The new public accounting system was published this month in the Official Gazette and promises to end the accounting fragmentation of public bodies, local and regional.

It is urgent to implement the new management accounting system? Public – the so-called System of Accounting Standards for Public Administrations (SNC-AP), which was published last September 11. The subject was last debated in the V Congress of the Order of Chartered Accountants (OTOC) and experts were unanimous. The values ​​of truth and transparency were echoed by almost all the speakers in the congress to highlight the need to implement the new system.

The aim of the SNC-AP is to end the fragmentation of accounting systems that exist today in public administration, standardize procedures and increase the transparency of accounts. However, experts warn that we need political support, technical expertise and the IMF are in Portugal to help implement the system.

The President of the Court of Auditors (TdC), Guilherme d’Oliveira Martins, considers that “although much has been advanced,” the process “public accounting lacks development and improvement”, recalling the recommendations that TB has been doing Over the past few years. That it is recognized in the decree-law establishing the SNC-AP: “It can be said that the accounting standards in Portugal for the public sector is now outdated, fragmented and inconsistent”, and now “coexist accounting systems” .

This is due to the advance of the Accounting Standardisation System (SNC), towards the adoption of relevant standards of international accounting standards (IAS / IFRS) and also to maintain an accounting system in the public sector which is based on national standards They have since been revoked as is the case of the Official Chart of Accounts (POC). This coexistence generates “a serious problem of technical inconsistencies” and implies “many adjustments that are not desirable and who question the reliability of the information.” The problem sit on the Public Administration but with particular emphasis on the Budget Directorate-General, the Local Government Directorate-General and the National Institute of Statistics which have to add the information.

The chairman of OTOC, Azevedo Domingues, believes that the new system “will be a revolution,” considering that will be achieved greater transparency in public accounts. Similarly, Guilherme d’Oliveira Martins said that “it is essential that the model adopted becomes an effective reality for all public bodies” on behalf “of truth and transparency.” Former finance minister also warned of the need to apply the SNC-AP logo in 2017, after an implementation period for the next year and left a warning: “The TB will be extremely tight so that the preparation is done and that there be no further delay. ”

A university professor, Paula Gomes dos Santos warned that “there are many entities to produce regulatory accounting” that are not always made compatible and said it was necessary “to have a public accounting that is the basis of a transparent governance”. In turn, the chairman of the Accounting Standards Board, António Monteiro, defended the importance of the Directors of the universe? Public be integrated and considered that the main challenge is the proper implementation of SNC-AP. The expert said it is necessary “the general recognition of the need for change and political support,” but you also need to ensure that there is “expertise” to put into practice. António Monteiro also said that the IMF is in Portugal to help implement the system and being held meetings at the Ministry of Finance.

News source : Ecomómico

Business and Professional Income: choice of accounting organized by 31 March

The determination of business and professional income is made based on the application of the rules under the simplified scheme or on the basis of accounting.

They are covered by the simplified scheme, the taxable persons who, in the previous tax year, have not exceeded an annual gross amount of 200,000 euros this category.

However, taxpayers may opt for the determination of income on the basis of accounting. This option, by 2014, should be exercised in own activity early statement or until the end of March of the year who wanted to change the method of determining income by filing a change statement. Once exercised this option, it would be valid for a period of three years, renewable for equal periods, unless there is timely reporting the change of regime.

From January 1, 2015, changes have been made to the simplified scheme namely the repeal of the minimum term of stay in this regime and maintenance in the chosen regime until it provide a new option.
Thus, the simplified regime continues to apply by default, that is, if the conditions laid down in the Income Tax Code and not opting for the taxpayer of proper accounting regime will apply this system of determining taxable income.

However, the following year the taxpayer may reassess remains this scheme or opt for accounting. If you want to carry out such an option should deliver change statement by the end of March this year, allowing in practice the possibility of an annual review of the determination of the taxable income regime.

News source : Ecomómico