Annual financial report. Composition of forms of annual financial statements The composition of financial statements includes
On maintaining accounting records and financial statements in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 N 34n and the Accounting Regulations “Accounting statements of an organization” (PBU 4/98).
36. The annual financial statements include:
a) Balance sheet - form N 1;
b) Profit and loss statement - form No. 2;
c) explanations to the balance sheet and profit and loss statement:
Statement of capital flows - form N 3;
Cash flow statement - form N 4;
Appendix to the balance sheet - form No. 5;
Explanatory note;
ConsultantPlus: note.
Order of the Ministry of Finance of the Russian Federation dated November 12, 1996 N 97, which approved standard forms of financial statements N 1 - N 5, became invalid on January 1, 2000 due to the publication of Order of the Ministry of Finance of the Russian Federation dated January 13, 2000 N 4n.
d) Report on the use of budgetary allocations by the organization - form N 2-2 (approved by letter of the Ministry of Finance of Russia dated June 27, 1995 N 61) and Certificate of balances of funds received from the federal budget (approved by letter of the Ministry of Finance of Russia dated September 9, 1996 N 79). These forms represent small enterprises receiving budget allocations.
If the Ministry of Finance of Russia establishes other forms of reporting information on the nature of the use of budget funds, they should also be included in the financial statements.
ConsultantPlus: note.
There appears to be a typo in the official text of the document: The Decree of the Government of the Russian Federation dated December 7, 1994 has number 1355, not number 1335.
ConsultantPlus: note.
Decree of the Government of the Russian Federation dated December 7, 1994 N 1355 became invalid due to the publication of Decree of the Government of the Russian Federation dated June 12, 2002 N 409, which approved other Rules for conducting an open competition for the selection of an audit organization to carry out a mandatory annual audit.
Decree of the Government of the Russian Federation of June 12, 2002 N 409 was declared invalid by Decree of the Government of the Russian Federation of November 30, 2005 N 706, which approved the currently valid Rules for conducting an open competition for the selection of an audit organization to carry out a mandatory annual audit of an organization, the share of state property or the property of a subject of the Russian Federation in the authorized (share) capital of which is at least 25 percent.
In the above volume, small enterprises submit annual financial statements that are required to conduct an independent audit of the reliability of financial statements in accordance with the legislation of the Russian Federation, in particular, Decree of the Government of the Russian Federation of December 7, 1994 N 1335 "On the main criteria (system of indicators) for the activities of economic entities for which their accounting (financial) statements are subject to mandatory annual audit.
37. In accordance with the Regulation on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 19, 1998 N 34n, annual financial statements may be submitted by a small enterprise in an abbreviated version.
ConsultantPlus: note.
In the official text of the document, apparently, a misprint was made: The Regulation on accounting and financial reporting in the Russian Federation was approved by Order of the Ministry of Finance of the Russian Federation of July 29, 1998, and not July 19, 1998.
38. Annual financial statements are submitted to the addresses and terms in accordance with the Federal Law "On Accounting".
The date of submission of financial statements by a small business is determined by the date of its mailing or the date of actual transfer by ownership.
39. The forms of financial statements provide data on the indicators provided for in them.
If one or another article (line, column) of the standard form of financial statements is not filled out due to the organization's lack of relevant assets, liabilities, operations, this article (line, column) is crossed out.
If the compilation of standard forms of financial statements by a small enterprise reveals insufficient data to form a complete picture of the financial position of this enterprise, as well as the financial results of its activities, then relevant additional indicators are included in the financial statements.
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 equity (Form No. 3)
1.4.4 Statement of cash flows (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 sheet
2. Practical part
Conclusion
Bibliography
Application
Introduction
Prominent 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.
Formed in accordance with the requirements for it, the financial statements make it possible to assess the attractiveness of the organization in terms of investing in it, acquiring shares and other securities, concluding contracts 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 administrative and tax liability is established for the untimely submission and incorrect formation of accounting indicators in accordance with the current legislation. The reporting year in the preparation of financial statements is 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 to the accepted content and form of the balance sheet, profit and loss statement and explanations thereto are allowed in exceptional cases, for example, when the type of activity changes. The organization must confirm the validity of each such change.
When preparing financial statements, the neutrality of the information contained in them 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 account balances 19, it must be borne in mind that VAT on purchased 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.
Important preparatory accounting work is checking entries in accounting registers, in particular quantitative indicators that cannot be verified by the balance sheet linkage method (for example, labor costs in man-hours, etc.) and eliminating 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 corresponding 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 original 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.
Costs incurred by the organization in the reporting period, but relating 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 limits of the amounts registered in the constituent documents as the totality of contributions of the founders of the organization. The authorized capital and the actual debt of the founders for contributions to the authorized capital are reflected separately in the balance sheet.
reserves
An organization can create reserves by reserving a portion of profits or costs, which are reflected in the balance sheet separately by type of reserves created: reserve fund - to cover the organization's losses, as well as to repay the organization's bonds and repurchase its own shares; reserves for doubtful debts - to write off amounts of receivables that are not repaid within the time limits established by the agreement and are not secured by appropriate guarantees; reserves for future expenses - for the even inclusion of future expenses in production or distribution costs. All reserves in the balance sheet at the end of the reporting year that carry over to the next year are shown as a separate item.
Settlements with debtors and creditors
Settlements with debtors and creditors are reflected by each party in its financial statements in the amounts arising from the 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 |
| Total for Section V | 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 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” |
| Revenue (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 goods, products, works sold, | 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 |
| Administrative 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 | 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 damages in case of failure to fulfill obligations; profit (loss) of previous years; exchange rate differences on transactions in foreign currency; contributions to valuation 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, small businesses may not represent it.
