Subsection 1: Accounting obligations applicable to all traders.

Any natural or legal person who is a trader must make an accounting record of movements affecting the assets and liabilities of his business. These movements are recorded chronologically. It must check by inventory, at least once every twelve months, the existence and value of the assets and liabilities of the company’s assets. It must draw up annual accounts at the close of the financial year in the light of…

The balance sheet describes the company’s assets and liabilities separately, and shows shareholders’ equity separately. The profit and loss account summarises the income and expenses for the financial year, regardless of when they were received or paid. After deducting depreciation, amortisation and provisions, it shows the profit or loss for the year. Income and expenses, classified by category, must be presented either in tabular form or in the form of…

The annual accounts must be regular, fair and give a true and fair view of the assets, liabilities, financial position and profit or loss of the company. Where the application of an accounting requirement is not sufficient to give the true and fair view referred to in this article, additional information must be provided in the notes to the accounts. If, in an exceptional case, the application of an accounting…

The balance sheet, profit and loss account and notes to the accounts must include as many headings and items as are necessary to give a true and fair view of the company’s assets and liabilities, financial position and results. Each item in the balance sheet and profit and loss account shall show the figure relating to the corresponding item in the previous financial year. The items making up shareholders’ equity…

Small companies may, under conditions laid down by a regulation of the Accounting Standards Authority, adopt a simplified presentation of their annual accounts. Medium-sized companies may, under conditions laid down by a regulation of the Accounting Standards Authority, adopt a simplified presentation of their profit and loss account. Small companies within the meaning of this article are traders, whether natural persons or legal entities, for which, in respect of the…

By way of derogation from the provisions of the third paragraph of Article L. 123-12, micro-businesses, with the exception of those whose business consists of managing equity interests and securities, are not required to draw up a schedule. Micro-enterprises within the meaning of this article are traders, whether individuals or legal entities, for whom, in respect of the last closed accounting period and on an annual basis, two of the…

The provisions of articles L. 123-16 and L. 123-16-1 are not applicable: 1° To the credit institutions and finance companies mentioned in Article L. 511-1 of the Monetary and Financial Code and to the payment institutions and electronic money institutions mentioned in Article L. 521-1 of the same code; 2° Aux entreprises d’assurance et de réassurance mentionnés aux articles L. 310-1 and L. 310-1-1 of the Insurance Code, to the…

Except in exceptional cases, in order to give a true and fair view of the assets and liabilities, financial position and profit or loss of the company, and under the conditions laid down by a regulation of the Autorité des normes comptables, the accounting methods used and the structure of the balance sheet and profit or loss account may not be changed from one financial year to the next. If…

On the date of their entry into the company’s assets, goods acquired for valuable consideration are recorded at their acquisition cost, goods acquired free of charge at their market value and goods produced at their production cost. For fixed assets, the values used in the inventory must, where applicable, take account of depreciation schedules. If the value of an asset falls below its net book value, the latter is reduced…

Assets and liabilities must be valued separately. No offsetting may be made between asset and liability items in the balance sheet or between expense and income items in the income statement, except in exceptional cases provided for by a regulation of the Accounting Standards Authority. The opening balance sheet for a financial year must correspond to the closing balance sheet for the previous financial year.