Account 77 “Deferred tax liabilities”
Account 77 “Deferred tax liabilities” is intended to summarize information on the presence and movement of deferred tax liabilities.
Deferred tax liabilities are accepted for accounting in the amount determined as the product of taxable temporary differences that arose in the reporting period by the income tax rate in effect at the reporting date.
In the credit of account 77 “Deferred tax liabilities”, deferred tax is reflected in correspondence with the debit of the account, which reduces the amount of conditional expense (income) of the reporting period.
The debit of account 77 “Deferred tax liabilities” in correspondence with the credit of account 68 “Calculations for taxes and fees” reflects the decrease or full repayment of deferred tax liabilities against accruals of income tax for the reporting period.
A deferred tax liability upon disposal of an asset or type of liability for which it was accrued is written off from the debit of account 77 “Deferred tax liabilities” to the credit of account 99 “Profits and losses”.
Analytical accounting of deferred tax liabilities is carried out by type of assets or liabilities in the valuation of which a taxable temporary difference arose.
Account 77 of the accounting entry “Deferred tax liabilities” corresponds with the accounts:
- Calculations for allocated property
- Calculations for current transactions
- Settlements under a property trust management agreement
Check
Account 79 “Intra-balance sheet settlements” is intended to summarize information on all types of settlements with branches, representative offices, divisions and other separate divisions of the organization, allocated to separate balance sheets (intra-balance sheet settlements), in particular, settlements for allocated property, for mutual release of material assets, for sale of products, works, services, transfer of expenses for general management activities, remuneration of department employees, etc.
Sub-accounts can be opened to account 79 “Intra-business settlements”:
- 79-1 “Calculations for allocated property”,
- 79-2 “Calculations for current operations”,
- 79-3 “Settlements under a property trust management agreement”, etc.
Subaccount 79-1 “Settlements for allocated property” takes into account the status of settlements with branches, representative offices, divisions and other separate divisions of the organization, allocated to separate balance sheets, for non-current and current assets transferred to them.
The property allocated to the indicated divisions is written off by the organization from account 01 “Fixed assets”, etc. to the debit of account 79 “Intra-business settlements”.
The property allocated by the organization to the specified divisions is registered by these divisions from the credit of account 79 “Intra-business settlements” to the debit of account 01 “Fixed assets”, etc.
Subaccount 79-2 “Settlements for current operations” takes into account the status of all other settlements of the organization with branches, representative offices, departments and other separate divisions allocated to separate balance sheets.
Subaccount 79-3 “Settlements under property trust management agreements” takes into account the status of settlements related to the execution of property trust management agreements. This sub-account is used to account for settlements with the management founder, trustee, as well as settlements for property transferred to trust management, which is accounted for on a separate balance sheet.
The property transferred to trust management is written off by the founder of the management from accounts 01 “Fixed Assets”, 04 “Intangible Assets”, 58 “Financial Investments”, etc. to the debit of account 79 “Intra-business settlements” (at the same time, a debit entry is made for the amount of accrued depreciation accounts, and credit account 79 “Intra-economic settlements”). The property accepted by the trustee on a separate balance sheet is reflected in the debit of accounts 01 “Fixed assets”, 04 “Intangible assets”, 58 “Financial investments”, etc. and the credit of account 79 “Intra-business settlements” (at the same time, an entry is made for the amount of accrued depreciation on the credit of the accounts 02 “Depreciation of fixed assets”, 05 “Depreciation of intangible assets” and credit account 79 “Intra-business settlements”).
When the property trust management agreement is terminated and the property is returned to the management founder, reverse entries are made. If the property trust management agreement provides for other operations with the property transferred to trust management, then accounting for these operations is carried out in accordance with the general procedure.
The transfer of funds on account of the profit (income) due to the founder of the management in a separate balance sheet is reflected in the credit of cash accounting accounts and the debit of account 79 “On-farm settlements”. The funds received by the founder of the management on account of this profit (income) are credited to the debit of cash accounts in correspondence with account 79 “On-farm settlements”.
The amount of compensation due from the trust manager for losses caused by loss or damage to property transferred to trust management, as well as lost profits, is reflected in the debit of the account in correspondence with the credit of account 91 “Other income and expenses”. When the founder receives control of these funds, cash accounting accounts are debited and account 76 “Settlements with various debtors and creditors” is credited.
Analytical accounting for account 79 “Intra-business settlements” is carried out for each branch, representative office, division or other separate division of the organization, allocated to a separate balance sheet, and settlements under agreements for trust management of property - for each agreement.
Account 79 of the accounting entry “Intra-business settlements” corresponds with the accounts:
| By debit | By loan |
|---|---|
01 "Fixed assets" 02 “Depreciation of fixed assets” 04 "Intangible assets" 05 “Amortization of intangible assets” 07 “Equipment for installation” 10 "Materials" 20 "Main production" 41 "Products" 43 “Finished products” 44 “Sales expenses” 45 “Goods shipped” 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 76 “Settlements with various debtors and creditors” 90 "Sales" 91 “Other income and expenses” 97 “Deferred expenses” 99 "Profits and losses" | 01 "Fixed assets" 02 “Depreciation of fixed assets” 04 "Intangible assets" 05 “Amortization of intangible assets” 07 “Equipment for installation” 08 “Investments in non-current assets” 10 "Materials" 11 “Animals in cultivation and fattening” 15 “Procurement and acquisition of material assets” 16 “Cost deviation 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 25 “General production expenses” 26 “General business expenses” 29 “Service industries and farms” 40 “Release of products (works, services)” 41 "Products" 43 “Finished products” 44 “Sales expenses” 45 “Goods shipped” 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 55 “Special bank accounts” 57 “Translations on the way” 60 “Settlements with suppliers and contractors” 62 “Settlements with buyers and customers” 70 “Settlements with personnel for wages” 71 “Settlements with accountable persons” 76 “Settlements with various debtors and creditors” 84 “Retained earnings (uncovered loss)” 90 "Sales" 91 “Other income and expenses” 97 “Deferred expenses” 99 "Profits and losses" |
Section VII. Capital
The accounts of this section are intended to summarize information about the state and movement of capital of the organization.
Account 80 “Authorized capital”
Account 80 “Authorized capital” is intended to summarize information about the state and movement of the authorized capital (share capital, authorized capital) of the organization.
The balance in account 80 “Authorized capital” must correspond to the amount of the authorized capital recorded in the constituent documents of the organization. Entries in account 80 “Authorized capital” are made when forming the authorized capital, as well as in cases of increasing and decreasing capital, only after making appropriate changes to the constituent documents of the organization.
After the state registration of an organization, its authorized capital in the amount of contributions of the founders (participants) provided for by the constituent documents is reflected in the credit of account 80 “Authorized capital” in correspondence with account 75 “Settlements with founders”. The actual receipt of deposits of the founders is carried out on the credit of account 75 “Settlements with founders” in correspondence with the accounts for accounting for cash and other valuables.
Analytical accounting for account 80 “Authorized capital” is organized in such a way as to ensure the formation of information on the founders of the organization, stages of capital formation and types of shares.
Account 80 is also used to summarize information about the status and movement of contributions to common property under a simple partnership agreement. In this case, account 80 is called “Comrades’ Deposits”.
The property contributed by partners to a simple partnership on account of their contributions is accounted for in the debit of property accounting accounts (51 “Current accounts”, 01 “Fixed assets”, 41 “Goods”, etc.) and the credit of account 80 “Deposits of partners”. When property is returned to partners upon termination of a simple partnership agreement, reverse entries are made in accounting.
Analytical accounting for account 80 “Deposits of partners” is maintained for each simple partnership agreement and each participant in the agreement.
Account 80 of the accounting entry “Authorized capital” corresponds with accounts:
| By debit | By loan |
|---|---|
01 "Fixed assets" 04 "Intangible assets" 07 “Equipment for installation” 08 “Investments in non-current assets” 10 "Materials" 11 “Animals in cultivation and fattening” 15 “Procurement and acquisition of material assets” 16 “Deviation in the cost of material assets” 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 29 “Service industries and farms” 41 "Products" 43 “Finished products” 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 55 “Special bank accounts” 58 “Financial investments” 75 “Settlements with founders” 81 “Own shares (shares)” 84 “Retained earnings (uncovered loss)” | 01 "Fixed assets" 03 “Profitable investments in material assets” 04 "Intangible assets" 07 “Equipment for installation” 08 “Investments in non-current assets” 10 "Materials" 11 “Animals in cultivation and fattening” 15 “Procurement and acquisition of material assets” 16 “Deviation in the cost of material assets” 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 29 “Service industries and farms” 41 "Products" 43 “Finished products” 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 55 “Special bank accounts” 58 “Financial investments” 75 “Settlements with founders” 83 “Additional capital” 84 “Retained earnings (uncovered loss)” |
Account 81 “Own shares (shares)”
Account 81 “Own shares (shares)” is intended to summarize information on the availability and movement of own shares purchased by the joint-stock company from shareholders for their subsequent resale or cancellation. Other business companies and partnerships use this account to account for the share of a participant acquired by the company or partnership itself for transfer to other participants or third parties.
When a joint-stock or other company (partnership) buys from a shareholder (participant) shares (shares) belonging to him, an entry is made in the accounting records for the amount of actual costs in the debit of account 81 “Own shares (shares)” and the credit of cash accounting accounts.
Cancellation of own shares purchased by a joint-stock company is carried out on the credit of account 81 “Own shares (shares)” and the debit of account 80 “Authorized capital” after this company has completed all the prescribed procedures. The difference arising in account 81 “Own shares (shares)” between the actual costs of repurchasing shares (shares) and their nominal value is charged to account 91 “Other income and expenses”.
Account 81 accounting entry “Own shares (shares)” corresponds with accounts:
Account 82 “Reserve capital”
Account 82 “Reserve capital” is intended to summarize information about the state and movement of reserve capital.
Deductions to reserve capital from profits are reflected in the credit of account 82 “Reserve capital” in correspondence with account 84 “Retained earnings (uncovered loss)”.
The use of reserve capital funds is accounted for as a debit to account 82 “Reserve capital” in correspondence with the accounts:
- 84 “Retained earnings (uncovered loss)” - in terms of the amounts of the reserve fund allocated to cover the organization’s loss for the reporting year;
- or - in part of the amounts allocated to repay the bonds of the joint-stock company.
Account 82 accounting entry “Reserve capital” corresponds with accounts:
Account 83 “Additional capital”
Account 83 “Additional capital” is intended to summarize information about the organization’s additional capital.
The credit of account 83 “Additional capital” reflects:
- the increase in the value of non-current assets, revealed by the results of their revaluation, - in correspondence with the asset accounts for which the increase in value was determined;
- the amount of the difference between the sale and par value of shares, received in the process of forming the authorized capital of a joint-stock company (during the establishment of the company, with a subsequent increase in the authorized capital) through the sale of shares at a price exceeding the par value - in correspondence with account 75 “Settlements with founders” .
Amounts credited to account 83 “Additional capital” are, as a rule, not written off. Debit entries on it can only take place in the following cases:
- repayment of amounts of decrease in the value of non-current assets revealed as a result of its revaluation - in correspondence with the asset accounts for which the decrease in value was determined;
- directing funds to increase the authorized capital - in correspondence with account 75 “Settlements with founders” or account 80 “Authorized capital”;
- distribution of amounts between the founders of the organization - in correspondence with account 75 “Settlements with founders”, etc.
Analytical accounting for account 83 “Additional capital” is organized in such a way as to ensure the formation of information on sources of education and areas of use of funds.
Account 83 accounting entry “Additional capital” corresponds with accounts:
Account 84 “Retained earnings (uncovered loss)”
Account 84 “Retained earnings (uncovered loss)” is intended to summarize information about the presence and movement of amounts of retained earnings or uncovered losses of the organization.
The amount of net profit of the reporting year is written off with the final turnover of December to the credit of account 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”. The amount of the net loss of the reporting year is written off with the final turnover of December to the debit of account 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”.
The direction of part of the profit of the reporting year to pay income to the founders (participants) of the organization based on the results of approval of the annual financial statements is reflected in the debit of account 84 “Retained earnings (uncovered loss)” and the credit of accounts 75 “Settlements with founders” and 70 “Settlements with personnel for wages” " A similar entry is made when paying interim income.
The write-off of a loss for the reporting year from the balance sheet is reflected in the credit of account 84 “Retained earnings (uncovered loss)” in correspondence with the accounts:
- 80 “Authorized capital” - when bringing the amount of the authorized capital to the value of the organization’s net assets;
- 82 “Reserve capital” - when funds from reserve capital are used to pay off losses;
- 75 “Settlements with founders” - when repaying the loss of a simple partnership at the expense of targeted contributions of its participants, etc.