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 drawing up an explanatory note, it is necessary to take into account the interests of all users of the financial statements. This means that if the executive body of the organization (board of directors, supervisory board, etc.) believes that users need any additional information, then it should be provided. This is established by clause 39 of the Accounting Regulations “Accounting statements of an organization” (PBU 4/99).
If an organization is subject to a mandatory audit, the explanatory note must 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 a joint-stock company or the report of the supervisory board, then the explanatory note indicates the auditor’s opinion on whether the information presented contradicts the financial statements that were audited.
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 results 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 affiliated persons, reflect events after the reporting date and conditional facts of economic activity, and mention government 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 of the accounting reporting forms should be provided.
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 financial statements for the reporting year cannot be carried out by an individual entrepreneur auditor. 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 compiled, which indicates information about each creditor, the amount of his claims for monetary obligations and (or) obligatory payments, and the priority of satisfying each claim. The register must be closed upon expiration of the period specified in the bankruptcy declaration. 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. In this case, the property is valued at its fair market value. Based on the specified data, an interim liquidation balance sheet is compiled.
The interim balance is drawn up in accordance with clause 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 discloses information about which entities and to what extent “took part” in covering the losses of the insolvent organization. However, another result is also possible, when in the liquidation balance sheet all 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 amounts of liabilities, and if extraordinary debt and debt to creditors of the 1st, 2nd, and sometimes 3rd priority are repaid with great difficulty, then debt to creditors of the 4th and 5th priority (others) creditors) is most often not repaid when drawing up the liquidation balance sheet.
2 . Practical part
Form No. 1.
Let's look at filling out some lines of this form using the example of Matrix OJSC, which produces 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 account credit 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, you should adhere to certain requirements.
Accounting statements should give 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, she has the right to independently include additional indicators and explanations. These may be transcripts of individual items of the balance sheet and profit and loss statement.
When preparing financial statements, the following must be observed: 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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At the end of the calendar year, all organizations, with the exception of budgetary ones, are required to represent the founders, members of the organization or owners of its property, as well as territorial bodies of state statistics at the place of their registration. State and municipal unitary enterprises submit annual financial statements bodies authorized to manage state property(Article 15 of the Federal Law of November 21, 1996 N 129-FZ “On Accounting”). Taxpayers are also required to submit financial statements and to the tax authorities(Clause 4, Clause 1, Article 23 of the Tax Code of the Russian Federation).
Note. Financial statements is a unified system of data on the property and financial position of an organization and the results of its economic activities. Reporting is prepared on the basis of accounting data in established forms (Article 2 of Law No. 129-FZ, clause 4 of the Accounting Regulations “Accounting Reports of an Organization” (PBU 4/99), approved by Order of the Ministry of Finance of Russia dated July 6, 1999 No. 43n ).
Annual financial statements must be prepared and presented to interested parties within 90 days after the end of the reporting year(Clause 2 of Article 15 of Law No. 129-FZ). Based on this, the last day for submitting reports for 2010 will be March 31 of the current year inclusive.
Improving accounting methodology
Over the past year, the Russian Ministry of Finance continued targeted work to bring Russian accounting regulations closer to the relevant international standards. In terms of accounting methodology, financiers issued half a dozen Orders during 2010. Thus, two of them approved new Accounting Regulations:
- "Correcting errors in accounting and reporting"(PBU 22/2010) (approved by Order of the Ministry of Finance of Russia dated June 28, 2010 N 63n);
- "Segment Information"(PBU 12/2010) (approved by Order of the Ministry of Finance of Russia dated November 8, 2010 N 143n).
But if PBU 22/2010 comes into force with the financial statements for 2010 (clause 2 of Order No. 63n), then PBU 12/2010 will need to be applied when preparing financial statements for 2011 (clause 2 of Order No. 143n).
A detailed Commentary on PBU 22/2010 was published in “720 Hours” No. 9, 2010. You can also read about correcting errors in financial statements in PBU No. 1, 2011.
Let us remind you that the correction of a significant error of the previous reporting year, identified after the approval of the financial statements for this year, is carried out by entries in the corresponding accounting accounts in the current reporting period. In this case, the corresponding account in the records is account 84 “Retained earnings (uncovered loss)”.
In addition, the comparative indicators of the financial statements for the reporting periods reflected in the financial statements of the organization for the current reporting year are recalculated. Restatement of comparative financial statements is carried out by correcting the financial statements as if the error of the previous reporting period had never been made (retrospective restatement).
Retrospective restatement is carried out in relation to comparative indicators starting from the previous reporting period presented in the financial statements for the current reporting year in which the corresponding error was made.
When preparing financial statements for 2010, it is quite possible to do without retrospective recalculation of indicators. Such a recalculation must be carried out if errors are identified that are significant and relate to 2009 and earlier. But they will be discovered only in the first quarter of 2011. And as mentioned above, corrective entries in this case must be made in the current period of 2011. Consequently, a retrospective recalculation of the indicators will be reflected in the financial statements for 2011.
Orders of the Ministry of Finance of Russia dated October 25, 2010 N 132н and dated November 8, 2010 N 142н introduced changes to more than two dozen regulatory legal acts of accounting, including the Regulations on accounting and financial reporting in the Russian Federation (approved by the Order of the Ministry of Finance Russia dated July 29, 1998 N 34n), Instructions for the application of the Chart of Accounts for accounting the financial and economic activities of organizations (approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n), one and a half dozen accounting provisions, five methodological guidelines. According to the changes introduced, accounting in state (municipal) institutions is simplified, since the requirements for its maintenance established by the specified documents do not apply to them from January 1, 2011.
