DP5EN Compl

7/30/2019 DP5EN Compl

1/12

20419/01 CONF-RO 19/01 1

EN

CONFERENCE ON ACCESSION Brussels, 14 June 2001

TO THE EUROPEAN UNION

- ROMANIA - CONF-RO 19/01

COMPLEMENTARY POSITION PAPER

CHAPTER 5 COMPANY LAW

Romania accepts the entire acquis communautaire on company law in force on31 December 2000, does not request any transition period or derogation andstates that it will be able to apply the entire acquis at the date of accession.Romania is prepared to inform the Conference for Accession on the legislationand implementation measures adopted for the enforcement of the acquiscommunautaire on company law, and hereby provides additional informationto that presented in its position paper for the chapter Company law.

I. COMPANY LAW

In the area of company law, as presented in the initial Position Paper, Romania transposed theessential provisions of the acquis communautaire. The remaining discrepancies between the EC lawand the national law will be eliminated to fully transpose this acquis.

Therefore, Law No. 26/1990 on the trade registry and Law No. 31/1990 on companies will beharmonised until the end of 2001 with the six directives on company law.

The amendments planned to be applied to the two laws regard the disclosure requirements to registercompanies, including the branches of companies, the liability of the members of the administrative or

management bodies of merging companies, the liability of the experts for the merger report, thesafeguards that have to be provided in favour of shareholders and creditors of companies, and also infavour of the third parties.

The disclosure requirements that will be introduced refer to the setting up and registering of varioustypes of companies. Thus, the information required for the application will be established for theregistration of companies, and, particularly the information required for the registration of the branchesof companies (the name of the branch and of the company, information regarding the personsauthorised to represent the company, mentions regarding the winding up of the company and theclosure of the branch). Supplementary disclosure requirements for the merger, division, winding-upand liquidation of companies will be also provided. The acquiring company may also carry out thepublication formalities for the absorbed company.

The amendments will provide the civil liability of the members of the administrative or management

bodies and of the experts responsible for drawing up the report necessary for the merger, on behalf ofthe absorbed company, for the errors committed within the merger process.

The amendments shall introduce explicit safeguards in favour of the shareholders and creditors ofcompanies and of the third parties, in case of amending the constitutive elements of a company (thetype of company, the registered establishment, the subscribed capital, merger or division, the period ofexistence, the winding-up and liquidation) or in case of acquiring high value assets.The regime of acquiring shares of the dominant company by the controlled company will be alsoregulated, embodied into the regime of acquiring its own shares.

The law on the European Economic Interest Grouping, which shall transpose the provisions of theCouncil Regulation No. 2137/85, will be adopted until the 4

thtrimester of 2002.


2/12

20419/01 CONF-RO 19/01 2

(ANNEX)

EN

The Romanian authorities consider the completion of the national legal framework (Law no. 64/1995regarding the insolvency proceedings), until the 4

thtrimester of 2002, to regulate the cross-border

insolvability procedure, which shall transpose the Council Regulation 1346/2000 on insolvencyproceedings.

II. ACCOUNTING

In 1999, by the Minister of Finances Order no. 403/1999, the Accounting Regulations harmonized withthe Fourth Council Directive 78/660/EEC and the International Accounting Standards have beenapproved, and were tested for the end of 1999 financial statements by a representative group ofpublicly listed companies at the Stock Exchange and several national companies.

Based on the test results, the Accounting Regulations harmonized with the Council Directives and theInternational Accounting Standards have been completed with provisions included in the Minister ofPublic Finances Order no. 94/2001. These provisions are shown in Appendix 1.

According to the Minister of Public Finances Order no. 94/2001, the HarmonizedAccounting Regulations are applied starting with the end of 2000 financial statementsby the companies listed at the Stock Exchange, several regies autonomes, nationalcompanies and certain other companies as well as companies listed on Rasdaq.

For the 2001 - 2005 period the implementation program of the Accounting Regulations is establishedon fulfilling two of the three criteria provided by the Fourth Council Directive 78/660/EEC, namely: totalturnover, total assets and average number of employees.

