What is a General Chart of Accounts?
The Moroccan general chart of accounts is a legal reference document according to which companies must draw up their accounts. Indeed, this document is mandatory and all companies must comply with it.
The general chart of accounts includes the accounts and their numbers necessary for the recording of accounting operations and the establishment of summary documents (the balance sheet and the income statement). It should be noted that there are also specific charts of accounts for certain sectors of activity requiring specific accounting schemes (eg credit institutions).
The PCG includes Seven main classes which are assigned as follows:
Class 1: Permanent funding
Class 2: Fixed assets
Class 3: Current assets (excluding cash)
Class 4: Current liabilities (excluding cash)
Class 5: Cash
Class 6: Charges
Class 7: Products
Definition of classes:
Class 1: Permanent funding
Permanent financing in the Moroccan chart of accounts corresponds to long-term resources. In fact, it concerns resources that originally have a duration of more than one year. These resources should not include resources related to the operating cycle.
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Permanent funding includes several headings which are detailed as follows:
Equity
Assimilated equity
Financing debts
Sustainable provisions for risks and charges
Liaison accounts of establishments and branches
Translation differences – Liabilities
Class 2: Fixed assets
Fixed assets represent a heading that aims to record assets that are intended to remain permanently in the company. Furthermore, this item excludes values that are part of the operating cycle.
According to Moroccan accounting regulations, the term "sustainable" means elements that will remain in the company for a period of more than 12 months. Fixed assets include three headings which are:
Non-value fixed assets;
Intangible and tangible fixed assets;
Financial fixed assets
Class 3: Current assets (excluding cash)
Current assets, according to Moroccan accounting regulations, record assets which are intended to remain with the company for less than one year, and/or which correspond to assets and values linked to operations.
As a result, current assets differ from fixed assets, which correspond more to long-term assets.
Indeed, the chart of accounts divides the current asset accounts (excluding cash) between the following headings:
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Stocks ;
The debts ;
Securities and investment securities;
Translation differences – Assets on current items.
read also: Moroccan accounting principles
Class 4: Current liabilities (excluding cash)
Current liabilities, according to Moroccan accounting regulations, record liabilities that are either (i) debts related to operating operations regardless of their due date, and/or (ii) debts that do not correspond to operating operations but which are presumed to have a due date of less than or equal to 1 year.
As a result, the debts of current liabilities differ from permanent financing, which corresponds more to long-term assets.
Indeed, the chart of accounts divides the debts of current liabilities (excluding cash) between the following headings:
Debts from current liabilities;
Other provisions for risks and charges;
Translation differences – Liabilities on current items.
Class 5: Cash
The treasury records the cash available to the company. The Moroccan chart of accounts divides the cash accounts between the following headings:
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Cash – assets;
Cash – liabilities.
Cash accounts record cash transactions in the strict sense of the term. Thus, the company must include:
Cash values;
Cash in bank accounts;
In general, all liquid values, checks, transfers in progress, etc.
Class 6: Charges
Class 6 of the chart of accounts records the company's expenses. Indeed, the total expenses that the company registers in class 6 are included in the income statement.
In summary, the Moroccan chart of accounts distributes the charges as follows:
Operating expenses;
financial charges;
Non-current charges;
income tax.
Class 7: Products
Class 7 of the chart of accounts records the company's products. Indeed, the total of the products that the company registers in class 7 are included in the income statement.
In summary, the Moroccan chart of accounts distributes the products as follows:
operating products;
financial products;
Non-current products.