Reporting Requirements
General requirements for financial statements are set out in Section. III PBU 4/99. The main ones are reliability, completeness, materiality, neutrality, usefulness, consistency.
Accounting statements must 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 (clause 6 of PBU 4/99). Information about the financial position, as is known, is formed mainly in the balance sheet, information about the financial results of the organization's activities - in the profit and loss statement, information about changes in the financial position of the organization - in the cash flow statement.
Financial statements prepared on the basis of the rules established by regulatory acts on accounting are considered reliable and complete.
To ensure the reliability of financial reporting data, organizations are required to conduct an inventory of property and liabilities. During the inventory, their presence, condition and assessment are checked and documented. Before drawing up annual financial statements, an inventory is required (clause 2 of article 12 of Law No. 129-FZ, clause 27 of the Regulations on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n).
Note. For small enterprises (except for credit institutions), in order to simplify the accounting reporting system, Order of the Ministry of Finance of Russia dated November 8, 2010 N 144n introduced changes to seven accounting provisions (for more details, see the commentary in “720 hours” N 2, 2011).
If, when preparing financial statements, it is revealed that there is insufficient data to form a complete picture of the financial position of the organization, the financial results of its activities and changes in its financial position, then it becomes necessary to include relevant additional indicators and explanations in the financial statements (clause 6 of PBU 4/99).
The financial statements must include significant indicators. An indicator is considered significant if its non-disclosure may affect the economic decisions of interested users made on the basis of the 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. An organization can make a decision when an amount is considered significant, the ratio of which to the total of the relevant data for the reporting year is at least five percent (clause 11 of PBU 4/99, clause 1 of the Instructions on the procedure for drawing up and presenting financial statements, approved by the mentioned Order Ministry of Finance of Russia N 67n).
When preparing financial statements, the organization must ensure the neutrality of the information contained in it. This requirement means the exclusion of unilateral satisfaction of the interests of some user groups over others, that is, the information contained in the reporting must meet the interests of different user groups.
Note. When preparing reports, an organization must adhere to its accepted content and reporting forms consistently from one reporting period to another. Changes to the accepted content and form of the balance sheet, profit and loss statement and explanations thereto are permitted in exceptional cases, for example, when changing the type of activity (clause 9 of PBU 4/99).
Information is not neutral if, through selection or presentation, it influences the decisions and evaluations of users to achieve predetermined results or consequences.
The neutrality of financial statements is manifested in the absence of the intention of its compilers to persuade the user of the statements to make a certain decision.
The information presented in the financial statements must be useful. Information is considered useful if it is relevant, reliable, comparable and timely.
Information is relevant if its presence or absence has or is capable of influencing the decisions (including management) of users of the statements, helping them evaluate past, present or future events, confirming or changing previously made estimates.
Information is reliable if it does not contain material errors. To be reliable, information must objectively reflect the facts of the business activity to which it actually or purportedly relates.
Comparability of information means that users of financial statements can compare performance over different periods of time to determine trends in an organization's financial position and financial performance. Users should also be able to compare information about different entities to compare their financial position, financial performance and changes in financial position.
Information is timely if it can best meet users' decision-making needs, that is, if it achieves a balance between relevance and reliability.
Composition of annual financial statements
In general, annual financial statements of commercial organizations include:
- balance sheet (form No. 1);
- profit and loss statement (form No. 2);
- report on changes in capital (form No. 3);
- cash flow statement (form No. 4);
- Appendix to the balance sheet (Form No. 5);
- explanatory note;
- an auditor’s report confirming the reliability of the organization’s financial statements, if they are subject to mandatory audit or if the organization independently decided to conduct an audit of the financial statements (clause 2, article 13 of Law N 129-FZ, clause 5 PBU 4/99, clause 2 Instructions on the scope of financial reporting forms, approved by Order of the Ministry of Finance of Russia dated July 22, 2003 N 67n).
is the main form in the accounting reporting system, since it characterizes the property and financial position of the organization as of the reporting date. It is one of the characteristics of a legal entity (Article 48 of the Civil Code of the Russian Federation).
According to the balance sheet:
- the possibility of the organization fulfilling its obligations to third parties in the near future or overcoming its financial difficulties is assessed;
- financial results of work are determined in the form of increasing equity capital for the reporting period.
Note. The balance sheet is understood as a method of economic grouping of the composition and allocation of resources of an economic entity included in the asset balance sheet, and the sources of their formation in the form of equity and borrowed capital, reflected in the liability side of the balance sheet as liabilities. It serves as the main source of information for a circle of users about the property status of the organization.
Gains and losses report- the main reporting form characterizing the procedure for generating the result of the financial and economic activities of the organization. This result is determined by calculating all profits and all losses (losses) for the reporting period, reflected in accounts 90 “Sales”, 91 “Other income and expenses” and 99 “Profits and losses”.
The statement of changes in capital discloses additional information about changes in capital and provides explanations for the balance sheet items in the Capital and Reserves section.
IN cash flow statement information is disclosed about the organization's funds held in bank accounts and in the cash register. The report data should characterize changes in the financial position of the organization in the context of current, investment and financial activities.
Current activities are understood as the activities of an organization that pursues making a profit as the main goal or does not have making a profit as such a goal in accordance with the subject and goals of the activity. That is, activities related to the production of industrial and agricultural products, construction work, sale of goods, provision of catering services, procurement of agricultural products, rental of property, etc.