End of financialyear

Total turnover forthe previous year

(Euro)

Total assets forthe previous year

(Euro)

Averagenumber of

employees forthe previous

year

31 December 200131 December 200231 December 2003

31 December 200431 December 2005

over 9 millionover 8 millionover 7 million

over 6 millionover 5 million

over 4,5 millionover 4,0 millionover 3,5 million

over 3,0 millionover 2,5 million

250200150

10050

According to the provisions of the Minister of Public Finances Order no. 94/2001, the companies thatdo not fulfil these criteria, may apply the new regulations after the formal approval of the Ministry ofPublic Finance, based on the request addressed to the Department for Accounting Regulations.

Once the companies submit to these regulations, based on the criteria fulfilled or onthe option of the companies, they have the obligation to ensure the application of thenew regulations and to have the financial statements audited in accordance with theInternational Standards of Audit assimilated by Romanian Chamber of Auditors.

The companies that do not fulfil the criteria established by the Fourth CouncilDirective, i.e. have a turnover less than 5 million Euro, total assets less than 2.5million Euro and an average number of employees less than 50, do not fall within thearea of the applicable Accounting Regulations harmonized with Fourth CouncilDirective 78/660/EEC and the International Accounting Standards. The legalframework for preparing the financial statements for these companies is representedby Accountancy Law no. 82/1991, republished, Regulation for Applying theAccounting Law, approved by the Romanian Government Decision no. 704/1993,


3/12

20419/01 CONF-RO 19/01 3

(ANNEX)

EN

with subsequent amendments regulations harmonized to a large extent with theFourth Council Directive78/660/EEC.

By the end of 2001, the Ministry of Public Finances will elaborate and submit to theGovernments approval proposals to amend the Accountancy Law no. 82/1991,republished and the Regulation for Applying the Accounting Law, approved byRomanian Government Decision no. 704/1993; this objective is included in theRomanian Government Legislative Program for 2001 2004. The amendments refer

to: Completing the information contained by the Balance Sheet and by the Profit and Loss

Account with details on cash flow, insofar as to allow the users of financial statements toevaluate net assets change of the company and its financial structure.

Improving the Balance Sheet disclosure, to better reflect the financial performance through theway of presenting the companys assets, liabilities and equities.

Presenting the Profit and Loss Account indicators insofar as the companys performance canbe analysed, making a clear distinction between the operating activity and extraordinaryissues - out of its activity field.

Further improvement isalso intendedto simplify the disclosure and to increase the relevance ofaccounting information provided by the financial statements.

Consequently, it is planned to apply a simplified accounting system within the limits allowed by the

Forth Council Directive 78/660/EEC for small enterprises, which shall present a balance sheet and aprofit and loss account in a more synthetic manner.

By the Minister of Public Finances Order no. 189/2001 the ExperimentalApplicationProgram for applying the methodological norms on consolidated accounts, set upunder the Seventh Council Directive 83/349/EEChas been approved.,

Experimental applying of norms on consolidated accounts refers to the end of 2000financial statements for a representative group of companies that hold shares inother companies and exercise a certain control or a significant influence over them.

The provisions of Minister of Finances Order no. 772/2000 are applied by holdingcompanies starting with the end of 2001 financial statements, based on the program

that will be approved by the Minister of Public Finances.

Companies applying consolidated norms have to prepare annual financial statementsto comply with the Accounting Regulations harmonized with the Fourth CouncilDirective 78/660/EEC and the International Accounting Standards, approved by theMinister of Public Finances Order no. 94/2001.

The program of continuing the harmonization of the legislation also pursues thesetting up of specific accounting regulations, such as:

- The Chart of Account and the reporting system specific to insurance-reinsurance companies, harmonized with the 91/674/EEC Council Directive, whichare going to be completed by the end of 2001.

- The Accounting Regulations specific for the capital market institutionsharmonized with the Fourth Council Directive 78/660/EEC and the InternationalAccounting Standards, which are going to be completed by the end of December2002.

Following the adoption of the Emergency Governmental Ordinance no. 75/1999 onfinancial audit activity, set up in accordance with the provisions of the Eight CouncilDirective 84/253/EEC and the establishment of the Romanian Chamber of Auditors, ithas been established, by Minister of Public Finances Order, a Transitory Committee


4/12

20419/01 CONF-RO 19/01 4

(ANNEX)

EN

that had the responsibility of carrying out the prerogatives of the Chamber until thefirst elections for the Board.

