER EXPENSES

650. Losses on irrecoverable trade receivables
651. Results on profit-sharing agreements
– 460 –
 6510. Profit transferred (trustee)
6511. Losses incurred (non-trustee venturer or associate)
659. Other operating losses
Expenses not included in other subgroups.

Losses on irrecoverable trade receivables

650. 
Impairment losses related to write-off of trade receivables and debtor
balances in group 4.
The amount of write-offs of trade receivables and debtor balances shall be
debited to this account, with a credit to accounts in subgroups 43 and 44.

651. Results on profit-sharing agreements

6510. Profit transferred
Profits attributable to non-trustee venturers in operations governed by
articles 239 to 243 of the Commercial Code and in other similar profit-sharing
agreements.
Profit determined by the trustee company in accordance with article 243 of
the Commercial Code or applicable legislation governing other profit-sharing
agreements shall be recognised in this account.
Profits attributable to non-trustee venturers shall be debited to this account,
with a credit to account 419, 449 or to accounts in subgroup 57.
6511. Losses incurred
Loss attributable to the company as a non-trustee venturer in the
aforementioned operations.
The loss shall be debited to this account, with a credit to account 419, 449
or to accounts in subgroup 57.

Other operating losses

659. 
Operating expenses that are not included in the above accounts. In
particular, the adjustment to equipment and tools each year shall be disclosed
in this account.

66. FINANCE EXPENSES

Finance expenses arising from provision adjustments
660. 
Interest on bonds and obligations
661. 
– 461 –
 Interest on payables
662. 
Losses on fair value measurement of financial instruments
663. 
6630. Losses on trading portfolio
6631. Losses on financial instruments designated by the company
6632. Losses on financial instruments at fair value through equity
6633. Losses on hedging instruments
6634. Losses on other financial instruments.
Expenses arising on dividends payable on liability-classified
664. 
instruments
Interest on discounted bills and factoring transactions
665. 
Losses on investments and debt securities
666. 
Losses on non-trade receivables
667. 
Exchange losses
668. 
Other finance expenses
669. 

Finance expenses arising from provision adjustments

660. 
Finance expense arising on financial valuation adjustments to provisions.
Valuation adjustments of a financial nature shall be debited to this account,
with a credit to the corresponding provision accounts included in subgroups
14 and 52.

Interest on bonds and obligations

661. 
Amount of interest accrued during the reporting period on third-party
financing through debt securities, irrespective of the maturity term and of how
the interest is instrumented. The implicit interest corresponding to deferral
of the difference between the redemption value and the issue price of the
securities, less any transaction costs, shall be included in accounts of four or
more digits.
The full amount of interest accrued shall be debited to this account, generally
with a credit to accounts in subgroup 17, 50 or 51 and, where applicable, to
account 475.

Interest on payables
662. 
Interest on loans received and other pending payables, irrespective of how
the interest is instrumented, with the appropriate breakdown into accounts
– 462 –
of four or more digits, as necessary, and, in particular, to record the implicit
interest associated with the transaction.
The full amount of interest accrued shall be debited to this account,
generally with a credit to accounts in subgroup 16, 17, 40, 51 or 52 and, where
applicable, to account 475.

Losses on fair value measurement of financial instruments

663. 
Losses arising on measuring certain financial instruments at fair value,
including those arising on reclassification.
In general, the content and movements of these four-digit accounts are as
follows:
6630. Losses on trading portfolio
Losses arising on measurement at fair value of financial instruments classified
as financial instruments held for trading.
The decrease in the fair value of financial assets or the increase in the fair
value of financial liabilities classified in this category shall be debited to this
account, with a credit to the corresponding asset or liability account.
6631. Losses on financial instruments designated by the company
Losses arising on measurement at fair value of financial instruments classified
as financial assets at fair value through profit or loss or as financial liabilities at
fair value through profit or loss.
Movements are in line with those indicated for account 6630.
6632. Losses on financial instruments at fair value through equity
Losses arising on derecognition, disposal or cancellation of financial
instruments classified as financial assets at fair value through equity.
Upon derecognition, disposal or cancellation of the financial instrument, the
negative balance accumulated in equity shall be debited to this account, with a
credit to account 902.
6633. Losses on hedging instruments
Losses arising on hedging instruments in cash flow hedges where the
company does not expect the forecast transaction to take place.
The negative amount accumulated in equity that is transferred to the income
statement shall be debited to this account, with a credit to account 912.
– 463 –
 6634. Losses on other financial instruments
Losses arising on measurement at fair value of financial instruments classified
as financial assets at fair value through profit or loss or as financial liabilities at
fair value through profit or loss.
Movements are in line with those indicated for account

Expenses arising on dividends payable on liability-classified

664. 
instruments
Amount of dividends accrued during the reporting period corresponding
to third-party financing instrumented through shares or equity holdings in the
capital of the company which, in accordance with the characteristics of the
issue, should be treated as liabilities, irrespective of the maturity term.
Accrued dividends shall be debited to this account, generally with a credit
to accounts in subgroup 50 or 51 and, where applicable, to account 475.

Interest on discounted bills and factoring transactions

665. 
Interest on discounted notes and other bills, as well as on factoring
transactions in which the company substantially retains the risks and rewards
of the collection rights.
Interest shall be debited to this account, generally with a credit to account
5208 or 5209.

666.  Losses on investments and debt securities

Losses incurred on derecognition, disposal or cancellation of debt securities
and equity instruments, excluding those which should be recorded in accounts
663 and 673.
The loss incurred shall be debited to this account, with a credit to accounts
in subgroups 24, 25, 53 and 54.

Losses on non-trade receivables

667. 
Losses on write-offs of non-trade receivables.
The loss on irrecoverable balances shall be debited to this account, with a
credit to accounts in subgroups 24, 25, 53 and 54.
– 464 –
 Exchange losses
668. 
Losses incurred on fluctuations in the exchange rate applicable to monetary
items denominated in a currency other than the functional currency.
The account shall be debited:
At each balance sheet date, for the loss in value of outstanding monetary
a1) 
items at that date, with a credit to the accounts representing these
items denominated in a currency other than the functional currency.
Upon derecognition, disposal or cancellation of the asset or liability
a2) 
associated with an exchange loss, with a credit to account 921.
For the transfer to the income statement of a negative amount
a3) 
recognised directly in equity in hedges of a net investment in a foreign
operation, with a credit to account 913.
Upon maturity or early cancellation of monetary items, through cash
a4) 
paid in a currency other than the functional currency, generally with a
credit to accounts in subgroup 57.