Analytical accounting for account 84 “Retained earnings (uncovered loss)” is organized in such a way as to ensure the generation of information on the areas of use of funds. At the same time, in analytical accounting, funds of retained earnings used as financial support for the production development of the organization and other similar activities for the acquisition (creation) of new property and not yet used can be divided.
84 accounting account entry “Retained earnings (uncovered loss)” corresponds with accounts:
Account 86 “Targeted financing”
Account 86 “Targeted financing” is intended to summarize information on the movement of funds intended for the implementation of targeted activities, funds received from other organizations and individuals, budget funds, etc.
Targeted funds received as sources of financing for certain activities are reflected in the credit of account 86 “Targeted financing” in correspondence with account 76 “Settlements with various debtors and creditors.”
The use of targeted financing is reflected in the debit of account 86 “Targeted financing” in correspondence with accounts: 20 “Main production” or 26 “General expenses” - when directing funds from targeted financing for the maintenance of a non-profit organization; 83 “Additional capital” - when using targeted financing received in the form of investment funds; 98 “Future income” - when a commercial organization sends budget funds to finance expenses, etc.
Analytical accounting for account 86 “Targeted financing” is carried out according to the purpose of the targeted funds and in the context of their sources of receipt.
Account 86 of the accounting entry “Targeted financing” corresponds with accounts:
Section VIII. Financial results
The accounts of this section are intended to summarize information about the organization’s income and expenses, as well as to identify the final financial result of the organization’s activities for the reporting period.
- Revenue
- Cost of sales
- Value added tax
- Excise taxes
- Profit/loss from sales
Account 90 “Sales”
Account 90 “Sales” is intended to summarize information on income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them. This account reflects, in particular, revenue and costs for:
- finished products and semi-finished products of own production;
- industrial works and services;
- non-industrial works and services;
- purchased products (purchased for completion);
- construction, installation, design and survey, geological exploration, research, etc. work;
- goods;
- services for the transportation of goods and passengers;
- transport-forwarding and loading-unloading operations;
- communication services;
- providing for a fee for temporary use (temporary possession and use) of its assets under a lease agreement (when this is the subject of the organization’s activities);
- provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property (when this is the subject of the organization’s activities);
- participation in the authorized capital of other organizations (when this is the subject of the organization’s activities), etc.
When recognized in accounting, the amount of revenue from the sale of goods, products, performance of work, provision of services, etc. is reflected in the credit of account 90 “Sales” and the debit of account 62 “Settlements with buyers and customers.” At the same time, the cost of goods sold, products, works, services, etc. is written off from the credit of accounts 43 “Finished products”, 41 “Goods”, 44 “Sales expenses”, 20 “Main production”, etc. to the debit of account 90 “Sales” .
In organizations engaged in the production of agricultural products, the credit of account 90 “Sales” reflects the proceeds from the sale of products (in correspondence with account 62 “Settlements with buyers and customers”), and the debit shows its planned cost (during the year when the actual cost not identified) and the difference between the planned and actual cost of products sold (at the end of the year). The planned cost of products sold, as well as the amount of differences, are debited to account 90 “Sales” (or reversed) in correspondence with the accounts in which these products were recorded.
In organizations engaged in retail trade and keeping records of goods at sales prices, the credit of account 90 “Sales” reflects the selling value of goods sold (in correspondence with the cash and settlement accounts), and the debit - their accounting value (in correspondence with the account 41 “Goods”) with the simultaneous reversal of the amounts of discounts (markups) related to the goods sold (in correspondence with account 42 “Trade margin”).
Sub-accounts can be opened for account 90 “Sales”:
- 90-1 “Revenue”;
- 90-2 “Cost of sales”;
- 90-3 “Value added tax”;
- 90-4 “Excise duties”;
- 90-9 “Profit / loss from sales.”
Subaccount 90-1 “Revenue” takes into account receipts of assets recognized as revenue.
Subaccount 90-2 “Cost of sales” takes into account the cost of sales, for which revenue is recognized in subaccount 90-1 “Revenue”.
Subaccount 90-3 “Value added tax” takes into account the amount of value added tax due from the buyer (customer).
Subaccount 90-4 “Excise taxes” takes into account the amounts of excise taxes included in the price of products (goods) sold.
Organizations that pay export duties can open a subaccount 90-5 “Export duties” to account 90 “Sales” to record the amounts of export duties.
Subaccount 90-9 “Profit / loss from sales” is intended to identify the financial result (profit or loss) from sales for the reporting month.
Entries in subaccounts 90-1 “Revenue”, 90-2 “Cost of sales”, 90-3 “Value added tax”, 90-4 “Excise taxes” are made cumulatively during the reporting year. By monthly comparison of the total debit turnover in subaccounts 90-2 “Cost of sales”, 90-3 “Value added tax”, 90-4 “Excise taxes” and credit turnover in subaccount 90-1 “Revenue”, the financial result (profit or loss) is determined. from sales for the reporting month. This financial result is written off monthly (with final turnover) from subaccount 90-9 “Profit / loss from sales” to account 99 “Profits and losses”. Thus, synthetic account 90 “Sales” does not have a balance at the reporting date.
At the end of the reporting year, all subaccounts opened to account 90 “Sales” (except for subaccount 90-9 “Profit / loss from sales”) are closed with internal entries to subaccount 90-9 “Profit / loss from sales”.
Analytical accounting for account 90 “Sales” is maintained for each type of goods sold, products, work performed, services provided, etc. In addition, analytical accounting for this account can be maintained by sales regions and other areas necessary for managing the organization.
Account 90 accounting entry “Sales” corresponds with accounts:
| By debit | By loan |
|---|---|
11 “Animals in cultivation and fattening” 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 26 “General business expenses” 29 “Service industries and farms” 40 “Release of products (works, services)” 41 "Products" 42 “Trade margin” 43 “Finished products” 44 “Sales expenses” 45 “Goods shipped” 58 “Financial investments” 68 “Calculations for taxes and fees” 79 “Intra-economic settlements” 99 "Profits and losses" | 46 “Completed stages of unfinished work” 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 57 “Translations on the way” 62 “Settlements with buyers and customers” 76 “Settlements with various debtors and creditors” 79 “Intra-economic settlements” 98 “Deferred income” 99 "Profits and losses" |
- Other income
- other expenses
- Balance of other income and expenses
Account 91 “Other income and expenses”
Account 91 “Other income and expenses” is intended to summarize information on other income and expenses of the reporting period.
In the credit of account 91 “Other income and expenses” during the reporting period the following is reflected:
- receipts associated with the provision for a fee for temporary use (temporary possession and use) of the organization’s assets - in correspondence with the accounts of settlements or cash;
- receipts related to the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property - in correspondence with accounts for accounting settlements or cash;
- receipts related to participation in the authorized capitals of other organizations, as well as interest and other income on securities - in correspondence with settlement accounts;
- profit received by the organization under a simple partnership agreement - in correspondence with account 76 “Settlements with various debtors and creditors” (sub-account “Settlements for due dividends and other income”);
- receipts related to the sale and other write-off of fixed assets and other assets other than cash in Russian currency, products, goods - in correspondence with the accounts of settlements or cash;
- receipts from operations with containers - in correspondence with container accounting and settlement accounts;
- interest received (receivable) for the provision of an organization's funds for use, as well as interest for the use by a credit organization of funds held in the organization's account with this credit organization - in correspondence with the accounts of financial investments or funds;
- fines, penalties, penalties for violation of the terms of contracts, received or recognized for receipt - in correspondence with the accounts of settlements or funds;
- receipts related to the gratuitous receipt of assets - in correspondence with the accounting account for deferred income;
- receipts for compensation of losses caused to the organization - in correspondence with settlement accounts;
- profit of previous years identified in the reporting year - in correspondence with the accounts of settlements;
- amounts of accounts payable for which the statute of limitations has expired - in correspondence with accounts payable accounts;
- Other income.
The debit of account 91 “Other income and expenses” during the reporting period reflects:
- expenses associated with the provision for a fee for temporary use (temporary possession and use) of an organization's assets, rights arising from patents for inventions, industrial designs and other types of intellectual property, as well as expenses associated with participation in the authorized capital of other organizations - in correspondence with cost accounts;
- the residual value of assets for which depreciation is calculated and the actual cost of other assets written off by the organization - in correspondence with the accounts of the relevant assets;
- expenses associated with the sale, disposal and other write-off of fixed assets and other assets other than cash in Russian currency, goods, products - in correspondence with cost accounts;
- expenses for operations with containers - in correspondence with cost accounts;
- interest paid by an organization for providing it with funds (credits, borrowings) for use - in correspondence with the accounts of settlements or funds;
- expenses associated with payment for services provided by credit institutions - in correspondence with settlement accounts;
- fines, penalties, penalties for violation of the terms of agreements, paid or recognized for payment, - in correspondence with the accounts of settlements or funds;
- expenses for maintaining production facilities and mothballed facilities - in correspondence with cost accounts;
- compensation for losses caused by the organization - in correspondence with settlement accounts;
- losses of previous years recognized in the reporting year - in correspondence with the accounts of settlements, depreciation, etc.;
- deductions to reserves for the depreciation of investments in securities, for a decrease in the value of material assets, for doubtful debts - in correspondence with the accounts of these reserves;
- amounts of receivables for which the statute of limitations has expired, other debts that are unrealistic for collection - in correspondence with accounts receivable;
- exchange rate differences - in correspondence with accounts for cash, financial investments, settlements, etc.;
- expenses associated with the consideration of cases in courts - in correspondence with accounts of settlements, etc.;
- other expenses.
Sub-accounts can be opened to account 91 “Other income and expenses”:
- 91-1 “Other income”;
- 91-2 “Other expenses”;
- 91-9 “Balance of other income and expenses.”
Subaccount 91-1 “Other income” takes into account receipts of assets recognized as other income.
Subaccount 91-2 “Other expenses” takes into account other expenses.
Subaccount 91-9 “Balance of other income and expenses” is intended to identify the balance of other income and expenses for the reporting month.
Entries in subaccounts 91-1 “Other income” and 91-2 “Other expenses” are made cumulatively during the reporting year. By monthly comparison of debit turnover in subaccount 91-2 “Other expenses” and credit turnover in subaccount 91-1 “Other income”, the balance of other income and expenses for the reporting month is determined. This balance is written off monthly (with final turnover) from subaccount 91-9 “Balance of other income and expenses” to account 99 “Profits and losses”. Thus, synthetic account 91 “Other income and expenses” does not have a balance as of the reporting date.
At the end of the reporting year, all subaccounts opened to account 91 “Other income and expenses” (except for subaccount 91-9 “Balance of other income and expenses”) are closed with internal entries to subaccount 91-9 “Balance of other income and expenses”.
Analytical accounting for account 91 “Other income and expenses” is carried out for each type of other income and expenses. At the same time, the construction of analytical accounting for other income and expenses related to the same financial and business transaction should provide the ability to identify the financial result for each operation.
Account 91 accounting entry “Other income and expenses” corresponds with accounts:
| By debit | By loan |
|---|---|
01 "Fixed assets" 02 “Depreciation of fixed assets” 03 “Profitable investments in material assets” 04 "Intangible assets" 07 “Equipment for installation” 08 “Investments in non-current assets” 10 "Materials" 11 “Animals in cultivation and fattening” 15 “Procurement and acquisition of material assets” 16 “Deviation in the cost of material assets” 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 28 "Defects in production" 29 “Service industries and farms” 58 “Financial investments” 60 “Settlements with suppliers and contractors” 66 “Settlements for short-term loans and borrowings” 67 “Calculations for long-term loans and borrowings” 68 “Calculations with the budget” 70 “Settlements with personnel for wages” 71 “Settlements with accountable persons” 73 “Settlements with personnel for other operations” 76 “Settlements with various debtors and creditors” 79 “Intra-economic settlements” 81 “Own shares (shares)” 98 “Deferred income” 99 "Profits and losses" | 07 “Equipment for installation” 08 “Investments in non-current assets” 10 "Materials" 11 “Animals in cultivation and fattening” 14 “Reserves for reduction in the value of material assets” 15 “Procurement and acquisition of material assets” 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 28 "Defects in production" 29 “Service industries and farms” 41 "Products" 43 “Finished products” 45 “Goods shipped” 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 55 “Special bank accounts” 57 “Translations on the way” 58 “Financial investments” 59 “Provisions for impairment of investments in securities” 60 “Settlements with suppliers and contractors” 62 “Settlements with buyers and customers” 63 “Provisions for doubtful debts” 66 “Settlements for short-term loans and borrowings” 67 “Calculations for long-term loans and borrowings” 71 “Settlements with accountable persons” 73 “Settlements with personnel for other operations” 75 “Settlements with founders” 76 “Settlements with various debtors and creditors” 79 “Intra-economic settlements” 81 “Own shares (shares)” 98 “Deferred income” 99 "Profits and losses" |
Account 94 “Shortages and losses from damage to valuables”
Account 94 “Shortages and losses from damage to valuables” is intended to summarize information on the amounts of shortages and losses from damage to material and other assets (including money) identified in the process of their procurement, storage and sale, regardless of whether they are subject to inclusion in accounts accounting for production costs (selling costs) or those responsible. In this case, losses of valuables resulting from natural disasters are charged to account 99 “Profits and losses” as losses of the reporting year (uncompensated losses from natural disasters).
