Thus, a new section 3 entitled "Exception to the general valuation rule" has been included in PGC Recording and Valuation Rule 10, with the following wording:
"Exception to the general rule of valuation.
As an exception to the general rule, intermediaries trading listed commodities may value their inventories at fair value less costs to sell provided that this eliminates or significantly reduces an "accounting mismatch" that would otherwise arise from not recognizing these assets at fair value. In such a case, the change in value shall be recognized in the profit and loss account."
For these purposes, it should be noted that the general rule that is excepted in this new paragraph 3 is the valuation at cost, whether it is the acquisition price or the production cost.
Likewise, the regulation clarifies in its introduction that it will be understood that listed commodities are traded when these assets are acquired for the purpose of selling them in the near future and generating profits from intermediation or price fluctuations, i.e., when commodities are held in stock for trading activities.
In addition, the Fourth Transitional Provision establishes the criteria for the first application of the amendment to the Spanish National Chart of Accounts on the valuation at fair value of inventories in the first fiscal year beginning on or after January 1, 2021, indicating that:
- The changes in the valuation of inventories approved by this Royal Decree must be applied retroactively, in accordance with the provisions of accounting and valuation standard 22 "Changes in accounting criteria, errors and accounting estimates" of the Spanish National Chart of Accounts.
- The date of first application will be the beginning of the first fiscal year beginning on or after January 1, 2021.
