Deferred income accounted for on the balance sheet. Deferred income - what is it? Application of the “Deferred Income” account
Deferred income is funds that have been received or will be received in the coming month, quarter, year. Logically, the amounts that debtors will return can be considered such profit. However, this is not quite true. Next, we'll figure out how it's done.
General information
When products are shipped, they are sold. Typically, revenue is recognized during this transaction. Ownership of the goods passes at the moment of its transfer to the acquirer. There are no products in stock, therefore it becomes possible to demand payment from the counterparty. In this case, there is no upcoming income. The prospect of a possible profit is also not relevant. In practice, accounting records only completed transactions and is based on the principle of compliance. It comes down to this. Revenues must correspond to the costs from which they were received.
Example
The above principle is quite easy to understand, but very problematic to implement. Let's assume that a business has received 3 years' worth of rent in advance. The question of which account to use to record funds does not arise. The problem is exactly what amount should be shown as profit. At first, it was customary to record all funds received as income. However, later, when the principle of compliance began to apply, annual reports began to be compiled. It is logical that income should include profit for the year. As for the remaining amount, they are not shown in the report.
Another question arose - where to place them. The simplest solution was to record it as accounts payable. This is explained by the fact that the lessor, having received the due amount, recognizes his obligations to the lessee. Accordingly, in each subsequent year the debt will decrease and profits will increase. However, this approach is of little use in practice. The fact is that accounts payable is an obligation that requires repayment. But in the example considered, it is absent, since the owner has already received the money and provided the object.
Account introduction
Usually deferred income is assets that have already been received. In most cases, they are presented in the form of monetary amounts. Taking into account the principle of comparability, these revenues must be compared with the costs from which they arose. This is where the question of proper division of profits arises. It is not known for certain how a way was found to show revenue of the future periods. Line 1530, which summarized information about such receipts, still exists. Subsequently, it was stipulated that each item must correspond to the account balance in the General Ledger. As a result, the issue was resolved where they reflect future income. Account 98 of the same name was introduced. The amount on line 1530 is equal to the total credit balance of the account. 98 and 86 (in terms of targeted funding from the budget, grants, technical assistance, etc.). 
Account characteristics
Introduction p. 98 was due to rent recognition problems. When they were solved, the accountants realized that using the approach they had found it was possible to regulate financial income. As a result, a large number of sub-accounts arose, which include revenue of the future periods. This:
- Profit received for future years.
- Free receipts.
- Upcoming amounts owed for shortfalls identified in previous years.
- The difference between the amount of recovery from the perpetrators and the book price for shortages.
Let's consider them separately.
Free receipts
Previously, they were called gifts, which involved the conclusion of a gift agreement. Currently, such income is usually called sponsorship. Until a certain period, they were attributed to the income of the period in which they were received. Meanwhile, there were experts who pointed out that the actual invested funds should be shown in the documents. Gratuitous receipts were estimated at 1 ruble.
With the improvement of the accounting system, a new approach was developed. Objects received free of charge were capitalized according to the account. 08 s CD count. 98.2. Accordingly, gifts were recognized as revenue of the future periods. This means that in the documents this profit was shown as “stretched” over several years. 
Depreciation
Deferred income on the balance sheet is funds having a conditional market valuation. If it is overestimated, which in some cases occurs even when business is done in good faith, profit can be increased by reducing it through depreciation. If the estimate is underestimated, then the income will be adjusted accordingly. When it comes to fixed assets, on the one hand, depreciation must be calculated in future periods. On the other hand, revenues from upcoming time periods are written off as current expenses. They level each other out.
As a result, it turns out that the use of the equipment becomes free of charge. The fact is that income is absorbed by depreciation, but it does not go to the cost of products. Meanwhile, theoretically, it is more correct to recognize that depreciation amounts are not accrued for fixed assets received free of charge. The entry is made solely by attributing part of the receipts of the future period to the expenses of the current period. This confirms the fact that depreciation is considered a transfer of previously incurred expenses, and not a fund for the renovation (renewal) of an operating system. Other gratuitous receipts, targeted funds acting as deferred income reflects the same way.
Debt for shortages
The rent incident had certain implications for the accounting for deferred revenues. At first, specialists did not see any problems, but then they began to include everything they could into this category. At first it was gratuitous values, then - past losses. There were reasons for such actions. Let's look at the reasons for assigning debt for shortfalls to deferred income.
