Classification of accounting (financial) statements

Accounting (financial) statements are classified:

1. by type

2. according to the frequency of compilation

3. according to the degree of generalization of reporting data

4. according to the amount of information included in the reporting

By type, reporting is divided into:

a) accounting - contains information about the property, liabilities and financial results of the organization’s activities in monetary terms.

b) statistical - compiled on the basis of accounting data, it reflects individual indicators of the enterprise’s economic activity, both in value and in physical terms.

c) operational - compiled on the basis of operational accounting data, it reflects data for short periods of time (day, decade, etc.).

These indicators are used for operational control and management of the enterprise.

Based on the frequency of preparation, reporting is divided into:

a) intra-annual (interim) - this is reporting for a day, decade, month, quarter, half-year. These are the periodic financial statements of an organization.

b) annual - these are the organization’s reporting for the year, compiled as of January 1 of the year following the reporting year.

According to the degree of generalization of reporting data, reporting is divided into:

a) primary - constituted by an organization as an independent economic entity

b) consolidated - compiled by a higher (parent) organization based on primary reports of dependent organizations

Based on the volume of information, reporting is divided into:

a) internal - typical for the activities of a separate section of the organization, compiled for use within the organization

b) external - typical for the organization as a whole, compiled for external users

Qualitative characteristics of financial statements. Submission deadlines

The purpose of financial statements is to present information about the financial position (balance sheet), financial results (profit and loss statement) and changes in the financial position (cash flow statement) of an economic entity. At the same time, such a concept as reporting transparency, which means the accessibility and understandability of information about the organization, acquires special importance.

Important qualitative features of reporting information are also relevance and reliability (reliability).

Relevance and reliability are the parameters that make reporting information useful in decision making and, essentially, because it presents an objective and truthful picture. Reported information is considered relevant if it is capable of influencing the valuation or decision currently being made. Relevance of information, in turn, is characterized by timeliness, relevance and value for forecasting and reconciling results.

The significance of reporting data has a significant impact on an assessment or management decision. The preparer of accounting reports must decide which of the many data available to him can satisfy the requirements of different users. The significance of a particular element of information is determined not only by its value in quantitative terms, but also by the role that that element can play. An item of information is significant if its exclusion affects decisions made by a user on the basis of the accounting reports.

Reliability is another important feature of the quality of accounting information, guaranteeing its users not only an objective description, an acceptable reflection of the events that it should represent, but also the absence of significant errors and deviations. The reliability (reliability) of information presented in accounting reports is influenced by the following factors:

Truthfulness of data presentation;

The predominance of content over form. Sometimes transactions and events presented in accounting (financial) statements are subject to different interpretations. They can be considered from the point of view of legal form or from the economic side. Organizations in their reports (explanatory note) should especially highlight the economic content of transactions and events, even if the legal form differs from the economic content and implies a different assessment of the event;

Neutrality. Information must be objective in relation to various users.

Prudence. When assessing the reliability of the information presented in the financial statements, it is necessary to take into account uncertainty factors. Although the reports are based on past events, the meaning of many of them is revealed only when they are considered in terms of implications for the future (for example, the extent of bad debts). It is not possible to accurately determine these impacts at the time of reporting. Therefore, preparers of financial statements need to exercise caution when assessing these consequences;

Possibility of verification. Transactions or events contained in the financial statements may be carried out if the independent auditors agree that they correspond with a reasonable degree of accuracy to the underlying transactions or events;

Comparability. Drawing up accounting (financial) reports in a comparable form makes it possible to study the commercial activities of different organizations or the same organization for a certain period.

The procedure and deadlines for submitting financial statements - these points are regulated by Article 15 of the Law “On Accounting”.

Thus, according to this article, all organizations, with the exception of budgetary ones, submit annual financial statements in accordance with the constituent documents to the founders, participants of the organization or owners of its property, as well as to the territorial bodies of state statistics at the place of their registration. State and municipal unitary enterprises submit financial statements to bodies authorized to manage state property. Financial statements are presented to other executive authorities, banks and other users in accordance with the legislation of the Russian Federation.