Other finance expenses

669. 
Finance expenses not included in other accounts in this subgroup. The
account shall also include insurance premiums that cover risks of a financial
nature, including premiums that cover the risk of default on non-trade
receivables and the currency risk.
Accrued expenses shall be debited to this account, generally with a credit
to accounts in subgroup 57 or to an account representing payables.

67. LOSSES ON NON-CURRENT ASSETS AND EXCEPTIONAL EXPENSES

670. Losses on intangible assets
671. Losses on property, plant and equipment
672. Losses on investment property
673. Losses on non-current investments in related parties
6733. Losses on non-current investments, group companies
6734. Losses on non-current investments, associates
6735. Losses on non-current investments, other related parties
675. Losses on transactions with own bonds
678. Exceptional expenses
– 465 –
 670/671/672. Losses on......
Losses incurred on the disposal of intangible assets, items of property, plant
and equipment or investment property, or on derecognition of these assets
due to irreversible losses thereon.
The loss incurred on disposal or derecognition shall be debited to these
accounts, with a credit to the corresponding accounts in group 2 or to account
580.

Losses on non-current investments in related parties

673. 
Losses incurred on the disposal or derecognition of non-current investments
in related parties.
6733/6734/6735
The loss incurred on disposal or derecognition shall be debited to these
four- digit accounts, with a credit to accounts in subgroup 24 or to account
581.

Losses on transactions with own bonds

675. 
Losses incurred on the redemption of bonds.
The loss incurred on redeeming the bonds shall be debited to this account,
generally with a credit to accounts in subgroup 57.

Exceptional expenses
678. 
Exceptional and significant losses and expenses which, given their nature,
should not be recognised in other accounts in group 6 or 8.
These include losses on floods, fines and penalties, fires, etc.

68. AMORTISATION AND DEPRECIATION

680. Amortisation of intangible assets
681. Depreciation of property, plant and equipment
682. Depreciation of investment property
680/681/682. Amortisation of... / Depreciation of...
Expression of the systematic annual decrease in the value of intangible
assets and items of property, plant and equipment upon use in the production
process, and in the value of investment property.
– 466 –
 The allowance made during the reporting period shall be debited to these
accounts, with a credit to accounts 280, 281 and 282.

69. IMPAIRMENT LOSSES AND OTHER CHARGES

Impairment losses on intangible assets
690. 
Impairment losses on property, plant and equipment
691. 
Impairment losses on investment property
692. 
Impairment losses on inventories
693. 
Impairment losses on trade receivables
694. 
Trade provisions
695. 
6954. Provisions for onerous contracts
6959. Provisions for other trade operations
Impairment losses on non-current investments and debt
696. 
securities
Impairment losses on non-current loans
697. 
Impairment losses on current investments and debt
698. 
securities
Impairment losses on current loans
699. 
690/691/692. Impairment losses on....
Valuation adjustments to reflect reversible impairment of intangible assets,
items of property, plant and equipment and investment property. Valuation
adjustments for impairment of goodwill may not be reversed.
The amount of estimated impairment shall be debited to these accounts,
with a credit to account 204 or to accounts 290, 291 and 292, respectively, or
to account 599.

Impairment losses on inventories

693. 
Valuation adjustment made at the balance sheet date to reflect reversible
impairment of inventories.
The amount of estimated impairment shall be debited to this account, with
a credit to accounts in subgroup 39 or to account 599.

Impairment losses on trade receivables

694. 
Valuation adjustment made at the balance sheet date to reflect reversible
impairment of trade receivables and other receivables.
– 467 –
 The amount of estimated impairment shall be debited to this account, with
a credit to account 490, 493 or 599.
When the second alternative foreseen in account 490 is used, the definition
and movements in this account shall be adapted to the requirements of that
account.

Trade provisions
695. 
Allowance made by the company to recognise present obligations derived
from its trade operations, providing that they are not recognised in other
accounts in group 6. In particular, this account shall include the losses associated
with onerous contracts and commitments assumed as a result of the delivery of
goods or rendering of services.
In general, the content and movements of these four-digit accounts are as
follows:
6954. Provisions for onerous contracts
The estimated loss shall be debited to this account, with a credit to account
4994.
6959. Provisions for other trade operations
Allowance made at the balance sheet date for risks derived from returns of
items sold, repair warranties, servicing and other trade operations.
The amount of the estimated obligation shall be debited to this account,
with a credit to account 4999.

Impairment losses on non-current investments and debt

696. 
securities
Valuation adjustments to reflect impairment of investments in subgroups 24
and 25 or, where applicable, in subgroup 58.
The amount of estimated impairment shall be debited to this account, with
a credit to accounts 293, 294, 297, 599 or to accounts in group 9.

Impairment losses on non-current loans

697. 
Valuation adjustments to reflect impairment of loans in subgroups 24 and
25 or, where applicable, in subgroup 58.
The amount of estimated impairment shall be debited to this account, with
a credit to account 295, 298 or 599.
– 468 –
 Impairment losses on current investments and debt securities
698. 
Valuation adjustments to reflect impairment of investments in subgroups 53
and 54 or, where applicable, in subgroup 58.
The amount of estimated impairment shall be debited to this account, with
a credit to accounts 593, 594, 597, 599 or to accounts in group 9.

Impairment losses on current loans

699. 
Valuation adjustments to reflect impairment of loans in subgroups 53 and
54 or, where applicable, in subgroup 58.
The amount of estimated impairment shall be debited to this account, with
a credit to account 595, 598 or 599.

– 469 –
 GROUP 7

SALES AND INCOME

The sale of goods and rendering of services as part of the company’s trade
operations, including other revenue, changes in inventories and gains during the
reporting period.
In general, all accounts in group 7 shall be debited at the balance sheet
date, with a credit to account 129. Consequently, the movements described for
these accounts, set out below, refer only to how the accounts shall be credited.
In the case of any exceptions, the reasons for the debit and the balancing entry
accounts shall also be specified.