Postings are drawn up based on the identification of the relevant fact. The accountant attributes the detected shortage to the Db account. 94. At the same time, the account is credited. 98.3. The developers of the chart of accounts apparently assumed that the more shortfalls were discovered, the greater the revenue would be subsequently. If the financially responsible employee admits the fact and gives an obligation to compensate for the shortfall that has arisen, a receivable is formed. It is unlikely that it will ever be repaid. In any case, completely.
If the financially responsible employee does not admit guilt, then there is no talk of any income at all. The current chart of accounts provides for a regulatory account. 98.4. It summarizes the difference between the amount that must be recovered from those at fault and the book value of the deficiency. This account is used exclusively at trading enterprises that use the scheme of recording products at the sales price. 
The nature of counting
Account 98 clearly falls into the category of financial distribution items. Here we need to remember the underappreciated issue of accounting policy. The question is this. Which income should be attributed to the current period and which to the future period? To some extent, the answer to this depends on the professional discretion of the chief accountant. Meanwhile, characterizing the account. 98, perhaps it would be more correct to classify it as additional. When used correctly, it complements the 99 count. In this case, the interested person will see the actual amount of profit received, and not the formally recorded amount.
Page 1530
As mentioned above, it includes deferred income in the balance sheet. This:
- Budget financing.
- Fund balances unused at the end of the year. They are on account. 86.
- Amounts of received grants, technical assistance, etc.
In such receipts, leasing companies also have the right to include the difference between the amount of payments and the value of the property owned by the recipient. All other income is classified as current or accounts payable. In general, the values on line 1530 as of December 31 of the previous year and as of December 31 of the period preceding the previous year are transferred from the balance sheet for the previous year.
Nuances
Some novice specialists often ask: deferred income - asset or liability? Actually, the question is quite logical. After all, in essence, we are talking about revenues and profits. Meanwhile, deferred income - liability. The situation is different with the costs of the coming years (quarter, month). They belong to the asset. In this case, there is a certain accounting paradox. The actual funds received, presented in liabilities and materialized in assets, reduce the reported profit. At the same time, the costs of the coming years (months, quarters) increase it.
Another point concerns taxation. Future expenses under the simplified tax system (income minus costs) are absent. There are none with the other “simplified” option either. In addition, there are no revenue of the future periods. simplified tax system does not provide for such concepts at all. 
Record specifics
As stated above, income for the coming periods is shown according to Account 98. Accounts corresponding to it reflect cash flows or settlements with creditors and debtors. According to db count. 98 amounts are written off upon the occurrence of the periods to which they relate. For example, usually, under the terms of a lease agreement, property users pay rent in advance for a quarter or six months. This amount cannot be attributed entirely to the income of the period in which it was received. The funds are divided into equal shares. Each of them is recognized as income for the current period on a monthly basis. In this case, the received amount is credited first to the account. 98. The wiring is as follows:
- db sch. 51 CD count. 98.
This entry is made for the entire amount of receipt. Then, every month, in an equal share, the income of the upcoming periods is written off to the profit of the current one:
- db sch. 98 CD count. 91.
Let's look at an example. The LLC entered into a lease agreement on February 18, 2017 for 120 days. The acceptance certificate was signed on March 1. According to the terms of the agreement, the tenant must transfer the amount six months in advance. On December 25, 24 thousand rubles were credited to the owner’s account, including VAT 4 thousand rubles. The accountant makes the following entries:
- db sch. 51 CD count. 98.1 - receipt of funds.
- db sch. 98.1 CD count. 68 - VAT calculation.
At the end of each month an entry is made:
- db sch. 98.1 CD count. 90.1 - monthly rent is reflected in income from the sale of services.
- db sch. 90.3 CD count. 68 - VAT charged.
- db sch. 68 CD count. 98.1 - the tax has been restored in part of the amount attributable to the reporting month.
Audit
How is it done? During the audit, first of all, the legality of attributing the amounts received by the enterprise to the considered category of income is checked. Let us remind you that income for the coming periods includes:
- Receipts received on account of months, quarters, half-years, and years that have not occurred. These include the amount of rent, subscription fees, revenue from passenger transportation on quarterly/monthly tickets, etc.
- The value of gratuitously received assets.
- The upcoming collection of debt for shortfalls discovered during the reporting period for previous years and found guilty by the financially responsible employee or awarded as part of the lawsuit.
- The difference between the amount to be recovered from the guilty person for missing material or other valuables and their value.
