Principiile contabilizarii si impozitarii rezervelor din reevaluare aferente imobilizarilor corporale. Este legislatia aflata in vigoare pe aceasta tematica suficienta si cuprinzatoare pentru situatiile practice ce pot aparea din perspectiva rezervel
The principles of accounting and taxation of revaluation reserves related to tangible assets. Is the current legislation on this subject sufficient and comprehensive for the practical situations that may arise regarding revaluation reserves?

Summary/Abstract: The subject of revaluation reserves is a sensitive one, both from an accounting and a fiscal perspective and can present challenges in practice for any taxpayer/accountant/tax expert/etc. from both the perspective of the applicable accounting records and the perspective of the fiscal implications in calculating the profit tax. With specific regulations and explicit treatment in the legislation, both from an accounting and a fiscal point of view, these types of reserves require special attention regardless of the practical situation in which they arise. Thus, even in the simple case of a company holding tangible assets for a longer period of time, with no change in their use by the company, the need for their periodic revaluation to reflect them at fair value in the annual financial statements can generate issues in the company's accounting and tax records. In this article, we will focus on presenting the principles underlying the legislative text from both an accounting and a fiscal perspective, specifically on the legislator's intention regarding the rules applicable to revaluation reserves. Our analysis will materialize in the exemplification of these principles and the presentation of their application in practice, through three practical cases of operations with revaluation reserves related to tangible assets (a building, depreciable asset, as well as land, non-depreciable asset). Finally, we will present our conclusions regarding the mechanism for accounting and taxing revaluation reserves in accordance with the current legislation, but we will also highlight certain limitations of the current legal text.

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