The Law on financial operations, which the Parliament of FBiH adopted in July, will be applied from the 1st of January 2017. The Government of FBiH believes that the application of this law should reduce the insolvency of companies in FBiH, and put some order in the execution of financial obligations.
The Law on financial operations is related to all legal entities engaged in activities with the aim to make a profit in accordance with the regulations on companies; as well as persons who independently perform economic activity.
The new law requires that the management of each company undertake certain meaures in a defined period of time in case of capital inadequacy. The inadequacy of capital is created in companies if, on the date of making the financial reports, the loss made in this year together with the transferred losses, amounts to half of the basic capital of the company.
Simply put, for a business whose core capital is 2,000 BAM, each loss larger than 1,000 BAM will lead to capital inadequacy. The fine, if the management fails to implement the prescribed measures when the capital becomes inadequate, amounts to 1,500 to 3,000 BAM. The aim of these provisions is to prevent noncoverage of losses from year to year.
When the capital of the company becomes inadequate, the administration is obliged, within eight days, to analyze the causes of capital inadequacy and to propose measures required to achieve the capital adequacy and submit them to the Supervisory Board, which is required to give an opinion within eight days of receiving it.
Payment methods: cession, assignation, debt assumption etc. After the law comes into force, it will have to be recorded with regular accounts. Failure to comply with this provision of the law is punishable by a fine that is ranging from 5,000 to 15,000 BAM. The way by which this will be carried out will be known after the tax administration offices do the technical part of this monitoring.
Companies are obliged to have signed agreements on business cooperation with all their buyers/ suppliers, as well as defined terms of payment as well as security measures for non-payment, referring to the Law on financial operations.
(Source: fokus.ba)