The audit also verifies that the revenue assessment is correct. When posting receipts for upcoming periods, it is carried out in the following order:
- Amounts received on account of the upcoming month, quarter, year, half-year are accounted for in the amount of payment received upon the fact (according to the agreement).
- The value of assets transferred to an enterprise free of charge is assessed in accordance with the market price. The value that existed at the time of capitalization is taken into account.
- Debts for shortfalls for previous years discovered in the current period are accounted for at market prices. The value in effect on the date of admission of guilt by the materially responsible employee or the issuance of a court order is taken into account.
- The amount of the difference in the assessment of shortages subject to recovery is calculated as the difference between the market price of the missing assets and the value at which they were capitalized.
During an audit performed at the end of the year, the validity of the resulting balances located in sub-accounts is checked:
- "Amounts received for future periods." Only those funds that relate to the following year should be shown here.
- "Gratuitous receipts." This sub-account reflects the market value of freely received property in the part that relates to the under-depreciated cost (if depreciation deductions are made), or inventories that were not written off to production cost accounts.
- "Upcoming receipts of debts for shortfalls discovered in previous years." This subaccount reflects the market value of material assets related to the unpaid part of the obligation.
During the audit process, the correctness of the write-off of the amounts shown on the account summarizing information about property received free of charge is checked. Operations are carried out in the following order:
- For fixed assets provided to the enterprise free of charge - as depreciation is calculated.
- For other material assets received free of charge - as assigned to production.
Conclusion
The main problem facing the accountant is establishing the boundary between receipts that can be immediately included in the current period and those that should be attributed to the future. When solving this problem, the specialist’s experience and professionalism will be of great importance. In most cases, no serious difficulties arise. Difficulties may arise with the amounts of debts resulting from shortages. If the responsible persons do not admit guilt, then the enterprise will not only not make a profit, but will suffer certain losses. If the problem cannot be resolved peacefully, then compensation can only be obtained through the court as part of a lawsuit.
"Accounting", N 11, 2001
Income received in the reporting period, but relating to the following reporting periods, is reflected in the balance sheet as a separate item as deferred income (clause 81 of the Regulations on accounting and financial reporting in the Russian Federation).
Deferred income includes future receipts of debt for shortfalls identified in the reporting period for previous years; the difference between the amount to be recovered from the guilty parties and the value of the valuables accepted for accounting when shortages and damage are identified (Chart of accounts for accounting financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n).
Deferred income is accounted for in account 98 “Deferred income”. The credit of the account records all types of income related to future periods, and the debit accounts for their write-off. This account has 4 sub-accounts in which the corresponding receipts are reflected:
- "Income received for deferred periods"
- "Free receipts"
- "Upcoming debt receipts for shortfalls identified in previous years"
- "The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables."
In addition, other sub-accounts can be opened to account 98 to reflect future income.
Accounting for income received for deferred periods
Subaccount 98-1 “Income received for deferred periods” directly takes into account the movement of income received in the reporting period, but relating to future reporting periods. Such income includes rent or rent; utility fees; revenue for freight transportation, for passenger transportation on monthly and quarterly tickets; subscription fee for using communication means, etc.
When reflecting amounts of income relating to future reporting periods, entries are made in accounting by crediting account 98, subaccount 1 “Income received for future periods”, and debiting accounts for cash, financial investments or settlements with debtors and creditors:
Dt sch. 50 "Cash", 51 "Current accounts", 52 "Currency accounts", 55 "Special bank accounts",
the amount of income received relating to future reporting periods;
Dt sch. 58 "Financial investments",
K-t sch. 98-1 "Income received for future periods"
the amount of accrued payments against future income accounted for as financial investments;
K-t sch. 98-1 "Income received for future periods"
for the amount of accrued payments against future income.
As the reporting period to which these incomes relate comes, the amounts recorded under the credit of account 98-1 are transferred to the appropriate accounts intended to determine the financial result, which is reflected in the accounting records by the following entries:
K-t sch. 90 "Sales"
the amount of income of future periods (for example, payments received in advance for communication services, utilities, services for the transportation of goods and passengers, etc.) included in the proceeds from the sale of the reporting period to which they relate;
Dt sch. 98-1 "Income received for future periods",
by the amount of future income (for example, rent) included in other income.
Such an accounting entry is made if the provision of temporary use of its assets under a lease agreement for a fee is not the subject of the organization’s activities. The rent received will be treated as operating income.
