Annual financial statements. Annual financial statements: general requirements, composition of reporting forms, detail of reporting items. The composition of the financial statements includes
Every year, based on the results of the reporting period, business entities are required to submit information on the results of their activities to the authorized state bodies, based on the provisions enshrined in the Federal Law “On Accounting” dated December 6, 2011 N 402-F3. It defines the legal basis for regulating accounting, as well as the mechanism and general procedure for its preparation.
According to this law, information about each economic entity of the Russian Federation is systematized using certain accounting standards adopted and approved by the state, and is transferred to the federal authorities for them to perform a number of functions, which generally represent control and supervision of the movement of funds of the enterprise.
Annual and interim financial statements
Of course, in addition to annual reporting, enterprises, depending on their form and taxation regime, there are also other types that are submitted by the enterprise for the reporting year. We are talking about interim financial statements, which are submitted once a month, quarterly, for six months and for nine calendar months, but they differ significantly from the annual one. We can say that the composition of the annual financial statements provides, in general, similar accounting data - the balance sheet of the enterprise, as well as the statement of financial results and appendices to them, however, these data are compiled from various information and have different volumes.
The interim balance sheet is compiled for a shorter reporting period and is only an abbreviated form of reporting, and the annual balance sheet is submitted at the end of the year, it is final and therefore represents a summation and generalization of all data on the financial and property condition of the enterprise.
In addition, to the submitted reports, the Accounting Regulations PBU 4\99 also provide for the provision of an explanatory note (explanations to the balance sheet and report), as well as an audit report for enterprises that are required to undergo a mandatory audit. In addition to them, other additional explanations or indicators may be required if the submitted reports are insufficient to provide a complete picture of the state of the enterprise.
The obligation to maintain accounting records of an enterprise is assigned to all entities that operate in the territory of the Russian Federation. The law establishes only one exception to the general rule - for enterprises operating under the simplified tax system (STS), which are required to keep records of fixed assets, as well as intangible assets, which means that full-fledged accounting is not mandatory for them. Thus, for enterprises using the simplified tax system, it is enough to keep a Book of Income and Expenses, as well as accompanying documents confirming income received and expenses incurred.
But if we are talking about an LLC that pays dividends to its participants, then in order to correctly divide the net profit, the Chart of Accounts (Order of the Ministry of Finance dated October 31, 2000 N 94n), as well as the Instructions for its application, must be taken into account. The Plan and the Instructions for it involve determining profit based specifically on accounting data. This rule is confirmed by the letter of the Ministry of Finance dated February 17, 2008 N 03-04-06-01/6, drawn up in response to a request to clarify the procedure for determining profit for the purpose of paying dividends to participants.
On the one hand, annual financial statements, which must be prepared strictly according to methodological recommendations, represent another serious concern for the head of the enterprise and his accounting department. On the other hand, it also performs a number of functions, among which the main one is the calculation of all taxes due from the enterprise’s profits to the budget. In addition, annual financial statements give the manager a complete picture of the volume of revenue, the turnover of the enterprise, as well as problems and debts, both to counterparties and to fiscal authorities.
Procedure for preparing financial statements
Each enterprise that is required to maintain comprehensive accounting records first of all determines its own accounting policy, draws up a chart of accounts used, forms of primary documents, approves the rules of document flow, as well as the procedure for conducting inventory. Since the annual financial statements are formed from articles that include indicators about the results of the enterprise’s activities based on reconciliations and calculations, it is the inventory that becomes the first stage of reporting. An approximate procedure for preparing financial statements of an enterprise is as follows:
- Inventory. It is carried out on the basis of the Order of the head of the enterprise, in accordance with the requirements of the Methodological Instructions (dated 06/13/95 N 49 and dated 12/28/01 N 119n.), with the mandatory participation of an approved commission.
- Reconciliation of mutual settlements with counterparties - creditors and debtors of the enterprise, as well as the budget, extra-budgetary funds and other organizations.
- Preparation of all accounting entries based on the first two stages completed.
- Closing the company's accounts in order of lowest priority - since the purpose of this reporting is to collect data, in fact, on the size and changes in the company's income over the past year, therefore, the most important accounts of the company's income and expenses are closed last.
- Entering data into the financial statements of the established form while simultaneously determining the information that the company will indicate in the explanatory note for the tax authority.
- , including data from subsidiaries, if any.
Due to the fact that it is annual reporting that is being prepared, all stages of this reporting procedure, including inventory and reconciliations, should be as close as possible to the reporting date and should be carried out no more than two months before the end of the reporting period. The data themselves, according to the law, must include the results of the reporting calendar year in the period from January 1 to the end of the year, that is, until December 31 inclusive. If the company has just registered, and the date of its registration falls on the period before October 1, then reporting is generated from the date of registration to the end of the reporting year. If the enterprise is registered later than October 1, then reporting in this case is submitted for the period from the date of registration until the end of the next calendar year.
Submission forms
Any financial statements are generated and submitted to authorized bodies on the basis of approved standard forms. Regardless of the form, reporting must contain:
- the name of the form in which it is compiled,
- the stated date of the specific reporting period for which the report is submitted,
- name of the organization and its legal form
- procedure (form) for presenting reporting indicators.
To date, the following standard forms for submitted reporting are provided:
- No. 1 “Balance Sheet”
- No. 2 “Profit and Loss Statement”
- No. 3 “Statement of changes in capital”
- No. 4 “Cash Flow Answer”
- No. 5 “Appendices to the Balance Sheet”
- No. 6 “Report on the intended use of funds received.”
In addition to the above, an explanatory note is submitted to the annual balance sheet, as mentioned above. An important condition for preparing reports on any of the accepted forms is the absence of blots and erasures.
The regulations governing the preparation of financial statements provide for the inclusion in the reporting of indicators not only of the reporting year, but also, at a minimum, indicators of the two previous reporting years. For indicators of previous reporting periods, the forms provide corresponding columns. An enterprise can present in its reporting indicators for a larger number of years - in this case, in its reporting, the enterprise independently provides and enters an additional number of required columns.
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The annual financial statements consist of the Balance Sheet, the Statement of Financial Results and annexes thereto. Such a list is established by Part 1 of Article 14 of the Law of December 6, 2011 No. 402-FZ.
This conclusion follows from paragraphs 2 and 4 of the order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n and is confirmed by the letter of the Ministry of Finance of Russia dated May 23, 2013 No. 03-02-07/2/18285.
Thus, the financial statements include the following documents:
- Balance sheet (see. );
- Income statement;
- Explanations to the Balance Sheet and Statement of Financial Results (in text and (or) tabular forms);
- Statement of changes in equity;
- Cash flow statement (see);
- Report on the intended use of funds.
As part of the interim reporting, draw up the Balance Sheet and the Statement of Financial Results. The remaining forms need to be completed only at the end of the year. This procedure follows from part 3 of article 14 of the Law of December 6, 2011 No. 402-FZ and paragraph 49 of PBU 4/99.
Financial statements should give a reliable and complete picture of the financial position of the organization, the financial results of its activities and changes in its financial position. Therefore, the Notes to the Balance Sheet and the Statement of Financial Performance disclose information related to the accounting policy of the organization, as well as Additional Information , which is not included in the Balance Sheet and the Statement of Financial Results, but is necessary for users of financial statements to really assess the financial position of the organization (clause 6, 24 PBU 4/99, letter of the Ministry of Finance of Russia dated January 9, 2013 No. 07-02-18 /01).
The organization determines the composition and content of explanations independently, taking into account the content of paragraphs 24–27 of PBU 4/99 and other accounting provisions.
A report on the targeted use of funds is submitted by all organizations that received targeted funds in the reporting year.
For more information on the composition of financial statements, see table.
Some organizations may conduct accounting and prepare annual financial statements in a simplified version. These include:
- organizations that have received the status of participants in the Skolkovo project;
- non-profit organizations.
At the same time, the simplified accounting and reporting procedure cannot be used, in particular, by microfinance, state and self-regulatory organizations, as well as non-profit organizations recognized as foreign agents.
Small businesses
Situation: what forms should be used to submit a Balance Sheet and a Statement of Financial Results for a small enterprise?
The balance sheet and financial performance statement of a small enterprise can be submitted using both generally established and special forms.
Participants of the Skolkovo project
Participants in the Skolkovo project have the right to use special simplified forms of accounting reporting. Forms are provided for them:
- Balance sheet and Statement of financial results, given in Appendix No. 5 to Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010 (for commercial organizations);
- Balance sheet and Report on the intended use of funds, given in Appendix No. 6 to Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010 (for non-profit organizations).