At the same time, when maintaining accounting, it is important to know that organizations, with the exception of budgetary and public organizations (associations) and their structural divisions that do not carry out entrepreneurial activities and do not have turnover in the sale of goods (works, services) other than disposed of property, are obliged submit quarterly financial statements within 30 days after the end of the quarter, and annual financial statements within 90 days after the end of the year, unless otherwise provided by the legislation of the Russian Federation.

The submitted annual financial statements must be approved in the manner established by the constituent documents of the organization.

Budgetary organizations submit monthly, quarterly and annual financial statements to a higher authority within the deadlines established by it.

Public organizations (associations) and their structural divisions that do not carry out entrepreneurial activities and, apart from disposed property, do not have turnover in the sale of goods (works, services), submit financial statements only once a year based on the results of the reporting year in a simplified format:

· balance sheet;

· profit and loss statement;

· report on the intended use of the funds received.

Accounting statements can be presented to the user by the organization directly or 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 the financial statements does not have the right to refuse to accept the financial statements and is obliged, at the request of the organization, 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 of the financial statements is obliged to transfer the acceptance receipt to the organization in electronic form.

The date of submission of financial statements by an organization is considered to be the date of sending a postal item with an inventory of the attachment or the date of its sending via telecommunication channels or the date of actual transmission according to ownership.

Organizations prepare monthly, quarterly and annual financial statements. In this case, the first and second financial statements are interim.

The reporting year for all organizations covers the period from January 1 to December 31 of the calendar year inclusive.

The legislation also establishes deadlines for submitting financial statements: quarterly - within 30 days after the end of the quarter, and annual - within 90 days after the end of the year.

Deadlines for submitting financial statements:

· annual reporting - within 90 days after the end of the year (then

· quarterly (interim) reporting - within 30 days

Annual financial statements are submitted to the tax authorities after their approval by the competent body of the legal entity, determined by the constituent documents of the organization. In an LLC, such a body is the General Meeting of Participants, in a Closed Joint Stock Company, OJSC - the General Meeting of Shareholders.

The absence of financial and economic activities or movement in bank accounts is not a reason for failure to submit financial statements.

In accordance with Articles 165 and 264.1 of the Budget Code of the Russian Federation (Collected Legislation of the Russian Federation, 1998, No. 31, Art. 3823; 2007, No. 18, Art. 2117; No. 45, Art. 5424; 2010, No. 19, Art. 2291 ; 2013, No. 2331; 2014, No. 43, No. 27, Article 4278), Articles 21 and 23 of the Federal Law of December 6, 2011 -FZ “On Accounting” (Collected Legislation of the Russian Federation, 2011, No. 50, Art. 7344; 2013, No. 30, Art. 4084; No. 44, Art. 5631), subclause 5.2.21(1) of the Regulations on the Ministry of Finance of the Russian Federation, approved by Decree of the Government of the Russian Federation of June 30, 2004 No. 329 (Collection of Legislation of the Russian Federation, 2004, No. 31, Art. 3258; 2012, No. 44, Art. 6027), in order to regulate the budgetary accounting of assets and liabilities of the Russian Federation Federation, constituent entities of the Russian Federation and municipalities, operations that change the specified assets and liabilities, accounting of state (municipal) budgetary and autonomous institutions and the preparation of budget reporting, accounting (financial) reporting of state (municipal) budgetary and autonomous institutions, I order:

Registration No. 46519

3. The provisions of this Standard do not apply:

a) when compiling and submitting special-purpose accounting (financial) reporting by reporting entities, including management reporting, as well as tax reporting and reporting compiled for state statistical observation;

b) in the preparation and presentation of general-purpose accounting (financial) reporting by reporting entities exercising, in accordance with the budget legislation of the Russian Federation, budgetary powers to maintain budget accounting and compile and present budget reporting, with the exception of government institutions, unless otherwise provided by regulatory legal acts, regulating accounting and preparation of accounting (financial) statements.

II. Terms and their definitions

4. Terms defined in other regulatory legal acts governing accounting and preparation of accounting (financial) statements are used in this Standard in the same meaning as they are used in these regulatory legal acts.

5. In this Standard, terms and definitions are used with the meanings specified below.

Reporting date - the date on which accounting (financial) statements are prepared for the reporting period.