On the debit of account 94 “Shortages and losses from damage to valuables” the following are given:
- for missing or completely damaged inventory items - their actual cost;
- for missing or completely damaged fixed assets - their residual value (original cost minus the amount of accrued depreciation);
- for partially damaged material assets - the amount of determined losses, etc.
For shortages and damage to valuables, entries are made in the debit of account 94 “Shortages and losses from damage to valuables” from the credit of the accounts accounting for these valuables.
When the buyer, upon acceptance of valuables received from suppliers, identifies a shortage or damage, then the amount of the shortage within the limits stipulated in the contract, the buyer assigns when posting the valuables to the debit of account 94 “Shortages and losses from damage to valuables” from the credit of account 60 “Settlements with suppliers and contractors", and the amount of losses in excess of the amounts stipulated in the contract, presented to suppliers or a transport organization - to the debit of account 76 "Settlements with various debtors and creditors" (sub-account "Settlements for claims") from the credit of account 60 "Settlements with suppliers and contractors" . If the court refuses to collect losses from suppliers or transport organizations, the amount previously debited to account 76 “Settlements with various debtors and creditors” (sub-account “Settlements for claims”) is written off to account 94 “Shortages and losses from damage to valuables.”
When the court makes a decision to recover from the supplier amounts of shortages and losses of valuables in excess of the amounts stipulated in the contract in the supplier’s accounting, the amount of the sale previously reflected in the debit of accounts 62 “Settlements with buyers and customers” or 51 “Settlement accounts”, 52 “Currency accounts” and credit to account 90 “Sales”, is reversed for the amount of shortages and losses collected by the buyer. At the same time, the specified amount is reflected by a regular entry in the debit of accounts 62 “Settlements with buyers and customers” or 51 “Settlements accounts”, 52 “Currency accounts” and the credit of account 76 “Settlements with various debtors and creditors”. When transferring amounts to the buyer, account 76 “Settlements with various debtors and creditors” is debited in correspondence with account 51 “Settlement accounts”. The supplier must also reverse the turnover on the debit of account 90 “Sales” and the credit of account 43 “Finished products”. The amount restored in this way on account 43 “Finished products” is then written off to the debit of account 94 “Shortages and losses from damage to valuables.”
In the credit of account 94 “Shortages and losses from damage to valuables” the write-off is reflected:
- shortages and damage to valuables within the limits stipulated in the contract - to the accounts of material assets (when they are identified during procurement) or within the limits of natural loss rates - production costs and selling expenses (when they are identified during storage or sale);
- shortage of valuables in excess of the values (norms) of loss, losses from damage - to the debit of account 73 “Settlements with personnel for other operations” (sub-account “Settlements for compensation of material damage”);
- shortages of valuables in excess of the values (norms) of loss and losses from damage to valuables in the absence of specific culprits, as well as shortages of inventory items, the recovery of which was refused by the court due to the unfoundedness of the claims - to account 91 “Other income and expenses”.
In the credit of account 94 “Shortages and losses from damage to valuables” amounts are reflected in the amounts and values accepted for accounting as the debit of the specified account. At the same time, missing or damaged material assets are written off to the production cost (sales expense) accounts at their actual cost.
When recovering from the guilty persons the cost of missing valuables, the difference between the cost of missing valuables credited to account 73 “Settlements with personnel for other operations” and their value reflected on account 94 “Shortages and losses from damage to valuables” is credited to account 98 “ Revenue of the future periods". As the amount due is collected from the guilty person, the specified difference is written off from account 98 “Deferred income” in correspondence with account 91 “Other income and expenses”.
Shortages of valuables identified in the reporting year, but relating to previous reporting periods, recognized by financially responsible persons or for which there are court decisions to recover from the guilty parties, are reflected in the debit of account 94 “Shortages and losses from damage to valuables” and the credit of account 98 “Income future periods." At the same time, account 73 “Settlements with personnel for other operations” (sub-account “Settlements for compensation of material damage”) is debited with these amounts and account 94 “Shortages and losses from damage to valuables” is credited. As the debt is repaid, account 91 “Other income and expenses” is credited and account 98 “Deferred income” is debited.
Account 94 of the accounting entry “Shortages and losses from damage to valuables” corresponds with the accounts:
| By debit | By loan |
|---|---|
01 "Fixed assets" 03 "Profitable investments 07 “Equipment for installation” 08 “Investments in non-current assets” 10 "Materials" 11 “Animals in cultivation and fattening” 16 “Deviation in the cost of material assets” 19 “Value added tax on acquired assets” 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 29 “Service industries and farms” 41 "Products" 42 “Trade margin” 43 “Finished products” 44 “Sales expenses” 45 “Goods shipped” 50 "Cashier" 60 “Settlements with suppliers and contractors” 71 “Settlements with accountable persons” 73 “Settlements with personnel for other operations” 76 “Settlements with various debtors and creditors” 98 “Deferred income” 99 "Profits and losses" | 08 “Investments in non-current assets” 20 "Main production" 23 “Auxiliary production” 25 “General production expenses” 26 “General business expenses” 29 “Service industries and farms” 44 “Sales expenses” 70 “Settlements with personnel for wages” 73 “Settlements with personnel for other operations” 86 “Targeted financing” 91 “Other income and expenses” 99 "Profits and losses" |
Account 96 “Reserves for future expenses”
Account 96 “Reserves for future expenses” is intended to summarize information about the status and movement of amounts reserved for the purpose of uniform inclusion of expenses in production costs and sales expenses. In particular, this account may reflect the following amounts:
- upcoming payment of vacations (including payments for social insurance and security) to employees of the organization;
- for the payment of annual remuneration for long service;
- production costs for preparatory work due to the seasonal nature of production;
- for repairs of fixed assets;
- upcoming costs for land reclamation and implementation of other environmental measures;
- for warranty repairs and warranty service.
Reservations of certain amounts are reflected in the credit of account 96 “Reserves for future expenses” in correspondence with the accounts for accounting for production costs and sales expenses.
Actual expenses for which a reserve was previously created are debited to account 96 “Reserves for future expenses” in correspondence, in particular, with accounts: 70 “Settlements with personnel for wages” - for the amount of wages to employees during vacation and annual remuneration for length of service; 23 “Auxiliary production” - for the cost of repairs of fixed assets carried out by a division of the organization, etc.
The correctness of the formation and use of amounts for a particular reserve is periodically (and necessarily at the end of the year) checked according to estimates, calculations, etc. and adjusted if necessary.
Analytical accounting for account 96 “Reserves for future expenses” is carried out according to separate reserves.
Account 96 of the accounting entry “Reserves for future expenses” corresponds with accounts:
| By debit | By loan |
|---|---|
23 “Auxiliary production” 28 "Defects in production" 29 “Service industries and farms” 51 “Current accounts” 52 “Currency accounts” 69 “Calculations for social insurance and security” 70 “Settlements with personnel for wages” 76 “Settlements with various debtors and creditors” 91 “Other income and expenses” 97 “Deferred expenses” 99 "Profits and losses" | 08 “Investments in non-current assets” 20 "Main production" 23 “Auxiliary production” 25 “General production expenses” 26 “General business expenses” 29 “Service industries and farms” 44 “Sales expenses” 97 “Deferred expenses” |
Account 97 “Deferred expenses”
Account 97 “Future expenses” is intended to summarize information about expenses incurred in a given reporting period, but relating to future reporting periods. In particular, this account may reflect expenses associated with mining and preparatory work; preparatory work for production due to its seasonal nature; development of new production facilities, installations and units; land reclamation and implementation of other environmental measures; repairs of fixed assets carried out unevenly throughout the year (when the organization does not create an appropriate reserve or fund), etc.
Expenses recorded in account 97 “Future expenses” are written off to the debit of accounts 20 “Main production”, 23 “Auxiliary production”, 25 “General production expenses”, 26 “General business expenses”, 44 “Sales expenses”, etc.
Analytical accounting for account 97 “Deferred expenses” is carried out by type of expense.
Account 97 accounting entry “Deferred expenses” corresponds with accounts:
| By debit | By loan |
|---|---|
02 “Depreciation of fixed assets” 04 "Intangible assets" 05 “Amortization of intangible assets” 10 "Materials" 16 “Deviation in the cost of material assets” 23 “Auxiliary production” 25 “General production expenses” 26 “General business expenses” 29 “Service industries and farms” 41 "Products" 43 “Finished products” 60 “Settlements with suppliers and contractors” 69 “Calculations for social insurance and security” 70 “Settlements with personnel for wages” 71 “Settlements with accountable persons” 76 “Settlements with various debtors and creditors” 79 “Intra-economic settlements” 96 “Reserves for future expenses” | 08 “Investments in non-current assets” 10 "Materials" 20 "Main production" 23 “Auxiliary production” 25 “General production expenses” 26 “General business expenses” 29 “Service industries and farms” 44 “Sales expenses” 76 “Settlements with various debtors and creditors” 79 “Intra-economic settlements” 96 “Reserves for future expenses” 99 "Profits and losses" |
- Income received for deferred periods
- Free receipts
- Upcoming debt receipts for shortfalls identified in previous years
- The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables
Account 98 “Deferred income”
Account 98 “Deferred income” is intended to summarize information on income received (accrued) in the reporting period, but relating to future reporting periods, as well as upcoming receipts of debt for shortfalls identified in the reporting period for previous years, and the differences between the amount subject to recovery from the guilty parties, and the value of the valuables accepted for accounting when shortages and damage are identified.
Sub-accounts can be opened to account 98 “Deferred income”:
- 98-1 “Income received for future periods”,
- 98-2 “Gratuitous receipts”,
- 98-3 “Upcoming debt receipts for shortfalls identified in previous years”,
- 98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, etc.
Subaccount 98-1 “Income received for future periods” takes into account the movement of income received in the reporting period, but relating to future reporting periods: rent or apartment payments, utility bills, revenue for freight transportation, for passenger transportation on a monthly basis and quarterly tickets, subscription fees for the use of communication facilities, etc.
On the credit side of account 98 “Deferred income”, in correspondence with the accounts for cash or settlements with debtors and creditors, the amounts of income related to future reporting periods are reflected, and on the debit side - the amounts of income transferred to the corresponding accounts upon the onset of the reporting period to which these incomes are included.
Analytical accounting for subaccount 98-1 “Income received for future periods” is carried out for each type of income.
Subaccount 98-2 “Gratuitous receipts” takes into account the value of assets received by the organization free of charge.
The credit of account 98 “Future income” in correspondence with accounts 08 “Investments in non-current assets” and others reflects the market value of assets received free of charge, and in correspondence with account 86 “Targeted financing” - the amount of budget funds allocated by a commercial organization for financing expenses. Amounts recorded on account 98 “Deferred income” are written off from this account to the credit of account 91 “Other income and expenses”:
- for fixed assets received free of charge - as depreciation is calculated;
- for other material assets received free of charge - as production costs (sales costs) are written off to accounts.
Analytical accounting for subaccount 98-2 “Gratuitous receipts” is carried out for each gratuitous receipt of valuables.
Subaccount 98-3 “Forthcoming debt receipts for shortfalls identified in previous years” takes into account the movement of upcoming debt receipts for shortfalls identified in the reporting period for previous years.
In the credit of account 98 “Deferred income”, in correspondence with account 94 “Shortages and losses from damage to valuables”, the amounts of shortages of valuables identified in previous reporting periods (before the reporting year), found guilty of persons, or the amounts awarded for collection on them are reflected. court. At the same time, account 94 “Shortages and losses from damage to valuables” is credited with these amounts in correspondence with account 73 “Settlements with personnel for other operations” (sub-account “Settlements for compensation of material damage”).
As the debt for shortfalls is repaid, account 73 “Settlements with personnel for other operations” is credited in correspondence with the cash accounts while simultaneously reflecting the received amounts on the credit of account 91 “Other income and expenses” (profits of previous years identified in the reporting year) and debit account 98 “Deferred income”.
Subaccount 98-4 “The difference between the amount to be recovered from the guilty persons and the cost for shortages of valuables” takes into account the difference between the amount recovered from the guilty persons for missing material and other valuables and the value listed in the organization’s accounting records.
In the credit of account 98 “Deferred income” in correspondence with account 73 “Settlements with personnel for other operations” (sub-account “Calculations for compensation for material damage”) the difference between the amount to be recovered from the guilty parties and the cost of shortages of valuables is reflected. As the debt accepted for accounting under account 73 “Settlements with personnel for other operations” is repaid, the corresponding amounts of the difference are written off from account 98 “Deferred income” to the credit of account 91 “Other income and expenses”.