Similar conclusions follow from paragraph 3 of part 4 of article 6 of the Law of December 6, 2011 No. 402-FZ and the letter of the Ministry of Finance of Russia of December 27, 2013 No. 07-01-06/57795 (brought to the attention of the tax inspectorates by the letter of the Federal Tax Service of Russia dated 17 March 2014 No. GD-4-3/4788).
At the same time, the use of simplified forms is a right, not an obligation. Therefore, organizations participating in the Skolkovo project can prepare reports in the generally established manner. That is, submit as part of the reporting the Balance Sheet and the Statement of Financial Results in the main forms given in Appendix No. 1 to Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.
Reporting Indicators
The financial reporting forms, approved by order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n, contain indicators reflecting the financial and property position of the organization. A number of indicators included in different forms are the same. The relationship between the indicators of standard forms of financial statements is presented in tables. Use them to check the accuracy of your reporting.
Standard forms of the Balance Sheet, Statement of Financial Results, Statement of Capital Flows and Statement of Cash Flows are formed by groups of items (for example, “Financial investments”, “Other income”). Organizations determine the detail of these items independently, based on the significance of a particular indicator (clause 3 of Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n). In this case, for each line, where necessary, substrings are entered. They indicate the numerical values that are part of the aggregated indicators provided for in the standard form. You need to enter substrings for significant indicators. Insignificant indicators in substrings can be omitted. An indicator is significant if without information about it it is impossible to correctly assess the financial position of the organization.
If reporting is submitted to executive authorities (for example, to state statistics authorities, tax inspectorates), then assign a code to each indicator in accordance with Appendix 4 to Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010. Enter the code in the appropriate box. At the same time, if the financial statements of certain categories of organizations (for example, small businesses) reflect aggregated indicators that include several indicators, the line code is indicated by the indicator that has the largest share in the aggregated indicator.
This procedure is established by paragraph 5 of the order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.
The organization determines the materiality criterion independently and prescribes it in its accounting policies for accounting purposes.
Accounting policy
Situation: is it necessary to submit a copy of the order approving the accounting policy for accounting purposes to the tax office?
No no need.
The legislation does not contain such requirements. In addition, the essential elements and principles of accounting policies are disclosed in the Explanations to the Balance Sheet and the Statement of Financial Results, which the organization submits to the tax office (clauses 17, 18 of PBU 1/2008, subclause 5 of clause 1 of Article 23 of the Tax Code of the Russian Federation) .
At the same time, the accounting policy for accounting purposes may contain information necessary when conducting audits (for example, the organization’s working chart of accounts, an approved list of primary documents used by the organization, etc.). Therefore, as part of an on-site inspection, the inspection has the right to require this document. The form of the demand is given in Appendix 5 to the order of the Federal Tax Service of Russia dated May 31, 2007 No. MM-3-06/338.
Within 10 working days after a written request is received from the inspection, the organization is obliged to submit a copy of the order approving the accounting policy. Such rules are established by paragraph 12 of Article 89 and paragraph 3 of Article 93 of the Tax Code of the Russian Federation.
If the organization does not comply with the received requirement, it may be fined. The fine will be:
- for organizations 200 rub. (clause 1 of article 126 of the Tax Code of the Russian Federation);
- for officials (for example, the head of an organization) from 300 to 500 rubles. (Part 1 of Article 15.6 of the Code of Administrative Offenses of the Russian Federation).
Information accompanying financial statements
The explanatory note is not included in the financial statements as of January 1, 2013. That is, starting from the reporting for 2012, it is not necessary to submit an explanatory note. This follows from the provisions of Part 1 of Article 14 of the Law of December 6, 2011 No. 402-FZ and is confirmed by letters of the Ministry of Finance of Russia dated May 23, 2013 No. 03-02-07/2/18285, dated January 9, 2013 No. 07- 02-18/01, information of the Ministry of Finance of Russia dated December 4, 2012 No. ПЗ-10/2012.
This document is information accompanying financial statements. As a rule, such information is not related to the numerical indicators of the Balance Sheet or the Statement of Financial Results (Report on the Intended Use of Funds). An organization may provide such information if it considers it useful to interested users in making economic decisions. The following indicators are disclosed as part of the information accompanying the financial statements:
- dynamics of the most important economic and financial indicators of the organization over a number of years;
- planned development of the organization;
- expected capital and long-term financial investments;
- activities in the field of research and development work;
- environmental protection measures;
- other information.
From the provision of information accompanying the financial statements, it should be clear that it is not part of these statements. To do this, you must follow the following rules:
- financial statements should not contain references to such information;
- the name of the information provided should not imply that it is part of the financial statements;
- such information should be separated from the financial statements.
Annual financial statements- a form of financial statements that is submitted for the year.
It is compiled on the basis of maintaining accounting registers, tax accounting, as well as interim reporting throughout the year.
The composition of the annual financial statements
The composition of the annual financial statements is regulated by Art. 14 of the Law “On Accounting” dated December 6, 2011 No. 402-FZ.
Thus, the annual financial statements consist of a balance sheet, a statement of financial results and appendices to them (Part 1 of Article 14 of the Federal Law of December 6, 2011 No. 402-FZ).
The annexes include (clauses 2, 4 of Order of the Ministry of Finance dated July 2, 2010 No. 66n):
Statement of changes in equity;
Cash flow statement;
Report on the intended use of funds (for non-profit organizations);
other applications (explanations).
The forms of annual financial statements are approved by Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.
Audit report
If an organization is subject to mandatory audit (Article 5 of Federal Law No. 307-FZ dated December 30, 2008), then as part of the annual financial statements, Rosstat must also submit an audit report that confirms the accuracy of the financial statements presented (Clause 5 of PBU 4/99) .
If at the time of submitting reports to the statistical authorities, the audit in the organization has not been completed, then the report can be submitted later.
This must be done no later than 10 business days from the day following the date of the audit report, but certainly before December 31 of the year following the reporting year inclusive (clause 2 of Article 18 of the Federal Law of December 6, 2011 No. 402-FZ).
Thus, the annual financial statements include:
Balance sheet (form No. 1);
Report on the financial results of the enterprise (reporting form No. 2);
Statement of changes in capital (form No. 3);
Cash flow statement (reporting form No. 4);
Explanations of the balance sheet and auditor's report (required only for those who are required to conduct annual audits).
Simplified Balance Sheet (Form No. 1);
Simplified report on the financial activities of the enterprise (reporting form No. 2).
Requirements for the preparation of annual financial statements
The main requirement is the reliability of the data.
That is, the indicators must be reliable so that any user of the reporting (whether external or internal) does not doubt the indicators of the enterprise’s economic activity.
The requirement for timely data also affects the quality of annual reporting. That is, the data must be reflected exactly in the reporting period in which they occurred.
Also, all indicators must be comparable. That is, the interconnection of data from all forms with data from accounting registers and declarations must be ensured.
The principle of completeness indicates that all financial reporting data must be reflected in full.
If the submitted data is not complete, then this fact should be reflected in the explanatory note.
Who is required to prepare annual financial statements?
All organizations and entrepreneurs are required to prepare annual financial statements, with the exception of those persons who have the opportunity to apply a simplified form of annual financial statements (or not to compile it at all), namely:
small business;
non-profit enterprises;
participants of the Skolkovo project.
Users of financial statements
Annual financial statements are a summary form of accounting information about the enterprise.
Accounting information always has users, that is, those who use this information for various purposes. All users of accounting information are divided into internal and external.
Internal users include heads of firms, higher organizations (if any), management departments (if the enterprise is large).
External users include the Federal State Statistics Service (Rosstat), the Federal Tax Service (FTS), the Pension Fund (PFR), the Social Insurance Fund (FSS). External users also include any individuals and legal entities, since the financial statements of any company must comply with the principles of publicity and accessibility to any user.
Balance sheet
The balance sheet (F-1) consists of an asset and a liability that includes sections, each of which contains lines containing data on certain types of property or liabilities.
The asset includes 2 sections:
I. Non-current assets
It contains information about fixed assets, intangible assets, R&D, long-term financial investments, i.e., about property that cannot be sold quickly.
II. Current assets
These are the so-called short-term (easily realizable) assets: inventories, accounts receivable with a maturity of up to 1 year, short-term financial investments, cash.
The passive has 3 sections:
III. Capital and reserves
It reflects information about the organization’s capital (authorized, reserve, additional) and retained earnings (uncovered loss).
IV. long term duties
These are obligations with a maturity of more than 12 months (borrowed, assessed, deferred).
V. Current liabilities
This section provides information on liabilities with a maturity of less than a year, including borrowed funds, accounts payable, estimated and other liabilities.
All balance sheet indicators are given as of one of the dates:
Balance lines are coded. The code is taken from Appendix 4 to Order No. 66n.
