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III. Financial statements
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Both the Commercial Code and the Corporations Law define the annual financial statements as consisting of the balance sheet, the income statement and the notes to financial statements, which jointly form a single body of information for these purposes (a management report, although is not considered a part of the financial statements, is also required). The requirements in the Corporations Law regarding annual financial statements also apply to limited liability companies and partnerships limited by shares.
Both the Commercial Code and the Corporations Law provide for accounting principles and valuation standards. In addition, the Law includes balance sheet and income statement formats which are in line with the specimens set forth in Articles 9 and 24, respectively, of the EU Fourth Directive, and stipulates the disclosures to be included in the notes to financial statements.
The Spanish National Chart of Accounts, approved by Royal Decree 1643/1990, which applies to all enterprises, whatever their legal form, for all fiscal years beginning after December 31, 1990, implements the accounting aspects of Spanish corporate law.
The contents of the Spanish National Chart of Accounts are as follows:
Part I Accounting principles
Part II Chart of Accounts
Part III Accounting definitions and relationships
Part IV Financial statements
Part V Valuation standards
The Spanish National Chart of Accounts has been adapted for certain industries. To date, the following industry-specific adaptations have been published:
– Construction companies
– Real estate companies
– Sports federations
– Healthcare companies
– Sports corporations
– Private non-profit entities
– Toll-road concession-holders
– Water utilities
– Electric utilities
– Viticulture companies
– Insurance companies
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