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Accounting Duties

The following explanation is intented as a general explanation of the current state of the law regarding accounting in Spain. To know about Accounting Duties or the required Financial statements please follow the links.
Law 19/1989 was passed in order to bring Spanish corporate legislation into line with EU Directives. Law 19/1989 transposed into Spanish legislation the current Community Directives on corporate and commercial issues, except for the Eighth Directive (on auditing), which had already been transposed into Spanish legislation through Spanish Audit Law 19/1988; however, Law 19/1989 also included certain provisions relating to auditing (see section 10, “Auditing Requirements”). Law 44/2002, of November 22, 2002 on Financial System Reform Measures, which is currently in force, reformed certain aspects of the Audit Law, corporate legislation (Spanish Companies Law, Limited Liability Companies Law and Employee-Owned Companies Law), as well as other provisions in force prior to its publication. This Law formed part of an intensive legislative process in various fields aimed at instilling confidence in the markets and promoting the design of codes of good corporate governance with a view to fostering transparency.
On January 8, 2003, the Special Committee for the Promotion of Transparency in Markets and Listed Companies published a report detailing certain measures, proposals and recommendations for companies aimed at promoting transparency in financial markets. In this regard, Law 26/2003, of July 17, 2003 amending Securities Market Law 24/1988 and the Consolidated Spanish Companies Law approved by Royal Decree-Law 1564/1989, introduced the first legislative provisions based on fostering transparency in the conduct of business of listed corporations. The approval of the Regulation of the European Parliament and of the Council in relation to the application of International Accounting Standards (IASs) in the European Union and the Accounting Reform White Paper approved on June 25, 2002 and published by the Spanish Accounting and Audit Institute (ICAC) marked the starting point for the direction that was to be taken in the accounting reform process as a whole in Spain. The reform process was initiated with Law 62/2003, of December 30, 2003 on Tax, Administrative, Labor and Social Security Measures which introduced, among others, the following  amendments:
• Criteria for the configuration of groups of companies for corporate law purposes contained in Articles 42 et seq. of the Spanish Commercial Code.
• Spanish Limited Liability Companies Law 2/1995, of December 23, 1995, introducing the simplified accounting regime.
• Consolidated Spanish Companies Law approved by Royal Decree-Law 1564/1989, adapting financial statements to IASs. This process culminated in 2007 when two important legal provisions were passed, which completed the process of adapting Spanish accounting legislation to international accounting legislation:
• Law 16/2007, of July 4, 2007 reforming and adapting Spanish corporate accounting legislation for its international harmonization based on European legislation, which made significant amendments to the Commercial Code, Companies Law, Limited Liability Companies Law and other industry-based accounting standards and, lastly, adapted for the first time the Corporation Tax Law to the new accounting legislation.
• Royal Decree 1514/2007, of November 16, 2007 approving the Spanish National Chart of Accounts.
• Royal Decree 1515/2007, of November 16, 2007 approving the Spanish National Chart of Accounts for small and medium enterprises (SMEs) and the specific accounting rules for very small enterprises (VSEs).