Income statement
Statement of financial results, which is an important document reflecting the net profit or loss, formed taking into account the following indicators:
-
cost;
expenses - administrative, commercial;
other income - income from participation in other companies, etc.;
other expenses - interest payable, etc.
current income tax and adjustments related to the discrepancy between accounting and tax accounting data.
Appendixes to the balance sheet and income statement
Forms 3, 4 and 6 of the balance sheet are included in the annual financial statements and are annexes to its main forms (balance sheet and income statement):
Form 6 - report on the intended use of funds.
Forms of application forms, as well as the main forms of financial statements, were approved by order of the Ministry of Finance of Russia “On Forms of Accounting Statements of Organizations” dated July 2, 2010 No. 66n.
Statement of changes in equity
Form 3 of the balance sheet is the statement of changes in equity.
It reflects information about the equity capital of the organization, which includes:
authorized (share) capital;
Extra capital;
Reserve capital;
retained earnings;
other reserves.
In addition, the report reflects information about own shares bought back from shareholders.
Form 3 consists of 3 sections:
1. Capital movement
This is a table that shows the change in the organization's capital for 2 years (reporting and previous). It shows how the capital has changed (it has increased or decreased) and due to what the changes have occurred.
2. Adjustments due to changes in accounting policies and correction of errors
This section contains information about adjustments to equity that are caused by changes in accounting policies or related to the correction of material errors of previous years that were identified after the approval of the previous year's financial statements.
3. Net assets
This section contains information about the net assets of the organization for 3 years (reporting and 2 previous).
The procedure for calculating net assets is established by order of the Ministry of Finance of Russia dated August 28, 2014 No. 84n.
Cash flow statement
This form is generated based on the indicators of accounts 50 “Cash”, 51 “Current account”, 52 “Currency account”, 55 “Special accounts”, 57 “Transfers in transit”. The report reflects account balances, their movements (income, expenses), etc. data on cash equivalents (highly liquid financial investments) is also reflected.
The cash flow statement contains information about the organization's cash flows for the reporting and previous years.
The cash flow statement shows separately the following cash flows:
from current operations.
from investment operations.
from financial transactions.
At the same time, for each type of activity the receipt and expenditure of funds are shown.
Report on the intended use of funds
The sixth form of balance sheet is a report on the intended use of funds, which is compiled by non-profit organizations (NPOs) and legal entities receiving any targeted funding.
For NPOs, this report is essentially the main one. In this report, they disclose information about the intended use of funds received to support statutory activities. It shows the balance of targeted financing at the beginning of the reporting year, the receipt and expenditure of such funds during the reporting period and their balance at the end of the year.
Form 6, as well as the main reporting forms (balance sheet and ), has two design options: full (Appendix 1 to Order No. 66n) and simplified (Appendix 5 to Order No. 66n).
The last version of reporting can be prepared by organizations that have the right to use simplified methods of accounting when preparing reports in a simplified form.
Explanations to the financial statements
Explanations to these forms do not have a set format and are necessary for the disclosure of general indicators given in two main forms - the Balance Sheet and the Statement of Financial Results.
Simplified reporting option
With a simplified version of reporting, the required forms are a balance sheet, a statement of financial results and a report on the intended use of funds, and explanations for them should be drawn up only if absolutely necessary.
Since the report on the intended use of funds (Form 6) is intended for use when there is a movement of funds for a very specific purpose, it is not always used.
Thus, Forms 3, 4 and 6 may not be prepared by persons reporting under the simplified form.
Deadlines and address for submitting annual reports
All organizations are required to submit annual financial statements at their location no later than March 31 at the following addresses:
to the tax office (clause 5, clause 1, article 23 of the Tax Code of the Russian Federation);
territorial statistics body (Article 18 of the Federal Law of December 6, 2011 No. 402-FZ).
If March 31 coincides with a day off, it will be possible to submit reports no later than the next business day (clause 7, article 6.1 of the Tax Code of the Russian Federation).
Conclusion
The preparation of financial statements is carried out on forms of a certain form approved by the Ministry of Finance of Russia, and in compliance with certain rules for entering information into these forms.
Forms 3, 4 and 6 are annexes to 2 main accounting reporting documents: the balance sheet and the financial results report.
Forms 3 (statement of changes in equity) and 4 (statement of cash flows) are mandatory if the main reports are created in their full version.
Form 6 (report on earmarked use of funds) is prepared only if the reporting entity has earmarked funds.
As well as the 2 main reporting forms, form 6 can be drawn up according to a simplified version by an organization that has the right to maintain simplified accounting.
Introduction
1. Annual accounting (financial) statements
1.1 General provisions for preparing annual reports
1.2 Preparatory work for the preparation of the annual report. Composition of the annual report
1.3 Procedure for assessing financial statements items
1.4 Procedure for drawing up standard reporting forms
1.4.1 Balance sheet (form No. 1)
1.4.2 Profit and loss statement (form No. 2)
1.4.3 Statement of changes in capital (form No. 3)
1.4.4 Cash flow statement (form No. 4)
1.4.5 Appendix to the balance sheet (form No. 5)
1.4.6 Report on the intended use of funds received (form No. 6)
1.4.7 Explanatory note and auditor's report
1.5 Liquidation balance
2. Practical part
Conclusion
Bibliography
Application
Introduction
Outstanding Russian scientist Professor A.P. Rudanovsky in the middle
In the 1920s he wrote: “It is time to understand that balance is the soul of the economy, the existence of which is no less real than the material inventory of the economy. The balance can be comprehended only by speculation and it is impossible, like an inventory, to touch in nature. Usually, the business executive learns in the economy he manages only what he touches and, at the most, sees with his own eyes.
In accordance with Article 13 of the Law "About accounting" All organizations are required to prepare financial statements based on synthetic and analytical accounting data.
Accounting statements generated in accordance with the requirements for them make it possible to assess the attractiveness of an organization from the point of view of investing in it, purchasing shares and other securities, concluding agreements with it for the supply of goods, as well as the performance of work and the provision of services.
At the same time, it must be borne in mind that for untimely submission and incorrect formation of accounting reporting indicators, administrative and tax liability is established in accordance with current legislation. When preparing financial statements, the reporting year is considered to be the period from January 1 to December 31 of the calendar year, inclusive. For newly created organizations, the first reporting period is the period from the date of their state registration to December 31. If an organization was created after October 1, then its reporting period will be the period from the moment of registration to December 31 of the following year ( Article 14 of the Federal Law of November 21, 1996 No. 129-FZ"About accounting").
Accounting statements serve as the main source of information about the activities of the organization, since accounting collects, accumulates and processes economically significant information about business transactions and results of business activities.
A modern accountant involved in the process of reporting is required to know not only the theory of accounting statements and regulatory documents for its formation, but also the methods of practical application of the standards enshrined in the Law “On Accounting” and other regulations.
The purpose of the course work is to review annual financial statements. You should also consider the principles and techniques for compiling all reporting forms included in its composition and carrying out the necessary work before its preparation.
1. Annual accounting (financial) statements
Annual financial statements are a system of indicators reflecting the results of the organization’s economic activities for the reporting period. Reporting includes tables that are compiled according to accounting, statistical and operational accounting data. It is the final stage of accounting work.
Reporting data is used by external users to evaluate the performance of the organization, as well as for economic analysis within the organization itself. At the same time, reporting is necessary for the operational management of economic activities and serves as the initial basis for subsequent planning. Reporting must be reliable and timely. It should ensure the comparability of reporting indicators with data for previous periods.
1.1 General provisions for preparing annual reports
Accounting statements are a unified system of data on the property and financial position of an organization as of the reporting date and on the results of its economic activities, compiled on the basis of accounting data in established forms.
Annual reporting is prepared based on the results of the calendar year from January 1 to December 31 inclusive.
Accounting statements must give a reliable and complete picture of the property and financial position of the organization, as well as the financial results of its activities. Accounting statements generated and compiled on the basis of the rules established by regulatory acts of accounting are considered reliable and complete.
If, when preparing financial statements, it is revealed that there is insufficient data to form a complete picture of the property and financial position of the organization, as well as the financial results of its activities, then the corresponding additional indicators are included in the financial statements of the organization.
The organization's financial statements must include performance indicators of branches, representative offices and other divisions, including those allocated to separate balance sheets. A separate balance sheet is understood as a system of indicators formed by a division of an organization and reflecting its property and financial position as of the reporting date by presenting data on economic assets and their sources.
Changes in the accepted content and form of the balance sheet, income statement and explanations to them are allowed in exceptional cases, for example, when changing the type of activity. The rationale for each such change shall be confirmed by the organization.
