Accounting and Fiscal Considerations upon Performance Guarantees - Particular Case of Construction Works

Open access

Abstract

The performance guarantee represents the contractor's liability to ensure the beneficiary on the fulfillment of the quality conditions for the contracted works, as well as of their execution within the agreed contractual term. In the context of a growth trend in the industrial construction market since 2018, we considered it appropriate to study the impact of the performance guarantees on the financial balance of the contractors operating on this market. Through this research we aim to analyze the methods of guaranteeing the construction works, to assess the financial, accounting and fiscal issues of a construction company as a general contractor, to identify potential risks and to find solutions to avoid them.

1. Anghel M.G., Anghelache C. (2018), et. al., Analysis of the evolution of activity in industry and construction - the first nine months of 2017, Romanian Journal of Statistics, supplement no. 1

2. David, D., Mateș D., et al (2017), Contabilitate financiară conformă cu Ordinul 1.802/2014 pentru aprobarea Reglementărilor contabile privind situațiile financiare anuale individuale și situațiile financiare anuale consolidate - ediție completată și actualizată, Risoprint, Cluj Napoca, p. 182.

3. Elliot, B., Elliot, J. (2011), Financial Accounting and Reporting, Pearson Education Limited, Essex, England, p. 523

4. Mateș D., Bunget, O. et al (2013), Bazele conceptuale și aplicative ale contabilității, Casa Cărții de Știință, Cluj Napoca, p. 42.

5. Rumane, A.R. (2018), Quality management in construction projects, Taylor & Francis Group, LLC, U.S.A., p.31, 34.

6. CECCAR (2015), Standardele internaționale de raportare financiară (Partea A + Partea B), CECCAR, București

7. CECCAR (2015), Ghid practic de aplicare a reglementărilor contabile privind situațiile financiare anuale individuale și situațiile financiare anuale consolidate aprobate prin OMFP mr. 1802/2014, CECCAR, București, p. 406, 407, 408, 1191.

8. Government Decision no. 1/2016 for the approval of the Methodological Norms for the application of Law no. 227/2015 regarding the Fiscal Code, published in Official Monitor no. 22 from 13rd of January 2016, with further updates

9. Government Decision no. 273/1994 for the approval of the Regulation for reception of construction works and installations published in Official Monitor no. 193 from 28th of July 1994, with further updates

10. Government Decision no. 907/2016 on the elaboration phases and the framework content of the technical and economic documentation related to the public-financed investment objectives / projects, published in Official Monitor no. 1061 from 29th of December 2016, with further updates

11. Law no. 10/1995 regarding the quality in constructions republished in Official Monitor no. 765 from 30th of September 2016, with further updates

12. Law 227/2015 regarding the Fiscal Code published in Official Monitor no. 88 from 10th of September 2015 with further updates

13. Order of the Minister of Public Finance no. 1.802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements, published in Official Monitor no. 963 from 30th of December 2014 with further updates.

14. http://www.cnp.ro/user/repository/prognoze/prognoza_2018_2021_varianta_de_primavara_2018.pdf

15.World Construction Industry (2010), available at http://www.economywatch.com/worldindustries/construction/world.html.

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 42 42 7
PDF Downloads 35 35 6