Legal, Accounting and Tax Issues Regarding the Simultaneous Dissolution and Liquidation of Limited Liability Companies in Financial Difficulty

Abstract

This article presents one of the events that may occur in the life of limited liability companies in financial difficulty, namely, the simultaneous dissolution and liquidation. For this purpose, it refers to the legal, accounting and fiscal regulations applicable in the field and provides an example on the reflection in accounting of the operations specific to the liquidation in the conditions in which the resulting financial resources don’t allow the payment of debts. The goal of this material is to support the professional accountants in their effort of providing services that help companies to fulfil their obligations in cases of simultaneous dissolution and liquidation, by presenting theoretical and practical aspects concerning the activities taking place in this context.

Keywords

• financial difficulty
• simultaneous dissolution and liquidation
• accounting work for the closure of the financial year
• liquidation report
• financial statements drawn up on the occasion of liquidation
• financial statements of liquidation