01

Technical

changes in paper f6 (rom)

relevanT TO acca qualificaTiOn paper f6 (rOM)
The changes in the Syllabus can be found in the summary of changes to the previous Study Guide section at the end of the syllabus, which can be found on the ACCA website. This article will provide some more information on some of these changes. The most important change is given by the Emergency Ordinance no. 34/2009. The syllabus was adapted to include the minimum tax for corporate income tax and for the special scheme of corporate tax for very small companies. As a result of this, students should be aware of: How the level of minimum tax is established: according to the revenues registered in the previous year How the comparison between the corporate income tax, computed with the old rules, and the minimum tax is made: yearly for credit institutions quarterly for companies, other than credit institutions. There have been some changes introduced to the Paper F6 (ROM) syllabus for June and December 2010 due to alterations in legislation during the period 30 September 2008 to 30 September 2009, when the following legislative acts relevant to Paper F6 (ROM) were published: 1 Acts that modified the Tax Code: Emergency Government Ordinance no. 127/2008 Emergency Government Ordinance no. 200/2008 Emergency Government Ordinance no. 29/2009 Emergency Government Ordinance no. 34/2009 Emergency Government Ordinance no. 46/2009 2 Acts that modified the Implementing provisions of the Tax Code: Government Decision no. 1618/2008 Government Decision no. 192/2009 Government Decision no. 488/2009 Government Decision no. 616/2009 Government Decision no. 956/2009. Students should note that the legislation which established the calculation of final corporate tax liability for the year 2009 for companies other than credit institutions will not be examined during these exams, as the Order 1607/2009 was published after 30 September 2009, the cut-off date for June and December 2010 papers. The above mentioned Ordinance also introduced other significant changes, but with no impact on the Syllabus. However, students should be aware of these changes: For corporate income tax: the new tax treatment of a companys expenses with fuel for passenger cars with less than nine seats and weighing less than 3.500kg. These expenses shall not be deductible during 1 May 2009 to 31 December 2010. Exceptionally these expenses may be deducted for the cars that fall within one of the following categories:

The changes in The paper f6 (rOM) syllabus can be fOund in The suMMary Of changes TO The previOus sTudy guide secTiOn aT The end Of The syllabus, which can be fOund On The acca websiTe.

sTudenT accOunTanT issue 10/2010

Studying Paper F6? performance objectives 19 and 20 are relevant to this exam

02

the syllabus
siTuaTiOns in pracTice deMand a parTial deducTiOn righT Of vaT, Meaning a syllabus change.
cars used exclusively for: intervention, repairs, security and protection, courier activities, transport of employees to and from a place of business, as well as cars specially used for mass-media activities, cars used by sales agents and recruitment agents cars used for transporting persons in exchange for payment, including cars used for taxi activities cars leased to other persons, including cars used by driving instructors. the new tax treatment of revaluation reserves. Thus, starting on 1 May 2009 the tax deduction of revaluation reserves through tax depreciation will be offset by an element similar to revenue in the same amount. Also, the remaining revaluation reserve that was deducted for tax purposes so far through depreciation allowances shall be taxed on sale and not when the reserve is used, as it was before. As an exception the realised revaluation recognised in the balance of the account 1065 Retain earnings from realised revaluation reserve on 30 April 2009 which will keep the same tax treatment as before. The provision set by the Government Decision No. 1620/2009 will not be examinable in the 2010 examinations, as this decision was published after 30 September 2009. This decision relates to the part of the reserve that was depreciated before 30 April 2009 and was not recognised in the balance of the account 1065 Retain earnings from realised revaluation reserve, which will keep the same tax treatment as before. For value added tax (VAT): the limitation of deductibility of VAT paid on the acquisition of passenger cars with less than nine seats and weighing less than 3.500kg. The input VAT for these cars shall not be deductible during 1 May 2009 to 31 December 2010. Exceptionally the input VAT may be deducted for the cars that fall within one of the following categories: cars used exclusively for: intervention, repairs, security and protection, courier activities, transport of employees to and from a place of business, as well as cars specially used for mass-media activities, cars used by sales agents and recruitment agents cars used for transporting persons in exchange for payment, including cars used for taxi activities cars leased to other persons, including cars used by driving instructors. In the VAT area there was a change in the syllabus. This was not due to any new legislation, but to the fact that there are many situations in practice when there is a partial deduction right of VAT, and students should know how to face these situations. Delia Catarama is examiner for Paper F6 (ROM) and Dorin Teodorescu is assessor for Paper F6 (ROM)