Until October 2000, the Transitory Committee has organized the recording of thetransitional members (who may exercise their financial auditor quality till June the 4th,2001). It has elaborated the Regulation on organizing and functioning of theChamber, approved by the Government Decision 591/2000, the Auditing Standards,the Ethics Code, that assimilate the technical pronouncements agreed by the

International Federation of Accountants (IFAC), as well as the curriculum of theprofessional skills exam.

In October 2000 the first session of exams for obtaining the financial auditorqualification was organized and the first Conference of the Chamber of Auditors thathas elected the Board of the Chamber. The members of the Executive Board wereelected from the members of the Council of Chamber..

Following the elections, the Council of Chamber issued the Norms for controlprocedures of financial auditors qualification, the Rules for continuous training ofauditors, and the Minimal Audit Procedures Norms. The second session of exams isgoing to be organized for the beginning of June 2001.

Natural persons who have an appropriate professional education, have passed theaccess exam for professional stage, have undergone a practical training of threeyears in the field of auditing with an auditor and have passed the exam ofprofessional skills are allowed to be financial auditors.

In order to carry out financial audit activity, the Ministry of Public Finances, on theChambers proposal, may approve the award of qualification to those who:(a) are qualified as financial auditors under the law of a foreign country(b) hold a specified professional qualification in accountancy recognized under the law of a foreign

country equivalent to this Ordinance requirements, and(c) prove to have an adequate knowledge as required by the Romanian State to carry out audits

(through interview organized by the Board of Chamber).

The training program that was launched in May 2000 has ended on February 2001,and it represented one of the objectives of the business environmentdevelopment inRomania, being financed by the World Bank within the PSAL I Agreement.

Starting with 2001, the continuation of the training process to be focused on companies falling underthe incidence of the International Accounting Standards and International Standards of Auditing isconsidered.

III. INTELLECTUAL PROPERTY RIGHTS

The fight against piracy existing on the Romanian market represents a very important aspect of theintellectual property rights protection. Diminishing the piracy level has constantly concerned theRomanian authorities and this preoccupation materialized especially during 2000, when the legalframework in the intellectual property field was enlarged by the adoption of new legal acts.These are the Government Ordinance no. 45/2000 on the measures to combat the unauthorizedproduction and commercialisation of phonograms and the Government Ordinance no. 124/2000 forthe completion of the legal framework on copyright and related rights, by adopting certain measures tocombat piracy in audio and video field, and also in computer programs. It should also be mentionedthe Government Decision no.1095/2000 on the approval of the Methodological Rules on the way ofdeposing and destroying the confiscated supports, materials, phonograms, holograms and covers.


5/12

20419/01 CONF-RO 19/01 5

(ANNEX)

EN

Within the sound recordings field there isGovernment Ordinance no. 45/2000 on themeasures to combat the unauthorized production and commercialisation ofphonograms, which is applicable. It stipulates the setting up of the National Registerof Phonograms, administered by The Romanian Copyright Office (ORDA), and theintroduction of the obligation to mark with holograms all the phonographic products,which are in the commercial circuit. These measures represent a successful attemptto reduce the rate of pirate products on the Romanian market, the piracy level in thesound recordings field decreasing from 85% to 55% in 2000.

With the same aim, but this time for the software and audiovisual domains, theGovernment Ordinance no. 124/2000 was adopted for the completion of the legalframework on copyright and related rights, by adopting measures to combat piracy inaudio and video field, and also in computer programs. It was set up the ComputerPrograms Register and the products on which there are registered audiovisual works- videocassettes - must be marked with holograms (a unique model on the Romanianterritory).

The enlargement of the legal framework was also done through the ratification byRomania of the new World Intellectual Property Organization (WIPO) Treaties from1996, by Law no.205/2000 on the ratification by Romania of WIPO Copyright Treaty

(WCT) and Law no.206/2000 on the ratification by Romania of WIPO Performancesand Phonograms Treaty (WPPT).

The Romanian Copyright Offices control activity on the copyright legislationenforcement during 2000 and its results are mentioned in the Appendix 2. It shouldalso be mentioned the fact that in March this year, under the Government Decisionno. 1095/2000, the first public destroying action of approximately 60.000 confiscatedproducts - 54.105 CDs and 4.927 audio-cassettes was organised.

