Extension of the exceptional regime for non-computation of impairment losses on Property, Plant and Equipment, Investment Property and Inventories in cases of mandatory capital reduction and dissolution


Final Provision Three of Royal Decree-Law 4/2013, published on Saturday, February 23, 2013, amended the sole additional provision of Royal Decree-Law 10/2008, of December 12, 2008, which, provided that for the purposes of determining losses for mandatory capital reduction or for dissolution as envisaged in Spanish corporate legislation, impairment losses recognized in the financial statements on property, plant and equipment, investment property and inventories were not computed. Royal Decree-Law 10/2008 provided for this exceptional treatment for the 2008 and 2009 fiscal years, and it was extended to the 2010 and 2011 fiscal years in accordance with the provisions of Royal Decree-Law 5/2010 and to 2012 fiscal year with Royal Decree-Law 2/2012.

Royal Decree-Law 3/2013 now establishes this exceptional regime for fiscal years “ending in 2013.

In addition to the cases already established above for mandatory capital reduction and for dissolution provided in the Corporate Enterprises Law, in which the above-mentioned losses were not computed, Royal Decree-Law 3/2013 adds a new case: fulfillment of the objective prerequisite for formal insolvency proceedings contemplated in the Insolvency Law, the relevance of which seems doubtful.


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