Account 98 accounting entry “Deferred income” corresponds with accounts:
Account 99 “Profits and losses”
Account 99 “Profits and losses” is intended to summarize information on the formation of the final financial result of the organization’s activities in the reporting year.
The final financial result (net profit or net loss) is made up of the financial result from ordinary activities, as well as other income and expenses. The debit of account 99 “Profits and Losses” reflects losses (losses, expenses), and the credit reflects the profits (income) of the organization. A comparison of debit and credit turnover for the reporting period shows the final financial result of the reporting period.
Account 99 “Profits and losses” during the reporting year reflects:
- profit or loss from ordinary activities - in correspondence with account 90 “Sales”;
- the balance of other income and expenses for the reporting month - in correspondence with account 91 “Other income and expenses”;
- the amount of accrued contingent income tax expense, permanent liabilities and payments for recalculation of this tax from actual profit, as well as the amount of tax penalties due - in correspondence with account 68 “Calculations for taxes and fees”.
At the end of the reporting year, when preparing annual financial statements, account 99 “Profits and losses” is closed. In this case, by the final entry of December, the amount of net profit (loss) of the reporting year is written off from account 99 “Profits and losses” to the credit (debit) of account 84 “Retained earnings (uncovered loss)”.
The construction of analytical accounting for account 99 “Profits and losses” should ensure the generation of data necessary for drawing up a profit and loss statement. This is what the chart of accounts 94n recommends.
Account 99 of the accounting entry “Profit and Loss” corresponds with accounts:
| By debit | By loan |
|---|---|
01 "Fixed assets" 03 “Profitable investments in material assets” 07 “Equipment for installation” 08 “Investments in non-current assets” 10 "Materials" 11 “Animals in cultivation and fattening” 16 “Deviation in the cost of material assets” 19 “Value added tax on acquired assets” 20 "Main production" 21 “Semi-finished products of own production” 23 “Auxiliary production” 25 “General production expenses” 26 “General business expenses” 28 "Defects in production" 29 “Service industries and farms” 41 "Products" 43 “Finished products” 44 “Sales expenses” 45 “Goods shipped” 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 58 “Financial investments” 68 “Calculations for taxes and fees” 69 “Calculations for social insurance and security” 70 “Settlements with personnel for wages” 71 “Settlements with accountable persons” 73 “Settlements with personnel for other operations” 76 “Settlements with various debtors and creditors” 79 “Intra-economic settlements” 84 “Retained earnings (uncovered loss)” 90 "Sales" 91 “Other income and expenses” 97 “Deferred expenses” | 10 "Materials" 50 "Cashier" 51 “Current accounts” 52 “Currency accounts” 55 “Special bank accounts” 60 “Settlements with suppliers and contractors” 73 “Settlements with personnel for other operations” 76 “Settlements with various debtors and creditors” 79 “Intra-economic settlements” 84 “Retained earnings (uncovered loss)” 90 "Sales" 91 “Other income and expenses” 94 “Shortages and losses from damage to valuables” 96 “Reserves for future expenses” |
Off-balance sheet accounts
Off-balance sheet accounts in the new chart of accounts for 2014-2015 are intended to summarize information on the availability and movement of assets temporarily in use or at the disposal of the organization (rented fixed assets, material assets in safekeeping, in processing, etc.), contingent rights and obligations, as well as to control individual business transactions. Accounting for these objects is carried out using a simple system.
Account 001 “Leased fixed assets”
Account 001 “Leased fixed assets” is intended to summarize information on the availability and movement of fixed assets leased by the organization.
Leased fixed assets are accounted for in account 001 “Leased fixed assets” in the valuation specified in the rental agreements.
Analytical accounting for account 001 “Leased fixed assets” is carried out by lessor, for each object of leased fixed assets (according to the lessor’s inventory numbers). Leased fixed assets located outside the Russian Federation are accounted for on account 001 “Leased fixed assets” separately.
Account 002 “Inventory assets accepted for safekeeping”
Account 002 “Inventory assets accepted for safekeeping” is intended to summarize information about the availability and movement of inventory assets accepted for safekeeping.
Buying organizations record on account 002 “Inventory assets accepted for safekeeping” values accepted for storage in the following cases:
- receiving inventory items from suppliers for which the organization legally refused to accept invoices of payment requests and pay them;
- receiving from suppliers unpaid inventory items that are prohibited from being spent under the terms of the contract until they are paid for;
- acceptance of inventory items for safekeeping for other reasons.
Supplier organizations record in account 002 “Inventory assets accepted for safekeeping” goods and materials paid for by buyers that are left in safe custody, issued with safekeeping receipts, but not taken out for reasons beyond the control of the organizations. Inventory assets are recorded on account 002 “Inventory assets accepted for safekeeping” at the prices specified in the acceptance certificates or in the payment request accounts.
Analytical accounting for account 002 “Inventory assets accepted for safekeeping” is carried out by owner organizations, by type, grade and storage location.
Account 003 “Materials accepted for processing”
Account 003 “Materials Accepted for Processing” is intended to summarize information on the availability and movement of raw materials and customer materials accepted for processing (raw materials supplied by customers), not paid for by the manufacturer. Accounting for the costs of processing or refining raw materials and materials is carried out on production cost accounts, reflecting the associated costs (with the exception of the cost of raw materials and materials of the customer). The customer's raw materials accepted for processing are accounted for in account 003 “Materials accepted for processing” at the prices stipulated in the contracts.
Analytical accounting for account 003 “Materials accepted for processing” is carried out by customers, types, grades of raw materials and materials and their locations.
Account 004 “Goods accepted for commission”
Account 004 “Goods accepted on commission” is intended to summarize information about the availability and movement of goods accepted on commission in accordance with the contract. This account is used by commission agencies.
Goods accepted for commission are accounted for in account 004 “Goods accepted for commission” at the prices stipulated in the acceptance certificates. Analytical accounting for account 004 “Goods accepted for commission” is carried out by type of goods and organizations (persons) - consignors.
Account 005 “Equipment accepted for installation”
Account 005 “Equipment accepted for installation” is intended to summarize information about the availability and movement of all types of equipment received by the organization from the customer for installation. This account is used by contractor organizations.
The equipment is accounted for on account 005 “Equipment accepted for installation” at the prices specified by the customer in the accompanying documents.
Analytical accounting for account 005 “Equipment accepted for installation” is carried out for individual objects or units.
Account 006 “Strict reporting forms”
Account 006 “Strict reporting forms” is intended to summarize information on the availability and movement of strict reporting forms stored and issued for reporting - receipt books, forms of certificates, diplomas, various subscriptions, coupons, tickets, forms of shipping documents, etc. .
Strict reporting forms are accounted for in account 006 “Strict reporting forms” in the conditional valuation.
Analytical accounting for account 006 “Strict reporting forms” is maintained for each type of strict reporting forms and their storage locations.
Account 007 “Debt of insolvent debtors written off at a loss”
Account 007 “Debt of insolvent debtors written off at a loss” is intended to summarize information on the status of receivables written off at a loss due to the insolvency of debtors. This debt must be kept on the balance sheet for five years from the date of write-off to monitor the possibility of its collection in the event of a change in the property status of the debtors.
For amounts received in order to collect debts previously written off at a loss, accounts 50 “Cash”, 51 “Cash Accounts” or 52 “Currency Accounts” are debited in correspondence with account 91 “Other income and expenses”. At the same time, off-balance sheet account 007 “Debt of insolvent debtors written off at a loss” is credited for the indicated amounts.
Analytical accounting for account 007 “Debt of insolvent debtors written off at a loss” is maintained for each debtor whose debt is written off at a loss, and for each debt written off at a loss.
Account 008 “Securities for obligations and payments received”
Account 008 “Securities for obligations and payments received” is intended to summarize information on the availability and movement of guarantees received to secure the fulfillment of obligations and payments, as well as security received for goods transferred to other organizations (individuals).
If the guarantee does not specify the amount, then for accounting purposes it is determined based on the terms of the contract.
The amounts of collateral recorded in account 008 “Collateral for obligations and payments received” are written off as the debt is repaid.
Analytical accounting for account 008 “Securities for obligations and payments received” is maintained for each security received.
Account 009 “Securities for obligations and payments issued”
Account 009 “Securities for obligations and payments issued” is intended to summarize information on the availability and movement of guarantees issued to secure the fulfillment of obligations and payments. If the guarantee does not specify the amount, then for accounting purposes it is determined based on the terms of the contract.
The amounts of collateral recorded in account 009 “Collateral for obligations and payments issued” are written off as the debt is repaid.
Analytical accounting for account 009 “Securities for obligations and payments issued” is maintained for each security issued.
Account 010 “Depreciation of fixed assets”
Account 010 “Depreciation of fixed assets” is intended to summarize information on the movement of depreciation amounts for housing facilities, external improvement objects and other similar objects (forestry, road management, specialized shipping facilities, etc.), as well as for non-profit organizations for fixed assets. Depreciation on these objects is calculated at the end of the year according to established depreciation rates.
When disposing of individual objects (including sale, gratuitous transfer, etc.), the amount of depreciation on them is written off from account 010 “Depreciation of fixed assets.”
Analytical accounting for account 010 “Depreciation of fixed assets” is carried out for each object.
Account 011 “Fixed assets leased out”
Account 011 “Fixed Assets Leased” is intended to summarize information on the availability and movement of fixed assets leased out, if, under the terms of the lease agreement, the property must be accounted for on the balance sheet of the lessee (tenant).
Fixed assets leased are recorded on account 011 “Fixed assets leased” in the valuation specified in the lease agreements.
Analytical accounting for account 011 “Fixed assets leased” is carried out by tenant, for each object of fixed assets leased. Fixed assets leased out outside the Russian Federation are accounted for separately on account 011 “Fixed assets leased out.”
Account 59 “Reserves for the impairment of financial investments” is intended to summarize information on the availability and movement of reserves for the impairment of the organization’s financial investments.
An entry is made for the amount of reserves created in the debit of account 91 “Other income and expenses” and the credit of account 59 “Reserves for depreciation of financial investments.” A similar entry is made when the amount of these reserves increases.
When the amount of created reserves decreases, as well as the disposal of financial investments for which corresponding reserves were previously created, an entry is made to the debit of account 59 “Reserves for the depreciation of financial investments” and the credit of account 91 “Other income and expenses”.
Analytical accounting for account 59 “Provisions for impairment of financial investments” is carried out for each reserve.
Account 59 "Reserves for impairment of investments in securities"
corresponds with accounts:
| by debit | on loan |
| 91 Other income and expenses | 91 Other income and expenses |
Section VI. Calculations
The accounts in this section are intended to summarize information about all types of settlements of the organization with various legal entities and individuals, as well as intra-business settlements.
Payments in foreign currencies are accounted for in the accounts of this section in rubles in amounts determined by converting foreign currency in the prescribed manner. At the same time, these calculations are reflected in the currency of settlements and payments.
Payments in foreign currencies are accounted for separately in the accounts of this section, i.e. on separate sub-accounts.
Account 60 "Settlements with suppliers and contractors"
Account 60 “Settlements with suppliers and contractors” is intended to summarize information on settlements with suppliers and contractors for:
commodity-material assets received, accepted work performed and services consumed, including the provision of electricity, gas, steam, water, etc., as well as for the delivery or processing of material assets, payment documents for which are accepted and subject to payment through the bank;
commodity and material assets, works and services for which payment documents were not received from suppliers or contractors (so-called uninvoiced deliveries);
surplus commodity and material assets identified during their acceptance;
transportation services received, including calculations for shortfalls and overcharges of the tariff (freight), as well as for all types of communication services, etc.
Organizations that perform the functions of a general contractor during the execution of a construction contract, a contract for the performance of scientific research, experimental design and technological work and other contracts, settlements with their subcontractors are also reflected in account 60 “Settlements with suppliers and contractors”.
All transactions related to settlements for acquired material assets, accepted work or consumed services are reflected in account 60 “Settlements with suppliers and contractors” regardless of the time of payment.
Account 60 “Settlements with suppliers and contractors” is credited for the cost of inventory, work, and services accepted for accounting in correspondence with accounts accounting for these assets (or account 15 “Procurement and acquisition of material assets”) or accounts accounting for relevant costs. For services for the delivery of material assets (goods), as well as for the processing of materials on the side of the credit entry, account 60 “Settlements with suppliers and contractors” are made in correspondence with the accounts for inventory, goods, production costs, etc.