When preparing financial statements, the neutrality of the information contained in it must be ensured, i.e. unilateral satisfaction of the interests of some groups of users of financial statements over others is excluded.
For each numerical indicator of the financial statements, except for the report compiled for the first reporting period, data must be provided for at least two years - the reporting year and the one preceding the reporting year.
If an organization decides to disclose data for each numerical indicator for more than two years (three or more) in the financial statements presented, then it ensures, when developing, accepting and producing the forms of these forms, the appropriate number of columns (lines) required for such disclosure.
Each form of financial statements must contain the following data: name of the form, indication of the reporting date or reporting period for which the statements were compiled, name of the organization indicating its legal form, form of presentation of numerical indicators of the financial statements.
Changes in the financial statements, relating both to the reporting year and to the previous ones (after their approval), are made in the statements prepared for the reporting period in which distortions in its data were discovered.
1.2 Preparatory work for the preparation of the annual report. Composition of the annual report
The preparation of the annual report is preceded by preparatory work. First of all, an annual inventory of property and liabilities is carried out. The results of the inventory are reviewed by the head of the organization. Based on discrepancies between accounting data and inventory data identified as a result of the inventory, appropriate accounting records are compiled.
As a result, accounting data is brought into full compliance with the actual data identified from the inventory.
It is also necessary to clarify the carryover balances for the next year on the accounts:
96 “Reserves for future expenses”;
98 “Deferred income”;
97 “Future expenses”;
19 “VAT on acquired assets.”
When clarifying the balances on account 19, it must be borne in mind that VAT on acquired but unpaid values from account 19 is debited to account 68 “calculations for taxes and fees”, subaccount “Calculations for value added tax”, is not included, but remains on balance sheet until accounts payable are repaid.
An important preparatory work is the verification of entries in accounting registers, in particular quantitative indicators that cannot be verified by the balance linking method (for example, labor costs in man-hours, etc.) and the elimination of identified errors. Then the operating accounts are closed, which is one of the most important preparatory stages for the preparation of the annual report. And only after all adjusting entries associated with the closure of operating accounts are reflected in the accounting registers, it is possible to display the results and balances for all accounts for the direct preparation of the appropriate annual report forms.
Standard reporting forms:
Form No. 1 “Balance Sheet”;
Form No. 2 “Profit and Loss Statement”;
Form No. 3 “Capital Flow Statement”;
Form No. 4 “Cash Flow Statement”;
Form No. 5 “Appendices to the Balance Sheet”. In some cases, Form No. 6 “Report on the intended use of funds received” is drawn up.
Explanatory note to the annual report.
1.3 Procedure for assessing financial statements items
In accordance with the Regulations on Accounting and Financial Reporting in the Russian Federation, the following procedure for evaluating financial reporting items is established.
Unfinished capital investments
Unfinished capital investments are reflected in the balance sheet at actual costs for the developer. Capital construction projects that are in temporary operation, before they are put into permanent operation, are reflected as unfinished capital investments.
Financial investments
Financial investments are taken into account in the amount of actual costs for the investor. For debt securities, the difference between the amount of actual acquisition costs and the nominal value during their circulation period is allowed to be attributed evenly as the income due on them accrues to the financial results of a commercial organization or an increase in expenses for a non-profit organization or a decrease in funding (funds) for a budgetary organization .
Objects of financial investments (except for loans) that are not fully unpaid are shown on the asset side of the balance sheet in the full amount of the actual costs of their acquisition under the contract with the assignment of the outstanding amount to creditors in the liability side of the balance sheet in cases where the rights to the object have been transferred to the investor. In other cases, amounts contributed to the account of financial investment objects subject to acquisition are shown in the asset balance sheet under the item debtors.
An organization's investments in shares of other organizations listed on the stock exchange, the quotation of which is regularly published, when preparing the balance sheet, are reflected at the end of the reporting year at market value, if it is lower than the value accepted for accounting. For this difference, a reserve is formed at the end of the reporting year for the depreciation of investments in securities due to the financial results of a commercial organization or an increase in expenses of a non-profit organization.
Fixed assets
Fixed assets are reflected in the balance sheet at their residual value, i.e. at the actual costs of their acquisition, construction and production minus the amount of accrued depreciation, and for a budgetary organization - at the original cost.
Changes in the initial cost of fixed assets in cases of completion, additional equipment, reconstruction and partial liquidation, revaluation of relevant objects are disclosed in the appendices to the balance sheet. A commercial organization has the right, no more than once a year (at the beginning of the reporting year), to revaluate fixed assets at replacement cost by indexation or direct recalculation at documented market prices with attribution of the resulting differences to the organization’s additional capital, unless otherwise established by the legislation of the Russian Federation.
Material assets remaining from the write-off of fixed assets that are unsuitable for restoration and further use are accounted for at market value on the date of write-off, and the corresponding amount is attributed to the financial results of a commercial organization or an increase in income from a non-profit organization or financing from a budgetary organization.
Intangible assets.
Intangible assets are accounted for in the balance sheet at their residual value, i.e. at the actual costs of acquisition, production and costs of bringing them to a state in which they are suitable for use for the intended purposes, minus the amount of accrued depreciation.
Depreciation on intangible assets is calculated either using the straight-line method, or the reducing balance method, or in proportion to the volume of products (works, services). Depreciation is not accrued for intangible assets of budgetary organizations.
Raw materials, materials, finished products, goods
Raw materials, main and auxiliary materials, fuel, purchased semi-finished products and components, spare parts, containers used for packaging and transporting products and other material resources are reflected in the balance sheet at their actual cost. The actual cost of material resources is determined based on the actual costs incurred for their acquisition and production.
The actual cost of material resources written off for production can be determined in one of four ways: by the cost of a unit of inventory, by the average cost, by the cost of the first acquisitions, by the cost of the last acquisitions.
Finished products are shown in the balance sheet at actual or standard (planned) production costs, including costs associated with the use of fixed assets, raw materials, fuel, energy, labor resources, and other costs of production in the production process, or by direct items costs.
Material assets for which the price has decreased during the reporting year or which have become obsolete or have partially lost their original quality are reflected in the balance sheet at the end of the reporting year at the price of possible sale, if it is lower than the initial cost of procurement (purchase) with deduction of the difference in prices for financial results for a commercial organization or increased expenses for a non-profit organization.
Goods shipped, works delivered and services provided
Shipped goods, completed works and rendered services are shown in the balance sheet at the actual or standard (planned) full cost, which includes, along with production costs, costs associated with the sale (sale) of products, works, services, reimbursed by the negotiated (contract) price.
Work in progress and deferred expenses
Work in progress includes: products (works) that have not passed all stages (phases, redistributions) provided for by the technological process, as well as products that are incomplete and have not passed testing and technical acceptance.
Work in progress in mass and serial production can be reflected in the balance sheet at actual or standard (planned) production cost; by direct cost items; at the cost of raw materials, materials and semi-finished products.
With a single production of products, work in progress is shown in the balance sheet at the actual costs incurred.
The costs incurred by the organization in the reporting period, but related to the following reporting periods, are reflected in the balance sheet as a separate item as deferred expenses and are subject to write-off in the manner established by the organization (evenly, in proportion to the volume of production, etc.), during the period to to which they belong.
Capital
The authorized (share) capital is reflected in the balance sheet within the amounts recorded in the constituent documents as a set of contributions of the founders of the organization. The authorized capital and the actual debt of the founders on contributions to the authorized capital are reflected in the balance sheet separately.
Reserves
The organization can create reserves by reserving part of the profit or expenses, which are reflected in the balance sheet separately by the types of reserves created: reserve fund - to cover the organization's losses, as well as to redeem the organization's bonds and buy back its own shares; reserves for doubtful debts - to write off the amounts of accounts receivable not repaid within the terms established by the agreement and not secured by appropriate guarantees; reserves of forthcoming expenses - for the uniform inclusion of forthcoming expenses in the costs of production or circulation. All reserves in the balance sheet at the end of the reporting year that are carried over to the next year are shown in a separate item.
Settlements with debtors and creditors
Settlements with debtors and creditors are reflected by each party in their financial statements in amounts arising from accounting records and recognized as correct. For loans and credits received, the debt is shown taking into account the interest due at the end of the reporting period.
Profit and loss
The financial result of the reporting period is reflected in the balance sheet as retained earnings (uncovered loss), i.e. the final financial result is determined for the reporting period, minus taxes due and other obligatory payments, including sanctions for non-compliance with tax rules. Profit or loss identified in the reporting year that is not related to operations of previous years is included in the financial results of the organization for the reporting year.