– 471 –
70. SALES OF MERCHANDISE, WORK CARRIED OUT BY THE COMPANY
FOR ASSETS, SERVICES, ETC
Merchandise sold
700. 
Finished goods sold
701. 
Semi-finished goods sold
702. 
By-products and waste sold
703. 
Containers and packaging sold
704. 
Services rendered
705. 
Prompt payment discounts on sales
706. 
Sales returns and similar transactions
708. 
Volume discounts
709. 
Companies shall adapt the accounts in subgroup 70 and the names there of
to reflect the characteristics of the transactions they carry out.
700/705. ......sold / rendered
Transactions involving the outflow or delivery of goods and services forming
part of the company’s trade operations, where a price is attached to those
goods or services.
These accounts shall be credited for the amount of the sales, with a debit
to accounts in subgroup 43 or 57.

Prompt payment discounts on sales

706. 
Discounts and similar reductions for prompt payment granted by the
company to its customers and not included in the invoice.
Movements in this account are as follows:
Discounts and similar reductions shall be debited to this account,
a) 
generally with a credit to accounts in subgroup 43.
This account shall be credited for the balance at the balance sheet date,
b) 
with a debit to account 129.

Sales returns and similar transactions

708. 
Shipments of merchandise and goods returned to the company by customers,
normally because they do not meet the conditions of the order. This account
shall also comprise the discounts and similar reductions granted on the basis of
such returns, subsequent to issue of the invoice.
Movements in this account are as follows:
– 472 –
 The amount of the items returned by customers and, where applicable,
a) 
discounts and similar reductions granted shall be debited to this account,
with a credit to the corresponding accounts in subgroup 43 or 57.
This account shall be credited for the balance at the balance sheet date,
b) 
with a debit to account 129

Volume discounts
709. 
Discounts and similar reductions granted to customers for having reached
a certain volume of orders.
Movements in this account are as follows:
The volume discounts granted to customers shall be debited to this
a) 
account, with a credit to the corresponding accounts in subgroups 43
or 57.
The account shall be credited for the balance at the balance sheet date,
b) 
with a debit to account 129.

71. CHANGES IN INVENTORIES

Changes in inventories of work in progress
710. 
Changes in inventories of semi-finished goods
711. 
Changes in inventories of finished goods
712. 
Changes in inventories of by-products, waste and recovered
713. 
materials
710/713. Changes in inventories of....
Changes between the closing and opening balances of subgroups 33, 34, 35
and 36 (work in progress, semi-finished goods, finished goods and by-products,
waste and recovered materials) are recorded in these accounts at the balance
sheet date.
Movements in these accounts are as follows:
The accounts shall be debited for the amount of the inventories held at the
beginning of the reporting period and credited for the amount of inventories
held at the balance sheet date, with a credit and debit, respectively, to accounts
in subgroups 33, 34, 35 and 36. The balance resulting in these accounts shall be
debited or credited, as applicable, to account 129.

– 473 –
73. WORK CARRIED OUT BY THE COMPANY FOR ASSETS
Work carried out by the company for intangible assets
730. 
Work carried out by the company for property, plant and
731. 
equipment
Work carried out by the company for investment property
732. 
Work carried out by the company for property, plant and
733. 
equipment in progress
Balancing entry for expenses incurred by the company in constructing its
own fixed assets, using its own equipment and personnel, where these expenses
are capitalised. This subgroup also includes expenses incurred on research and
development works outsourced to other companies.

Work carried out by the company for intangible assets

730. 
Research and development expenses and other expenses incurred on the
creation of assets included in subgroup 20.
The account shall be credited for the amount of expenses that may be
recognised as intangible assets, with a debit to account 200, 201 or 206.

Work carried out by the company for property, plant and

731. 
equipment
Construction or enlargement of assets and items included in subgroup 21.
Expenses incurred during the reporting period shall be credited to this
account, with a debit to accounts in subgroup 21.

Work carried out by the company for investment property

732. 
Extension of buildings included in subgroup 22.
Expenses incurred during the reporting period shall be credited to this
account, with a debit to accounts in subgroup 22.

Work carried out by the company for property, plant and

733. 
equipment in progress
Work performed during the reporting period and not completed at the
balance sheet date, including works carried out on buildings.
Expenses incurred during the reporting period shall be credited to this
account, with a debit to accounts in subgroup 23.

– 474 –
74. GRANTS, DONATIONS AND BEQUESTS
Operating grants, donations and bequests
740. 
Capital grants, donations and bequests taken to income
746. 
Other grants, donations and bequests taken to income
747. 
Amounts to be recognised in the income statement in connection with
grants, donations and bequests. The three-digit accounts necessary to record
these items shall be created.

Operating grants, donations and bequests

740. 
Amounts received from public entities, companies or individuals in order
to ensure a minimum profitability or to offset an operating “deficit” for the
reporting period or for prior periods.
The amount awarded shall be credited to this account, with a debit to
accounts in subgroup 44, 47 or 57.

Capital grants, donations and bequests taken to income

746. 
Amount taken to the income statement in connection with capital grants,
donations and bequests.
Movements in this account are as set out for account 840.

Other grants, donations and bequests taken to income

747. 
Amount taken to the income statement in connection with other grants,
donations and bequests.
Movements in this account are as set out for account 842.

75. OTHER INCOME

751. Results on profit-sharing agreements
7510. Losses transferred (trustee)
7511. Attributable profit (non-trustee venturer or associate)
752. Income from lease agreements
753. Income from transfer of industrial property rights
754. Commission income
755. Income from services to personnel
Income from other services
759. 
Income not included in other subgroups.
– 475 –
 Results on profit-sharing agreements
751. 
7510. Losses transferred
Losses attributable to non-trustee venturers in operations governed by
articles 239 to 243 of the Commercial Code and in other similar profit-sharing
agreements.
Losses determined by the trustee company in accordance with article 243
of the Commercial Code or applicable legislation governing other profit-sharing
agreements shall be recognised in this account.
Losses attributable to non-trustee venturers, shall be credited to this
account with a debit to account 419 or 449 or to accounts in subgroup 57.
7511. Attributable profit
Profit attributable to the company as a non-trustee venturer in the
aforementioned operations.
The profit shall be credited to this account, with a debit to account 419 or
449 or to accounts in subgroup 57.