In organizations whose main activity is the rental of assets, rent is included in income from ordinary activities and is reflected in the accounting records as follows:
Dt sch. 98-1 "Income received for future periods",
K-t sch. 90 "Sales".
Transactions related to the sale of services and the receipt of future income are subject to taxation when calculating value added tax (Article 146 of the Tax Code of the Russian Federation). The amount of income received is reduced by the amount of VAT payable to the budget, which is reflected in accounting by the following entry:
Dt sch. 98-1 "Income received for future periods",
Example. In the reporting period, quarterly rent was received from the tenant for the rental of premises relating to the future (subsequent period), 7,200 rubles, including VAT 1,200 rubles.
Dt sch. 76 "Settlements with various debtors and creditors",
K-t sch. 98-1 "Income received for future periods"
7200 rub. the amount of accrued rent for future periods;
Dt sch. 51 "Current accounts",
K-t sch. 76 "Settlements with various debtors and creditors"
7200 rub. the amount of rent received into the current account for the quarter;
Dt sch. 98-1 "Income received for future periods",
K-t sch. 68 "Calculations for taxes and fees"
1200 rub. for the amount of accrued VAT.
The amount of income received in the form of quarterly rent, reflected on the credit of subaccount 98-1, is reduced by the amount of VAT payable to the budget (according to clause 1.1 of article 146, chapter 21, part II of the Tax Code of the Russian Federation). The remaining payment amount is RUB 6,000. (RUB 7,200 - RUB 1,200) is subject to write-off as operating income.
Dt sch. 98-1 "Income received for future periods",
K-t sch. 91 "Other income and expenses"
2000 rub. (RUB 6,000: 3 months) for the amount of the quarterly fee for one month of the quarter included in operating income.
Accounting for gratuitous receipts
The value of assets (fixed assets, intangible assets, tangible assets) received by the organization free of charge is taken into account in subaccount 98-2 “Gratuitous receipts”.
Assets received free of charge, including under a gift agreement, are accepted for accounting at market value on the date of acceptance for accounting, which must be confirmed by documents or through an examination. The market value of assets received free of charge is determined by the organization on the basis of the prices for this or a similar type of asset in effect on the date of their acceptance for accounting (PBU 10/99).
In accounting, an entry is made for the market value of assets received free of charge:
These assets are taken into account as part of the organization’s non-operating income (clause 8 of PBU 9/99).
When they are written off, correspondence of accounts is drawn up in accounting:
The procedure for writing off gratuitous receipts depends on the type of assets.
Fixed assets received free of charge are written off to account 91 “Other income and expenses” as depreciation is calculated for each type of fixed asset. Other material assets received free of charge - as they are written off to the accounts of production costs (sales expenses): 20 “Main production”, 23 “Auxiliary production”, 25 “General production expenses”, 26 “General business expenses”, 44 “Sales expenses ".
Example. The organization received a personal computer free of charge from an individual, the market value of which is 15,000 rubles. The useful life is 10 years, the depreciation rate is 10% per year.
The following entries will be made in the organization's accounting records:
Dt sch. 08 "Investments in non-current assets",
15,000 rub. to the market value of the received object, attributed in the amount of capital investments to future income;
15,000 rub. on the market value of the capitalized object;
125 rub. (RUB 15,000 x 10%: 12 months) for the amount of monthly depreciation;
Dt sch. 98-2 "Gratuitous receipts",
K-t sch. 91 "Other income and expenses"
125 rub. the amount of attributing the cost of objects to non-operating income as depreciation is calculated.
According to the Chart of Accounts, assets acquired using targeted financing are taken into account in a similar manner. However, instead of account 08 “Investments in non-current assets”, account 86 “Targeted financing” is used. For the amount of budget funds allocated by a commercial organization to finance the costs of acquiring assets, the following is recorded in accounting:
K-t sch. 98-2 "Gratuitous receipts."
Example. A commercial organization received targeted financing for the purchase of a passenger car in the amount of 120,000 rubles. Its service life is determined to be 12 years. The depreciation rate is 8.33% per year.