Regardless of the assessment of inventory items in analytical accounting, account 60 “Settlements with suppliers and contractors” in synthetic accounting is credited according to the supplier’s settlement documents. When the supplier's invoice was accepted and paid before the cargo arrived, and when accepting the goods and materials that arrived at the warehouse, a shortage was discovered in excess of the amounts stipulated in the contract against the invoiced quantity, and also if when checking the supplier's or contractor's invoice (after the invoice was accepted ) discrepancies between the prices stipulated by the contract, as well as arithmetic errors were discovered, account 60 “Settlements with suppliers and contractors” is credited for the corresponding amount in correspondence with account 76 “Settlements with various debtors and creditors” (sub-account “Settlements for claims”).
For uninvoiced deliveries, account 60 “Settlements with suppliers and contractors” is credited for the cost of incoming valuables, determined based on the price and conditions stipulated in the contracts.
Account 60 “Settlements with suppliers and contractors” is debited for the amounts of fulfillment of obligations (payment of bills), including advances and prepayments, in correspondence with cash accounts, etc. In this case, the amounts of advances issued and prepayments are accounted for separately. Amounts of debt to suppliers and contractors, secured by bills of exchange issued by the organization, are not written off from account 60 “Settlements with suppliers and contractors”, but are taken into account separately in analytical accounting.
Analytical accounting for account 60 “Settlements with suppliers and contractors” is maintained for each submitted invoice, and settlements in the order of scheduled payments are maintained for each supplier and contractor. At the same time, the construction of analytical accounting should ensure the possibility of obtaining the necessary data on: suppliers on accepted and other payment documents for which the payment period has not yet arrived; to suppliers for payment documents not paid on time; to suppliers for uninvoiced deliveries; advances issued; to suppliers on bills issued, the payment period of which has not yet arrived; to suppliers for overdue bills of exchange; to suppliers for received commercial loans, etc.
Accounting for settlements with suppliers and contractors within a group of interrelated organizations, about the activities of which consolidated financial statements are prepared, is kept on account 60 “Settlements with suppliers and contractors” separately.
Account 60 "Settlements with suppliers and contractors"
corresponds with accounts:
| by debit | on loan |
| 50 Cashier | 07 Equipment for installation |
| 51 Current accounts | |
| 52 Currency accounts | 10 Materials |
| 20 Main production | |
| 91 Other income and expenses | 28 Defects in production |
| 99 Profit and loss | |
| 41 Products | |
| 44 Selling expenses | |
| 50 Cashier | |
| 51 Current accounts | |
| 52 Currency accounts | |
| 55 Special bank accounts | |
| 60 Settlements with suppliers and contractors | |
| 76 Settlements with various debtors and creditors | |
| 79 On-farm settlements | |
| 91 Other income and expenses | |
| 97 Deferred expenses |
Account 62 "Settlements with buyers and customers"
Account 62 “Settlements with buyers and customers” is intended to summarize information on settlements with buyers and customers.
Account 62 “Settlements with buyers and customers” is debited in correspondence with accounts 90 “Sales”, 91 “Other income and expenses” for the amounts for which settlement documents were presented.
Account 62 “Settlements with buyers and customers” is credited in correspondence with the accounts for recording cash, settlements for the amounts of payments received (including the amounts of advances received), etc. In this case, the amounts of advances received and prepayments are taken into account separately.
If interest is provided on the received bill of exchange securing the debt of the buyer (customer), then as this debt is repaid, an entry is made to the debit of account 51 “Currency accounts” or 52 “Currency accounts” and the credit of account 62 “Settlements with buyers and customers” (on the amount of debt repayment) and 91 “Other income and expenses” (by the amount of interest).
Analytical accounting for account 62 “Settlements with buyers and customers” is carried out for each invoice presented to buyers (customers), and for settlements with scheduled payments - for each buyer and customer. At the same time, the construction of analytical accounting should provide the ability to obtain the necessary data on: buyers and customers on payment documents for which the payment period has not yet arrived; buyers and customers on payment documents not paid on time; advances received; bills for which the due date for receipt of funds has not yet arrived; bills discounted (discounted) in banks; bills for which funds were not received on time.
Accounting for settlements with buyers and customers within a group of interrelated organizations, the activities of which are compiled consolidated financial statements, is kept on account 62 “Settlements with buyers and customers” separately.
Account 62 "Settlements with buyers and customers"
corresponds with accounts:
| by debit | on loan |
| 46 Completed stages of unfinished work | 50 Cashier |
| 50 Cashier | 51 Current accounts |
| 51 Current accounts | 52 Currency accounts |
| 52 Currency accounts | 55 Special bank accounts |
| 55 Special bank accounts | 57 Transfers on the way |
| 57 Transfers on the way | 60 Settlements with suppliers and contractors |
| 62 Settlements with buyers and customers | 62 Settlements with buyers and customers |
| 76 Settlements with various debtors and creditors | |
| 79 On-farm settlements | 66 Calculations for short-term loans and borrowings |
| 90 Sales | 67 Calculations for long-term loans and borrowings |
| 91 Other income and expenses | |
| 75 Settlements with founders | |
| 76 Settlements with various debtors and creditors | |
| 79 On-farm settlements |
Account 63 "Provisions for doubtful debts"
Account 63 “Provisions for doubtful debts” is intended to summarize information about reserves for doubtful debts.
For the amount of created reserves, entries are made in the debit of account 91 “Other income and expenses” and the credit of account 63 “Reserves for doubtful debts”. When writing off unclaimed debts that were previously recognized by the organization as doubtful, entries are made in the debit of account 63 “Provisions for doubtful debts” in correspondence with the corresponding accounts for accounts receivable. The addition of unused amounts of reserves for doubtful debts to the profit of the reporting period following the period of their creation is reflected in the debit of account 63 “Provisions for doubtful debts” and the credit of account 91 “Other income and expenses”.
Analytical accounting for account 63 “Provisions for doubtful debts” is maintained for each created reserve.
Account 63 "Provisions for doubtful debts"
corresponds with accounts:
Account 66 "Settlements for short-term loans and borrowings"
Account 66 “Settlements for short-term loans and borrowings” is intended to summarize information on the status of short-term (for a period of no more than 12 months) loans and borrowings received by the organization.
The amounts of short-term loans and borrowings received by the organization are reflected in the credit of account 66 "Settlements for short-term loans and borrowings" and the debit of accounts 50 "Cash", 51 "Settlement accounts", 52 "Currency accounts", 55 "Special accounts in banks", 60 " Settlements with suppliers and contractors", etc.
Short-term loans raised by issuing and placing bonds are accounted for on account 66 “Settlements for short-term loans and borrowings” separately. Moreover, if bonds are placed at a price exceeding their par value, then entries are made in the debit of account 51 “Current accounts”, etc. in correspondence with accounts 66 “Settlements for short-term loans and borrowings” (at the par value of bonds) and 98 “Future income periods" (by the amount of excess of the bond placement price over their par value). The amount allocated to account 98 “Deferred income” is written off evenly during the circulation period of the bonds to account 91 “Other income and expenses”. If bonds are placed at a price below their par value, then the difference between the placement price and the par value of the bonds is added evenly during the period of circulation of the bonds from the credit of account 66 “Settlements on short-term loans and borrowings” to the debit of account 91 “Other income and expenses”.
Interest payable on loans and borrowings received is reflected in the credit of account 66 “Settlements on short-term credits and borrowings” in correspondence with the debit of account 91 “Other income and expenses”. Accrued interest amounts are accounted for separately.
For the amounts of repaid loans and borrowings, account 66 “Settlements for short-term loans and borrowings” is debited in correspondence with the cash accounts. Credits and borrowings not paid on time are accounted for separately.
Analytical accounting of short-term loans and borrowings is carried out by type of loans and borrowings, credit organizations and other lenders who provided them.
A separate subaccount to account 66 “Settlements on short-term loans and borrowings” records settlements with credit institutions for the accounting (discount) operation of bills and other debt obligations with a maturity of no more than 12 months.
The accounting (discount) operation of bills and other debt obligations is reflected by the organization - the bill holder on the credit of account 66 "Settlements on short-term loans and borrowings" (face value of the bill) and the debit of accounts 51 "Settlement accounts" or 52 "Currency accounts" (actually received amount of funds ) and 91 “Other income and expenses” (accounting interest paid to the credit institution).
The accounting (discount) operation of bills and other debt obligations is closed on the basis of a notification from the credit institution about payment by reflecting the amount of the bill in the debit of account 66 “Settlements on short-term loans and borrowings” and the credit of the corresponding accounts receivable.
When an organization that is a bill holder returns funds received from a credit institution as a result of discounting (discounting) bills or other debt obligations, due to the failure of the drawer or other payer of the bill to fulfill their payment obligations within the established period, an entry is made in the debit of account 66 “Settlements for short-term loans and borrowings" in correspondence with cash accounts. At the same time, debt for settlements with buyers, customers and other debtors, secured by overdue bills of exchange, continues to be recorded in accounts receivable accounts.
Accounting for settlements with credit institutions, lenders and drawers within a group of related organizations, the activities of which are compiled consolidated financial statements, is kept on account 66 “Settlements for short-term loans and borrowings” separately.
Account 66 "Settlements for short-term loans and borrowings"
corresponds with accounts:
| by debit | on loan |
| 50 Cashier | |
| 51 Current accounts | 07 Equipment for installation |
| 52 Currency accounts | 08 Investments in non-current assets |
| 55 Special bank accounts | 10 Materials |
| 62 Settlements with buyers and customers | 11 Animals for growing and fattening |
| 66 Calculations for short-term loans and borrowings | 41 Products |
| 76 Settlements with various debtors and creditors | 50 Cashier |
| 91 Other income and expenses | 51 Current accounts |
| 52 Currency accounts | |
| 55 Special bank accounts | |
| 60 Settlements with suppliers and contractors | |
| 66 Calculations for short-term loans and borrowings | |
| 76 Settlements with various debtors and creditors | |
| 82 Reserve capital | |
| 91 Other income and expenses |
Account 67 "Settlements for long-term loans and borrowings"
Account 67 “Settlements for long-term loans and borrowings” is intended to summarize information on the status of long-term (for a period of more than 12 months) loans and borrowings received by the organization.
The amounts of long-term loans and borrowings received by the organization are reflected in the credit of account 67 “Settlements for long-term loans and borrowings” and the debit of accounts 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special accounts in banks”, 60 “Settlements with suppliers and contractors " etc.
Long-term loans raised by issuing and placing bonds are accounted for on account 67 “Settlements for long-term loans and borrowings” separately. Moreover, if bonds are placed at a price exceeding their par value, then entries are made in the debit of account 51 “Current accounts”, etc. in correspondence with accounts 67 “Settlements for long-term loans and borrowings” (at the par value of bonds) and 98 “Income future periods" (by the amount of excess of the bond placement price over their par value). The amount allocated to account 98 “Deferred income” is written off evenly during the circulation period of the bonds to account 91 “Other income and expenses”. If bonds are placed at a price below their par value, then the difference between the placement price and the par value of the bonds is accrued evenly during the period of circulation of the bonds from the credit of account 67 “Settlements on long-term loans and borrowings” to the debit of account 91 “Other income and expenses”.
Interest payable on loans and borrowings received is reflected in the credit of account 67 “Settlements on long-term loans and borrowings” in correspondence with the debit of account 91 “Other income and expenses”. Accrued interest amounts are accounted for separately.
For the amounts of repaid loans and borrowings, account 67 “Settlements for long-term loans and borrowings” is debited in correspondence with the cash accounts. Credits and borrowings not paid on time are accounted for separately.
Analytical accounting of long-term loans and borrowings is carried out by type of loans and borrowings, credit organizations and other lenders who provided them, and individual loans and borrowings.
A separate sub-account to account 67 “Settlements on long-term loans and borrowings” records settlements with banks for accounting (discount) transactions of bills and other debt obligations with a maturity of more than 12 months.
The accounting (discount) operation of bills and other debt obligations is reflected by the organization - the bill holder on the credit of account 67 "Settlements on long-term loans and borrowings" (face value of the bill) and the debit of accounts 51 "Settlement accounts" or 52 "Currency accounts" (actually received amount of funds ) and 91 “Other income and expenses” (accounting interest paid to the credit institution).
The accounting (discount) operation of bills and other debt obligations is closed on the basis of a notification from the credit institution about payment by reflecting the amount of the bill in the debit of account 67 “Settlements for long-term loans and borrowings” and the credit of the corresponding accounts receivable.
When an organization - a bill holder returns funds received from a credit institution as a result of discounting (discounting) bills or other debt obligations, due to the failure of the drawer or other payer of the bill to fulfill their payment obligations within the established period, an entry is made in the debit of account 67 "Settlements for long-term loans and borrowings" in correspondence with cash accounts. At the same time, debt for settlements with buyers, customers and other debtors, secured by an overdue bill of exchange, continues to be recorded in the corresponding accounts receivable.
Analytical accounting of discounted bills of exchange is carried out for credit institutions that have carried out discounting (discounting) of bills of exchange or other debt obligations, issuers of bills and individual bills of exchange.