Income from lease agreements

752. 
Income accrued on rental agreements or operating leases relating to
moveable property and immovable property used by or made available to third
parties.
Income shall be credited to this account, with a debit to accounts in
subgroup 44 or 57.

753. Income from transfer of industrial property rights

Fixed and variable amounts received for having transferred the right to use
or the concession to use different types of industrial property.
Movements are in line with those indicated for account 752.

Commission income
754. 
Fixed or variable amounts received as consideration for intermediary
services performed circumstantially. If the intermediary services form part of
the principal activity of the company, income for this item shall be recorded in
account 705.
Movements are in line with those indicated for account 752.
– 476 –
 Income from services to personnel
755. 
Income for various services, such as company stores, canteen, transportation,
accommodation, etc., provided by the company to its employees.
Income shall be credited to this account, generally with a debit to accounts
in subgroup 57 or to account 649.

Income from other services

759. 
Income generated on the occasional rendering of certain services to other
companies or individuals, including transportation, repairs, advisory services
and reports.
Movements are in line with those indicated for account 752.

76. FINANCE INCOME

Dividends
760. 
Income from debt securities
761. 
Income from loans
762. 
7620. Income from non-current loans
7621. Income from current loans
Gains on fair value measurement of financial instruments
763. 
7630. Gains on trading portfolio
7631. Gains on financial instruments designated by the company
7632. Gains on financial instruments at fair value through equity
7633. Gains on hedging instruments
7634. Gains on other financial instruments
Gains on investments and debt securities
766. 
Income from related assets and reimbursement rights from
767. 
long-term employee benefits
Exchange gains
768. 
Other finance income
769. 

Dividends
760. 
Returns on investments in equity instruments accrued during the reporting
period.
– 477 –
 The full amount of the dividend shall be credited to this account when the
right to receive the dividend is generated, with a debit to accounts in subgroup
53 or 54 and, where applicable, to account 473.

Income from debt securities

761. 
Interest receivable on fixed-income securities, accrued during the reporting
period.
The account shall be credited:
Upon accrual for the full amount of both implicit and explicit interest,
a) 
with a debit to accounts in subgroup 24, 25, 53 or 54 and, where
applicable, to account 473.
For recognition in the income statement of the positive balance
b) 
accumulated in equity of an available-for-sale financial asset that has
been reclassified as a held-to-maturity investment as per the recognition
and measurement standards. This amount shall be taken to income over
the residual life of the asset, with a debit to account 802.

Income from loans

762. 
Amount of interest on loans and other credits, accrued during the reporting
period.
The full amount of both implicit and explicit interest shall be credited to this
account upon accrual, with a debit to accounts in subgroup 24, 25, 26, 43, 44,
53 or 54 and, where applicable, to account 473.

Gains on fair value measurement of financial instruments

763. 
Gains arising on measuring certain financial instruments at fair value,
including remeasurements performed on reclassification.
In general, the content and movements of these four-digit accounts are as
follows:
7630. Gains on trading portfolio
Gains arising on measurement at fair value of financial instruments classified
as financial assets held for trading or financial liabilities held for trading.
The increase in the fair value of financial assets or the decrease in the fair
value of financial liabilities classified in this category shall be credited to this
account, with a debit to the corresponding asset or liability account.
7631. Gains on financial instruments designated by the company
– 478 –
 Gains arising on measurement at fair value of financial instruments classified
as financial assets at fair value through profit or loss or as financial liabilities at
fair value through profit or loss.
Movements are in line with those indicated for account 7630.
7632. Gains on financial instruments at fair value through equity
Gains arising on derecognition or disposal of financial instruments classified
as financial assets at fair value through equity.
Upon derecognition or disposal of the financial instrument the positive
balance accumulated in equity shall be credited to this account, with a debit to
account 802.
7633. Gains on hedging instruments
Gains arising on hedging instruments in cash flow hedges where the company
does not expect the forecast transaction to take place.
The positive amount recognised in equity that is transferred to the income
statement shall be credited to this account, with a debit to account 812.
7634. Gains on other financial instruments
Gains arising on measurement at fair value of financial instruments classified
as other financial assets at fair value through profit or loss or as other financial
liabilities at fair value through profit or loss.
Movements are in line with those indicated for account 7630.

766. Gains on investments and debt securities

Gains generated on the disposal of debt securities and equity instruments,
excluding those that should be recorded in accounts 763 and 773.
The gain generated on disposal shall be credited to this account, generally
with a debit to accounts in subgroup 57.

Income from related assets and reimbursement rights from

767. 
long-term employee benefits
Amount of expected returns on assets tied to commitments with which the
company will settle its long-term defined employee benefits obligations or the
reimbursements rights used to cancel these obligations.
Positive returns expected shall be credited to this account, with a debit to
account 140 or 257.
– 479 –
768. Exchange gains
Gains generated on fluctuations in the exchange rate applicable to monetary
items denominated in a currency other than the functional currency.
The account shall be credited:
At each balance sheet date for the gain in value of outstanding monetary
a1) 
items at that date, with a debit to accounts representing these items
denominated in a currency other than the functional currency.
Upon derecognition, disposal or cancellation of an asset or liability
a2) 
associated with an exchange gain, with a debit to account 821.
For the transfer to the income statement of the positive amount
a3) 
recognised in equity in hedges of a net investment of a foreign operation,
with a debit to account 813.
Upon maturity or early cancellation of monetary items, through cash
a4) 
paid in a currency other than the functional currency, generally with a
debit to accounts in subgroup 57.

Other finance income

769. 
Finance income not included in other accounts in this subgroup.
Accrued income shall be credited to this account.

77. GAINS ON NON-CURRENT ASSETS AND EXCEPTIONAL INCOME

770. Gains on intangible assets
771. Gains on property, plant and equipment
772. Gains on investment property
773. Gains on non-current investments in related parties
7733. Gains on non-current investments, group companies
7734. Gains on non-current investments, associates
7735. Gains on non-current investments, other related parties
774. Negative goodwill on business combinations
775. Gains on transactions with own bonds
778. Exceptional income
770/771/772. Gains on...
Gains generated on the disposal of intangible assets, items of property,
plant and equipment or investment property.
– 480 –
 The gains obtained on disposal shall be credited to these accounts, generally
with a debit to the corresponding accounts in group 5.