1.4 Procedure for drawing up standard reporting forms
Form No. 1 Balance Sheet
The balance sheet includes five sections: I – Non-current assets;
II – Current assets; III – Capital and reserves; IV – Long-term liabilities; V – Short-term liabilities.
1.4.1 Balance sheet (form No. 1)
The balance sheet and other forms of annual reporting must be submitted on forms approved by Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n.
However, in this Order, not all lines contain codes in the financial reporting forms. These codes were approved by another document - Order of the Ministry of Finance of Russia dated November 14, 2003 No. 102n. And when preparing reports, they need to be indicated.
The balance sheet form does not provide a decoding for most indicators - for example, for fixed assets, intangible assets, cash. However, if you need to detail some information, you can add the corresponding lines to the balance sheet.
When filling out a balance sheet, an accountant must comply with the following rules:
– assets and liabilities cannot be offset, except in cases where such offset is provided for by the relevant accounting regulations;
– fixed assets and intangible assets must be reflected at their residual value;
– assets and liabilities should be divided into long-term and short-term;
– data on settlements with other organizations and citizens must be shown in expanded form. For those analytical accounting accounts where there is a debit balance, they are recorded in assets, and for accounts with a credit balance - in liabilities;
– if any indicator has a negative value, then it must be written in parentheses in the balance sheet;
| Balance line |
|
| Intangible assets | The difference between the debit balance of account 04 and the credit balance of account 05 (or the balance of account 04 - if depreciation on intangible assets is also reflected in account 04) |
| Fixed assets | The difference between the debit balance of account 01 and the credit balance of account 02 (the subaccount “Depreciation on property provided to other organizations for temporary use” is not taken into account) |
| Construction in progress | Balances on accounts 07, 08 and the subaccount “Calculations for capital construction” of account 60 plus (minus) the debit (credit) balance of the subaccounts of account 16, |
| Profitable investments | The balance of account 03 minus the balance of the subaccount “Depreciation on property provided to other organizations for temporary use” of account 02 |
| Long-term financial investments | Account balance 58 minus account balance 59 in terms of the amount of reserves for long-term financial investments. Balance on the subaccount “Deposit accounts” of account 55, if interest is accrued on deposits |
| Deferred tax assets | Account balance 09 |
| Other noncurrent assets | Indicators not indicated in the previous lines of the “Non-current assets” section of the Balance Sheet |
| Total for Section I | |
| Inventories, including | |
| Raw materials, supplies and other similar assets | Account balance 10 plus (minus) debit (credit) balance of subaccounts of account 16 |
| Animals being raised and fattened | Account balance 11 |
| Costs in work in progress (distribution costs) | Sum of account balances 20, 21, 23, |
| Finished products and goods for resale | Balance of accounts 41 and 43 plus (minus) debit (credit) balance of subaccounts of account 16. Subtract the balance of accounts 14 and 42 from the result |
| Goods shipped | Account balance 45 |
| Future expenses | Account balance 97 |
| Other inventories and costs | The cost of material and production assets that were not included in the previous lines of the group of articles “Inventories” |
| Value added tax on purchased assets | Account balance 19 |
| Accounts receivable | The sum of the debit balances of accounts 62 and 76 of the subaccount “Settlements are made in 12 months” minus the credit balance of account 63 of the subaccount “Reserves for long-term debts”. Debit balance of account 62 subaccount “Bills received, due in 12 months” Debit balance of account 76 subaccount “Settlements with subsidiaries (dependent) companies that are made after 12 months” Debit balance of account 60 subaccount “Settlements for advances issued for a period of more than a year » Debit balance of account 73 subaccount “Settlements are made in 12 months” Debit balance of account 76 subaccount “Settlements for claims, payments for which are expected in 12 months” |
| Including buyers and | Debit balance on account 62, 76 (long-term debts of buyers and customers) minus the balance on the subaccount of account 63, which reflects the amount of the reserve for such debts |
| Accounts receivable | The sum of the balances on account 62 and 76 of the subaccount “Settlements within 12 months” minus the credit balance of account 63 subaccount “Reserves for short-term debts” Debit balance of account 62 subaccount “Bills received, due within 12 months” Debit balance of account 76 subaccount “ Settlements with subsidiaries (dependent) companies within 12 months" Debit balance of account 75 subaccount |
| Including | The difference between the balances of accounts 62, 76, which show short-term debts of buyers and customers, the balance of the subaccount 63, which reflects the amount of the reserve for such debts |
| Short term | Account balance 58 minus account balance 59 plus account balance 55 sub-account “Deposit accounts”), if |
| Cash | Sum of account balances 50, 51, 52, 55 (subaccounts “Letters of Credit” and “Checkbooks”, “Deposit Accounts” - if interest is not accrued on deposits), 57 |
| Other negotiable | Indicators not reflected in the previous lines of the “Current assets” section of the balance sheet |
| Total for Section II | Sum of previously completed lines in this section |
| BALANCE | IAndII |
| Authorized capital | Account balance 80 |
| Own shares, | Account balance 81 |
| Extra capital | Account balance 83 |
| Reserve capital | Sum of lines 431 and 432 |
| Reserves formed in accordance with | The balance of the subaccount of account 82, on which |
| Reserves formed in | Balance of the subaccount of account 82, which shows the amount of the reserve formed in accordance with the constituent documents |
| Unallocated | Account balance 84 and 99 |
| Total for Section III | Sum of previously completed lines in this section |
| Loans and credits | The balance of account 67, which reflects the debt on long-term loans and borrowings, as well as the amount |
| Deferred tax | Account balance 77 |
| Other long-term | Long-term liabilities that were not reflected in section IV “Long-term liabilities” |
| Total for Section IV | Sum of previously completed lines in this section |
| Loans and credits | The balance of the subaccounts of account 66, which reflect the main debt on short-term loans and the amount of interest on them |
| Accounts payable | |
| Suppliers and | The sum of the balances of subaccounts of accounts 76 and 60, which reflect debt to suppliers and contractors |
| Debt | Credit balance of account 70 (except for the subaccount “Settlements with employees for payment of income for |
| Debt to | Account credit balance 69 |
| Debt | Account credit balance 68 |
| Other creditors | The balance of the subaccounts “Calculations for claims” and “Calculations for property and personal insurance” of account 76 and the balance of account 71 |
| Debt | Credit balances of the subaccount “Settlements for the payment of income” of account 75 and the subaccount “Settlements with employees for the payment of income on shares and shares” of account 70 |
| Future income | Account balance 98 |
| Reserves for upcoming | Account balance 96 |
| Other short-term | Short-term liabilities that cannot be classified as other items in the “Short-term liabilities” section |
| Section V total | Sum of previously completed lines in this section |
| BALANCE | Sum of total lines by sectionIII,IV,V |
Balance of off-balance sheet accounts to fill out each line of the Help
| Balance line | How to create balance sheet indicators |
| Rented | Balance of off-balance sheet account 001 |
| Including by | Balance of subaccounts of off-balance sheet account 001, which reflects the cost of fixed assets received |
| Inventory | Balance of off-balance sheet account 002 |
| Goods accepted | Balance of off-balance sheet account 004 |
| Written off at a loss | Balance of off-balance sheet account 007 |
| Securing obligations and payments | Balance of off-balance sheet account 008 |
| Provisions | Balance of off-balance sheet account 009 |
| Wear and tear of housing | Balance of subaccounts of off-balance sheet account 010, which shows the amount of accrued depreciation for residential properties |
| Wear and tear of objects | Balance of subaccounts of off-balance sheet account 010, which reflects the amount of depreciation of external improvement objects and other similar objects |
| Intangible | Balance of the off-balance sheet account, which accounts for intangible assets received for use |
| Cost of other valuables |
1.4.2 Profit and loss statement (form No. 2)
When drawing up the Profit and Loss Statement, you need to follow certain rules: all data in Form No. 2 is shown on an accrual basis from January 1 to December 31 of the reporting year. In this case, column 3 provides data for the reporting period, and column 4 – for the same period last year. Negative indicators are written in parentheses.
Form No. 2 was approved by the Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n. This form does not contain line codes - they are approved by another Order of the Ministry of Finance of Russia, dated November 14, 2003 No. 102n.
