We talk about how we are still waiting for an accounting reform.
The main changes could come in financial aspects.
For the moment, it seems that the reform of the General Accounting Plan (PGC) will take a little longer than expected. Perhaps it could come into force at the beginning of 2021. In any case, we do have an idea of where the new text could go, based on the published draft.
Logically, there may be differences between the draft, which dates back to the end of 2018, and the final text. However, it seems that the direction is clear. The reform will have to decide on the suitability or not of applying the changes in the International Financial Reporting Standards (IFRS) in the PGC. Since the last modification of the PGC, in 2016, there have been various new developments in the IFRS .
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The accounting convergence process
With the turn of the century (and the sustained increase in financial and trade flows between countries) the need for accounting convergence arose . When a large company attempted to make international investments or projects, it was often forced to prepare its accounts twice or more times. It had to adapt them so that they were understandable and comparable by its international interlocutors.
In this context, a process of international accounting approximation is being deepened . In Europe, there is a milestone with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards.
There is a trend towards international convergence in accounting standards
In Spain, then, the debate arose as to the extent to which these international standards should be applied. The minimum was the consolidated accounts of listed companies . However, the entire philosophy of these international standards could have been introduced into the current General Accounting Plan.
Ultimately, it was decided not to go that far, mainly to avoid complexity for SMEs . In addition, at that time, the process of internationalisation of SMEs was not as developed as it is now.
What is the aim of the accounting reform?
In general, it is a matter of taking each new development in IFRS in recent years one by one and seeing whether to introduce them into the PGC. The truth is that they affect larger companies or those that are dedicated to very specific sectors (the financial sector, in particular). Therefore, it may seem that the main axes are far from the reality of SMEs.
However, it must be taken into account that, for example, everything that influences the accounting of financial companies also influences access to financing .
“In general, the main impacts of the changes on SMEs would be indirect”
In this way, small changes in the business ecosystem have great repercussions for SMEs . That is why it is very important that they have advisors who are up to date, even on issues that are far removed from their daily routine. Understanding how a transaction affects our counterparty's accounts helps us understand how far we can negotiate.
It is important to bear in mind that the reality is different from that of a few years ago . More and more emerging companies with different accounting realities are proliferating .