Gains on non-current investments in related parties

773. 
Gains generated on the disposal of non-current investments in related
parties.
7733/7734/7735
The gains generated on disposal shall be credited to these four-digit
accounts, generally with a debit to the corresponding accounts in group 5.

774. Negative goodwill on business combinations

The excess at the acquisition date of the fair value of the identifiable assets
acquired less the fair value of the identifiable liabilities assumed over the cost of
the business combination.
That amount shall be credited to this account, with a debit to the
corresponding accounts in groups 2, 3, 4 and 5.

Gains on transactions with own bonds

775. 
Gains generated on the redemption of bonds.
The gains generated on redeeming the bonds shall be credited to this
account, with a debit to accounts in subgroup 17.

778. Exceptional income

Exceptional and significant gains and income which, given their nature,
should not be recognised in other accounts in group 7 or 9.
This includes income generated on balances previously written off as they
were considered irrecoverable.

79. SURPLUS AND USE OF PROVISIONS AND IMPAIRMENT LOSSES

Reversal of impairment of intangible assets
790. 
Reversal of impairment of property, plant and equipment
791. 
Reversal of impairment of investment property
792. 
Reversal of impairment of inventories
793. 
Reversal of impairment of trade receivables
794. 
Provision surpluses
795. 
– 481 –
 7950. Surplus provisions for long-term employee benefits
7951. Surplus provisions for taxes
7952. Surplus provisions for other liabilities
7954. Surplus trade provisions
79544. Surplus provisions for onerous contracts
79549. Surplus provisions for other trade operations
7955. Surplus provisions for environmental actions
7956. Surplus provisions for restructuring costs
7957. Surplus provisions for share-based payment transactions
796. Reversal of impairment of non-current investments and debt
securities
797. Reversal of impairment of non-current loans
798. Reversal of impairment of current investments and debt securities
799. Reversal of impairment of current loans
790/791/792. Reversal of impairment of ...
Valuation adjustments to reflect the recovery in value of intangible assets,
items of property, plant and equipment and investment property, to the limit of
the impairment losses previously recorded.
The amount of the valuation adjustment shall be credited to these accounts,
with a debit to accounts 290, 291, 292 or to account 599.

Reversal of impairment of inventories

793. 
Amount of the valuation adjustment to impairment existing at the balance
sheet date for the prior reporting period.
The amount of impairment recorded in the prior reporting period shall be
credited to this account at the balance sheet date, with a debit to accounts in
subgroup 39 or to account 599.

Reversal of impairment of trade receivables

794. 
Amount of the valuation adjustment to impairment existing at the balance
sheet date for the prior reporting period.
The amount of impairment recorded in the prior reporting period shall be
credited to this account, with a debit to account 490, 493 or 599.
– 482 –
 When the second alternative foreseen in account 490 is used, the definition
and movements in this account shall be adapted to the requirements of that
account.

Provision surpluses
795. 
7950/7951/7952/7954/7955/7956/7957
Positive difference between the amount of the existing provision and
the appropriate amount calculated at the balance sheet date or when the
corresponding obligation is met.
The provision surplus shall be credited to these four-digit accounts, with a
debit to the corresponding accounts in subgroup 14 or to account 499 or 529.

Reversal of impairment of non-current investments and debt

796. 
securities
Valuation adjustments to reflect the recovery in value of investments in
subgroups 24 and 25 or, where applicable, in subgroup 58, to the limit of the
impairment losses previously recorded.
The amount of the valuation adjustment shall be credited to this account,
with a debit to account 293, 294, 297 or 599.

Reversal of impairment of non-current loans

797. 
Valuation adjustments to reflect the recovery in value of loans in subgroups
24 and 25 or, where applicable, in subgroup 58.
The account shall be credited for the amount of the valuation adjustment,
with a debit to account 295, 298 or 599.

Reversal of impairment of current investments and debt

798. 
securities
Valuation adjustments to reflect the recovery in value of investments in
subgroups 53 and 54 or, where applicable, in subgroup 58, to the limit of the
impairment losses previously recorded.
The amount of the valuation adjustment shall be credited to this account
with a debit to account 593, 594, 597 or 599.

Reversal of impairment of current loans

799. 
Valuation adjustments to reflect the recovery in value of loans in subgroups
53 and 54 or, where applicable, in subgroup 58.
– 483 –
 The amount of the valuation adjustment shall be credited to this account,
with a debit to account 595, 598 or 599.

– 484 –
 GROUP 8

EXPENSES RECOGNISED IN EQUITY

– 485 –
80. FINANCE EXPENSES ARISING ON MEASUREMENT OF FINANCIAL
ASSETS
800. Losses on financial assets at fair value through equity
Transfer of gains on financial assets at fair value through
802. 
equity
800. Losses on financial assets at fair value through equity
Movements in this account are as follows:
Decreases in the fair value of financial assets classified as at fair value
a) 
through equity, including those arising on reclassification, shall be debited
to this account, with a credit to the corresponding asset accounts.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 133.

Transfer of gains on financial assets at fair value through equity

802. 
Movements in this account are as follows:
The account shall be debited:
a) 
Upon disposal or derecognition of the financial asset at fair value
a1) 
through equity, including those that have been reclassified, for the
positive amount accumulated in equity, with a credit to account
7632.
In the case of a business combination achieved in stages in accordance
a2) 
with the recognition and measurement standards, for gains in value,
recognised directly in equity, of any previously held investment in
the acquiree classified as a financial asset at fair value through equity,
with a credit to account 7632.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 133.

81. EXPENSES ARISING ON HEDGING TRANSACTIONS

810. Losses on cash flow hedges
Losses on hedges of a net investment in a foreign operation
811. 
Transfer of gains on cash flow hedges
812. 
Transfer of gains on hedges of a net investment in a foreign
813. 
operation

– 486 –
810. Losses on cash flow hedges
Movements in this account are as follows:
The account shall be debited for the amount derived from considering
a) 
the lower of the following amounts: the accumulated losses on the
hedging instrument since the inception of the hedge or the accumulated
change in the fair value of the future cash flows expected from the
hedged item since the inception of the hedge, generally with a credit to
account 176, 255 or 559.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 1340.

Losses on hedges of a net investment in a foreign operation

811. 
Movements in this account are as follows:
Losses incurred on the amount of the hedge considered effective shall
a) 
be debited to this account, generally with a credit to account 176, 255
or 559.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 1341.