Section "Income and expenses from ordinary activities"
| Balance line | How to generate indicators for the "Report |
| Proceeds (net) from the sale of goods, products, works, | The difference between the credit turnover of the “Revenue” subaccount of account 90 and the debit turnover of the “Value Added Tax”, “Excise” subaccounts, |
| Cost of sold goods, products, works, | Debit turnover on the subaccount “Cost of sales” of account 90 in correspondence with accounts 20, 41, 43 and |
| Gross profit | The difference between sales revenue and the cost of goods, works, services sold |
| Business expenses | Debit turnover of the “Cost of sales” subaccount of account 90 in correspondence with account 44 |
| Management expenses | Debit turnover of the “Cost of sales” subaccount of account 90 in correspondence with account 26 |
| Profit (loss) from sales | Difference between gross profit and all expenses |
Section “Other income and expenses”
| Interest to | Credit turnover of subaccounts of account 91, which show interest receivable |
| Percentage to be paid | Debit turnover of subaccounts of account 91, which reflects interest payable |
| Income from participation | Credit turnover of subaccounts of account 91, which show the amount of income from equity participation in other organizations |
| Other operating | Credit turnover on subaccounts of account 91, where other operating income is indicated, minus the amount of VAT |
| Other operating | Debit turnover on subaccounts of account 91, which reflect other operating expenses |
| Non-operating income | Credit turnover of subaccounts of account 91, which reflect other non-operating income, minus VAT; |
| Non-operating expenses | Debit turnover of subaccounts of account 91, where other non-operating expenses are indicated, as well as debit turnover |
Section "Profit before tax"
| Balance line | How to generate indicators for the Report |
| Profit (loss) up to | Profit (loss) from sales + interest receivable – interest payable + income from participation in other organizations + other operating income – other operating expenses + non-operating income – non-operating expenses |
| Deferred tax assets | Difference between debit and credit turnover of account 09 (+/–) |
| Deferred tax | The difference between credit and debit |
| Current income tax | Debit turnover on account 99 “Profits and losses” in correspondence with subaccounts of account 68, which reflect calculations for income tax and penalties |
| Net profit | Profit (loss) before tax + / – deferred |
Section "REFERENCE"
Section "Deciphering individual profits and losses"
In this section, the following indicators are deciphered in separate lines: fines, penalties, penalties, etc.; compensation for losses in case of non-fulfillment of obligations; profit (loss) of previous years; exchange rate differences on operations in foreign currency; deductions to estimated reserves; writing off expired accounts receivable and payable. These indicators show for the reporting period and the previous year in the context of profit - loss.
1.4.3 Statement of changes in capital (form No. 3)
The form of the “Report on Changes in Capital” is given in Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n. This form is recommended (Appendix 3), and the organization has the right to enter additional lines into it that it deems necessary. In the Statement of Changes in Capital, all lines must be indicated with codes. They were approved by another Order of the Ministry of Finance of Russia - dated November 14, 2003 No. 102n.
In Table I “Change in capital” you need to reflect the movement of the organization’s capital for the previous and reporting year. The capital of an enterprise includes authorized (share), additional and reserve capital, and retained earnings. This is established by clause 66 of the Regulations on Accounting and Accounting Reports in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n.
The table is filled out in such a way that data on changes in each type of capital is entered in a separate column. So, in column 3 you need to show changes in the authorized capital, in column 4 - additional capital, in column 5 - reserve capital. But in column 6 changes in the amount of retained earnings (uncovered loss) are recorded.
As for column 7, it gives the total amount of capital movement. To fill out this column, you need to add up the data in columns 3 – 6 for each row of the table separately.
A change in each type of capital can occur for various reasons:
Ø change of authorized capital:
Increase (account credit 80) - due to additional issue of shares, increase in their nominal value, reorganization of a legal entity, etc.;
Decrease (debit of account 80) - due to a decrease in the number of shares through their repurchase and subsequent cancellation, reduction of their par value, etc.;
Ø change in additional capital:
Increase (account credit 83) – recalculation of foreign currency when making a deposit, receiving share premium, etc.;
Decrease (debit of account 83) - by directing part of it to increase the authorized capital, repaying losses identified based on the results of work for the year, disposal of fixed assets (previously subject to revaluation), etc.;
Ø change in reserve capital:
Increase (account credit 82) - due to deductions from net profit (the rate is determined in accordance with the constituent documents);
Decrease (debit of account 82) - repayment of losses identified based on the results of work for the year, repayment of company bonds for received loans and borrowings, repurchase of company shares, etc.;
Ø change in retained earnings (uncovered loss):
Increase (account credit 84) - due to an increase in the profit of the reporting year, reorganization of the organization, write-off of additional valuation amounts upon disposal of fixed assets;
Decrease (debit of account 84) - when deciding on the payment of dividends, contributions to the reserve fund.
Table II “Reserves” provides data on the reserves that the organization has created. All reserves are divided into:
Reserves formed in accordance with legislation;
Reserves formed in accordance with the constituent documents;
Valuation reserves;
Reserves for upcoming expenses.
Data for each type of reserves are shown for the previous and reporting year. Column 3 indicates the balance of the reserve at the beginning of the year (credit balance of the corresponding account). Amounts that are allocated to reserves during the year are given in column 4, and expenses that are covered by the reserve are shown in column 5. Balances at the end of the year are reflected in column 6.
The table “Certificates” reflects data on the value of net assets at the beginning and end of the reporting year. To find out the value of net assets, you need to use the calculation form, which is given in the Procedure for assessing the value of net assets of a joint-stock company. This Procedure was approved by Order of the Ministry of Finance of Russia and the Federal Securities Commission of Russia dated January 29, 2003 No. 10н/03–6/пз. Despite the fact that the procedure was developed for joint-stock companies, it can also be applied by limited or additional liability companies.
Column 3 – funds received from the budget in the reporting year;
Column 4 – funds received from the budget in the previous year;
Column 5 – funds received from extra-budgetary funds in the reporting year;
Column 6 contains funds received from extra-budgetary funds in the previous year.
In the line “Received for: expenses for ordinary activities, total, including”, write down funds received for expenses for ordinary activities. The same funds allocated for capital investments in non-current assets are shown in the line “Capital investments in non-current assets, including”.
1.4.4 Cash flow statement (form No. 4)
This Report reflects information about the sources from which the organization carried out its activities in the past and reporting year, as well as how it spent its available funds.
The “Cash Flow Statement” is a table in which organizations indicate data for the reporting year in column 3, and for the previous year in column 4.
The Cash Flow Statement reflects:
– cash balance at the beginning of the reporting period;
– cash flow for current activities; The following indicators should be reflected here:
q funds received from buyers, customers;
q other income (amount of penalties);
q funds allocated: to pay for purchased goods (work, services, raw materials and other current assets), to pay labor, to pay interest and dividends, to pay taxes and fees, and other expenses;
– cash flow for investment activities; The following indicators should be reflected here:
q proceeds from the sale of fixed assets and other non-current assets;
q proceeds from the sale of securities and other financial investments;
q dividends received;
q interest received;
q proceeds from the repayment of loans provided to other organizations;
q acquisition of subsidiaries;
q acquisition of fixed assets, profitable investments in tangible assets and intangible assets;
q acquisition of securities and other financial investments;
q loans provided to other organizations;
– cash flow from financial activities; The following indicators should be reflected here:
q proceeds from the issue of shares or other equity securities;
q proceeds from loans and credits provided by other organizations;
q repayment of loans and credits (without interest);
q repayment of finance lease obligations;
– net increase (decrease) in cash and cash equivalents (arithmetic sum of net cash for all types of activities, taking into account the + or - sign);
– cash balance at the end of the reporting period.
Each part of the report (cash flow) is built on a single principle. First, a group of lines is given that reflects the receipt of funds for a particular activity. This is followed by a group of lines that contains data on cash outflows. At the end there is a line “net cash from ... activities”, which reflects the balance of cash flows for each type of activity. In other words, this line allows you to find out whether the amount of cash the organization has for a particular activity has increased or decreased.
There are two ways to compile this form:
direct method – helps to disclose information about cash receipts and payments (cash flows). It allows you to estimate the total amounts of receipts and payments and draws attention to those items that form the largest inflow and outflow of funds;
indirect method – shows the difference between the financial result and net cash flow, and also performs a control function, which allows you to assess the balance of the balance sheet, profit and loss statement, and cash flow statement.
1.4.5 Appendix to the balance sheet (form No. 5)
The financial statements for the reporting year include the “Appendix to the Balance Sheet” (Appendix 5). It deciphers the data from Form No. 1 “Balance Sheet” and contains the following columns: name of the indicator, availability at the beginning of the reporting year, arrivals, departures, availability at the end of the reporting year, and in the table of financial investments: long-term and short-term in terms of indicators at the beginning and end of the reporting year.