The following entries are made in accounting:
Dt sch. 51 "Current accounts",
K-t sch. 86 "Targeted financing"
120,000 rub. the amount of funding received;
Dt sch. 08 "Investments in non-current assets",
K-t sch. 60 "Settlements with suppliers and contractors"
120,000 rub. for the amount of the purchased object;
Dt sch. 60 "Settlements with suppliers and contractors",
K-t sch. 51 "Current accounts"
120,000 rub. for the amount of the paid object;
Dt sch. 01 "Fixed assets",
K-t sch. 08 "Investments in non-current assets"
120,000 rub. for the amount of the capitalized object;
Dt sch. 86 "Targeted financing",
K-t sch. 98-2 "Gratuitous receipts"
120,000 rub. for the amount of targeted financing allocated to deferred income;
Dt sch. 20 "Main production", 23 "Auxiliary production", 25 "General production expenses", 26 "General business expenses", 44 "Sales expenses",
K-t sch. 02 "Depreciation of fixed assets"
833 rub. the amount of depreciation charges accrued monthly;
Dt sch. 98-2 "Gratuitous receipts",
K-t sch. 91 "Other income and expenses"
833 rub. the amount of the write-off value of a passenger car, allocated in equal shares to non-operating income within the limits of the cost and its useful life.
Accounting for upcoming debt receipts for shortfalls identified in previous years
The movement of upcoming debt receipts for shortfalls identified in the reporting period for previous years is taken into account in subaccount 98-3 “Forthcoming debt receipts for shortfalls identified in previous years.” These include amounts of shortages of valuables recognized by guilty persons or awarded for recovery by the court.
Receipts of this kind are reflected in accounting by the following correspondence accounts:
for the amount of shortages of valuables recognized by guilty persons or awarded for recovery by the court;
for the amount of simultaneous attribution of the value of material assets to the guilty person.
The procedure for collecting the amount of the deficiency presented for compensation from the guilty persons is determined by the organization independently, taking into account the requirements of labor legislation. The amount of the shortfall can be reimbursed from the employee’s salary, paid in cash to the organization’s cash desk or to a bank account. The following entries are made in accounting:
for the amount of the shortage withheld from the wages of the guilty person;
Dt sch. 50 "Cash", 51 "Cash accounts",
K-t sch. 73-2 "Calculations for compensation for material damage"
for the amount of the shortfall deposited into the cash register or into the current account.
As the debt for shortfalls is repaid, the amounts received are taken into account as part of non-operating income as profit of previous years identified in the reporting year (clause 8 of PBU 9/99), with the following accounting entry:
K-t sch. 91 "Other income and expenses."
Example. By decision of the court, the amount of the deficiency in the amount of 2,500 rubles identified in the reporting period for previous years was awarded to be recovered from the guilty person. According to the order of the head of the enterprise, the shortage must be reimbursed to the cashier in full.
In accounting, transactions to reflect future debt are documented in the following order:
for the amount of debt awarded by a court decision from the guilty person for the shortage identified in the reporting period for previous years:
Dt sch. 94 "Shortages and losses from damage to valuables",
K-t sch. 98-3 "Upcoming debt receipts for shortfalls identified in previous years"
2500 rub. for the amount of debt awarded by a court decision to the guilty person for the shortage identified last year;
Dt sch. 73-2 "Calculations for compensation for material damage",
K-t sch. 94 "Shortages and losses from damage to valuables"
2500 rub. for the amount of the shortage;
Dt sch. 50 "Cashier",
K-t sch. 73-2 "Calculations for compensation for material damage"
2500 rub. for the amount of the shortfall contributed by the guilty person to the cash register;
Dt sch. 98-3 “Upcoming debt receipts for shortfalls identified in previous years”,
K-t sch. 91 "Other income and expenses"
2500 rub. for the amount of incoming debt for the shortfall, attributed to the organization’s income.
Accounting for the difference between the amount to be recovered from the guilty parties and the cost of shortages of valuables
Subaccount 98-4 “The difference between the amount to be recovered from the guilty persons and the book value for shortages of valuables” takes into account the difference between the amount recovered from the guilty persons for missing material and other valuables and the value listed in the organization’s accounting records. This difference arises between the cost of missing valuables, attributed to subaccount 73-2 “Calculations for compensation of material damage”, and their value reflected in account 94 “Shortages and losses from damage to valuables”, since the debit of account 94 “Shortages and losses from damage to valuables" are taken into account:
for missing or completely damaged commodity-material assets - their actual cost;
for missing or completely damaged fixed assets - their residual value (original cost minus the amount of accrued depreciation);
for partially damaged material assets - the amount of determined losses.
The identified amount of the difference is reflected in the accounting records as follows:
Dt sch. 73-2 "Calculations for compensation for material damage",
K-t sch. 98-4 "The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables."