Explanations to the accounting (financial) statements, as well as to publicly disclosed indicators of the accounting (financial) statements (hereinafter - Explanations) - systematized and (or) formalized in a unified way information that complements the information presented in the reports that make up the accounting (financial) statements (hereinafter - reports), in the form of a verbal description of publicly disclosed indicators and (or) detail of information disclosed in the reports that make up the accounting (financial) statements.

Disclosure of information - reflection of information (in value, natural (numerical) terms and (or) in the form of verbal descriptions) in the reports that make up the accounting (financial) statements, in the Explanations, as well as public disclosure of the indicators of the accounting (financial) statements.

III. General requirements for accounting (financial) reporting

6. The objectives of accounting (financial) statements are to present information necessary when making economic decisions by users of accounting (financial) statements:

a) on the sources, distribution and use of financial resources;

b) on methods of financing the activities of the reporting entity and meeting its needs for financial resources;

c) on the ability of the reporting entity to financially support its activities and perform state (municipal) powers (functions), carry out activities to perform work, provide services;

d) about the financial position of the subject of reporting and its changes;

e) other information necessary to assess the results of the reporting entity’s activities, including with respect to the costs of the reporting entity’s activities, the effectiveness of such activities, the results achieved, and compliance with the restrictions provided for by the budgetary legislation of the Russian Federation.

General purpose accounting (financial) reporting is used to predict the volume of resources required to continue the activities of the reporting entity, including forecast (estimated) values ​​of resources that are expected to be received (created) in the process of such activities, as well as forecasting the volume of risks associated with such activities and uncertainties.

7. To achieve these goals, accounting (financial) statements contain the following information:

a) about assets;

b) about obligations;

c) about income;

d) about expenses;

e) about cash flows;

f) additional non-financial information presented as separate reports forming the accounting (financial) statements, including the Explanatory Note to the accounting (financial) statements or as part of.

Accounting (financial) statements are generated on the basis of accounting data.

8. In accounting (financial) statements, indicators of assets and liabilities, income and expenses are reflected separately (in detail), except for cases where the regulatory legal acts governing accounting and preparation of accounting (financial) statements provide for the reflection of such indicators in a generalized manner - asset indicator less liabilities, income less expenses.

Assets for which the regulations governing accounting and preparation of accounting (financial) statements provide for the formation of reserves are reflected in the balance sheet of reporting entities minus these reserves.

Cash flows are reflected in the cash flow statement as receipts or outflows of funds in accordance with the requirements of this Standard and other regulations governing accounting and preparation of accounting (financial) statements.

9. Data from the annual accounting (financial) statements are confirmed by the results of the inventory of assets and liabilities.

10. The accounting (financial) statements of the reporting entity include indicators of all its structural divisions, including branches and representative offices, regardless of their location.

11. Each report included in the accounting (financial) statements, as well as Explanations, is named separately.

In addition, each report contains the following information:

a) name of the reporting entity;

b) degree of generalization of reporting: individual or consolidated;

a) the nature of the reclassification of reporting indicators;

b) cost indicators subject to reclassification of reporting indicators;

c) the reason for the reclassification of reporting indicators.

If the reclassification of reporting indicators for the previous reporting period is not carried out by the reporting entity, then in the Explanations the reporting entity shall indicate:

the reason why the reporting indicators are not reclassified;

the nature of the adjustments to the accounting (financial) reporting indicators that would be made in the event of reclassification of the reporting indicators.

19. Adjustments to comparative information in connection with changes in the accounting policies of the reporting entity or corrections of errors are made in the manner established by other regulatory legal acts governing accounting and preparation of accounting (financial) statements.

20. All significant indicators of accounting (financial) statements reflecting groups of assets, liabilities, and other accounting items are presented separately.

Indicators that differ from others in their content (functional, economic) are disclosed separately, except in cases where the reflection of generalized indicators does not affect the materiality of the information disclosed in the accounting (financial) statements.

Indicators, the generalization of which does not affect the materiality of the information disclosed in the accounting (financial) statements, but which are necessary for the reliable presentation of information about the results of the reporting entity’s activities, are disclosed separately in the Explanations.

21. For all publicly disclosed indicators of accounting (financial) statements, the reporting entity discloses comparable information for at least one similar previous period, except for cases where otherwise provided by regulatory legal acts governing accounting and preparation of accounting (financial) statements.