Accounting for settlements with credit institutions, lenders and drawers within a group of related organizations, the activities of which are compiled consolidated financial statements, is kept on account 67 “Settlements for long-term loans and borrowings” separately.
Account 67 "Settlements for long-term loans and borrowings"
corresponds with accounts:
| by debit | on loan |
| 51 Current accounts | 07 Equipment for installation |
| 52 Currency accounts | 08 Investments in non-current assets |
| 55 Special bank accounts | 10 Materials |
| 62 Settlements with buyers and customers | 11 Animals for growing and fattening |
| 67 Calculations for long-term loans and borrowings | 41 Products |
| 76 Settlements with various debtors and creditors | 50 Cashier |
| 91 Other income and expenses | 51 Current accounts |
| 52 Currency accounts | |
| 55 Special bank accounts | |
| 60 Settlements with suppliers and contractors | |
| 67 Calculations for long-term loans and borrowings | |
| 68 Calculations for taxes and fees | |
| 76 Settlements with various debtors and creditors | |
| 82 Reserve capital | |
| 91 Other income and expenses |
Account 68 "Calculations for taxes and fees"
Account 68 “Calculations for taxes and fees” is intended to summarize information about settlements with budgets for taxes and fees paid by an organization, and taxes with employees of this organization.
Account 68 "Calculations for taxes and fees" is credited for the amounts due on tax returns (calculations) for contributions to budgets (in correspondence with account 99 "Profits and losses" - for the amount of income tax, with account 70 "Settlements with personnel for wages" - the amount of income tax, etc.).
The debit of account 68 “Calculations for taxes and fees” reflects the amounts actually transferred to the budget, as well as the amounts of value added tax written off from account 19 “Value added tax on acquired assets.”
Analytical accounting for account 68 “Calculations for taxes and fees” is carried out by type of tax.
Account 68 "Calculations for taxes and fees"
corresponds with accounts:
| by debit | on loan |
| 19 Value added tax on acquired assets | 08 Investments in non-current assets |
| 50 Cashier | 10 Materials |
| 51 Current accounts | 11 Animals for growing and fattening |
| 52 Currency accounts | 15 Procurement and acquisition of material assets |
| 55 Special bank accounts | 20 Main production |
| 66 Calculations for short-term loans and borrowings | 23 Auxiliary productions |
| 67 Calculations for long-term loans and borrowings | 26 General expenses |
| 29 Service industries and farms | |
| 41 Products | |
| 44 Selling expenses | |
| 51 Current accounts | |
| 52 Currency accounts | |
| 55 Special bank accounts | |
| 75 Settlements with founders | |
| 90 Sales | |
| 91 Other income and expenses | |
| 98 Deferred income | |
| 99 Profit and loss |
Account 69 "Calculations for social insurance and security"
Account 69 “Calculations for social insurance and security” is intended to summarize information on calculations for social insurance, pensions and compulsory medical insurance for employees of the organization.
Sub-accounts can be opened to account 69 “Settlements for social insurance and security”:
69-1 "Calculations for social insurance",
69-2 "Calculations for pension provision",
69-3 "Calculations for compulsory health insurance."
Subaccount 69-1 “Social insurance settlements” takes into account calculations for social insurance of the organization’s employees.
Subaccount 69-2 “Calculations for pension provision” takes into account calculations for the pension provision of the organization’s employees.
Subaccount 69-3 “Calculations for compulsory medical insurance” takes into account calculations for compulsory medical insurance of the organization’s employees.
If the organization has settlements for other types of social insurance and security, additional subaccounts may be opened to account 69 “Settlements for social insurance and security”.
Account 69 “Calculations for social insurance and security” is credited for the amounts of payments for social insurance and security of employees, as well as their compulsory medical insurance, subject to transfer to the appropriate funds. In this case, records are made in correspondence with:
accounts on which the calculation of wages is reflected - in terms of deductions made at the expense of the organization;
account 70 “Settlements with personnel for wages” - in terms of deductions made at the expense of the organization’s employees.
In addition, in the credit of account 69 “Settlements for social insurance and security”, in correspondence with the profit and loss account or settlements with employees for other transactions (in terms of settlements with guilty persons), the accrued amount of penalties for late payment of payments is reflected, and in correspondence with account 51 "Settlement accounts" - amounts received in cases where the corresponding expenses exceed payments.
The debit of account 69 “Calculations for social insurance and security” reflects the transferred amounts of payments, as well as amounts paid from payments for social insurance, pensions, and compulsory health insurance.
Account 69 "Calculations for social insurance and security"
corresponds with accounts:
| by debit | on loan |
| 50 Cashier | 08 Investments in non-current assets |
| 51 Current accounts | 20 Main production |
| 52 Currency accounts | 23 Auxiliary productions |
| 55 Special bank accounts | 25 General production expenses |
| 70 Settlements with personnel for wages | 26 General expenses |
| 28 Defects in production | |
| 29 Service industries and farms | |
| 44 Selling expenses | |
| 51 Current accounts | |
| 52 Currency accounts | |
| 70 Settlements with personnel for wages | |
| 73 Settlements with personnel for other operations | |
| 91 Other income and expenses | |
| 97 Deferred expenses | |
| 99 Profit and loss |
Account 70 "Settlements with personnel for wages"
Account 70 “Settlements with personnel for wages” is intended to summarize information on settlements with employees of the organization for wages (for all types of wages, bonuses, benefits, pensions for working pensioners and other payments), as well as for the payment of income on shares and other securities of this organization.
In the credit of account 70 “Settlements with personnel for wages” the following amounts are reflected:
wages due to employees - in correspondence with accounts of production costs (selling expenses) and other sources;
wages accrued at the expense of the reserve formed in the prescribed manner for the payment of vacations to employees and the reserve of benefits for length of service, paid once a year - in correspondence with account 96 “Reserves for future expenses”;
accrued benefits for social insurance, pensions and other similar amounts - in correspondence with account 69 “Calculations for social insurance and security”;
accrued income from participation in the capital of the organization, etc. - in correspondence with account 84 “Retained earnings (uncovered loss)”.
The debit of account 70 “Settlements with personnel for wages” reflects the paid amounts of wages, bonuses, benefits, pensions, etc., income from participation in the capital of the organization, as well as the amount of accrued taxes, payments under executive documents and other deductions.
Amounts accrued but not paid on time (due to the failure of recipients to appear) are reflected in the debit of account 70 “Settlements with personnel for wages” and the credit of account 76 “Settlements with various debtors and creditors” (sub-account “Settlements for deposited amounts”) .
Analytical accounting for account 70 “Settlements with personnel for wages” is maintained for each employee of the organization.
Account 70 "Settlements with personnel for wages"
corresponds with accounts:
| by debit | on loan |
| 50 Cashier | 08 Investments in non-current assets |
| 51 Current accounts | 20 Main production |
| 52 Currency accounts | 23 Auxiliary productions |
| 55 Special bank accounts | 25 General production expenses |
| 68 Calculations for taxes and fees | 26 General expenses |
| 28 Defects in production | |
| 29 Service industries and farms | |
| 73 Settlements with personnel for other operations | 44 Selling expenses |
| 76 Settlements with various debtors and creditors | 69 Calculations for social insurance and security |
| 79 On-farm settlements | 76 Settlements with various debtors and creditors |
| 94 Shortages and losses from damage to valuables | 79 On-farm settlements |
| 91 Other income and expenses | |
| 96 Reserves for future expenses | |
| 97 Deferred expenses | |
| 99 Profit and loss |
Account 71 "Settlements with accountable persons"
Account 71 “Settlements with accountable persons” is intended to summarize information on settlements with employees for the amounts issued to them on account for administrative, business and other expenses.
For the amounts issued for reporting, account 71 “Settlements with accountable persons” is debited in correspondence with the cash accounts. For the amounts spent by accountable persons, account 71 “Settlements with accountable persons” is credited in correspondence with the accounts that record expenses and acquired values, or other accounts depending on the nature of the expenses incurred.
Accountable amounts not returned by employees on time are reflected in the credit of account 71 “Settlements with accountable persons” and the debit of account 94 “Shortages and losses from damage to valuables.” Subsequently, these amounts are written off from account 94 “Shortages and losses from damage to valuables” to the debit of account 70 “Settlements with personnel for wages” (if they can be deducted from the employee’s wages) or 73 “Settlements with personnel for other operations” ( when they cannot be deducted from the employee’s wages).
Analytical accounting for account 71 “Settlements with accountable persons” is carried out for each amount issued for reporting.
Account 71 "Settlements with accountable persons"
corresponds with accounts:
| by debit | on loan |
| 50 Cashier | 07 Equipment for installation |
| 51 Current accounts | 08 Investments in non-current assets |
| 52 Currency accounts | 10 Materials |
| 55 Special bank accounts | 11 Animals for growing and fattening |
| 76 Settlements with various debtors and creditors | 15 Procurement and acquisition of material assets |
| 79 On-farm settlements | 20 Main production |
| 91 Other income and expenses | 23 Auxiliary productions |
| 25 General production expenses | |
| 26 General expenses | |
| 28 Defects in production | |
| 29 Service industries and farms | |
| 41 Products | |
| 44 Selling expenses | |
| 45 Items shipped | |
| 50 Cashier | |
| 51 Current accounts | |
| 52 Currency accounts | |
| 55 Special bank accounts | |
| 70 Settlements with personnel for wages | |
| 73 Settlements with personnel for other operations | |
| 76 Settlements with various debtors and creditors | |
| 79 On-farm settlements | |
| 91 Other income and expenses | |
| 94 Shortages and losses from damage to valuables | |
| 97 Deferred expenses | |
| 99 Profit and loss |
Account 73 "Settlements with personnel for other operations"
Account 73 “Settlements with personnel for other operations” is intended to summarize information on all types of settlements with employees of the organization, except for settlements for wages and settlements with accountable persons.
Sub-accounts can be opened to account 73 “Settlements with personnel for other operations”:
73-1 “Settlements for loans provided”,
73-2 “Calculations for compensation for material damage”, etc.
Subaccount 73-1 “Settlements on loans provided” reflects settlements with employees of the organization on loans provided to them (for example, for individual and cooperative housing construction, the acquisition or construction of garden houses and the improvement of garden plots, starting a household, etc.).
The debit of account 73 “Settlements with personnel for other operations” reflects the amount of the loan provided to an employee of the organization in correspondence with account 50 “Cash” or 51 “Cash accounts”.
For the amount of payments received from the borrower employee, account 73 “Settlements with personnel for other operations” is credited in correspondence with accounts 50 “Cash”, 51 “Settlement accounts”, 70 “Settlements with personnel for wages” (depending on the accepted payment procedure).
Subaccount 73-2 “Calculations for compensation for material damage” takes into account calculations for compensation for material damage caused by an employee of the organization as a result of shortages and thefts of monetary and commodity-material assets, defects, as well as compensation for other types of damage.
In the debit of account 73 "Settlements with personnel for other operations" the amounts to be recovered from the guilty parties are included in the credit of accounts 94 "Shortages and losses from damage to valuables" and 98 "Deferred income" (for missing inventory items), 28 “Defects in production” (for losses from defective products), etc.
For the credit of account 73 “Settlements with personnel for other operations,” entries are made in correspondence with the accounts: cash accounting - for the amounts of payments made; 70 “Settlements with personnel for wages” - for the amount of deductions from wages; 94 “Shortages and losses from damage to valuables” - for the amount of written off shortfalls in case of refusal to recover due to the unfoundedness of the claim.
Analytical accounting for account 73 “Settlements with personnel for other operations” is maintained for each employee of the organization.
Account 73 "Settlements with personnel for other operations"
corresponds with accounts:
| by debit | on loan |
| 23 Auxiliary productions | 41 Products |
| 28 Defects in production | 50 Cashier |
| 29 Service industries and farms | 51 Current accounts |
| 50 Cashier | 52 Currency accounts |
| 51 Current accounts | 70 Settlements with personnel for wages |
| 52 Currency accounts | 76 Settlements with various debtors and creditors |
| 57 Transfers on the way | 91 Other income and expenses |
| 62 Settlements with buyers and customers | 94 Shortages and losses from damage to valuables |
| 69 Calculations for social insurance and security | 99 Profit and loss |
| 71 Settlements with accountable persons | |
| 76 Settlements with various debtors and creditors | |
| 79 On-farm settlements | |
| 81 Own shares (shares) | |
| 84 Retained earnings (uncovered loss) | |
| 91 Other income and expenses | |
| 94 Shortages and losses from damage to valuables | |
| 98 Deferred income | |
| 99 Profit and loss |
Account 75 "Settlements with founders"
Account 75 “Settlements with founders” is intended to summarize information on all types of settlements with the founders (participants) of the organization (shareholders of a joint-stock company, participants of a general partnership, members of a cooperative, etc.): for contributions to the authorized (share) capital of the organization, for payment of income (dividends), etc. State and municipal unitary enterprises use this account to account for all types of settlements with state bodies and local governments authorized to create them.