As the cost of missing valuables is recovered from the guilty persons from wages or by depositing cash into the cash register or into a current account, the amount of the difference is written off by correspondence of accounts:
K-t sch. 91 "Other income and expenses."
Example. A shortage of materials was discovered in the organization, the reason for which was their damage due to the fault of the financially responsible person. The actual cost of materials is 10,000 rubles. Market value - 15,000 rubles. When purchasing materials, VAT of 2,000 rubles was paid, which was claimed for reimbursement from the budget until damage to the materials was discovered. By order of the head of the enterprise, the amount of the shortage is subject to compensation by the financially responsible person in the amount of the market value of the materials.
The following entries are made in accounting:
Dt sch. 94 "Shortages and losses from damage to valuables",
K-t sch. 10 "Materials"
10,000 rub. by the amount of the actual cost of materials being written off;
Dt sch. 73-2 "Calculations for compensation for material damage",
K-t sch. 94 "Shortages and losses from damage to valuables"
10,000 rub. the amount of the actual cost of materials attributed to the guilty party;
Dt sch. 73-2 "Calculations for compensation for material damage",
K-t sch. 68 "Calculations for taxes and fees"
2000 rub. the amount of VAT attributed to the guilty person;
Dt sch. 73-2 "Calculations for compensation for material damage",
K-t sch. 98-4 "The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables"
5000 rub. the amount of the difference between the market and actual cost of materials;
Dt sch. 70 "Settlements with personnel for wages",
K-t sch. 73-2 "Calculations for compensation for material damage"
17,000 rub. for the amount of the shortage withheld from the wages of the guilty person;
Dt sch. 98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”,
K-t sch. 91 "Other income and expenses"
5000 rub. by the amount of the difference between the market and actual cost of materials.
Analytical accounting for account 98 “Deferred income” is carried out in the context of each open sub-account:
98-1 “Income received on account of future periods” - for each type of income;
98-2 “Gratuitous receipts” - for each gratuitous receipt of valuables;
98-3 “Forthcoming debt receipts for shortfalls identified in previous years” - for each type of shortfall or the person responsible;
98-4 “The difference between the amount to be recovered from the guilty persons and the book value for shortages of valuables” - by type of missing valuables or guilty persons.
At the end of the reporting month, account 98 “Deferred income” may have a credit balance in the amount of income to be written off to the corresponding accounts in subsequent periods to which these incomes relate, which is reflected in the balance sheet of the reporting period.
N.V.Parushina |
Oryol Commercial Institute
In the balance sheet, in the section intended to reflect information about the organization’s obligations, there is an article “deferred income”. Moreover, there is no definition of the concept “” in domestic regulatory documents, only the Instructions for the application of the financial and economic activities of an organization, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n (hereinafter referred to as the Instructions for the application of the chart of accounts), characterizes account 98 “Future income periods".
So, in accordance with the Instructions for the use of the Chart of Accounts account 98 “Deferred income” is intended to summarize information:
- about income received (accrued) in the reporting period, but relating to future reporting periods;
- about upcoming receipts of debt for shortfalls identified in the reporting period for previous years;
- about the differences between the amount to be recovered from the guilty parties and the value of the valuables accepted for accounting when shortages and damage are identified.
For this purpose, the Chart of Accounts provides for the opening of the following subaccounts to account 98 “Deferred Income”:
98-1 "Income received for future periods";
98-2 "Gratuitous receipts";
98-3 “Upcoming debt receipts for shortfalls identified in previous years”;
98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, etc.
Income received for deferred periods
On subaccount 98-1 "Income received for future periods" the movement of income received in the reporting period, but relating to future reporting periods, is taken into account: rent or apartment payments, utility bills, revenue for freight transportation, for the transportation of passengers on monthly and quarterly tickets, subscription fees for the use of communications equipment, etc. In the credit of account 98 “Deferred income”, in correspondence with the accounts for cash or settlements with debtors and creditors, the amounts of income related to future reporting periods are reflected, and in the debit - the amounts of income transferred to the corresponding accounts upon the onset of the reporting period for which these incomes are included.