The balance sheet appendix consists of ten sections, each of which consists of one or more tables:
v intangible assets– the movement of intangible assets for the reporting year is reflected by their types and in the amount recorded in account 04; amortization of intangible assets at the beginning and end of the reporting year is reflected separately;
v fixed assets– the movement of fixed assets for the reporting year is reflected by their types and in the amount recorded in account 01; Depreciation of fixed assets, information on fixed assets received and leased, information on the results of revaluation of fixed assets, as well as the results of changes in the original cost as a result of completion, reconstruction, etc. are reflected separately;
v profitable investments in material assets– movement of property leased or under a rental agreement in the reporting year (account 03); the depreciation of profitable investments in material assets is shown separately (account 02);
v R&D expenses– by type of work, the movement in R&D expenses accepted for accounting in account 04 is reflected; for reference, the amount of expenses for unfinished and unsuccessful R&D is shown;
v expenses for natural resource development– are reflected similarly to R&D, but are taken into account on account 08;
v financial investments– are disclosed by type of financial investment in the context of long-term and short-term; financial investments are disclosed separately at current market value; for reference, show the change in the market value of financial investments and the difference between the original and nominal value of debt securities;
v accounts receivable and payable– is disclosed separately in terms of balances at the beginning and end of the reporting year, in turn each is reflected by type of debt;
v expenses for ordinary activities (by cost elements)– disclosed by cost elements (material, labor, social contributions, depreciation, other costs); This also reflects changes in the balances (increase, decrease) of work in progress (account 20), deferred expenses (account 97), reserve for future expenses (account 96);
v provision– is a transcript of the certificate of the presence of valuables that are accounted for in off-balance sheet accounts (form No. 1); obligations and payments received (account 008) and issued (account 009) are shown separately;
v state aid– shows the amount of budget funds received (credit turnover on account 86) and budget loans in the reporting year (account 66, 67 broken down by subaccounts).
1.4.6 Report on the intended use of funds received (form No. 6)
The financial statements for the reporting year include a “Report on the intended use of funds received” (Appendix 6). This form is to be filled out by non-profit organizations. It should reflect the following indicators in the columns for the reporting and previous year:
Balance of funds at the beginning of the reporting year;
Received funds - entrance fees, membership fees, voluntary contributions, income from the organization’s business activities, other receipts of funds;
Funds used - expenses for targeted activities (by their types), expenses for the maintenance of the management apparatus (by their types), acquired fixed assets, inventory and other property, expenses related to business activities, other use of funds;
Total funds used;
Balance of funds at the end of the reporting year.
According to Article 2 of the Federal Law of January 12, 1996 No. 7-FZ“On Non-Profit Organizations” non-profit organizations can be created to achieve social, charitable, cultural, educational, scientific and managerial goals, to protect the health of citizens, develop physical culture and sports, satisfy the spiritual and other non-material needs of citizens, provide legal assistance and other goals aimed at achieving public goods. There are two main sources through which a non-profit organization exists. The first is targeted funds. IN paragraph 1 of article 26 of Law No. 7-FZ it is said that targeted funds include regular and one-time receipts received from founders (participants, members), donations, as well as property that someone voluntarily donated to a non-profit organization. The second source of funds from which a non-profit organization “lives” is income from business activities.
1.4.7 Explanatory note and auditor's report
According to Art. 13 of the Federal Law of November 21, 1996 No. 129-FZ “On Accounting”, an explanatory note should also be included in the annual reporting. However, the legislation specifies cases when an organization may not prepare an explanatory note. For example, it may not be represented by small businesses.
The explanatory note provides information about the organization's activities in the reporting period that was not disclosed in the standard reporting forms. This information can be divided into three blocks:
¨ general information about the organization;
¨ deciphering the most important items from the financial reporting forms;
¨ analytical indicators that characterize the activities of the organization.
The current regulations establish only general requirements for the explanatory note. Therefore, each organization independently determines the amount of information, as well as the form of its presentation: text, tables, diagrams, etc.
When compiling an explanatory note, it is necessary to take into account the interests of all users of financial statements. So, if the executive body of the organization (board of directors, supervisory board, etc.) considers that users need any additional information, then it should be provided. This is established by clause 39 of the Accounting Regulations "Accounting statements of the organization" (PBU 4/99).
If the organization is subject to mandatory audit, the explanatory note should reflect the auditor's opinion on the reliability of the data presented. If the financial statements are an integral part of the report of the board of directors of the joint-stock company or the report of the supervisory board, then the auditor's opinion is indicated in the explanatory note as to whether the information presented contradicts the financial statements, the audit of which was made.
The explanatory note consists of a general part and sections in which some indicators of form No. 1 and form No. 2 are deciphered. These sections also reflect data that is not included in the standard forms of financial statements, but is important for users of financial statements.
The explanatory note must contain at least three sections:
– a brief description of the structure and main areas of activity;
– accounting policy of the organization;
– the main factors that influenced the economic and financial performance of the organization in the reporting year.
This information is sufficient if the organization has disclosed all significant indicators in the balance sheet and other forms of annual reporting. But this doesn't always happen. Therefore, it is often necessary in the explanatory note to provide information about affiliates, reflect events after the reporting date and conditional facts of economic activity, and mention state assistance. In addition, it is necessary to record the most important indicators by type of activity and sales markets. And in the last section of the note, transcripts and textual explanations for the forms of financial statements should be given.
The list of criteria by which organizations are subject to mandatory audit is open. Statutory audits are carried out only by audit organizations. This is stated in paragraph 2 of Article 7 of Law No. 119-FZ. Consequently, a mandatory audit of reporting for the reporting year, an auditor - an individual entrepreneur cannot conduct. Otherwise, the organization where he conducted the audit will be fined for not conducting a mandatory audit.
However, there are certain exceptions among audit organizations.
Thus, if organizations are subject to mandatory audit, in whose authorized capital the share of state property or property of a constituent entity of the Russian Federation is at least 25 percent, then the auditor is selected based on the results of an open competition. The procedure for holding such competitions is approved by the Government of the Russian Federation.
What if an organization whose accounting documentation contains information about state secrets is subject to mandatory audit? Then the audit can only be carried out by an audit organization, in the authorized capital of which there is no share owned by foreign individuals or legal entities, and which has access to information constituting a state secret.
If the principle of independence of the audit firm has been violated, the audit report may be invalidated. And this entails the imposition of a fine, as in the case of failure to conduct a mandatory audit.
Based on the results of the audit in accordance with Article 10 of Law No. 119-FZ, the audit organization draws up an audit report.
1.5 Liquidation balance
Liquidation balance organization is drawn up upon termination of the organization’s functioning as a subject of civil legal relations, which may occur during the liquidation of a legal entity by decision of its founders (participants), a court, liquidation due to insolvency (bankruptcy), etc.
The liquidation balance, of course, differs from the usual current balance.
v The liquidation balance sheet is formed solely on the basis of inventory data. The Federal Law “On Accounting” contains a clear indication in this regard that in the event of liquidation of a legal entity, an inventory must be carried out.
v The liquidation balance sheet should not contain account balances, amounts from which can or should be transferred to other accounts (budgetary distribution, regulatory accounts): 96, 97, 02, 05, 16, 42, 59, 63.
v Asset items of the liquidation balance sheet are subject to assessment at real, market (liquidation) value, which makes it possible to evaluate the most realistic financial result upon termination of the organization's activities.
v In the liquidation balance sheet, a grouping of balance sheet items of assets and liabilities is used, corresponding to the actual degree of liquidity of the property in accordance with the current procedure for satisfying claims against the enterprise.
The obligation to draw up a liquidation balance sheet is clearly established in Art. 63 of the Civil Code of the Russian Federation and is entrusted to the liquidation commission, and if there is a court decision to declare the organization bankrupt, to the bankruptcy trustee.
If the court makes a decision to declare an organization bankrupt, bankruptcy proceedings are opened in relation to an insolvent legal entity - a procedure aimed at proportionately satisfying the claims of creditors in the liquidation process.
From the moment of the opening of bankruptcy proceedings, all powers to manage the affairs of the organization are transferred to the bankruptcy trustee. The bankruptcy trustee publishes a notice of declaring the organization bankrupt, which notifies the deadline. Established for the presentation of creditors' claims (it cannot be less than two months from the date of publication of the message). The bankruptcy trustee in his activities is accountable to the meeting of creditors or the committee of creditors elected by him.
Based on the inventory of obligations, a register of creditors' claims is drawn up, which indicates information about each creditor, the amount of his claims for monetary obligations and (or) mandatory payments, and the order of satisfaction of each claim. The registry must be closed after the expiration of the period specified in the bankruptcy announcement. Creditors' claims are satisfied in order of priority in accordance with Art. 106 of the Federal Law "On Insolvency (Bankruptcy)". Legal costs, expenses related to the payment of remuneration to the bankruptcy trustee, current utility and operating payments are covered out of turn. In addition, the claims of creditors for the organization’s obligations that arose during the bankruptcy procedure are satisfied.