Sub-accounts can be opened to account 75 “Settlements with founders”:
75-1 "Calculations for contributions to the authorized (share) capital",
75-2 “Calculations for payment of income”, etc.
Subaccount 75-1 “Settlements on contributions to the authorized (share) capital” takes into account settlements with the founders (participants) of the organization on contributions to its authorized (share) capital.
When creating a joint-stock company, the debit of account 75 “Settlements with founders” in correspondence with account 80 “Authorized capital” takes into account the amount of debt for payment for shares.
When the amounts of founders' deposits are actually received in the form of cash, entries are made on the credit of account 75 "Settlements with founders" in correspondence with the cash accounts. Contributions of deposits in the form of material and other assets (except for cash) are recorded by entries on the credit of account 75 “Settlements with founders” in correspondence with accounts 08 “Investments in non-current assets”, 10 “Materials”, 15 “Procurement and acquisition of material assets” and etc.
In a similar manner, calculations for contributions to the authorized (share) capital with the founders (participants) of organizations of other organizational and legal forms are reflected in accounting. In this case, an entry in the debit of account 75 “Settlements with founders” and in the credit of account 80 “Authorized capital” is made for the entire amount of the authorized (share) capital declared in the constituent documents.
In the event that shares of an organization created in the form of a joint stock company are sold at a price exceeding their nominal value, the proceeds of the difference between the sale and nominal value are credited to account 83 “Additional capital”.
Unitary enterprises use subaccount 75-1 “Settlements for contributions to the authorized (share) capital” to account for settlements with a state body or local government body for property transferred to the balance sheet under the right of economic management or operational management (when creating an enterprise, replenishing its working capital , seizure of property). These enterprises call this subaccount “Settlements for allocated property.” Accounting entries for it are made in a manner similar to the procedure for accounting for settlements on contributions to the authorized (share) capital.
Subaccount 75-2 “Settlements for the payment of income” takes into account settlements with the founders (participants) of the organization for the payment of income to them. The accrual of income from participation in the organization is reflected by an entry in the debit of account 84 “Retained earnings (uncovered loss)” and the credit of account 75 “Settlements with founders”. In this case, the accrual and payment of income to employees of the organization who are among its founders (participants) is taken into account in account 70 “Settlements with personnel for wages”.
Payment of accrued amounts of income is reflected in the debit of account 75 “Settlements with founders” in correspondence with cash accounts. When paying income from participation in an organization with products (works, services) of this organization, securities, etc. In accounting, entries are made in the debit of account 75 “Settlements with founders” in correspondence with the accounts for the sale of the corresponding valuables.
Amounts of tax on income from participation in an organization that are subject to withholding at the source of payment are recorded in the debit of account 75 “Settlements with founders” and the credit of account 68 “Settlements for taxes and fees”.
Subaccount 75-2 “Calculations for the payment of income” is also used to reflect calculations for the distribution of profit, loss and other results under a simple partnership agreement. Accounting for these transactions is made in a similar manner.
Analytical accounting for account 75 “Settlements with founders” is carried out for each founder (participant), except for accounting for settlements with shareholders - owners of bearer shares in joint-stock companies.
Accounting for settlements with founders (participants) within a group of interrelated organizations, about the activities of which consolidated financial statements are prepared, is kept separately on account 75 “Settlements with founders”.
Account 75 "Settlements with founders"
corresponds with accounts:
| by debit | on loan |
| 50 Cashier | 07 Equipment for installation |
| 51 Current accounts | 08 Investments in non-current assets |
| 52 Currency accounts | 10 Materials |
| 55 Special bank accounts | 11 Animals for growing and fattening |
| 62 Settlements with buyers and customers | 15 Procurement and acquisition of material assets |
| 68 Calculations for taxes and fees | 20 Main production |
| 80 Authorized capital | 41 Products |
| 83 Additional capital | 50 Cashier |
| 84 Retained earnings (uncovered loss) | 51 Current accounts |
| 91 Other income and expenses | 52 Currency accounts |
| 55 Special bank accounts | |
| 58 Financial investments | |
| 80 Authorized capital | |
| 83 Additional capital | |
| 84 Retained earnings (uncovered loss) |
Account 76 "Settlements with various debtors and creditors"
Account 76 “Settlements with various debtors and creditors” is intended to summarize information on settlements for transactions with debtors and creditors not mentioned in the explanations to accounts 60 - 75: for property and personal insurance; on claims; for amounts withheld from wages of employees of the organization in favor of other organizations and individuals on the basis of executive documents or court decisions, etc.
The following sub-accounts can be opened to account 76 “Settlements with various debtors and creditors”:
76-1 "Calculations for property and personal insurance";
76-2 "Calculations for claims";
76-3 “Calculations for due dividends and other income”;
76-4 “Settlements on deposited amounts”, etc.
Account 76-1 “Settlements for property and personal insurance” reflects settlements for insurance of property and personnel (except for settlements for social insurance and compulsory medical insurance) of an organization in which the organization acts as an insured.
The calculated amounts of insurance payments are reflected in the credit of account 76 “Settlements with various debtors and creditors” in correspondence with the accounts of production costs (selling expenses) or other sources of insurance payments.
The transfer of amounts of insurance payments to insurance organizations is reflected in the debit of account 76 “Settlements with various debtors and creditors” in correspondence with cash accounts.
In the debit of account 76 "Settlements with various debtors and creditors" losses due to insured events (destruction and damage to inventories, finished products and other material assets, etc.) are written off from the credit accounts of inventory, fixed assets, etc. By debit Account 76 “Settlements with various debtors and creditors” also reflects the amount of insurance compensation due under the insurance contract for an employee of the organization in correspondence with account 73 “Settlements with personnel for other operations.” The amounts of insurance compensation received by the organization from insurance organizations in accordance with insurance contracts are reflected in the debit of account 51 “Currency accounts” or 52 “Currency accounts” and the credit of account 76 “Settlements with various debtors and creditors”. Losses from insured events not compensated by insurance compensations are written off from the credit of account 76 “Settlements with various debtors and creditors” to account 91 “Other income and expenses”
(as amended by Order of the Ministry of Finance of the Russian Federation dated September 18, 2006 N 115n)
Analytical accounting for subaccount 76-1 “Calculations for property and personal insurance” is carried out for insurers and individual insurance contracts.
Subaccount 76-2 “Settlements for claims” reflects settlements for claims presented to suppliers, contractors, transport and other organizations, as well as for fines, penalties and penalties presented and recognized (or awarded).
The debit of account 76 “Settlements with various debtors and creditors” reflects, in particular, settlements on claims:
to suppliers, contractors and transport organizations regarding discrepancies in prices and tariffs stipulated by contracts identified during the verification of their invoices (after acceptance of the latter), as well as when arithmetic errors are identified - in correspondence with account 60 “Settlements with suppliers and contractors” or with inventories accounts , goods and related costs, when inflated prices or arithmetic errors in invoices submitted by suppliers and contractors were discovered after entries in the inventory accounts or costs were made (based on prices and calculations invoiced by suppliers and contractors);
to suppliers of materials, goods, as well as to organizations that process the organization’s materials, for detected quality inconsistencies with standards, technical specifications, orders - in correspondence with account 60 “Settlements with suppliers and contractors”;
to suppliers, transport and other organizations for shortages of cargo in transit in excess of the amounts stipulated in the contract - in correspondence with account 60 “Settlements with suppliers and contractors”;
for defects and downtime caused by suppliers or contractors, in amounts recognized by payers or awarded by the court - in correspondence with production cost accounts;
to credit organizations for amounts erroneously written off (transferred) to the organization’s accounts - in correspondence with the accounts of cash and loans;
as well as for fines, penalties, penalties collected from suppliers, contractors, buyers, customers, consumers of transport and other services for failure to comply with contractual obligations, in amounts recognized by payers or awarded by the court (amounts of claims made that are not recognized by payers are not taken into account ), - in correspondence with account 91 “Other income and expenses”.
Account 76 “Settlements with various debtors and creditors” is credited for the amounts of payments received in correspondence with cash accounts. Amounts that, as it turned out later, are not subject to collection are attributed, as a rule, to those accounts from which they were recorded as the debit of account 76 “Settlements with various debtors and creditors.”
Analytical accounting for subaccount 76-2 “Calculations for claims” is maintained for each debtor and individual claims.
Subaccount 76-3 “Calculations for dividends due and other income” takes into account calculations for dividends and other income due to the organization, including profits, losses and other results under a simple partnership agreement.
Income to be received (distributed) is reflected in the debit of account 76 “Settlements with various debtors and creditors” and the credit of account 91 “Other income and expenses”. Assets received by the organization on account of income are accounted for in the debit of asset accounting accounts (51 “Current accounts”, etc.) and the credit of account 76 “Settlements with various debtors and creditors”.
Subaccount 76-4 “Settlements for deposited amounts” takes into account settlements with employees of the organization for amounts accrued but not paid on time (due to the non-appearance of recipients).
The deposited amounts are reflected in the credit of account 76 “Settlements with various debtors and creditors” and the debit of account 70 “Settlements with personnel for wages”. When these amounts are paid to the recipient, an entry is made to the debit of account 76 “Settlements with various debtors and creditors” and to the credit of cash accounting accounts.
Accounting for settlements with various debtors and creditors within a group of interrelated organizations, the activities of which are compiled by consolidated financial statements, is kept on account 76 “Settlements with various debtors and creditors” separately.
Account 76 "Settlements with various debtors and creditors"
corresponds with accounts:
| by debit | on loan |
| 01 Fixed assets | 01 Fixed assets |
| 03 Profitable investments in material assets | |
| 04 Intangible assets | 04 Intangible assets |
| 07 Equipment for installation | 07 Equipment for installation |
| 08 Investments in non-current assets | 08 Investments in non-current assets |
| 10 Materials | 10 Materials |
| 11 Animals for growing and fattening | 11 Animals for growing and fattening |
| 15 Procurement and acquisition of material assets | 15 Procurement and acquisition of material assets |
| 20 Main production | 19 Value added tax on acquired assets |
| 21 Semi-finished products of own production | 20 Main production |
| 23 Auxiliary productions | 23 Auxiliary productions |
| 25 General production expenses | 25 General production expenses |
| 26 General expenses | 26 General expenses |
| 28 Defects in production | 28 Defects in production |
| 29 Service industries and farms | 29 Service industries and farms |
| 41 Products | 41 Products |
| 43 Finished products | 44 Selling expenses |
| 44 Selling expenses | 45 Items shipped |
| 45 Items shipped | 50 Cashier |
| 50 Cashier | 51 Current accounts |
| 51 Current accounts | 52 Currency accounts |
| 52 Currency accounts | 55 Special bank accounts |
| 55 Special bank accounts | 57 Transfers on the way |
| 58 Financial investments | 58 Financial investments |
| 60 Settlements with suppliers and contractors | 60 Settlements with suppliers and contractors |
| 62 Settlements with buyers and customers | 62 Settlements with buyers and customers |
| 66 Calculations for short-term loans and borrowings | 63 Provisions for doubtful debts |
| 67 Calculations for long-term loans and borrowings | 66 Calculations for short-term loans and borrowings |
| 70 Settlements with personnel for wages | 67 Calculations for long-term loans and borrowings |
| 71 Settlements with accountable persons | 70 Settlements with personnel for wages |
| 73 Settlements with personnel for other operations | 71 Settlements with accountable persons |
| 76 Settlements with various debtors and creditors | 73 Settlements with personnel for other operations |
| 79 On-farm settlements | 76 Settlements with various debtors and creditors |
| 86 Targeted financing | 79 On-farm settlements |
| 90 Sales | 91 Other income and expenses |
| 91 Other income and expenses | 94 Shortages and losses from damage to valuables |
| 97 Deferred expenses | 96 Reserves for future expenses |
| 98 Deferred income | 97 Deferred expenses |
| 99 Profit and loss | 99 Profit and loss |
(as amended by Order of the Ministry of Finance of the Russian Federation dated 05/07/2003 N 38n)
Account 77 "Deferred tax liabilities"
Account 77 “Deferred tax liabilities” is intended to summarize information on the presence and movement of deferred tax liabilities.
Deferred tax liabilities are accepted for accounting in the amount determined as the product of taxable temporary differences that arose in the reporting period by the profit tax rate in effect on the reporting date.
The credit of account 77 “Deferred tax liabilities” in correspondence with the debit of account 68 “Calculations for taxes and fees” reflects deferred tax, which reduces the amount of conditional expense (income) of the reporting period.