Let's analyze these facts of economic activity. For example, an organization received money or other funds from individuals or legal entities for the upcoming delivery of products, goods, works (services) in the future. In our opinion, in this case there are all the signs of recognition of accounts payable to the recipient of funds. However, it should be noted that travel tickets are usually not refundable. Thus, the organization will definitely provide this service, and the amounts received will become income in the following reporting periods. Commenting on this type of service as rent, it should be noted that the lease agreement can be terminated and the lessor will be forced to return these funds back. Therefore, based on the principle of conservatism, these amounts cannot now be recognized as income. The presence of intermediate categories is by no means a means of promoting greater understanding of financial reporting indicators. At the same time, it should be noted that an accounting account is a way of summarizing accounting data on types of property, liabilities and business transactions according to certain economic characteristics. Professor Ya.V. Sokolov notes that “any fact of economic life must be qualified in the terms of the adopted chart of accounts. By choosing a chart of accounts, the accountant predetermines the order of accounting records. This is possible due to the fact that the current Chart of Accounts is not registered with the Ministry of Justice of Russia and, therefore, is advisory in nature, but this does not mean that for the sake of a falsely understood freedom and unnecessarily, every accountant should draw up his own plan.” The attention of the magazine's readers should also be drawn to the fact that the legislator proposes to reflect this information on the "Deferred Income" account; at the same time, in the Accounting Regulations “Accounting Statements of an Organization” PBU 4/99, approved by Order of the Ministry of Finance of Russia dated 07/06/1999 N 43n, for the purposes of the balance sheet this information is classified as liabilities (in the section “Short-term liabilities”). In this case, it would be appropriate to recall the statement of the German accountant E. Schmalenbach (1873 - 1955), who defined all liabilities as income that has not yet become expenses.
Accounting provisions belong to the second level of the regulatory system, and the Chart of Accounts and Instructions for its application belong to the third. Therefore, an organization in some cases can use one or another account to reflect individual transactions, but the reflection of these transactions in the financial statements of the organization is based on other requirements.
Value of assets received free of charge
On subaccount 98-2 "Free receipts" The value of assets received by the organization free of charge is taken into account. In the credit of account 98 “Deferred income”, in correspondence with account 08 “Investments in non-current assets” and other accounts, the market value of assets received free of charge is reflected, and in correspondence with account 86 “Targeted financing” - the amount of budget funds allocated by a commercial organization for financing expenses. Amounts recorded on account 98 “Deferred income” are written off from this account to the credit of account 91 “Other income and expenses”:
- for fixed assets received free of charge - as depreciation is calculated;
- for other material assets received free of charge - as production costs (sales costs) are written off to accounts.
The theory and practice of accounting is based on the principle of correspondence, the essence of which is that income must correspond to the expenses through which they (income) were received. Meanwhile, Professor Ya.V. Sokolov notes that from time immemorial, gratuitous receipts have been attributed to the profit of the reporting period when this gift was received and, naturally, this was considered the profit of that reporting period. True, there were accountants who said that the balance sheet asset reflected the actually invested capital, and the funds received “for free” were assessed pro memoria - for memory and were valued at 1 ruble. But recently, notes Ya.V. Sokolov, the desire for theoretical purity has led to the fact that the market value of an object received free of charge is included in future income. Thus, the gift is recognized as income, but because the gift will generate income over several years, the income from it is spread out over those several years, understating the income accountants report.
It should be noted that there is another way to receive property free of charge to the organization - surplus property identified during the inventory. In this case, this property is valued at market value. At the same time, in the Instructions for using the Chart of Accounts, the value of this property is not classified as deferred income. In Art. 12 of the Federal Law of November 21, 1996 N 129-FZ “On Accounting”, in relation to the reflection of information on the value of surpluses, it is stated that “excess property is accounted for, and the corresponding amount is credited to the financial results of the organization, and for a budgetary organization - to increase financing (funds) )". Thus, this amount is immediately recognized as other income. We believe that there are no fundamental differences between these operations. In both cases, the property is received free of charge; the legislator also established the same method of valuation for this property - market value. Therefore, there is every reason to reflect these transactions uniformly in accounting.
We consider it necessary to agree with the opinion of Ya.V. Sokolov that theoretically it would be more correct to admit that depreciation is not charged for fixed assets received free of charge. In this case, the cost of finished products does not include depreciation. This emphasizes that depreciation can be considered a transfer of previously incurred expenses, and not a fund for the renewal (renovation) of fixed assets.