Investment activities are considered to be the activities of an organization related to the acquisition of land, buildings and other real estate, equipment, intangible assets and other non-current assets, as well as their sale; with the implementation of its own construction, expenses for research, development and technological development; with financial investments (purchase of securities of other organizations, including debt securities, contributions to the authorized (share) capital of other organizations, provision of loans to other organizations, etc.).
Financial activity is considered to be the activity of an organization, as a result of which the amount and composition of the organization’s equity capital, borrowed funds (proceeds from the issue of shares, bonds, loans from other organizations, repayment of borrowed funds, etc.) change (clause 15 of the Instructions on the procedure for drawing up and presentation of financial statements).
The report's indicators allow us to identify the reasons for changes in the volume and composition of cash flows for the reporting period.
Related Sections appendices to the balance sheet disclose the necessary information about depreciable property, financial investments, the state of receivables and payables, contain a breakdown of expenses for ordinary activities by cost elements, as well as other information.
Explanatory note is a structural element of the annual financial report. It contains data that is not reflected in the annual financial statements.
The list of cases when an audit is mandatory is established by Art. 5 of the Federal Law of December 30, 2008 N 307-FZ “On Auditing Activities”. Mandatory audit is carried out in the following cases:
- if the organization has the organizational and legal form of an open joint stock company;
- if the organization’s securities are admitted to trading at stock exchanges and (or) other organizers of trading on the securities market;
- if the organization presents and (or) publishes summary (consolidated) accounting (financial) statements;
- if the organization is a credit organization, a credit history bureau, an organization that is a professional participant in the securities market, an insurance organization, a clearing organization, a mutual insurance company, a commodity, currency or stock exchange, a non-state pension or other fund, a joint-stock investment fund, a management company of a joint-stock company investment fund, mutual investment fund or non-state pension fund (except for state extra-budgetary funds).
Note. If an organization independently decides to conduct an audit of its financial statements, it can optionally include the auditor’s report in its financial statements.
This year, the volume indicators that determine the conduct of a mandatory audit have increased. Now it should be carried out by organizations that:
- the volume of revenue from the sale of products (sale of goods, performance of work, provision of services) of the organization for 2009 (preceding the reporting year) exceeded 400,000,000 rubles. or
- the amount of assets on the balance sheet as of the end of 2009 exceeded 60,000,000 rubles.
Non-profit organizations have the right, in the absence of relevant data, not to submit forms N 3, 4 and 5 as part of the annual financial statements. The listed forms and explanatory note may also not be submitted by public organizations that do not carry out entrepreneurial activities and do not have sales turnover other than disposed property goods (works, services).
Non-profit organizations are recommended to include in their annual financial statements a report on the intended use of funds received (Form No. 6).
Small businesses that are not required to conduct an audit of the reliability of financial statements in accordance with the legislation of the Russian Federation may decide to present financial statements in the amount of indicators for groups of balance sheet items and items of the profit and loss statement without additional explanations in the specified forms. They have the right not to present a statement of changes in capital, a cash flow statement, an appendix to the balance sheet and an explanatory note as part of the financial statements.
Let us recall that small businesses currently include organizations that meet the following conditions (clause 1, article 4 of the Federal Law of July 24, 2007 N 209-FZ “On the development of small and medium-sized businesses in the Russian Federation”):
- the total share of participation of the Russian Federation, constituent entities of the Russian Federation, municipalities, foreign legal entities, foreign citizens, public and religious organizations (associations), charitable and other funds in the authorized (share) capital (share fund) should not exceed 25% (excluding assets joint-stock investment funds and closed-end mutual investment funds);
- the share of participation owned by one or more legal entities that are not small and medium-sized businesses should not exceed 25%;
- the average number of employees for the previous calendar year should not exceed 100 people inclusive;
- revenue from the sale of goods (work, services) excluding VAT for the previous calendar year should not exceed RUB 400,000,000. (Clause 1 of the Decree of the Government of the Russian Federation dated July 22, 2008).
Note. Organizations receiving budget funds are required to provide reporting information on the nature of their use as part of their financial statements in the forms established by the Ministry of Finance of Russia.
If, in accordance with the legislation of the Russian Federation, these entities are required to conduct an audit of the reliability of their financial statements, then an explanatory note is added to the mandatory forms N N 1 and 2, as well as the audit report. They have the right not to submit Forms N N 3, 4 and 5 as part of the financial statements in the absence of relevant data (clause 3 of the Instructions on the scope of the forms of financial statements). But the latter is practically impossible. Consequently, when a small enterprise falls under a mandatory audit (and this is now possible only based on the amount of assets on the balance sheet; exceeding the volume of revenue means for them leaving the camp of small enterprises) leads to the obligation to prepare a full set of financial statements. Regardless of the volume of submitted forms, the organization’s reporting must satisfy the above requirements for completeness, reliability, etc.
The Appendix to Order No. 67n provides samples of recommended forms of financial statements. Organizations have the right to decide to submit financial statements in the recommended forms if the indicators presented in the forms allow them to comply with the requirements for financial statements set out in PBU 4/99 and other accounting provisions. If the organization considers that such indicators are not enough, then it has the right to independently develop forms of financial statements, taking the recommended samples as a basis. At the same time, independently developed accounting reporting forms allow an organization to:
- take into account its features and operating conditions;
- increase the information content of reporting by choosing the most appropriate form of data presentation;
- facilitate the perception of financial statements by users by highlighting its most significant indicators.
When developing these forms, they do not include the indicators (rows, columns) provided for in the sample forms if the organization does not have data on assets, liabilities, income, expenses, business transactions that are subject to reflection in these lines (columns) (clause 5 of the Instructions on the procedure for drawing up and presenting financial statements, clause 11 of PBU 4/99).
