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16/01/2014 PROFILE > Expert-comptable , Commissaire aux comptes

What are the possible consequences of a transfer of activities on the presentation of annual accounts?

The presentation of annual accounts rests on the principles of continued operations (publication of annual accounts in the event of continued operations and not liquidation) and continued methods (still using the same accounting methods from one year to the next so as to be able to compare and coherently evaluate annual accounts).
However, the issue of respecting these principles is taken into account in such instance as closure of a site is announced between the date of closure and the date on which accounts are published and leading to the suspension of activities. The Commission of Accounting Studies and the National Company of Auditors (CNCC) recently made a declaration on this issue. It has observed that the decision for closure has called into question the continuity of operations of the company in drafting its annual accounts. 
In the absence of any position by the Authority for Accounting Standards (ANC) on the definition of cash values and the accounting of provisions for future re-structuring, but not officially decided, the Commission estimated that it is incumbent upon the Board of Directors of the company to make a choice in the accounting methods and not to respect, where applicable, the principle of permanent methods. This choice may lead to the accounting of provisions pertaining to decisions not yet formally decided and the valuation of assets and liabilities at their cash value. The Commission has however reiterated that it is necessary for the annex to the annual accounts and the management report to indicate the accounting and valuation methods used by the Board of Directors to show the abandon of the principle of continued operations.