Upcoming debt receipts for shortfalls identified in previous years
On subaccount 98-3 "Upcoming debt receipts for shortfalls identified in previous years" the movement of upcoming debt receipts for shortfalls identified in the reporting period for previous years is taken into account. The credit of account 98 “Deferred income” in correspondence with account 94 “Shortages and losses from damage to valuables” reflects the amounts of shortages of valuables identified in previous reporting periods (before the reporting year), found guilty by persons, or the amounts awarded for collection on them court. At the same time, account 94 “Shortages and losses from damage to valuables” is credited with these amounts in correspondence with account 73 “Settlements with personnel for other operations” (sub-account “Settlements for compensation of material damage”). As the debt for shortfalls is repaid, account 73 “Settlements with personnel for other operations” is credited in correspondence with the cash accounts while simultaneously reflecting the received amounts on the credit of account 91 “Other income and expenses” (profits of previous years identified in the reporting year) and debit account 98 “Deferred income”.
I'M IN. Sokolov noted that “accountants at first did not see the problem, then they “woke up from their sleep” and began to pull everything that was possible under this category. At first these were “gifts”, then even past losses were included here.”
revenue of the future periods– these are incomes received (accrued) in the reporting period, but relating to future reporting periods.
Accounting for future periods
To account for future income, account 98 “Deferred income” is used.
According to the Instructions for the application of the Chart of Accounts (approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n), the following sub-accounts should be opened for account 98 “Deferred Income” (the list is left open):
98-1 “Income received for future periods.” The accrual of deferred income in the event of receipt of budget funds to finance expenses is reflected in the credit of account 86 “Targeted financing” of subaccount 98-1 “Income received for deferred periods” correspondence with the account:
Income of future periods is reflected;
98-2 “Gratuitous receipts.” The instructions for using the Chart of Accounts establish that the value of assets received by an organization free of charge is taken into account as a credit to subaccount 98-2:
In correspondence with the invoice - in case of receipt of fixed assets;
In correspondence with accounts 10 “Materials” 41 “Goods” - in the case of gratuitous receipt of materials;
98-3 “Upcoming debt receipts for shortfalls identified in previous years”;
98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables.”
Subsequently, the amounts initially recognized on the credit account are subsequently written off as income, in most cases - gradually, in parts (as income is identified):
Other income is recognized (revenue is recognized) for:
For fixed assets received free of charge - as depreciation is calculated;
Other material assets received free of charge - as sales expenses are written off to accounts (accounting for production costs).
Deferred income and regulatory documents
Note that since 2011, the use of account 98 “Deferred income” is limited to situations that are directly provided for by regulatory documents on accounting.
Currently, the regulatory documents regulating the following are considered as deferred income:
budget funds allocated to a commercial organization to finance expenses;
unused balances of targeted budget financing provided to the organization at the end of the reporting period, accounted for in account 86 “Targeted financing”, in accordance with clause 20 of PBU 13/2000;
the initial cost of non-current assets received free of charge;
the difference between the total amount of lease payments according to the lease agreement and the cost of the leased property.
Here is a list of regulatory documents that provide for the use of account 98 “Deferred income”:
Regulatory (methodological) documents containing recommendations for reflecting individual receipts as deferred income
|
Regulatory (methodological) document |
Document text |
|
Clause 9 of the Accounting Regulations “Accounting for State Aid” PBU 13/2000 |
Targeted financing is taken into account as deferred income |
|
Clause 29 of the Guidelines for accounting of fixed assets |
The cost of fixed assets received free of charge is reflected in the credit of the deferred income account. |
|
Clause 4 of the Instructions on reflecting transactions under a leasing agreement in accounting |
The difference between the total amount of lease payments under the leasing agreement and the cost of the leased property is reflected in deferred income |
|
Chart of accounts for financial and economic activities of organizations |
Commercial organizations that receive funds from the budget or extra-budgetary funds to finance any activities, projects, etc., reflect the use of targeted funding amounts in the account. This line also shows the unused balances of targeted budget financing provided to the organization at the end of the reporting period, which are taken into account in accounting on account 86 “Targeted financing”. This procedure is established by PBU 13/2000 “Accounting for State Aid”, which was approved by Order of the Ministry of Finance of Russia dated October 16, 2000 N 92n. In addition, the initial cost of fixed assets received by the organization free of charge is reflected in the debit of the account in correspondence with the credit of account 98 “Deferred income”. Deferred income: details for an accountant
Accounts 0 401 40 141 “Deferred income from penalties for violation... account 0 401 40 141 “Deferred income from penalties for violation... account 0 401 40 140 “Deferred income from penalties for violation.. . the disputed amount of the penalty as part of deferred income (7,800 - 5,200) rubles... |