The PGC for SMEs simplifies the accounting of smaller businesses.
The PGC for SMEs is voluntary.
Between 2005 and 2007, a new General Accounting Plan ( PGC ) was studied, developed and finally approved. Its aim was, among other things, to harmonise our accounting with the international context. At that time, it was also decided to create a version specifically adapted for SMEs . Today, after some reforms, such as the one in 2016 , this plan remains in force.
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Accounting is one denmark email list of the most important obligations for all types of businesses. For SMEs, the improvement in terms of power, simplification and automation of accounting management solutions has made the task considerably easier.
Find out all the latest news about the General Accounting Plan for SMEs in 2021 in this article.
Who can apply for the PGC for SMEs?
The General Accounting Plan for SMEs is voluntary . It is always possible to opt for the general version. However, companies that decide to apply it must meet at least two of the following requirements:
An asset that does not exceed four million euros.
An annual turnover not exceeding eight million euros.
No more than fifty workers on average during the year.
As for the time period in which they must be met, the figures from the closing of the last two financial years are considered. To start applying it, the requirements must have been met in the two previous financial years.
In any case, if they fail to meet the requirements one year , this does not mean that they should stop applying the PGC for SMEs. However, in order not to lose the right to apply it, they should not fail to meet them for two consecutive years.
In addition, in the year in which a company was established, it can apply the PGC for SMEs if it meets two of the aforementioned requirements.
The PGC for SMEs is voluntary, but certain requirements must be met to apply for it.
However, it should also be noted that there are companies that, even if they meet the requirements, cannot apply the PGC for SMEs . Specifically, they are the following:
Public interest entities.
Companies that form part of a group of companies that must prepare consolidated accounts.
Companies with a functional currency other than the euro.
Certain types of financial institutions.
On the other hand, the minimum period for which companies that choose to apply it have to continue doing so is three years , unless they cease to meet the conditions during that period.
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How the PGC is applied for SMEs
Once we have decided to apply it , we must do so in its entirety . That is, we cannot apply the PGC for SMEs in the aspects that interest us and the ordinary one in the rest.
However, there may be situations whose treatment is not included in the PGC for SMEs but is in the normal one. In that case, we would refer to the latter, except in the case of non-current assets and disposal groups of items held for sale, which will not be applicable in any case.