Transfer of gains on cash flow hedges

812. 
Movements in this account are as follows:
The account shall be debited:
a) 
When the hedge of a forecast transaction or the hedge of a currency
a1) 
risk on a firm commitment gives rise to subsequent recognition
of a financial asset or a financial liability, for the positive amount
recognised directly in equity, to the extent that this asset or liability
affects profit or loss for the reporting period, with a credit to
an account that will be taken to the income statement item that
includes the loss incurred on the hedged item.
When the hedge of a forecast transaction or the hedge of a currency
a2) 
risk on a firm commitment gives rise to recognition of a non-financial
asset or a non-financial liability, for the positive amount recognised
directly in equity, with a credit to the corresponding asset or liability
account.
When a hedged non-financial asset or non-financial liability is
a3) 
derecognised in the hedge of a forecast transaction or the hedge
– 487 –
 of a currency risk on a firm commitment, for the positive amount
recognised directly in equity, with a credit to an account that will be
taken to the income statement item that includes the loss incurred
on the hedged item.
When the hedged item in the hedge of a recognised asset or a
a4) 
recognised liability affects profit or loss, with a credit to an account
that will be taken to the income statement item that includes the
loss incurred on the hedged item.
For the amount of the gain directly recognised in equity, if the
a5) 
company does not expect the forecast transaction to take place,
with a credit to account 7633.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 1340.

Transfer of gains on hedges of a net investment in a foreign

813. 
operation
Movements in this account are as follows:
Upon the sale or disposal by any other means of the net investment in
a) 
a foreign operation, the amount of the gain on the hedging instrument
charged directly to equity shall be debited to this account, with a credit
to account 768.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 1341.

82. EXPENSES ARISING ON TRANSLATION DIFFERENCES

820. Negative translation differences
821. Transfer of positive translation differences
820. Negative translation differences
Movements in this account are as follows:
The net debtor balance derived from the difference in value of assets and
a) 
liabilities measured in a functional currency other than the presentation
currency, as a result of translation to the presentation currency, shall
be debited to this account, with a debit and/or credit to the respective
accounts representing these assets and liabilities.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 135.
– 488 –
 Transfer of positive translation differences
821. 
Movements in this account are as follows:
The account shall be debited upon derecognition, disposal or cancellation
a) 
of the related asset or liability, with a credit to account 768.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 135.

83. INCOME TAX

830. Income tax
8300. Current tax
8301. Deferred tax
833. Negative adjustments to income tax
834. Tax income on permanent differences
835. Tax income for tax deductions and credits
836. Transfer of permanent differences
837. Transfer of tax deductions and credits
838. Positive adjustments to income tax
830. Income tax
8300. Current tax
Movements in this account are as follows:
The account shall be debited:
a) 
For the tax payable in relation to income recognised in equity, with
a1) 
a credit to account 4752.
For withholdings and payments on account of tax relating to income
a2) 
recognised in equity, to the amount of tax payable for the period,
with a credit to account 473.
The account shall be credited for the amount of tax the company
b) 
recovers from income or other taxes paid in prior reporting periods,
with a debit to account 4709.
The account shall be debited or credited at the balance sheet date, with
c) 
a credit or debit to the corresponding accounts in subgroup 13.

– 489 –
 8301. Deferred tax
Movements in this account are as follows:
The account shall be debited:
a) 
For the deferred tax associated with income recognised directly in
a1) 
equity, with a credit to account 479.
Upon transfer to the income statement of the negative amount
a2) 
accumulated in equity, with a credit to account 4740.
For the amount of the tax effect derived from the transfer to the
a3) 
income statement of expenses recognised directly in equity that
had given rise to the corresponding current tax in prior reporting
periods, with a credit to account 6301.
The account shall be credited:
b) 
For the deferred tax associated with expenses recognised directly in
b1) 
equity, with a debit to account 4740.
Upon transfer to the income statement of the positive amount
b2) 
accumulated in equity, with a debit to account 479.
For the amount of the tax effect derived from the transfer to the
b3) 
income statement of income recognised directly in equity that
had given rise to the corresponding current tax in prior reporting
periods, with a debit to account 6301.
The account shall be debited or credited at the balance sheet date, with
c) 
a credit or debit to the corresponding accounts in subgroup 13.

Negative adjustments to income tax

833. 
Decreases in deferred tax assets or increases in deferred tax liabilities that
come to light during the reporting period compared to the deferred tax assets
and deferred tax liabilities previously generated, provided that these balances
result from transactions or events recognised directly in equity.
In general, movements in this account are as follows:
The account shall be debited:
a) 
For the reduction in assets arising from deductible temporary
a1) 
differences, with a credit to account 4740.
For the increase in liabilities arising from taxable temporary
a2) 
differences, with a credit to account 479.
– 490 –
 The account shall be credited at the balance sheet date, with a debit to
b) 
the corresponding accounts in subgroup 13.

Tax income on permanent differences

834. 
Movements in this account are as follows:
The tax effect of the permanent differences to be charged over several
a) 
reporting periods shall be credited to this account, with a debit to
account 6301.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 137.

Tax income for tax deductions and credits

835. 
Movements in this account are in line with those indicated for account 834.

Transfer of permanent differences

836. 
In general, movements in this account are as follows:
The part of the permanent difference to be taken to the income
a) 
statement during the reporting period, in line with the depreciation of
the asset that gives rise to the permanent difference, shall be debited to
this account, generally with a credit to account 6301.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 137.

Transfer of tax deductions and credits

837. 
Movements in this account are in line with those indicated for account 836.

Positive adjustments to income tax

838. 
Increases in deferred tax assets or decreases in deferred tax liabilities that
come to light during the reporting period compared to the deferred tax assets
and deferred tax liabilities previously generated, provided that these balances
result from transactions or events recognised directly in equity
In general, movements in this account are as follows:
The account shall be credited:
a) 
For the increase in assets arising from deductible temporary
a1) 
differences, with a debit to account 4740.
– 491 –
 For the decrease in liabilities arising from taxable temporary
a2) 
differences, with a debit to account 479.
The account shall be debited at the balance sheet date, with a credit to
b) 
the corresponding accounts in subgroup 13.

