• Spain is included in the IFAD GAAP Convergence Studies
• National Professional Organisation Website: Instituto de Auditores-Censores Jurados de Cuentas de Espana (IACJCE)
• Response to IFAC Member Body Survey on Standard Setting and Regulation

Update for January 2012
Update for September 2011
Update for July 2001

Adoption of IFRSs in Europe Effective in 2005

In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:

• Require or permit IFRSs for unlisted companies.
• Require or permit IFRSs in parent company (unconsolidated) financial statements.
• Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
• Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.

The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) – Iceland, Liechtenstein, and Norway.

Spain is an EU Member State. Consequently, Spanish companies listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:

• Table on Use of IFRS Options in 30 EU Member and EEA States (PDF 64k)

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):

• "in accordance with International Financial Reporting Standards as adopted by the EU" or
• "in accordance with IFRSs as adopted by the EU".

Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.

In September 2011, the European Commission services published a report an update on the extent to which certain options included within the Accounting Directives have been incorporated into the law of the Member States and EEA countries. Please click for access to the report (PDF 816k, link to EC website).

For an overview of all Spanish language publications available on IAS Plus please click here: Nuestros Recursos en Español.

The leases project: an update for the lessee

Deloitte Spain has published El proyecto de arrendamientos – Una actualización para el arrendatario (PDF 853k), which provides an update on the potential impacts of the IASB's leases project on lessees (in Spanish).

Spanish National Chart of Accounts and Consolidation Rules in your pocket

Deloitte Spain has published an updated pocket guide to Spanish GAAP applicable to individual companies and unlisted consolidated groups (listed consolidated groups are subject to IFRSs as adopted by the EU). The current Plan General de Contabilidad (Spanish National Chart of Accounts) was adopted for years beginning on or after 1 January 2008. Subsequently in 2010, new Rules for the Preparation of Consolidated Financial statements were approved as well as certain amendments that affected four recognition and measurement standards in the Chart of Accounts, certain of which of such importance as Standard 19 on Business Combinations and Standard 21 on Transactions between Group Companies. The Spanish GAAP is 'inspired by IFRSs' but not equivalent, and differences remain. The guide also includes a quick guide to the most significant differences with respect to IFRS. The guide is available both in Spanish and English.

Deloitte Spain Newsletter: Cierre NIIF 2011 Mantente actualizado

Deloitte Spain has published Cierre NIIF 2011 Mantente actualizado as a practical aid for this year end closing period. The newsletter provides an overview of new and revised International Financial Reporting Standards and IFRS Interpretations that are mandatorily effective for December 2011 calendar year-ends (EU perspective) and also of requirements that will be effective in subsequent accounting periods, together with guidance about disclosures that must be made in this regard. It provides also with useful links to iasplus.com publications as financial statements models and checklist and past IFRS in Focus newsletters on the new standards and interpretations.

Spanish translations' update

The IFRS Foundation has announced the publication of the following Spanish translations: Presentation of Items of Other Comprehensive Income (Amendments to IAS 1), IAS 19 Employee Benefits and the Bases for Conclusions on IAS 27 (2011), IAS 28 (2011) and IFRS 10. The translations are available for eIFRS subscribers on the IASB's website.

The Process of Adapting to IAS

In May 2000, the Accounting and Auditing Institute (ICAC), a public body dependent on the Ministry of the Economy, issued a comparative, provisional document, on which it had been working since the second half of 1998, between the Spanish accounting rules and those issued by the IASC. The purpose of that document was to analyse how far the Spanish regulations (the General Accounting Plan, its adaptation to specific industries and the rulings given by the ICAC itself) were compatible with those of the IASC, with the purpose of:

• identifying areas of discrepancy; and
• trying to introduce those IASC rules which are not currently reflected in Spanish regulations but which should be included in order to complete the full accounting model.

More recently, in March 2001, a committee of experts from the public and private sectors was set up with a view to drafting a report to analyse the extent to which Spanish regulations were in line with the European Union's recommendations, and also to define the model reflecting the IASC standards. This Committee also includes representatives from the regulatory bodies (Bank of Spain, Directorate General of Insurance, National Stock Market Commission, etc.). The Committees' report is taking into account the proposed regulations issued by the European Parliament in February 2001, for which all listed companies within the EU should present consolidated financial statements in accordance with IAS by 2005, at the latest.

Among the issues this Committee has regarded as priority, is the immediate need to address in greater depth certain matters that are not regulated in sufficient detail in the current Spanish rules or which are subject to current discussion (e.g. valuation of financial instruments, treatment of intangible assets, business combinations). Also, of priority are areas where greatest effort may be required to bring the Spanish rules in line with IAS.

Other significant differences have also been identified between the Spanish rules and IAS, including recognition of income tax based on a balance sheet approach, disclosure of segment information and earning per share, and compulsory presentation of cash-flow statements (under current Spanish regulations a statement of sources and application of funds is required). Some of these topics have already been addressed in some detail, both by the accounting profession, in general, and by private bodies (that is, the Spanish Association of Accounting and Corporate Administration) in particular.