In the context of improving the intellectual property rights protection there themeasures aimed to improve the activity of the other institutions involved: the Justice,the Customs, the Police, should also be mentioned.Thus ORDA has organized and

will continue to organize training seminars for the specialists in this domain.

The cooperation between the institutions involved in the process of IPRs protection isbased on cooperation protocols as the one concluded with the General PoliceInspectorate, or the one which is signed with the General Customs Department.Under these circumstances ORDA is going to offer information on copyright andrelated rights, or on the right holders or their legal representatives in Romania. Theexchange of information and data between all these institutions will also beencouraged. ORDA will set up a database with all the necessary information.The establishment of effective sanctions for IPRs infringements has preoccupiedRomanian authorities, the new ordinances succeeding in partially solving thisproblem. Under their provisions ORDAs inspectors concluded 228 officialproceedings, minor offence fines of 3,6 billion lei being imposed. It should also bespecified the fact that the fines level was raised up to 10.000 EURO. Through thedraft law amending Law no.8/1996 on copyright and related rights, which ORDA willelaborate by the end of 2001, the criminal sanctions system for IPRs infringementswill be hardened. The criminal fines level is the one that has to be raised, becausedue to the inflation it has an insignificant value.Punishments with imprisonment of 1month to 5 years or criminal fines for IPRs infringements are stipulated under art.140to 143 of Law no. 8/1996.


6/12

20419/01 CONF-RO 19/01 6

(ANNEX)

EN

Since the Copyright Law publication in 1996 till March 2001 the Romanian Courts have pronouncedover 50 final sentences in the sound recordings field (imprisonment punishments of 6 month to 1 anda half year being imposed in 5 cases, with the conditional suspension of the punishment execution),and 14 sentences in the software field (imprisonment punishments of 3 month to 1 and a half yearbeing imposed, with the conditional suspension of the punishment execution, and the retrieving of 7,7billion Lei prejudices).

IV. INDUSTRIAL PROPERTY RIGHTS

As regards the possibility to add or not to add, in due course, product claims in pending processpatent applications (Article 70.7 of the Agreement on Trade-Related Aspects of Intellectual PropertyRights (TRIPs Agreement) we would like to state the following:

In accordance with the provisions of Article 70.7 of the TRIPs Agreement, at present, pursuant to thepatent legislation in force in Romania (the Patent LawNo. 64/1991 and the Government Decision No.152/1992 approving the Regulations Implementing Law No. 64/91 Article 28 (3) ), concerning theproduct, the claims may be modified in a pending patent application - until such time as a decision isissued, if such modifications do not introduce new elements - namely within the limits of thedisclosure of the invention.

The modification of the claims means redrafting thereof and adding new claims as well.

The provisions of Article 70.7 of the TRIPs Agreement are, therefore, being applied both in thelegislation and in practice.

The Bill on the Supplementary Protection Certificate for medicinal or plant protection products includesa provision according to which:

During the period of validity of the Supplementary Protection Certificate, the performance of clinicaltests will be allowed for the market authorisation for some essentially similar generic products,marketing thereof being allowed only after the expiry of the supplementary protection for the patentedproduct.

The date foreseen for the entry into force of the legislation on supplementary protection certificates isthe 31

stof December 2002.

Concerning the actions being implemented to ensure the fight against counterfeiting, a number oflegislative measures have been taken.

Thus, the legislation enacted after 1998 in the industrial property field, namely Law on Marks andGeographical Indications (No. 84/98) and Law on the protection of new plant varieties (No. 255/98)include provisions ensuring an effective protection of industrial property rights, namely administrative,civil and penal means of defence, ensuring measures in particular, regarding the discontinuance ofright infringing acts.

Law No. 84/98 also includes provisions on the enforcement of IPR-s at the borders, to the effect thatthe Customs authorities may suspend, eitherex-officio or upon the right holders request, the customsclearance operations in respect of the export or import of goods bearing counterfeited marks.

In the industrial property legislation of Romania (patents, trademarks, industrial designs) counterfeitingis deemed to be an offence and punished by imprisonment or penal fine.

For the prejudice caused by the performance of infringing acts, the persons found guilty may berequired to pay damages.

The judicial bodies may also order the seizure or the destruction, as the case may be, of the goodsbearing counterfeited marks and of the materials or equipment that have directly served to theperpetration of the offence.