In the accounting reporting forms used by the organization for each numerical indicator, data for at least two years is indicated - the reporting year and the one preceding the reporting year. The 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. Comparative data should be provided not only in the balance sheet and profit and loss statement, but also in the appendices to them and the explanatory note (clause 10 of PBU 4/99, clause 4 of the Instructions on the procedure for drawing up and presenting financial statements).
If data for the period preceding the reporting period are not comparable with the reporting indicators, then they are subject to adjustment according to the rules established by regulatory acts on accounting. Each material adjustment is subject to disclosure in an explanation indicating the reasons for the adjustment.
When developing and adopting financial reporting forms, the lines for which the relevant indicators are disclosed are coded by organizations independently. In this case, it is necessary to use the codes of the lines of sections, groups of articles, as well as the codes of the final lines of the recommended form N 1. Codes of indicators, the data for which are subject to processing in state statistics bodies, are entered in accordance with the joint Order of the State Statistics Committee of Russia and the Ministry of Finance of Russia dated November 14, 2003 N 475/102n (clause 8 of the Instructions on the procedure for drawing up and presenting financial statements, clause 2 of the joint Order).
Note. An organization must adhere to its accepted accounting forms consistently from one reporting period to another. Changing the accepted forms of financial statements is possible in exceptional cases, for example, when the type of activity changes, or a new type of assets or liabilities appears. Significant changes in the forms of financial statements must be disclosed in explanations indicating the reasons that caused these changes.
An organization can submit reports using sample forms recommended by the Ministry of Finance of Russia only if the above requirements for financial statements are met (clause 5 of the Instructions on the procedure for drawing up and submitting financial statements).
Let us note that organizations are turning to the reporting forms recommended by financiers for the last time, since Order of the Ministry of Finance of Russia dated July 2, 2010 N 66n approved the forms of the balance sheet and profit and loss statement and appendices to the balance sheet and profit and loss statement:
- statement of changes in capital;
- cash flow statement;
- a report on the intended use of the funds received, included in the financial statements of public organizations (associations) that do not carry out entrepreneurial activities and, in addition to disposed property, do not have turnover in the sale of goods (works, services).
Organizations are recommended to independently determine the detail of indicators for the items of the given forms.
It is proposed to draw up other annexes to the balance sheet and profit and loss statement in tabular and (or) text form. The content of the explanations, drawn up in tabular form, is determined by organizations independently, taking into account the example given in Appendix No. 3 to the Order.
The new forms of organization will have to be used when preparing reports for the first quarter of 2011.
The balance sheet data at the beginning of the reporting period must be comparable with the balance sheet data for the period preceding the reporting period. But this does not happen if accounting policies have changed in the reporting period. The reason for such changes, in addition to the cases of recalculation mentioned above, may also be new accounting methods that the organization decided to apply in the reporting period (clause 10 of PBU 1/2008).
The consequences of changes in accounting policies that have had or are capable of having a significant impact on the financial position of the organization, the financial results of its activities and (or) cash flows are reflected in the financial statements retrospectively, except in cases where such consequences are assessed in monetary terms in relation to periods preceding reporting cannot be made with sufficient reliability.
When retrospectively reflecting the consequences of changes in accounting policies, we proceed from the assumption that the changed method of accounting was applied from the moment the facts of economic activity of this type arose. Retrospective reflection of the consequences of a change in accounting policy consists of adjusting the opening balance under the item “Retained earnings (uncovered loss)” for the earliest period presented in the financial statements, as well as the values of related financial statements items disclosed for each period presented in the financial statements, as if the new accounting policy was applied from the moment the facts of economic activity of this type arose.
In cases where the assessment in monetary terms of the consequences of a change in accounting policy in relation to periods preceding the reporting period cannot be made with sufficient reliability, the changed method of accounting is applied in relation to the relevant facts of economic activity that occurred after the introduction of the changed method (prospectively) (p 15 PBU 1/2008).
Changes in accounting policies that have had or are capable of having a significant impact on the financial position of the organization, the financial results of its activities and (or) cash flows are subject to separate disclosure in the financial statements (clause 16 of PBU 1/2008).
When preparing financial statements, the requirements of accounting regulations regarding the disclosure of information in financial statements must be met:
- changes in accounting policies;
- about cash flows or financial results of the organization’s activities;
- about transactions in foreign currency;
- about inventories;
- about fixed assets;
- about the income and expenses of the organization;
- about the consequences of events after the reporting date;
- about the consequences of conditional facts of economic activity, -
as well as on the disclosure in the financial statements of certain information about the assets, capital and reserves and liabilities of the organization. Such disclosure can be carried out by the organization by including relevant indicators, tables, transcripts directly in the financial reporting forms or in the explanatory note.
The organization's financial statements must include performance indicators for all branches, representative offices and other separate divisions, including those allocated to separate balance sheets (clause 8 of PBU 4/99).
In the financial statements, offsets between items of assets and liabilities, items of profit and loss are not allowed, except in cases where such offset is provided for by the relevant accounting provisions (clause 34 of PBU 4/99).
Note. When assessing the items in the financial statements, it is necessary to ensure compliance with the assumptions and requirements provided for in clauses 5, 6 and 7 of the Accounting Regulations “Accounting Policy of the Organization” (PBU 1/2008) (approved by the aforementioned Order of the Ministry of Finance of Russia N 106n).
The balance sheet must include numerical indicators in a net valuation, that is, minus regulatory values, which must be disclosed in the explanations to the balance sheet and profit and loss statement (clause 35 of PBU 4/99).