The debit of account 77 “Deferred tax liabilities” in correspondence with the credit of account 68 “Calculations for taxes and fees” reflects the decrease or full repayment of deferred tax liabilities against accruals of income tax for the reporting period.
A deferred tax liability upon disposal of an asset or type of liability for which it was accrued is written off from the debit of account 77 “Deferred tax liabilities” to the credit of account 99 “Profits and losses”.
Analytical accounting of deferred tax liabilities is carried out by type of assets or liabilities in the valuation of which a taxable temporary difference arose.
Account 77 "Deferred tax liabilities"
corresponds with accounts:
(as amended by Order of the Ministry of Finance of the Russian Federation dated 05/07/2003 N 38n)
Account 79 "Intra-economic settlements"
Creation of a reserve for depreciation of financial investments required in the event of a significant reduction in their valuation. Under what factors is a sustainable decrease in financial investments recognized and how to take such reserves into account in accounting, we will discuss further.
Conditions under which a reserve for impairment of financial investments is created
Financial investments are the deposit of funds (DC) or other property into the accounts of third-party companies for the purpose of subsequent receipt of income. These include, in particular:
- purchase of securities (CB);
- acquisition of receivables under an agreement for the assignment of rights of claim;
- investment in the authorized capital (AC) of companies;
- issuing loans at interest.
The accounting algorithm for financial investments is regulated by PBU 19/02.
For the procedure for accounting for financial investments, see the article.
It is convenient to consider the procedure for creating a reserve for the depreciation of financial investments using the example of securities. They are divided into traded and non-traded on the stock market. The valuation of circulating securities is based on their market value, which is subject to annual revaluation. The assessment can also be carried out monthly or once a quarter (clause 20 of PBU 19/02).
In cases where financial investments are not traded on the market, the investor determines their valuation independently or with the involvement of an appraiser. The assessment is mandatory annually or at the end of each quarter (month) at the discretion of the organization itself (clause 38 of PBU 19/02).
If, based on the results of the assessment, a stable decrease in the price of financial investments in the Central Bank is revealed, the company must create a reserve for their depreciation. A stable decrease in the price of financial investments is recognized in the simultaneous presence of the following factors (clause 37 of PBU 19/02):
- At the time of the assessment and at the previous reporting date, the book value of investments significantly exceeds the calculated value.
- Over the course of 12 months, the estimated value changed exclusively downwards.
- As of the reporting date, there is no information about a subsequent increase in the price of the company's financial assets.
For example, depreciation of financial investments occurs when:
- bankruptcy or presence of signs of bankruptcy of the company in which the funds were invested;
- non-payment or reduction in dividend or interest payments;
- the presence on the market of similar securities at a price much lower than the book value of the security that is listed in accounting, etc.
Account 59 “Provisions for impairment of financial investments”
Creating a reserve for depreciation of financial investments, as well as its subsequent adjustment and movement are carried out using account 59.
This account corresponds with account 91. The creation of reserves, as well as their increase, are recorded in the accounting entry Dt 91 Kt 59. In the event of an increase in the settlement price or disposal of investments, a reverse entry is made: Dt 59 Kt 91.
Since financial investments are divided into long-term (maturity period more than a year) and short-term (less than 12 months) and are displayed in different lines and sections of accounting statements, it is more appropriate to divide reserves for their depreciation into short-term and long-term. For example, to account for reserves for impairment of long-term investments, you can use account 59.1, and for short-term investments, account 59.2. Analytical accounting should be organized by type of reserves.
A reserve has been created for the depreciation of financial investments - posting
Let's look at the procedure for creating and subsequently adjusting reserves using an example.
Assorti LLC owns 10 shares of Mir JSC with a total value of 150,000 rubles. JSC Mir pays quarterly dividends to its shareholders. However, for the 2nd quarter of 2016, payments were overdue, and for the 3rd quarter of 2016, no payments were made at all.
In October 2016, an independent appraiser carried out an assessment, at the conclusion of which the total estimated value of the shares of Mir JSC was 100,000 rubles. Based on this conclusion, it was decided to create a reserve for the depreciation of financial investments. The accountant reflected this operation by recording Dt 91.2 Kt 59 - 50,000 rubles. (150,000 - 100,000).
IMPORTANT! In tax accounting, the amount of reserves for depreciation of the Central Bank is not taken into account when calculating tax profit (clause 10 of Article 270 of the Tax Code of the Russian Federation). In this regard, permanent tax obligations (PNO) are formed between tax accounting and accounting.
The algorithm for accounting for tax differences can be found in the material.
As of December 31, 2016, the financial position of Mir JSC improved, and the total estimated value of the shares amounted to RUB 120,000.
The accountant reflected the increase in price with an adjustment entry Dt 59 Kt 91.1 - 20,000 rubles. (120,000 - 100,000).
Results
A reserve for impairment of financial investments is created when there is a sustainable decline in their value. The movement of such reserves is accounted for on account 59 and is displayed in analytics on its subaccounts by time period (more or less 12 months), as well as by type of reserves.
If an enterprise faces a risk of depreciation of financial investments, its management must organize a check for the presence of conditions that contribute to a reduction in their value. Verification activities are carried out for all company investments. How does this happen, and how is the process regulated?
Eat several conditions, subject to which a reduction in the value of financial assets is acceptable:
- the value of the assets is significantly lower than the estimated value;
- the cost during the reporting period changed strictly downward;
- on the reporting day there are no prerequisites for a likely increase in the estimated value.
If they are followed, the value of assets may decrease. If at least one of the criteria is ignored, cost reduction is impossible.
Principles of creation and accrual
If, during the verification activities, a persistent reduction in the value of financial assets was confirmed, the company should form corresponding reserve for price differences. This aspect is spelled out in clause 21 of PBU 19/02. An important role is played by the inclusion of the amount of the reserve in the structure of total costs.
An accounting entry is made for the amount of reserves that are accrued:
Analytical accounting is carried out for each reserve.
What amount is the reserve formed for?
Eat several options for reserve sizes:
- The entire value of the book value of investments - if there is complete confidence in the impossibility of selling these investments due to the initiation of bankruptcy proceedings or other causal factors.
- The entire amount of the book value, from which the estimated value is subtracted, if there is information about the bankruptcy of the issuer or the lack of a license permit.
The reserve can be created for other amounts, but these amounts are the main ones.
Use of allowance for impairment of securities and other assets
If during the organization of the inspection a subsequent decrease in the estimated value is discovered, the amount of the reserve that was previously formed is subject to upward adjustment.
If an increase in the estimated cost is detected, the value is reduced in favor of an increase in the financial result. If this happens, an accounting entry is created:
Financial statements
In the accounting documentation created, the final cost of such financial investments is displayed as the difference between the accounting value and the amount of the created collateral reserve. In this case, an important role is played reserve disclosure.
Need to specify the following elements:
- type of financial investment;
- reserve amount formed in the reporting year;
- reserve value, which is other income;
- the amount that was used within the reporting period.
In the explanations presented to the financial statements, in order to reflect the specified information, it is used special table, characterizing the presence and movement of financial investments. This is Appendix No. 3 to Order No. 66n of the Ministry of Finance of the Russian Federation. Column information is revealed:
- Parameter name. At this point, the composition of financial investments is disclosed in accordance with the groups. This implies a breakdown into short-term and long-term assets.
- Period. The period of time is displayed, in particular the reporting and previous year for which the reserve was formed. It is represented by two dates within the range of which the event occurred.
- For the beginning of the year. Indicate the starting accounting price of financial assets and investments. An adjustment is also provided for investments for which a determination of their current market value is not made.
- Changes over the period. In this case, indicate the value of the investments that were received, as well as the formation of the initial price of the retired investments.
- At the end of the period. Information is provided about the starting accounting value, which had already been formed at the end of the period. Information is also provided on the amount of the reserve for impairment of financial investments, taking into account changes that have occurred over the past year.
Reflection of received data in tax accounting
Financial investments are generally understood as depositing funds or other types of property into the accounts of organizations for the purpose of subsequently generating income. Such assets include following:
- purchase of securities;
- acquisition of receivables in accordance with the assignment agreement;
- investment in the authorized capital of other organizations;
- issuing loans at interest.
The accounting algorithm in this area is prescribed in PBU 19/02.
Application of PBU 19/02 in practice: procedure and rules
The procedure by which the reserve is formed can be conveniently studied using the example of securities. They can be the following types:
- In circulation - their assessment is made on the basis of market value, subject to revaluation carried out annually (clause 20 of PBU 19/02).
- Not in circulation - the valuation is determined by the investor independently or using the services of an appraiser.
Cost assessments should be made annually or at the end of each quarter. The organization itself resolves this issue. If, as a result of this event, a significant reduction in the value of financial investments was discovered, the organization needs to form a reserve for depreciation. This happens mainly in following situations:
- bankruptcy of an enterprise;
- presence of signs of financial insolvency;
- non-payment of dividends;
- reduction in interest provision;
- presence on the market of similar securities at a lower cost.
Postings to various accounts in accounting
Plays an important role rational reflection transactions carried out in accordance with accounting standards. Must take part in these operations score 59. The wiring looks like this:
- Dt 91/2 Kt 59 – formation of an appropriate reserve for the depreciation of financial investments;
- Dt 76 Kt 91 – reflection in accounting for the sale of securities by the company;
- Dt 91 Kt 58 – write-off of sold shares from the balance sheet of the enterprise;
- Dt 59 Kt 91 – write-off of the reserve that was created for the depreciation of shares earlier;
- Dt 51 Kt 76 – crediting of funds by the buyer as payment for the acquired shares.
Thus, the creation of a reserve occurs if, over time, there is a steady decrease in their value. In this case, the movement is accounted for using account 59. An important role is played by its display in the analytics by subaccounts within the framework of terms (up to or from 12 months), as well as by types of reserves formed.
A video lesson on the composition of financial investments is presented below.
Financial investments tend to change in value. Therefore, for security reasons, the company has an account that provides aggregation of operational information on the availability and dynamics of special reserves created for the depreciation of investments. This score is 59. Let's talk about its features.
59 accounting account
To understand the functions of account 59 “Reserves for impairment of financial investments,” let us clarify which assets are classified as financial investments, as well as why reserves intended for their impairment are needed and how they work.
Based on the legislative norms stated in PBU 19/02, a financial investment can be recognized as an asset owned by an enterprise that provides economic benefits and carries possible risks, such as insolvency, fluctuations in value and liquidity. In other words, financial investments can be bills, bonds, shares of enterprises (except your own), deposits in management companies (except subsidiaries), issued loans (except interest-free), deposits in credit institutions, etc.
Shares of one's own company purchased from staff, bill payments, and income from the rental of property - intangible assets, fixed assets and inventories - are not considered investments.
Why is the reserve created?
So, the reserve is necessary to cover expected losses from the sale of existing securities. Impairment refers to a decrease in the estimated value of an investment, especially if the estimated income is less than what is expected to be received from the investment. Monitoring the market value of investments plays an important role; firms monitor price fluctuations, often independently determining the estimated price of investments. This is especially true for unlisted shares.
Calculations are carried out taking into account the aspects enshrined in the UP, but at least once a year. The criteria for sustainable decline include the following factors:
- The book value of the investment exceeds the estimated value;
- The estimated price in the period under review is steadily decreasing;
- There is evidence of a subsequent decline in the value of the investment and therefore a reduction in the benefits received.
Account 59: recording
If there are proven signs of a decrease in the estimated price of investments, the enterprise must re-evaluate them and reserve part of the funds, determining its reserve size as the difference between the accounting and estimated price of the assets. In commercial companies it is reflected in other expenses, in non-profit organizations - in increased costs. Analytical accounting of the account is carried out separately for each reserve.
On loan account 59, the reserved amounts and contributions are recorded if revaluation has established a steady decrease in the value of investments; by debit - a decrease in reserves or disposal of investments for which they were formed.
Reflection of transactions with the reserve is taken into account by the accountant with the following entries:
Simplified enterprises have the right not to apply accounting for reserves for impairment of investments.
59 account in balance
Account 59 is passive, but is reflected in the asset balance. The amount of the reserve at the end of the period always reduces the balance of account 58 “Financial investments”. The result obtained is recorded in line 1170 of the first section, if investments are made in non-current assets, or in line 1240 of the second section, when investments relate to working capital.
Example of account transactions
The book value of the block of shares owned by the company is RUB 200,000. By the end of the reporting period, the market value decreased to 170,000 rubles. The impairment provision was created in the amount of RUB 30,000. In the coming year, the shares were sold for 190,000 rubles.
Transaction transactions will be as follows:
- D/t 91 – K/t 59 ― 30,000 rub. - a reserve has been created;
- D/t 76 – K/t 91 ― 190,000 rub. ― sale of shares;
- D/t 91 – K/t 58 ― 200,000 rub. ― the cost of sold shares is written off;
- D/t 59 – K/t 91 ― 30,000 rub. - the reserve is written off.