However, for associations and, in general, for non-profit entities , the presentation of accounting books and annual accounts ( income statement , balance sheet and annual report) is not strictly obligatory, unless defined in the statutes of the entity or in the case of Public Utility entities covered by Law 49/2002. However, it is advisable to give a solid image to third parties, members and associates.
The accounting obligations of Associations are established in Article 14 of Organic Law 1/2002, of March 22, regulating the Right of Association , which states:
1. “Associations must have an up-to-date list of their members, keep accounts that allow obtaining a true image of the assets, results philippines phone number list and financial situation of the entity, as well as the activities carried out, make an inventory of their assets and record in a book the minutes of the meetings of their governing and representative bodies. They must keep their accounts in accordance with the specific regulations that apply to them.”
In the case of foundations , the presentation of books and accounts is mandatory, and these must be approved up to six months after the end of the financial year.
Therefore, even without having to file financial statements, all entities with legal personality must keep accounting records in accordance with the General Accounting Plan in force at any given time, which is also essential if they are required to file Corporate Tax.