There are also technical rules for filling out reports(clauses 7, 9, 12 and 16 of the Instructions on the procedure for drawing up and presenting financial statements):
- there should be no blots or corrections in the forms;
- financial statements are prepared in the currency of the Russian Federation. If the organization has foreign currency and transactions carried out in foreign currency, all data is converted into rubles at the Bank of Russia exchange rate on the day of reporting, that is, on December 31, 2010;
- all data is given in thousands of rubles without decimal places (OKEY code 384). And only with very large turnover can an organization provide data in millions of rubles without decimal places (OKEY code 385);
- indicators with a negative value are shown in parentheses.
The requirements for information that must be reflected in the explanatory note are defined in clause 19 of the Instructions on the procedure for drawing up and presenting financial statements. Currently, the form and sequence of presentation of information in the explanatory note are not strictly regulated. Each organization independently determines the need to display additional information characterizing the results and conditions of business activities.
As a rule, the explanatory note contains the following sections:
- information about the activities of the organization;
- changes in accounting policies;
- information about financial activities;
- information about investment activities;
- information about subsidiaries and dependent companies;
- events after the reporting date;
- information about the reorganization of the organization, if there was one in the reporting period.
Moreover, each organization independently determines the amount of information presented in the note, as well as the form of its presentation: information can be presented both in the form of quantitative indicators and narratively.
If during the reporting period there were facts of non-application of accounting rules, since they did not allow to reliably reflect the property status and financial results of the organization, then this information with appropriate justification must be reflected in the explanatory note (clause 37 of PBU 4/99).
If the organization intends to change some of the provisions of the accounting policy in 2011, then the innovations are given in the explanatory note (clause 4 of article 13 of Law N 129-FZ, clause 25 of PBU 1/2008). In this case, the organization in the explanatory note to the annual reports for the reporting year must disclose the following information:
- the reason for the change in accounting policy;
- content of the change in accounting policy (clause 21 of PBU 1/2008).
The presented financial statements are attached to the covering letter of the organization, drawn up in the prescribed manner and containing information on the composition of the presented financial statements. It can be presented to the user directly by the organization, transmitted through its representative, sent in the form of a postal item with a list of attachments, or transmitted via telecommunication channels.
The user of financial statements does not have the right to refuse to accept them. At the request of the organization, he is obliged to put a mark on the copy of the financial statements about the acceptance and the date of its submission. When receiving financial statements via telecommunication channels, the user is obliged to provide the organization with an acceptance receipt in electronic form.
In the afternoon of the show The organization of financial statements is considered to be the date:
- its actual transfer by ownership, or
- postal item with a description of the attachment, or
- sending it via telecommunication channels (Clause 5, Article 15 of Law No. 129-FZ).
Failure to submit financial reporting forms to the tax authority before March 31, 2011 (including an audit report in cases where an audit is mandatory) entails a fine of 200 rubles on the organization. for each document not submitted (clause 5, clause 1, article 23, clause 1, article 126 of the Tax Code of the Russian Federation).
In this case, a fine of 300 to 500 rubles may be imposed on officials of the organization. (clause 1 of article 15.6 of the Code of Administrative Offenses of the Russian Federation). Moreover, payment of these fines does not relieve one from the need to submit financial statements to the tax office (Clause 4, Article 4.1 of the Code of Administrative Offenses of the Russian Federation).
Each organization, regardless of whether it operates under the general taxation system (GTS) or the simplified taxation system (STS), is required to submit annual accounting and tax reports (hereinafter referred to as reporting documentation - OD). Annual reporting is the most comprehensive in terms of the information included in it about the operation of the enterprise, and therefore is considered very important. Drafting an OA serves many purposes. The accounting OD of a company is of interest not only to authorities, but also to the enterprise itself.
The meaning of drawing up an OD
Any OD, be it quarterly or annual, contains information about the current financial position of the company. This information is necessary for government agencies (hereinafter GO) to present the situation about the real state of affairs of the enterprise. Based on reports from firms, authorities compile general statistics, which are the basis for analysis and making various decisions at the state level. Also, GOs, using the information provided, monitor the conduct of the company’s activities, and in case of any shortcomings, omissions or violations, they impose various fines on the company.
In addition to civil engineering, OA is also necessary for enterprises themselves. Obtaining regular information about the financial state of an organization helps its managers make various management decisions. OA is very important for the stable operation of the entire enterprise and the realization of its development prospects.
Users of accounting information
Quarterly and annual reporting are a consolidated form of accounting information about the enterprise. Accounting information always has users, that is, those who use this information for various purposes, which were stated above. All users of accounting information are divided into internal and external. Internal ones include heads of companies, higher organizations (if any), and management divisions (if the enterprise is large). External users include the Federal State Statistics Service (Rosstat), the Federal Tax Service (FTS), the Pension Fund (PFR), and the Social Insurance Fund (FSS). External users also include any individuals and legal entities, since the accounting OD of any company must meet the principles of openness and accessibility to any user.
The above-mentioned external users of accounting information, with the exception of individuals and unspecified legal entities, impose liability on the company if it does not submit OA on time. In case of delay, the Civil Defense has the right to impose a fine, not the enterprise.
Types of OA
OD is divided into types: statistical, operational, accounting, tax. Statistical OA is intended to be submitted to statistical authorities. The purpose of operational OD is operational accounting at the enterprise. This type of OA includes those things that are not reflected in the accounting OA, but are also necessary for the normal operation of the company. Such things include employee attendance, production capacity, and the like. A characteristic feature of operational OA is the time it is provided, which, as a rule, is equal to one working day. Accounting OD reflects the financial state of affairs of the enterprise. Tax OD is formed for the purposes of tax accounting at the enterprise.
