Political parties will have new General Accounting Plan in 2014
Political parties must adapt their accounting to the new General Accounting Plan adapted by the Court of Auditors for its specific characteristics, from next January 1, 2014, although the formulation of consolidated annual accounts, including the controlled companies and foundations will not be enforceable until 2016.
The Plan, published yesterday in the Official Gazette, determines that the form of Constitution adopted by the political formation (Federation, Confederation, coalition, online bookkeeping services…), determines the degree of centralization of financial information and its dimension and the level at which economic decisions are made conditions the administrative and accounting organisation established by the party.
This diversity is intensified especially at the local level, in which the degree of functional autonomy, administrative and accounting procedures of the territorial and institutional organization varies significantly matches with national implementation to those who restrict their activity to the local and municipal level.
According to reports Iuris & Lex in a comprehensive report in its next issue, which will be published on Friday, October 25, in some cases, political parties come keeping shares in corporations, generally, for the total social capital, whose main activity consists in the holding and administration of real estate related to the development of activities of the party , as well as in real estate management of offices of the party and operation of catering services.
Ban on commercial activities introduces no doubt and generally a simplification in accounting to be applied the political formations, being in this context therefore, less necessary, unlike what happens in the Business Plan, the incorporation of two blocks of criteria, having been chosen as indicated, in General , by those included in the Plan of small and medium-sized enterprises; and, second, on the grounds that a phased implementation of the accounting requirements will ensure an effective compliance with new obligations imposed by the organic law 8/2007.
As a result of which most of the income of political formations correspond to public subsidies, whose amounts are determined on the basis of the election results and are awarded annually, the accounting result presents a different meaning of which is given in the scope of entities for profit.
The content of the standard in the field of grants, donations and bequests is determined by nature not finalist of aid who receive these formations, except the security costs related. That is why, in General, all subsidies and monetary donations received is recognised directly in the income statement, constituting the exception cases in which should be recorded directly in equity.
For the purpose of carrying out assigned supervisory competence to the Court of Auditors, this has estimated necessary to establish different criteria for determining the organic links, criteria which were adopted by agreement of the plenary of May 28, 2009. In particular, are considered to be linked to a political party those foundations that have been created with a direct or indirect majority contribution, of the same; those, whose founding heritage, with character of permanency, is composed by more than 50 percent of goods or rights contributed or transferred by the party; or those whose Board is controlled by the party in similar terms to which is regulated to the mercantile society the linkage in article 42 of the code of Commerce.
Without prejudice to the legal nature of foundations and their peculiar operating regime, are considered, for the purposes of the representativeness of the financial statements of political parties, the consolidated annual accounts which best reflect, in all significant aspects, the economic-financial activity of the political party, independence of the information that should be incorporated into the memory on the Foundation connected with the nature of economic and financial relations with them maintained.