84. TRANSFERS OF GRANTS, DONATIONS AND BEQUESTS

Transfer of government capital grants
840. 
Transfer of capital donations and bequests
841. 
Transfer of other grants, donations and bequests
842. 

840/841. Transfer of ...

Movements in these accounts are as follows:
The accounts shall be debited when the grant, donation or bequest
a) 
received is charged to the income statement, with a credit to account
746.
The accounts shall be credited at the balance sheet date, with a debit to
b) 
account 130 or 131, as appropriate.

Transfer of other grants, donations and bequests

842. 
Movements in this account are as follows:
a) The account shall be debited when the grant, donation or bequest
received is charged to the income statement, with a credit to account
747.
b) The account shall be credited at the balance sheet date, with a debit to
account 132.

85. ACTUARIAL LOSSES AND ADJUSTMENTS TO LONG-TERM DEFINED

BENEFIT ASSETS
Actuarial losses
850. 
Negative adjustments to long-term defined benefit assets
851. 
850. Actuarial losses
Movements in this account are as follows:
The actuarial loss incurred on the increase in the present value of post-
a) 
employment benefits committed through defined benefit schemes, or
on the decrease in the fair value of the related assets, shall be debited
– 492 –
 to this account at the balance sheet date, with a credit to account 140
or 257.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 115.

Negative adjustments to long-term defined benefit assets

851. 
Movements in this account are as follows:
The negative adjustment to be made for the limitation established in the
a) 
recognition and measurement standards for the assets related to long-
term post-employment benefits through defined benefit schemes shall
be debited to this account at the balance sheet date, with a credit to
account 140 or 257.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 115.

86. EXPENSES ARISING ON NON-CURRENT ASSETS HELD FOR SALE

Losses on non-current assets and disposal groups held for
860. 
sale
Transfer of gains on non-current assets and disposal groups
862. 
held for sale

Losses on non-current assets and disposal groups held for sale

860. 
In general, movements in this account are as follows:
Decreases in the fair value of non-current assets held for sale and
a) 
directly-associated assets and liabilities classified in a disposal group held
for sale, which should be measured at fair value with changes in equity
in accordance with the recognition and measurement standards, shall be
debited to this account, with a credit to accounts in subgroup 58.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 136.

Transfer of gains on non-current assets and disposal groups held

862. 
for sale
In general, movements in this account are as follows:
Upon derecognition or disposal of the non-current asset held for sale,
a) 
or of the directly-associated asset or liability classified in a disposal group
– 493 –
 held for sale, which should be measured at fair value with changes in
equity in accordance with the recognition and measurement standards,
this account shall be debited, generally with a credit to account 7632.
The account shall be credited at the balance sheet date, with a debit to
b) 
account 136.

89. EXPENSES ARISING ON INVESTMENTS IN GROUP COMPANIES OR

ASSOCIATES WITH PRIOR POSITIVE VALUATION ADJUSTMENTS
Impairment of investments, group companies
891. 
Impairment of investments, associates
892. 
The accounts in this subgroup shall include the impairment losses on
investments in group companies, jointly-controlled entities and associates that
should be directly charged to equity, where investments had been made before
the companies were considered to be group companies, jointly-controlled
entities or associates and these investments had given rise to valuation
adjustments for increases in value, which were directly charged to equity.
In accounting for this, the relevant recognition and measurement standards
should be kept in mind.
891/892
Movements in these accounts are as follows:
Upon impairment of the financial asset, these accounts shall be debited
a) 
to the limit of the prior positive valuation adjustments, with a credit to
account 240 or 530.
The accounts shall be credited at the balance sheet date, with a debit to
b) 
account 133.

– 494 –
 GROUP 9

INCOME RECOGNISED IN EQUITY

– 495 –
90. 
FINANCE INCOME FROM MEASUREMENT OF ASSETS AND
LIABILITIES
900. Gains on financial assets at fair value through equity
Transfer of losses on financial assets at fair value through
902. 
equity

Gains on financial assets at fair value through equity

900. 
Movements in this account are as follows:
Increases in the fair value of financial assets classified as at fair value
a) 
through equity, including those arising on reclassification, shall be
credited to this account, with a debit to the corresponding asset
accounts.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 133.

Transfer of losses on financial assets at fair value through equity

902. 
Movements in this account are as follows:
The account shall be credited:
a) 
Upon disposal or derecognition of the financial assets at fair value
a1) 
through equity, including those that have been reclassified, for the
negative balance accumulated in equity, with a debit to account
6632.
Upon impairment of the financial instrument, for the negative
a2) 
balance accumulated in equity, with a debit to the accounts of the
corresponding debt instruments or to account 696 in the case of
investments in equity instruments.
In the case of a business combination achieved in stages in accordance
a3) 
with the recognition and measurement standards, for losses in value,
recognised directly in equity, of any previously held investment in
the acquiree classified as a financial asset at fair value through equity,
with a debit to account 6632.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 133.

91. INCOME FROM HEDGING TRANSACTIONS

910. Gains on cash flow hedges
– 496 –
 911. Gains on hedges of a net investment in a foreign operation
912. Transfer of losses on cash flow hedges
Transfer of losses on hedges of a net investment in a foreign
913. 
operation

Gains on cash flow hedges

910. 
Movements in this account are as follows:
The account shall be credited for the amount derived from considering
a) 
the lower of the following amounts: the accumulated gains on the
hedging instrument since the inception of the hedge or the accumulated
change in the fair value of the future cash flows expected from the
hedged item since the inception of the hedge, generally with a debit to
account 176, 255 or 559.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 1340.

Gains on hedges of a net investment in a foreign operation

911. 
Movements in this account are as follows:
Gains generated on the amount of the hedge considered effective shall
a) 
be credited to this account, generally with a debit to account 176, 255
or 559.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 1341.