Based on the Agreement concluded between the State Office for Inventions and Trademarks (OSIM)and the Customs General Directorate (DGV) for the purpose of implementing Law No. 202/2000, thecooperation between the two institutions will continue with a view to suppressing counterfeiting. To


7/12

20419/01 CONF-RO 19/01 7

(ANNEX)

EN

that end, the OSIM will provide the DGV with information required for the implementation of the Lawon the enforcement of intellectual property rights in customs clearance operations (No. 202/2000).

Training activities for the staff of the customs, police and for judges will continue. This process is beingcarried on both in the framework of specialised bodies and by organising courses and seminars.

From 6 to 8 June this year a seminar organised by the World Intellectual Property Organization andthe World Trade Organization will be hold in Romania on the topic of enforcement in Romania.

During inquiries of cases having as an object the infringement of industrial property rights, the OSIM

will continue to provide the Police with the information and documents required in such cases.

Training courses on industrial property issues were organized for enforcement agencies - judges,prosecutors, police and customs officers - at several levels, both at home and abroad, in 2000.

Seminars were organized in cooperation with the Office for Harmonization in the Internal Market(OHIM) and the European Patent Office (EPO) in the framework of the PHARE - Regional IndustrialProperty Programme (RIPP), such as:

a) Trademark enforcement, Bucharest, 11 -14 September 2000 (for industrial propertyattorneys and magistrates)

b) RIPP Seminar on the enforcement of IPR-s at the borders, Bucharest, 6-7 November 2000,destined for customs and speciality police officersin particular

c) RIPP Seminar held from 16 to 20 October 2000 in Strasbourg on the Enforcement of IPR-sand TRIPS for judges.

d) RIPP Seminar Industrial Property Law in Europe for judges, from 26 to 30 June 2000 inStrasbourg.

A number of domestic seminars on counterfeiting were organized by OSIM, not only in the capital, butalso in other towns of the country as well, and a number of regional industrial property centres wereestablished, including among their tasks the dissemination of information related to the enforcement.

Effective sanctions against the infringement of industrial property rights can be found in the legislationspecific to the laws on patents, trademarks, industrial designs, new plant varieties, topographies ofintegrated circuits, in the Penal Code Articles 299 - 301, the Law on the Repression of Unfair

Competition (No. 11/91).

Thus, in the trademark field, counterfeiting and the release for free circulation of counterfeit goods ispunished by imprisonment from 3 months to 3 years or by penal fine, and the unfair competition byimprisonment from 1 month to 2 years or penal fine.

The counterfeiting offence is sanctioned by imprisonment or penal fine in the other fields of industrialproperty as well, punishment being ascertained in accordance with the degree of social peril of the actand the circumstances in which the offence was performed.

Regarding the Community Trade Mark, Romania agrees with the proposal of the European Union(EU) to the effect that the Community Trade Marks that have been registered or applied for before thedate of accession will be automatically extended to Romania, after accession to the EU.

Romania accepts the solutions put forward by the EU in the case of possible conflicts betweenextended Community Trade Marks and earlier national trademarks.

We also point out that the OSIM has signed a Cooperation Agreement with the OHIM establishing aninformation mechanism concerning the Community Trade Mark, with a view to preparing theimplementation of the Community Trade Mark system at the time of accession.

Regarding the issue of protection of the pharmaceutical and plant protection products, Romaniaagrees that the Accession Treaty provide for a specific mechanism according to which, even if aproduct was put on the market in Romania by the holder of a patent or Supplementary ProtectionCertificate (SPC), the patent holder or his beneficiary may rely on the rights granted by the patent or


8/12

20419/01 CONF-RO 19/01 8

(ANNEX)

EN

the SPC in order to prevent the import or marketing of that product in the Member States or Stateswhere the product in question enjoys patent or SPC protection.

This situation will refer to patents obtained prior to the 21st

of January 1992, date before which thelegislation in Romania did not provide for the grant of protection for a medicinal product.

As regards the Regulation (EEC) 1768/92 on the SPC and the Regulation (EC) 1610/96 on SPC forplant protection products, we point out that a special bill has been drafted and will be passed byParliament in 2002.

Romania agrees to the EU proposal concerning cases where the six-month period from the date of thefirst market authorisation has expired.

