THE ACCOUNTING TREATMENT APPLICABLE TO THE STRUCTURAL FUNDS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL STANDARDS –IAS20

The European funds, according to the Emergency Ordinance no. 63/1999, are defined as being the financial contributions of the European Union, represented by the amounts of money which are transferred to the Romanian Government by the EU Commission, as a non-refundable financial assistance. The structural funds are post-accession funds financed by the EU budget, having as purpose to support the member states, in fields of interest as: education, research, agriculture, the SMEs’ development, etc. In this context, special attention is brought upon the less-developed regions. In regards to the way of informing the beneficiaries of the Program, these must be aware of the nature of the European funds regarding the implementation of the projects in question. Hence, at the moment when the contract is signed between the contracting authority (It’s an institution (public or private) which closes a contract with an inverstor regarding the implementation of an investment program of the aforementioned investor at the moment when the investor doesn’t get involved directly and completely in the organisational activity of granting the finances.and the delegated authority and beneficiary, the category of the offered financial support will be specified explicitly, i.e. from the community budget or the state budget, as the allocated amount, the contribution of each being expressed in percentages or absolute value.