Transfer of losses on cash flow hedges

912. 
Movements in this account are as follows:
The account shall be credited:
a) 
When the hedge of a forecast transaction or the hedge of a currency
a1) 
risk on a firm commitment gives rise to subsequent recognition
of a financial asset or a financial liability, for the negative amount
recognised directly in equity, to the extent that this asset or liability
affects profit or loss for the reporting period, with a debit to an
account that will be taken to the income statement that includes the
gain generated on the hedged item.
When the hedge of a forecast transaction or the hedge of a currency
a2) 
risk on a firm commitment gives rise to recognition of a non-financial
– 497 –
 asset or a non-financial liability, for the negative amount recognised
directly in equity, with a debit to the corresponding asset or liability
account.
When a hedged non-financial asset or non-financial liability is
a3) 
derecognised in the hedge of a forecast transaction or the hedge
of a currency risk on a firm commitment, for the negative amount
recognised directly in equity, with a debit to an account that will be
taken to the income statement item that includes the gain generated
on the hedged item.
When the hedged item in the hedge of a recognised asset or a
a4) 
recognised liability affects profit or loss, with a debit to an account
that will be taken to the income statement item that includes the
gain generated on the hedged item.
For the amount of the loss directly recognised in equity that the
a5) 
company does not expect to recover, with a debit to account 6633.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 1340.

Transfer of losses on hedges of a net investment in a foreign

913. 
operation
Movements in this account are as follows:
The account shall be credited upon the sale or disposal by any other
a) 
means of the net investment in a foreign operation, for the amount of
the loss in the hedging instrument directly charged to equity, with a
debit to account 668.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 1341.

92. INCOME FROM TRANSLATION DIFFERENCES

920. Positive translation differences
921. Transfer of negative translation differences

Positive translation differences

920. 
Movements in this account are as follows:
The net creditor balance derived from the difference in value of the
a) 
assets and liabilities measured in a functional currency other than the
– 498 –
 presentation currency, as a result of translation to the presentation
currency, shall be credited to this account, with a debit and/or credit
to the respective balance sheet accounts representing these assets and
liabilities.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 135.

Transfer of negative translation differences

921. 
Movements in this account are as follows:
The account shall be credited upon derecognition, disposal or
a) 
cancellation of the related asset or liability, with a debit to account 668.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 135.

94. INCOME FROM GRANTS, DONATIONS AND BEQUESTS

940. Income from government capital grants
Income from capital donations and bequests
941. 
Income from other grants, donations and bequests
942. 

940/941/942. Income from government capital grants / Capital

donations and bequests / Other grants, donations and bequests
Movements in these accounts are as follows:
The accounts shall be credited:
a) 
For the grants, donations or bequests awarded to the company,
a1) 
generally with a debit to accounts in subgroup 47 or 57.
For payables that are converted into grants, donations or bequests,
a2) 
with a debit to account 172 or 522.
The accounts shall be debited at the balance sheet date, with a credit to
b) 
accounts 130, 131 or 132, as appropriate.

95. ACTUARIAL GAINS AND ADJUSTMENTS TO LONG-TERM DEFINED

BENEFIT ASSETS
950. Actuarial gains
951. Positive adjustments to long-term defined benefit assets
950. Actuarial gains
– 499 –
 Movements in this account are as follows:
The account shall be credited at the balance sheet date for the actuarial
a) 
gain generated by the decrease in the present value of post-employment
benefits committed through defined benefit schemes, or for the increase
in the fair value of the assets related with these schemes, with a debit to
account 140 or 257.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 115.

Positive adjustments to long-term defined benefit assets

951. 
Movements in this account are as follows:
The positive adjustment to be made to assets for long-term post-
a) 
employment benefits to personnel through defined benefit schemes,
in accordance with the recognition and measurement standards, shall
be credited to this account at the balance sheet date, with a debit to
account 140 or 257.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 115.

96. INCOME FROM NON-CURRENT ASSETS HELD FOR SALE

Gains on non-current assets and disposal groups held for
960. 
sale
Transfer of losses on non-current assets and disposal groups
962. 
held for sale

Gains on non-current assets and disposal groups held for sale

960. 
In general, movements in this account are as follows:
Increases in the fair value of non-current assets held for sale and directly-
a) 
associated assets and liabilities classified in a disposal group held for
sale, which should be measured at fair value with changes in equity in
accordance with the recognition and measurement standards, shall be
credited to this account, with a debit to accounts in subgroup 58.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 136.
– 500 –
 Transfer of losses on non-current assets and disposal groups
962. 
held for sale
In general, movements in this account are as follows:
The account shall be credited:
a) 
Upon derecognition or disposal of the non-current asset held
a1) 
for sale, or of the directly-associated asset or liability classified in
a disposal group held for sale, which should be measured at fair
value with changes in equity in accordance with the recognition and
measurement standards, generally with a debit to account 6632.
Upon impairment of the non-current asset held for sale or of the
a2) 
directly-associated asset classified in a disposal group held for sale,
which should be measured at fair value with changes in equity in
accordance with the recognition and measurement standards, for
the negative balance accumulated in equity, with a debit to the
corresponding accounts of the debt instruments or to account 698
in the case of investments in equity instruments.
The account shall be debited at the balance sheet date, with a credit to
b) 
account 136.

99. 
INCOME FROM INVESTMENTS IN GROUP COMPANIES OR
ASSOCIATES WITH PRIOR NEGATIVE VALUATION ADJUSTMENTS
Reversal of prior negative valuation adjustments, group
991. 
companies
Reversal of prior negative valuation adjustments, associates
992. 
Transfer for impairment of prior negative valuation
993. 
adjustments, group companies
Transfer for impairment of prior negative valuation
994. 
adjustments, associates
The accounts in this subgroup shall reflect the recovery of valuation
adjustments for decreases in value recognised directly in equity, where
investments had been made before the companies were considered to be
group companies, jointly-controlled entities or associates. The accounts in
this subgroup shall also comprise transfers to the income statement of these
valuation adjustments, in the event of impairment. The foregoing must be in
accordance with the prevailing recognition and measurement standards.
– 501 –
991/992. Reversal of prior negative valuation adjustments, group
companies / associates
Movements in these accounts are as follows:
The accounts shall be credited when the recoverable amount of the
a) 
investment exceeds its carrying amount, up to the limit of the prior
negative valuation adjustments, with a debit to account 240 or 530.
The accounts shall be debited at the balance sheet date, with a credit to
b) 
account 133.

993/994. Transfer for impairment of prior negative valuation

adjustments, group companies / associates
Movements in these accounts are as follows:
The accounts shall be credited upon impairment of the financial asset,
a) 
for the prior negative valuation adjustments, with a debit to account 696
or 698.
The accounts shall be debited at the balance sheet date, with a credit to
b) 
account 133.

– 502 –