V. MEASURES OF THE CUSTOMS AUTHORITIES FOR THE PROTECTION OFTHE INTELLECTUAL AND INDUSTRIAL PROPERTY

In 2000 Law No. 202 was adopted on the measures to ensure the observance of theintellectual property rights within the framework of customs clearance operations.This law provides regulations regarding the intellectual and industrial rights,harmonized with the Council Regulation (EC) No. 3295/ 1994 laying down measuresto prohibit the release for free circulation, export, re-export or entry for a suspensive

procedure of counterfeit and pirated goods and with the Council Regulation (EC) No.241/1999 amending the Regulation (EC) No. 3295/1994.

The norms of application of the Law No. 202/2000 on the measures to ensure theobservance of the intellectual property rights within the framework of customsclearance operations were adopted by Government Decision No. 301/ 2001.

The Romanian Customs Directorate has signed the Memorandum of Understanding(MOU) with the State Office for Inventions and Trademarks and the Memorandum ofUnderstanding with the Romanian Copyright Office. It is also to be signed the MOUwith the Romanian Centre for the Administration of the Interpreting Artistes Rights(CREDIDAM) a collective copyright and neighbouring rights administration body.

Based on the Law No. 202/2000 and on the MOU, the State Office for Inventions andTrademarks will provide the database with all the necessary information for customsex-officio actions (information regarding the registered marks and the intellectualproperty rights holders).

Customs inspectors, together with police and prosecuting representatives haveparticipated in training seminars within the intellectual property field, either withinPhare Programme RIPP (Regional Industrial Property Programme) or organized byTAIEX.

The customs experts and inspectors from Countering Counterfeit and Pirated Goods

Traffic Office have organized training seminars for the customs staff in intellectualproperty field. These training seminars will be continued in the following period.

At present, customs officers are nominated in every interior and border customsoffice, to train and specialize in the field of traffic with counterfeit and pirated goods.

Based on the risk analysis and information provided by the state Office for Patents and Trademarks,the Romanian Customs Directorate will organize ex officio actions to find out counterfeit goods.


9/12

20419/01 CONF-RO 19/01 9

(ANNEX)

EN

VI. BRUSSELS AND LUGANO CONVENTIONS ON JURISDICTION,RECOGNITION AND ENFORCEMENT OF FOREIGN JUDGEMENTS. ROMECONVENTION ON THE LAW APPLICABLE TO CONTRACTUAL OBLIGATIONS

According to the Position paper, Romania assumed its obligation to further examine the developmentof the acquis in this area (the adoption of the legal acts replacing the Brussels Convention CouncilRegulation No. 44/2001). Therefore, these developments shall be considered in drafting theamendments of the Romanian private international law Law no. 105/1992.

The completion of the national regulations on the recognition and enforcement of foreign judgementsin civil and commercial matters, which will ensure the transposition of the Council Regulation No.44/2001, shall be carried out until the 4

thtrimester of 2002.

Approved by the Government of Romania in its meeting of 24 May, 2001


10/12

20419/01 CONF-RO 19/01 10

(ANNEX)

EN

ACCOUNTING

ANNEX

Appendix 1

The main completions brought to the Minister of Finances Orderno. 403/1999, included in the Minister of Public Finances Order no.

94/2001

The Accounting regulations harmonized with the Council Directives and theInternational Accounting Standards have been completed with provisions included inthe Minister of Public Finances Order no. 94/2001. These provisions are set outbelow:

a) Except the Balance Sheet, Profit and Loss Account and Notes to the accounts, thefinancial statements of the company comprise the Statement of Changes in Equity,the Cash Flow Statement and Accounting Policies.

b) There have been removed the mentions on distinction betweennational/international and compulsory/optional accounting standards, consideringthe applying of all International Accounting Standards and Interpretations of theCommittee as a whole.

c) In the Balance Sheet and Profit and Loss Account structure: Spreading the level of detailing the provisions for risks and expenses. Also, in

accordance with IAS 16 Property, Plant and Equipment and IAS 37 Provisions,Contingent Liabilities and Contingent Assets, there have been introducedprovisions regarding the increasing of the acquisition cost of equipment with thecost value estimated for dismantling, movement, and for environmental cleanupetc.;

