Financial statements

Both the Commercial Code and Companies Law state that a set of financial statements comprises a balance sheet, an income statement, a statement reflecting the changes in equity during the period, a cash flow statement and notes to the financial statements, with these documents constituting a set of information for these purposes (a directors’ report is also required, although it is not considered to be a constituent part of the financial statements). However, the cash flow statement is not obligatory where so established by a legal provision (e.g. in the case of corporations that are permitted to prepare a balance sheet and statement of changes in equity in abridged format). 
The requirements of the Companies Law in connection with financial statements also apply to limited liability companies and partnerships limited by shares.
Both the Spanish Commercial Code and Spanish Companies Law provide for accounting principles and measurement bases. Also, the Companies Law specifies the disclosures to be included in the notes to the financial statements.
The new Spanish Chart of Accounts, approved by Royal Decree 1514/2007, states that its application by all companies is mandatory, regardless of whether their legal form is that of a sole proprietorship or a company, without prejudice to such companies as are in a position to apply the Spanish National Chart of Accounts for small and medium enterprises (SMEs) and constitutes the implementation for accounting purposes of Spanish corporate and commercial legislation.
The former Spanish National Chart of Accounts had been adapted for companies in certain industries through the related industry adaptations which, prior to the reform, referred to the following types of company:
• Construction companies.
• Real estate companies.
• Sports federations.
• Healthcare companies.
• Sports corporations.
• Private not-for-profit entities.
• Toll motorway concession operators.
• Water catchment and abstraction, treatment and distribution utilities.
• Electric utilities.
• Companies in the grape growing and wine producing industry.
• Insurance companies.
The new Spanish National Chart of Accounts acknowledges the need to revise these industry adaptations, although it states that until they are adapted the old adaptations will remain in force except for such provisions as might expressly contravene the new accounting standards.