Yagmur Ekaterina
Ph.d., Assistant of Professor
Bondareva Anna
Donetsk National University of Economics and Trade
named after Mikhailo Tugan-Baranovsky,
Donetsk
METHODOLOGICAL AND LEGAL ASPECTS OF AUSTRIAN
ACCOUNTING
Austria is an EU member-state, and consequently, it has a list of
accounting standards, which correspond both to European Commission’s
requirements and IAS. At the national level the main bodies, which regulate
accounting are Austrian Institute of Auditors and Chamber of accountants. At the
EU’s level there is Federation of European Accountants. The legal foundation
for financial accounting is the Austrian Commercial Code (UGB) [1]. Sections
195 and 201 of the Austrian Commercial Code incorporate the accounting
conventions that are considered as the Austrian generally accepted accounting
principles (GoB - GAAP).
The aim of the research is to define the main features of the accounting
principles in Austria and to figure out the differences between bookkeeping and
records in different types of enterprises.
The Austrian GAAP lay down all formal and material rules necessary for
proper accounting. Most of the provisions for the preparation of financial
statements can be found in the third book of the Austrian Commercial Code. It
contains:
1) regulations which should be complied with by all
business entities;
2)
supplementary
regulations for entities [2].
Small and medium-sized enterprises ("SMEs”) can generally operate
through one of the legal forms (Table 1), which determine the rules of bookkeeping
and transactions recording. Every business entity has to keep books and to
record all business transactions in accordance with the applicable accounting
principles. The books have to be kept in such a manner as to enable an expert
third party to obtain insights into the business transactions of the entity and
its position within reasonable time. Companies must retain the following
documents for seven years: books, inventories, opening balances, annual
accounts together with the financial reports; consolidated accounts together
with consolidated financial reports; received business correspondence; duplicates
of sent business correspondence; posting documents.
Furthermore, these documents must be retained for as
long as they are required for corresponding legal or regulatory proceedings in
which the company is involved [3].
Table 1
Accounting of
different enterprise’s types [2]
Double-entry bookkeeping is the only legally accepted method. At the end
of every financial year every entity has to prepare an inventory and financial
statements. Most enterprises must be approved by the tax authorities. Financial
statements cover a maximum of 12 months.
Accounting records are to be kept in Euros and in German or foreign
language. The principles of proper bookkeeping comprise: completeness,
materiality, accuracy, continuity, clarity, valuation based on corresponding
payments, economic focus, substance over legal form, prudence, individual
valuation and measurement at the balance sheet date.
Annual accounts, consolidated accounts, financial reports or
consolidated financial reports must be audited by a public accountant or
accounting firm.
Annual accounts must be
submitted electronically to the regional court and must be entered into the
database of the commercial register (with the exception of companies with a
turnover of not more than 70 000 euros). The regional court must supply
the accounts in electronic form to the Austrian Federal Economic Chamber; the
Austrian Federal Chamber of Labour; the Presidential Conference of the Austrian
Chamber of Agriculture (LKÖ) [3].
Therefore, Austrian
accounting principles state that companies must keep proper, transparent
records of all of their business-related transactions and the status of their
assets in order to ensure fair business and competition.
References
1. Accounting in Austria [e-resource]. – Official site of
Institute of Chartered Accountants in England and Wales. – Access: http://www.icaew.com/en/library/subject-gateways/accounting/accounting-by-country/austria.
2. Austria (accounting report of country) [e-resource]. –
Official site of European Commission. – Access: http://ec.europa.eu/enterprise/policies/sme/business-environment/files/annexes_accounting_report_2011/austria_en.pdf.
3. Legal requirements of Austria’s accounts [e-resource].
– Official European Union website. – Access:
http://europa.eu/youreurope/business/start-grow/annual-accounts/index_en.htm#austria_en_keeping-accounts.
4. Investment in Austria [e-resource]. – Site "KPMG in
Austria”. – Access:
http://www.kpmg.at/uploads/media/Investment_in_Austria_2004.pdf.
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