Accounting OD, in turn, is divided according to frequency and volume. According to the frequency of OA, it can be quarterly (intra-annual) or annual. In accordance with the law, accounting OA must be of an incremental nature, that is, documentation for the first quarter must include information only from the first quarter of the year, OA for the second quarter must contain information from the first and second quarters, and so on. Annual reports include information for all four quarters.
In terms of volume, the quarterly and annual reporting of an organization can be primary and summary (consolidated). If an enterprise has subsidiaries, then the accounting OD within a single subsidiary or within it itself will be primary. The consolidated OA is compiled from all primary securities of subsidiaries and the parent organization inclusive.
Requirements for OA
The main requirements for the preparation of OA are relevance, integrity, reliability, comparability, and timeliness.
- The relevance of the data characterizes OD as a set of information about the position of the enterprise on a specific date. You cannot provide OA, for example, for the third quarter, which will provide information for the second.
- Integrity means reporting information about the operation of the enterprise, covering all areas of its activities and the financial position of its subsidiaries (if any).
- The reliability of the OA allows any user of this information to be confident that it reflects the real state of affairs of the enterprise.
- For the purpose of comparing the work of a company in different periods of time, the OA must comply with the principle of comparability, that is, have units of measurement common to all periods of its work.
- The timeliness of quarterly or annual financial statements obliges the enterprise to provide OA within strictly defined periods by law.
In addition to the above requirements, OA must also meet such principles as mandatoryness, unity of forms and methods, simplicity, public accessibility, brevity, clarity, and publicity.
Procedure for drawing up OD
The compilation procedure can be roughly divided into two stages: preparation and formation. At the preparation stage, all the necessary information is collected to form an OA. Also at this stage, it is very important to detect and correct (if identified) various accounting errors, since their presence in quarterly or annual tax reporting can cause fines from the tax authorities for distorting the true state of affairs of the organization. At the formation stage, the process of compiling an OA takes place. After completion of both stages, the documentation must be signed by the head, chief accountant of the company and have a seal.
Errors in OA
The organization must correct all errors identified during the preparation of the OA. Errors are divided into significant and insignificant. An error that affects the management accounting of internal users of this accounting information is considered significant. That is, if it is capable of greatly changing the strategy of the enterprise’s economic activities. A significant error is defined similarly for external users. In other cases, the error is regarded as insignificant, but it also needs to be corrected.
Any errors can be freely corrected before the annual reporting is submitted and approved by the State Administration or other internal or external users. If the OA has already been submitted to users, but has not yet been approved by them, then it is necessary to send the corrected OA to them with a note to replace the old version.
There are two options for correcting significant errors. By reflecting the identified results of errors in account 84 “Retained earnings” or by retrospective recalculation.
Basic forms of annual reporting
The OA forms that all enterprises, both large and small, are required to submit to the Civil Defense are completed accounting forms. balance sheet (No. 1) and form (No. 2, otherwise called the loss and profit statement). In addition, attachments must be attached to the balance sheet: a change report form. capital (No. 3) and movement report form. den. funds (No. 4). The balance sheet should also be accompanied by an explanatory note highlighting those things in the company's activities that cannot be represented by numbers. Enterprises operating under the simplified tax system may not provide forms 3 and 4. These reports must be submitted to the Federal Tax Service and Rosstat at the end of the year or at the beginning of the next (for the previous one). At the same time, an individual entrepreneur, regardless of its taxation system (OSN or simplified tax system), may not provide an annual balance sheet and investments to the Federal Tax Service, but must submit them to Rosstat also once a year.
The above composition of the annual reporting is basic, but not exhaustive.
List of annual OA for companies on OSN
Below is a list and deadlines for annual reporting for organizations operating under the SOS:
- VAT declaration - until the end of January (Federal Tax Service).
- Form 3-NDFL (for individual entrepreneurs) - until the beginning of May (Federal Tax Service).
- Form 1-IP (for individual entrepreneurs) - until the beginning of March (Rosstat).
- employees - until the end of January (Federal Tax Service).
- Three types of tax declarations (property tax, transport tax, land tax) - until the end of January (FSS).
List of annual OA for companies using the simplified tax system
Below is a list and deadlines for annual reporting for organizations operating under the simplified tax system:
- Form 4-FSS - until the end of January (FSS).
- Form RSV-1 - until mid-February (PFR).
- The average number of employees is until the end of January (Federal Tax Service).
- Two types of tax declarations (transport tax, land tax) - until the end of January (FSS).
- Declaration of the simplified tax system - until the end of March (Federal Tax Service).
- Forms 6-NDFL, 2-NDFL - until the beginning of April (Federal Tax Service).
- Confirmation of the main type of activity (not for individual entrepreneurs) - until mid-April (FSS).
- PM form (for small enterprises) - until the end of January (Rosstat).
- Balance sheet and investments - until the end of March (Federal Tax Service, Rosstat).
Any company required to maintain accounting records must prepare financial statements.
The composition of the statements and reporting periods are established by Article 14-15 of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting”.
Starting from 2011, financial statements must be submitted in forms approved by Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.
Accounting statements can be interim or annual.
Interim financial statements are prepared for the period from January 1 to the reporting date of the period inclusive. That is, for a month, a quarter, nine months, and possibly for any other period. The composition of interim financial statements is established by federal standards (clause 3 of article 14 of Law No. 402-FZ dated December 6, 2011). Currently its composition has not been approved. However, according to paragraph 49 of PBU 4/99, interim reporting includes a balance sheet and a statement of financial results. (information of the Ministry of Finance of Russia No. PZ-10/2012 “On the entry into force of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting” from 01/01/2013).
