Regulation N°2022-06 dated November 4, 2022 amends ANC regulation N°2014-03 of June 5, 2014 relating to the general chart of accounts with a view to modernizing financial statements and the nomenclature of accounts.
Application
This presentation is effective for financial years beginning on or after January1, 2025. However, this presentation can be used as soon as it is published in the Journal Officiel.
Restatement of exceptional items
Objectives
In line with its strategic plan, ANC's work has a threefold objective:
- facilitate the digitization of annual accounts;
- update the templates for the annual financial statements and the nomenclature of accounts ;
- simplify templates for annual financial statements.
A new definition and presentation of exceptional income
The text provides for :
- define exceptional items as income and expenses directly linked to a major, unusual event.
- An event is major when its consequences can influence judgment and decisions (impact).
- An unusual event is one that is not related to normal, everyday operations.
- limit the items recorded under extraordinary income to purely tax-related accounting entries, such as accelerated depreciation, and error corrections.
- The current subdivisions of accounts 67 and 77 have been reclassified as accounts contributing to ordinary income.
Examples:
- subdivisions of accounts 67 and 77 relating to the disposal of assets are replaced by subdivisions of accounts 65 and 75 and 66 and 76 ;
- account 777 "Share of investment grants transferred to income for the year" is replaced by account 747.
This new definition of extraordinary income entails :
- reclassifications in the chart of accounts ;
- changes in the presentation of the income statement ;
- detailed information in the appendix.
A description of income and expenses recognized as exceptional items must be provided in the notes to the financial statements (PCG, new art. 832-21).
For each major and unusual event that gives rise to the recognition of income and expenses as extraordinary income or expense, the notes to the financial statements should include :
- event description ;
- amounts already booked in previous years ;
- the nature of income and expenses recorded during the year.
Elimination of expense transfer accounts
Expense transfer accounts (79 accounts) are currently used for purely technical entries, such as the spreading of loan issue costs, as well as for a multitude of other heterogeneous operations designed to neutralize expenses.
As a result, these "catch-all" accounts are difficult for users to analyze.
ANC has eliminated the charge transfer technique and proposes an alternative treatment solution for each type of operation concerned.
Tax impact / value added / cvae
The only impacts may be the following:
- Classification of insurance reimbursements received as compensation for the total destruction or theft of a fixed asset, previously excluded from the calculation of Value Added. If it is booked to a 757- account, it will be included in the VA calculation, unless it can be shown to be directly linked to a major and unusual event.
- Disposals of assets are classified under 65/75, unless it can be demonstrated that they are directly related to a major unusual event.
- Grants transferred to the income statement are classified under 74.
In view of the elimination of the CVAE from 2027 (Draft Finance Bill for 2023 art. 5) and given that this new regulation is not expected to be mandatory by then, its impact on the impact on the CVAE should be be limited to companies that opt for early early application of this new regulation. nomenclature of accounts.
Profit-sharing impact
The profit-sharing calculation formula involves payroll (S) and value added (VA).
VA does not include expense transfer accounts.
The new credit to expense accounts will therefore have a direct impact on the amount of VA used to calculate profit-sharing, and may lead to a reduction in profit-sharing.
For the same reason, profit-sharing contracts may be affected. The delay in implementing these new regulations should enable companies to review their profit-sharing contracts.
Exceptional items and expense transfers
Chart of accounts and financial statement presentation
There was no material impact on the accounting and presentation of the financial statements.
Appendices
Under the new version of the French General Chart of Accounts (PCG), the information to be disclosed in the notes to the financial statements is now presented by type of information, rather than by category of entity.
A summary table sets out the provisions applicable to each category of entity (article 811-12)
New practical table templates have been created to indicate the information required for :
Methods used in the event of a choice
Presentation of accounting changes (regulatory methods, estimates, etc.)
Changes in capital / shareholders' equity
For the entities concerned cash flow and use/resources statements are provided.
Your chartered accountancy firm is at your side to support you in all your endeavours, so don't hesitate to contact us.
