Year-End Accounting Procedures: Ensuring Accuracy and Compliance
As the fiscal year draws to a close, every company is required to carefully review its financial records to ensure completeness, transparency, and compliance with relevant standards. Year-end closing procedures play a crucial role in presenting an accurate picture of a company's financial position and in preparing reliable information for business decisions and tax returns. This is done in several steps, each of which aims to validate the financial data and ensure the books are properly closed before the start of a new fiscal year.
Romania: Important changes to company law in the pipeline
With the highest budget deficit in the EU, Romania is implementing austerity measures across all areas. The Romanian government's second package of measures in this regard includes an extensive legislative proposal that brings significant legal and tax changes. Naturally, companies will also be affected. We had already announced at the beginning of October (Link), that, among other things, changes to the equity capital regulations are planned.
Year-end closing – necessary tasks
While the end of the calendar year is generally associated with relaxation and celebrations, the end of the fiscal year brings with it a multitude of activities for finance and accounting departments.
Who bears the costs of enforcement proceedings in Romania?
In practice, we encounter a wide range of situations when it comes to collecting debts through enforcement proceedings. Among other things, the question arises as to who bears the costs of enforcement and to what extent.
The Accounting Manual: Purpose and Significance for Companies
To comply with financial, accounting, and tax laws, Romania requires companies to prepare a formal manual of accounting and valuation principles. This manual is a tool for standardizing accounting practices, explaining valuation and accounting approaches, and ensuring transparency and consistency in financial reporting. The accounting manual is based on practice; it is intended to avoid subjective interpretations and tax risks and, last but not least, to create confidence in accounting.
Labour law: Current EU law with practical relevance
Labour law has traditionally been largely exempt from harmonisation under EU law, which explains the sometimes considerable differences between Romanian and German labour law, for example. Nevertheless, there is a clear trend towards Europeanisation: EU legislation is increasingly influencing national regulations. New regulations and practical developments are likely to bring about noticeable changes to everyday working life in companies, in Romania as elsewhere. Which practical issues are currently shaping the European labour law agenda?
Business practices in Romania: CAEN codes and authorizations
At the beginning of the year, legislative changes relating to the commercial register were passed in Romania, introducing, among other things, a new classification of companies' activities (the so-called “CAEN codes”). Many activities were divided into new CAEN codes; we have already reported on this. https://stalfort.ro/wp-content/uploads/2025/02/Adaptation_NACE-codes-1.pdf The deadline for adapting CAEN codes corresponding to the activities carried out to the new “CAEN Rev. 3” is not until October 2026. Still, it is advisable to adjust accordingly, ahead of time.
Equity or Net Asset Value – an Important Financial Indicator
The term net asset value or equity often comes up in discussions regarding a company’s financial position. But what exactly does it mean?
Improved permitting certainty for Romanian real estate
Romania's real estate and construction industry has long been affected by fragmented, lengthy approval procedures; delays and inconsistent requirements hinder project financing and implementation. To accelerate investments and increase predictability, Emergency Ordinance (EO) 31/2025 introduces significant simplifications. These changes matter for property developers, investors, and lenders.
Stop the Clock – the new EU directive on sustainability...
At a time when the pressure on companies to be transparent about their social and environmental impacts is increasing significantly, EU Directive (EU) 2025/794, commonly known as “Stop the Clock,” provides for a temporary “pause” in the application of key obligations. It postpones the deadlines for sustainability reporting requirements (CSRD) and due diligence (CSDDD). The goal is to give stakeholders more time to adapt, especially those who have not yet begun implementing ESG (Environmental, Social, Governance) reporting obligations or are facing practical challenges.