To determine the possibilities of satisfying creditors' claims and preliminary drawing up a liquidation balance sheet, an assessment of the debtor's existing assets is made. The property is valued at its fair market value. On the basis of the specified data, an interim liquidation balance sheet is drawn up.
The interim balance sheet is drawn up in accordance with paragraph 2 of Art. 63 of the Civil Code of the Russian Federation on the date of opening bankruptcy proceedings in order to reflect the property position of the liquidated legal entity before the start of the sale of its assets and the production of any expenses by the liquidation commission. In this case, the interim balance sheet must reflect the results of consideration of creditors’ claims; therefore, it can be compiled no earlier than the closure of the register of creditors’ claims, i.e. no earlier than the expiration of the period established by the bankruptcy trustee for submitting claims. During this period, an inventory and assessment of the debtor's property available at the time of bankruptcy is carried out.
The interim liquidation balance sheet reflects all the assets of the enterprise that make up its bankruptcy estate, as well as the results of consideration of creditors' claims. At the same time, the bankruptcy estate is not only the property available at the time of the opening of bankruptcy proceedings, but also identified in the process of its implementation.
During the inventory, transactions involving the alienation of assets are analyzed and work begins to challenge transactions that are contrary to the law. As a rule, the liquidation commission is involved in court cases related to the return of assets from illegal possession, collection of interest and fines on accounts payable that are not repaid in a timely manner. A positive outcome from these lawsuits could significantly increase the bankruptcy estate and change the prospects for creditors' claims. All this should be reflected in the interim liquidation balance sheet. The consequences of each specific claim must be disclosed in an explanatory note.
The interim liquidation balance sheet, although it should be drawn up as of the date of opening of bankruptcy proceedings, practically this happens three to four months later, since it becomes necessary to take into account events that occurred after the reporting date, as the Accounting Regulations currently allow “ Events after the reporting date" (PBU 7/98), approved by order of the Ministry of Finance of Russia dated November 25, 1998 No. 56n.
After completing settlements with creditors, the bankruptcy trustee draws up a liquidation balance sheet, which contains data on the results of bankruptcy proceedings and the corresponding calculations, including satisfaction and remaining unsatisfied claims of creditors. This balance is usually called the final liquidation balance. Unsatisfied claims of creditors are reflected in the same accounts in which they were in the interim liquidation balance sheet. The asset total of the final liquidation balance sheet is zero, which indicates the absence of any funds from the bankrupt organization. The liability reflects the claims of creditors that are subject to repayment, but are not repaid due to the impossibility of satisfying them, and losses received both during the period before the opening of bankruptcy proceedings and during the time required for liquidation.
Thus, the final liquidation balance sheet reveals information about which entities and to what extent “participated” in covering the losses of an insolvent organization. However, another result is also possible, when in the liquidation balance sheet all the claims of creditors are repaid and a free positive balance remains. In this case, it is distributed among the founders (participants) in proportion to the contribution of each to the authorized capital of the organization. Of course, the liquidation balance sheet often contains uncovered liabilities, and if extraordinary debt and debt to creditors of the 1st, 2nd, and sometimes 3rd priority are repaid with great difficulty, then the debt to creditors of the 4th and 5th priority (other creditors) is most often not repaid when drawing up the liquidation balance sheet.
2 . Practical part
Form No. 1.
Consider filling in some lines of this form using the example of Matrix OJSC, which is engaged in the production of machinery and equipment (Appendix 1):
q line 120, column 4 – credit turnover on account 01 minus credit turnover on account 02 = 3520 – 2134 = 1386;
q line 211, column 4 – the sum of credit turnover on account 10, 15 (materials in transit), 16 (including sign) minus credit turnover on account 14 = 770 + 35 + 12 – 75 = 742;
q line 624, column 4 – credit turnover on account 68 = 266.
Form No. 2.
Let's look at filling out some lines of this form using the example of Matrix OJSC (Appendix 2):
q line 010 – the difference between the credit turnover on account 90/1 and 90/3 = 12300 – 3424 = 8876;
q line 090, column 4 = sum of indicators: materials from the liquidation of fixed assets, cost of fixed assets excluding VAT, sale price of shares, write-off of part of the value of property received free of charge = 75 + 90 + 97 + 82 + 4 = 348;
q line 200, column 3 = tax liabilities arose in the reporting period = 6.
Form No. 3.
Let's consider filling out some lines of form No. 3 using the example of Matrix OJSC (Appendix 3):
q line 070, column 6 – filled in by calculation = 670 + 396 – 374 = 692;
Form No. 4.
Let's look at filling out some lines using the example of Matrix OJSC (Appendix 4):
q line 100, column 4 – balance at the beginning of the reporting period for account 50 and 51 = 9 + 672 = 681;
q line 200, column 4 – filled in by calculation: funds received from buyers and customers + other income – funds allocated for expenses (total) = 9526 + 128 – 8702 = 952.
Form No. 5.
Let's look at filling out some lines of this form using the example of Matrix OJSC (Appendix 5):
q line 101 – shows the movement of fixed assets for the reporting period: column 6 (balance at the end of the year on account 01) = column 3 (debit balance on account 01) + column 4 (debit turnover on account 01) – column 4 (loan turnover accounts 01) = 378 + 701 – 0 = 1079;
q line 010 – similarly shows the movement of intangible assets in the reporting period: column 6 (balance at the end of the year on account 04) = column 3 (debit balance on account 04) + column 4 (turnover on debit account 04) – column 4 (turnover on credit of account 04) = 85 + 60 - 80 = 65.
Conclusion
The foregoing in the course work allows us to draw the following conclusion.
Accounting statements are a “mirror” of any organization; they can be used to judge changes occurring in the assets and liabilities, income and expenses of the organization. Therefore, when compiling it, certain requirements must be followed.
The financial statements must a reliable and complete picture of the financial position of the organization, the financial results of its activities and changes in the financial position. If there is insufficient data to form a reliable and complete picture of the financial position and results of the organization’s activities, formed on the basis of the rules PBU 4/99, it has the right to include additional indicators and explanations on its own. These may be transcripts of individual items of the balance sheet and profit and loss statement.
When preparing financial statements, the requirement of neutrality: The information contained in the reporting should meet the interests of different user groups.
– the organization’s financial statements must contain performance indicators for all branches, representative offices and other divisions, including those allocated to separate balance sheets;
Significant indicators about assets, liabilities, income, expenses and business transactions should be presented separately. In this case, an indicator is considered significant if its non-disclosure may affect the economic decisions of interested users made on the basis of reporting information. The organization's decision on whether a given indicator is significant depends on the assessment of the indicator, its nature, and the specific circumstances of its occurrence.
For each numerical indicator of the financial statements, data must be provided for at least two years - the reporting year and the one preceding the reporting year. An exception is the report prepared for the first reporting period. It provides data only for the reporting period. The organization has the right to decide to compare data for a longer period of time - three years, four, etc. To reflect this data, additional columns and lines are included in the financial reporting forms used.
If data for the reporting and previous periods are not comparable, the latter are subject to adjustment according to the rules established by regulatory acts on accounting. Each significant adjustment is subject to disclosure in explanations indicating the reasons that caused it.
Preparation of financial statements is a very responsible job, which not every accountant can do. You need to be a good specialist, have the appropriate education and practical experience, and be aware of the changes taking place in accounting in order to cope with this task.
Bibliography
2. Accounting Regulations “Accounting Statements of an Organization” PBU 4/99, approved by Order No. 43n dated July 6, 1999.
4. “Composition of accounting and tax reporting for 2004”, accounting monthly BUKH.1S No. 2, 2005.
5. Bakina S.I. “Funds received from the budget - be careful,” Russian Tax Courier magazine No. 20, 2004.
6. Babaev Yu.A. Accounting: textbook\ Yu.A. Babaev and others, - M.: TK Velby, Prospekt Publishing House, 2005.
7. Malyshko V.I. “Annual financial statements”, magazine “Practical Accounting” No. 1, 2005.
8. Novodvorsky V.D. Accounting (financial) reporting: Textbook / Ed. V.D. Novodvorsky; All-Russian Financial and Economic Institute (VZFEI).-M.: ZAO Finstatinform, 2002.
9. Patrov V.V., V.A. Bykov “Preparation of annual financial statements”, magazine “Accounting” No. 2, 2005.
10. Pizengolts M.Z. Accounting in agriculture. T.2. Part 2. Management accounting. Part 3. Accounting (financial) reporting: Textbook - 4th ed., revised. and additional - M.: Finance and statistics, 2003.
11. Selivanov A.N. “Annual Report – 2004”, magazine Edited by A.N. Selivanov “Library of the magazine “Glavbukh”, 2004.
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