Chapter 1. Keeping of Accounts Compulsory
Art. 63. – Traders and Business Organisations.
1. Any person or business organisation carrying on trade shall keep such books and accounts as are required in accordance with business practice and regulations, having regard to the nature and importance of the trade carried on.
2. The provisions of Art. 66-70 of this Code shall apply.
Art. 64. – Petty traders.
Petty traders may be exempted from keeping accounts on such conditions as may be prescribed.
Art. 65. – Special rules applicable to business organisations.
Nothing in this Title shall affect the special provisions of Book II of this Code applicable to business organisations.
Chapter 2. Books and Accounts to be kept
Art. 66. – Entry of dealings.
1. Every trader shall keep a journal where he shall make daily entries of all his dealings regardless of the nature of such dealings or of the manner in which they were carried out.
2. He may at least once a month balance the proceeds of such dealings and shall in such a case preserve all documents necessary for checking these dealings day by day.
Art. 67. – Inventory and balance sheet.
1. When beginning to carry on his trade, every trader shall prepare an inventory and a balance sheet.
2. A trader shall also, at the end of each financial year, prepare an inventory of his assets and liabilities and balance his accounts for the purpose of preparing the final balance sheet and the profit and loss account. The balance sheet and the profit and loss account shall be entered in special books.
Art. 68. – Keeping of books.
1. The books required under Art. 66 and 67 shall be kept in chronological order without any blanks or alterations.
2. They shall be given a serial number and initialed by the prescribed authority. The number of pages of which the books consist shall be specified by the prescribed authority on the last page of each book.
Art. 69. – Preservation of books.
All books and accounting documents shall be preserved for ten years from the date of the last entry in such books or from the date of such documents.
Art. 70. – Correspondence.
Originals of all letters, messages or telegrams received and copies of all letters, messages or telegrams sent shall be filed and preserved for ten years.
Chapter 3. Books and Accounts Admissible Evidence
Art. 71. – Evidence in favour of party keeping books.
Where a dispute arises between traders as to their commercial activities, the court may, notwithstanding the provisions of Art. 2016 of the Civil Code, admit as evidence in favour of a party books and accounts which have been kept by such party according to the provisions of the preceding Articles.
Art. 72. – Evidence against party keeping books.
1. Books shall prove against the party producing them.
2. A party who avails himself of books may not conceal any part of such books that may contradict his claim.
Chapter 4. Keeping of Accounts
Art. 73. – Scope of application of this Chapter.
1. The provisions of this Chapter shall apply to all commercial business organisations and to all persons carrying on a trade on such conditions as may be prescribed.
2. Special requirements may be prescribed in respect of certain kinds of traders or business organisations. These requirements may differ according to the nature and importance of the trade carried on.
Art. 74. – Assets in the balance sheet.
1. The balance sheet shall show, as assets, all the debit balances and, as liabilities, all the credit balances.
2. The assets shall appear in the following order:
a. Establishment expenses;
b. Fixed assets;
d. Short term or liquid assets;
e. The results (Debit balance of the Profit and Loss Account).
Art. 75. – Liabilities in the Balance Sheet.
The liabilities shall appear in the following order:
1. The proper capital account and reserves;
2. Profits brought forward and renewal funds;
3. Provisions and long term debts; personnel pension funds, if any;
4. Short term debts;
5. The result (Credit balance of the Profit and Loss Account).
Art. 76. – Amortisations, provisions, adjustment accounts.
1. Amortisations and provisions for depreciation shall appear under the respective headings of the assets in the balance sheet.
2. The adjustment accounts shall appear in the assets or liabilities side of the balance sheet following the accounts to which they relate.
Art. 77. – Establishment expenses.
Establishment expenses are expenses made on the formation of the undertaking or on the undertaking acquiring its permanent means of working.
Art. 78. – Fixed assets.
1. Fixed assets consist of assets used for working, assets not so used, assets completely amortised, and assets in course of being amortised.
2. Assets used in working are any assets acquired or manufactured by the undertaking not for sale or for transformation but to be used in a lasting manner as instruments of work.
3. Assets not used for working are any assets acquired or manufactured by the undertaking by virtue of the employment of capital and not for use as instruments of work.
4. Assets completely amortised are those still in use but whose value is entirely written off.
5. Assets in course of being amortised are those which are still not written off at the end of the financial year.
Art. 79. – Stocks.
Stocks are goods, materials, supplies, semi-finished and finished products works in progress and packing materials.
Art. 80. – Capital and reserves.
1. The capital is the original value of the elements put at the disposal of the undertaking by the owner or partners by way of contributions in cash or in kind.
2. All profits preserved for the undertaking and not forming part of the capital shall constitute a reserve.
Art. 81. – Balance carried forward.
The balance carried forward is made up of previous years’ profits which have not been distributed or transferred to reserves, or of previous years losses which have not been covered by subsequent profits.
Art. 82. – Amortisations and provisions.
1. Amortisation is the accounting measurement of the loss sustained by the fixed assets that necessarily depreciate with time.
2. The provisions for risks are intended to provide for definite risks, namely clear precise losses, which are foreseen at the end of the financial year.
3. The provisions for depreciation are intended to provide for the reduction in the value of some of the assets which can reasonably be expected.
Art. 83. – Adjustment accounts.
The adjustment accounts are intended to correct debts and amounts owing not written in ordinary accounts so that only those effective debts and monies owing appear at any particular financial year.
Art. 84. – Valuation.
1. Fixed assets shall appear in the balance sheet at their value of origin or if they have been revalued at their revaluation.
2. Merchandise, materials, supplies, packing materials in stock at the date of inventory shall be valued at their cost price.
3. Immovable assets shall appear in the balance sheet at their purchase price.
4. Wastes (remains of materials and refuse proceeding from manufacture) shall be valued at the ruling price at the date of the inventory or in the absence of a ruling price at their probable value of realisation.
5. Products or works in progress shall appear at their cost on the day of the inventory.
Art. 85. – Provisions for depreciation.
If the real value of merchandise, materials, semi-finished products, finished products and packing materials in stock on the day of the inventory is less than the cost price, the trader or commercial business organisation shall constitute equivalent provisions for depreciation.