At the end of the year, companies prepare an annual report. In accordance with Article 14 of Law No. 402-FZ, the annual accounting (financial) statements include:
1. Balance sheet.
2. Statement of financial results.
3. Applications to them.
The annexes to the financial statements include:
statement of changes in equity;
cash flow statement (Information from the Ministry of Finance
report on the intended use of funds.
explanations.
According to clause 4.b. Order of the Ministry of Finance of Russia N 66n “the content of explanations, drawn up in tabular form, is determined by organizations independently, taking into account Appendix No. 3 to this Order.” After reviewing and analyzing Appendix N3, we determined that the following could be clarified (based on the materiality of the information):
legal address of the organization (Presented separately, in cases where these data are not included in the information accompanying the financial statements. Clause 28 of PBU 4/99);
main activities;
information on the average annual number of employees for the reporting period or the number of employees as of the reporting date;
composition (names and positions) of members of the organization’s executive and control bodies (requirements of PBU 11/2008);
information on the availability at the beginning and end of the reporting period and the movement during the reporting period of certain types of intangible assets (clause 40.41 of PBU 14/2007);
as well as information disclosed in accordance with clause 27 of PBU 4/99.
Information is disclosed additionally (simultaneously) with that required in the relevant sections of the relevant PBU:
on the availability at the beginning and end of the reporting period and the movement during the reporting period of certain types of fixed assets (section 6 of PBU 6/01);
on the availability at the beginning and end of the reporting period and the movement of leased fixed assets during the reporting period (section 6 of PBU 6/01);
on the availability at the beginning and end of the reporting period and the movement during the reporting period of certain types of financial investments (clauses 41.42 of PBU 19/02);
on the existence of certain types of receivables at the beginning and end of the reporting period;
on the number of shares issued by the joint-stock company and fully paid; the number of shares issued but not paid or partially paid; par value of shares owned by the joint-stock company, its subsidiaries and affiliates;
on the composition of reserves for future expenses and payments, estimated reserves, their availability at the beginning and end of the reporting period, the movement of funds from each reserve during the reporting period (section 5 of PBU 8/2010, PBU 21/2008);
on the existence of certain types of accounts payable at the beginning and end of the reporting period;
on sales volumes of products, goods, works, services by type (industry) of activity and geographic markets;
on the composition of production costs (distribution costs);
on the composition of other income and expenses;
about extraordinary facts of economic activity and their consequences;
about any issued and received security for the organization’s obligations and payments;
on events after the reporting date and conditional facts of economic activity (PBU 7/98, PBU 8/2010);
on discontinued operations (PBU 16/02);
on affiliated persons (PBU 11/2008);
on state aid (PBU 13/2000);
about profit per share;
In addition, other disclosures that organizations are required to make in various sections of accounting act as explanations to the reporting. What exactly is subject to disclosure is indicated in the sections “Disclosure of Information in Financial Statements” of the current Accounting Regulations.
The term “Explanatory Note” in relation to accounting (financial) statements is no longer used. A document with this name is not used in reporting. However, this does not mean that the reporting will be completely devoid of textual information. Yes, both PBU 4/99 and Order 66n suggest that disclosure of information, if possible, should be presented in tabular form. But a lot of information that must be disclosed does not fit into the table.
For example, fulfilling the requirements of paragraph 20 of PBU 1/2008 “Accounting Policies of an Organization,” an enterprise must also disclose information about the presence of significant uncertainty regarding events and conditions that may raise significant doubts about the applicability of the going concern assumption, indicate such uncertainty and unambiguously describe what it is associated with (if there is such uncertainty). It is quite difficult to describe this information in table form. From which we can conclude that if someone makes a requirement for explanations to prepare them exclusively in the form of a table, this requirement is, at a minimum, not reasonable. And it is not based on regulatory documents, since none of them obliges the presentation of explanations exclusively in the form of tables.
As a rule, enterprises disclose to users much more information than is specified in the current regulations. There are a number of other statutory disclosures that organizations must make when preparing their annual reports.
The term "annual report" is much broader than the term "accounting (financial) statements" and the annual report contains a wider range of disclosures. All this information in accounting regulations is referred to as “Additional information accompanying the accounting (financial) statements.”
Such information could be:
dynamics of the most important economic and financial indicators of the organization’s activities over a number of years;
planned development of the organization;
expected capital and long-term financial investments;
policy regarding borrowed funds, risk management (Information of the Ministry of Finance dated September 14, 2012 No. PZ-9/2012);
activities of the organization in the field of research and development work;
Additional information may be published along with the annual accounting (financial) statements, however, it is not included in these statements and is not subject to mandatory audit.
The auditor's report is not included in the reporting.
An audit report is an official document intended for users of the accounting (financial) statements of the audited entities, containing the opinion of the auditing organization, individual auditor, expressed in the prescribed form, on the reliability of the accounting (financial) statements of the audited entity.
The exclusion of the auditor's report from the reporting does not automatically entail permission to refuse to conduct a mandatory audit. According to paragraph 10 of Art. 13 of Law No. 402-FZ, in the case of publication of financial statements that are subject to mandatory audit, such financial statements must be published together with the auditor’s report. And already in December 2013, another change was made to this law. Now clause 2 of Art. 18 reads as follows: “When submitting a legal copy of the prepared annual financial statements, which are subject to mandatory audit, the auditor’s report on it is presented together with such statements or no later than 10 working days from the day following the date of the auditor’s report, but no later than December 31 of the year, following the reporting year.” Thus, determining to organizations that during the year following the reporting year, enterprises whose reporting is subject to mandatory audit must conduct such an audit.
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