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than one year. For this purpose, the Medium and Long Term Development Strategy was elaborated. According to
the principle of prudence, only the profits made by the end of the financial year are recognized in the financial
statements. The principle of consistency implies the continuity of applying the same rules, methods, procedures
on assessment, recording and presentation of the assets in the accountancy, while ensuring comparability of
the patrimonial items. According to the principle of independence of the exercise, all revenue and expenditure
for the financial year for which the reporting is made shall be taken into account, regardless of the date of
receipt or payment. In order to determine the total value of a balance sheet item, according to the principle of
separate valuation of assets and liabilities, the value for each individual asset or liability element is determined
separately. In accordance with the principle of intangibility of the financial year, the opening balance sheet
of the current financial year, for which the reporting is made, corresponds to the closing balance sheet of the
previous financial year. The principle of non-compensation implies that the values of elements that represent
assets have not been offset by the values of elements that are liabilities. The principle of economic prevalence
over the law implies that the information presented in the financial statements reflects the economic reality of
transactions, not only their legal form.

2. Significant accounting policies
The accounting policies are prepared on the basis of the Accounting Regulations on the individual
annual financial statements and the consolidated annual financial statements approved by the Order of the
Minister of Public Finance No. 1.802 / 2014, as subsequently amended and supplemented. They comply with
national legislation as a whole and in particular are applied in compliance with the legislation governing financial
and accounting matters.
Accounting is conducted in Romanian language and considering ROL currency.
The revenue is recognized in the income statement when the increase of the future economic benefits
related to the increase in the value of an asset or the decrease in the amount of a liability are possible to
be evaluated in a credible way. Income accounting is based on income types, by their nature, as follows: a)
operating income (from research ‑ basic activity, from activities related to research activity and other operating
income) and b) financial income.
Expenses are recognized in the income statement when it is credible to measure a future economic
benefit related to a decrease in the value of an asset or an increase in the amount of a liability. Expenditure
accounting is based on the types of expenses, by their nature, as follows: a) operating expenses; b) financial
expenses. Expenses related to fixed asset maintenance and repairing were incurred to restore or maintain the
value of those assets, they were recognized in profit or loss at the date they were performed, while expenditures
incurred to improve technical performance were capitalized and depreciated for the remaining period.

The assets are included in the financial statements at cost assessed on 30.06.2016.
The inventories are listed at the acquisition cost. The administration output method is FIFO.

3. Economic policies
3.1 Revenue growth:
‑ Identifying new funds and submitting project proposals with higher chances of funding;
‑ Identifying new potential customers for microproduction activity and services;
‑ Openness and orientation towards the demand and supply of the economic environment in order to
conclude as many contracts / collaborations as possible in order to achieve the revenues provided in
the BVC;
‑ Increasing the visibility of the institute by creating partnerships with other RDI institutes, universities,
private and national private companies in order to form consortia for the preparation of project proposals
in various national / internationally funded programs.

3.2 Expenditures reduction:
‑ Elimination of waste on electricity and natural gas consumption;
‑ Applying alternative solutions to reduce the cost of electricity;
‑ Strict supervision of expenditure;
‑ Rationalization of indirect costs;
‑ Making work time more efficient;
‑ Monitoring and controlling the economic situation of each department / laboratory / contract carried
out in order to ensure the decrease of the expenses;
‑ Measures have been taken in order to meet the deadlines for reporting the projects stages.
3.3 Motivation / stimulation of staff:
‑ Grants to directors / project managers;
‑ Support of the doctorate expenses, providing the necessary material basis for the elaboration of
the master’s / doctoral thesis, which will ensure the increase of the number of post‑graduate staff
(doctors, post‑doc);

2019 ANNUAL REPORT | PAGE 49