There have been replaced the mentions regarding the provisions for risks andexpenses with the recognition conditions provided by IAS 37;

In the Profit and Loss Account has been introduced, as a new item Earning pershare ratio, as it is under IAS 33 Earning Per Share.

d) In Principles and Accounting Rules section:

Consistency principle was completed with provisions from IAS 8 Net Profit orLoss for the Period, Fundamental Errors and Changes in Accounting Policies,

regarding the acceptance cases of changes in accounting policies; There have been introduced items on fundamental errors correction and

disclosers of the post Balance Sheet events, under IAS 8 and IAS 10Contingencies and Events Occurring After the Balance Sheet Date;

Stating the treatment due on revaluation reserve, under IAS 16, respectivelyrevaluation surplus is transferred directly in retained profit when the surplus isrealized either at cassation, disposal etc. or due to depreciation of the asset;

Reducing the possibility of capitalization of the interests and exchange differenceson interests for the acquisition or long term assets manufacturing, under IAS 23Borrowing Costs;

ACCOUNTING

Specifying of the fact that it is not allowed to apply allowed the alternativetreatment provided in IAS 21 The Effects of Changes in Foreign ExchangeRates, respectively capitalization of exchange differences due to borrowing, as aresult of non-fulfilling conditions from IAS 21;

Assimilating the provisions of IAS 21 regarding exchange differences for financingborrowings in intra-group relationships, that will not affect the year results, beingreflected in equity;

Introduction of a specific Note regarding the compute base and analyse of themain economic-financial ratios;

Completing the justifying documents with those documents that prove anyestimation.


11/12

20419/01 CONF-RO 19/01 11

(ANNEX)

EN

INTELLECTUAL PROPERTY RIGHTS

Appendix 1

REPORT on ROMANIAN COPYRIGHT OFFICE enforcement activity

1. The control activity under Government Ordinance no. 45/2000

concerning some measures to combat the unauthorized production andcommercialisation of phonograms and under Government Decision524/2000 concerning the approval of the methodology on the NationalRegister of Phonograms administration.

228 minor offence official proceedings were concluded:

May June July August Sept. Oct. Nov. Dec. TOTAL

17 48 33 25 24 17 28 36 228

20.943 phonograms were seizured (15.316 audio cassettes and 5.627 CD-s):

May June July August Sept. Oct. Nov. Dec. TOTAL

Audio cassettes 1.683 3.714 1.422 362 1.024 740 1.507 4.864 15.316

Audio CD-s 1.192 1.641 134 56 184 364 996 1.060 5.627

(d) 2.875 5.355 1.556 418 1.208 1.104 2.503 5.924 20.943

There were imposed contraventional fines summing 3.584.100.000 lei.

May June July August Sept. Oct. Nov. Dec. TOTAL (thousandlei)

260.00 996.30 430.60 309.60 370.00 255.80 363.20 598.60 3.584.100

0

1 0 0 , 0 0 0

2 0 0 , 0 0 0

3 0 0 , 0 0 0

4 0 0 , 0 0 0

5 0 0 , 0 0 0

6 0 0 , 0 0 0

7 0 0 , 0 0 0

8 0 0 , 0 0 0

9 0 0 , 0 0 0

1 , 0 0 0 , 0 0 0

M a y J u l y S e p t . N o v .

F i n e s i m p o s e d u n d e r G . O . 4 5 / 2 0 0 0( t h o u s a n d l e i )


12/12

20419/01 CONF-RO 19/01 12

(ANNEX)

EN

2.The control activity under art.138, Law no. 8/1996

Official proceedings for technical and scientific expertise concluded for theproducts seizured by the Police in order to be investigated:

Forwarded to the Police or in work 695

Raids conducted by ORDAs inspectors together with the Police, or bythemselves:

DOMAIN No. of Raids

Audio 53Audiovisual 19

Software 114

Cable TV 6

Written works, photo, art 19

TOTAL 211

Raids conducted by ORDA and the Police, or just by ORDA following the right holdersrequirement: 55

Products seizured for expertise by ORDA and the Police under Laws no.8/1996provisions:

PRODUCTS Pieces

Phonographic CD-s 8415

Phonographic cassettes 16688

CD-ROM 10688

Video cassettes and DVD-s 6824

DP5EN Compl

Documents

Transcript of DP5EN Compl