If there are descriptive (verbal) explanations for individual indicators of the accounting (financial) statements, comparable descriptive information for the previous period is disclosed if it is necessary for users of the accounting (financial) statements to understand such indicators.

22. When publicly disclosing accounting (financial) reporting indicators, indicators prepared on the basis of accounting data are distinguished from other information about the activities of the reporting entity in such a way that users of public accounting (financial) statements can distinguish such information from other information about the activities of the reporting entity .

23. Publicly disclosed accounting (financial) reporting indicators are presented in thousands, millions or billions of rubles. For more detailed information, when drawing up the Explanations, the indicators of the accounting (financial) statements are presented in other units of measurement.

24. Disclosed indicators of the accounting (financial) statements of the entity include:

indicators reflected in the balance sheet, income statement, cash flow statement, Explanatory Note;

reporting indicators that provide a comparison of indicators approved by the law (decision) on the budget and budget execution indicators;

Explanations.

Balance Sheet

25. Balance sheet indicators characterize the financial position of the reporting entity as of the reporting date. Balance sheet indicators are presented at the beginning and end of the reporting year.

26. Assets and liabilities in the balance sheet are presented as divided into long-term (non-current) and short-term (current).

27. An asset of a reporting entity is classified as current if it meets at least one of the following criteria:

a) the asset is intended for consumption, transfer (sale) or conversion into cash (other assets) within 12 months after the reporting date;

b) the asset is a financial asset classified in accordance with regulations governing accounting and preparation of accounting (financial) statements as a short-term asset;

c) the asset represents cash or cash equivalents (short-term, highly liquid investments that are easily convertible into a known amount of cash and are not subject to significant risks of changes in their value, for example, demand deposits), provided that there are no restrictions on their exchange or use for repayment liabilities for a period not exceeding 3 months after the reporting date.

Current assets include inventories, accounts receivable and other assets that can be consumed, transferred (sold) or converted into cash within 12 months after the reporting date, even if they are not expected to be disposed of during that period. Current assets also include the current portion of long-term financial assets, that is, the portion of an entity's long-term financial assets that are due to be repaid within 12 months after the reporting date.

All other assets of the reporting entity, including tangible, intangible and financial assets, are classified as non-current.

28. An obligation of a reporting entity is classified as short-term if it meets at least one of the following criteria:

a) it is expected to be repaid within 12 months after the reporting date (even if the original repayment period exceeded 12 months);

b) the liability is a financial liability classified in accordance with regulations governing accounting and preparation of accounting (financial) statements as a short-term liability;

c) the reporting entity does not have the unconditional right to defer the repayment of the obligation for at least 12 months after the reporting date.

Obligations such as accrued wages and other accrued expenses associated with the activities of the reporting entity, accounts payable for taxes, fees and other obligatory payments to the budgets of all levels of the budget system of the Russian Federation (with the exception of investment tax credits provided in the manner established by law Russian Federation, the period of provision of which exceeds 12 months after the reporting date) constitute part of the working capital used by the reporting entity. These liabilities are classified as current even if they are due to be settled more than 12 months after the reporting date. Current liabilities also include the current share of long-term liabilities, that is, part of the entity’s long-term liabilities that are subject to repayment within 12 months after the reporting date.

All other liabilities of the reporting entity are classified as long-term.

29. If the reporting entity expects and has the right under the terms of the financing agreement to roll over or refinance any obligation for a period exceeding at least 12 months after the reporting date, the obligation is classified as non-current, even if it is due on a shorter period. If the reporting entity does not have the right to roll over or refinance an obligation, then the potential for rollover or refinancing of such liability is not taken into account and the liability is classified as current.

30. An obligation arising as a result of a violation by the reporting entity of the terms of the financing agreement and subject to execution at the request of the creditor is classified as short-term, even if the creditor’s requirements do not provide for fulfillment of the obligation within 12 months after the reporting date and as of the reporting date the reporting entity did not have the right to defer fulfillment of the creditor's claim for a period of more than 12 months after the reporting date.

If, before the reporting date or after the reporting date, but before the date of approval of the accounting (financial) statements, by agreement with the creditor, the reporting entity has the right to defer the repayment of the obligation for a period ending no earlier than 12 months after the reporting date, provided that the creditor does not have the right to require the reporting entity to fulfill an obligation within 12 months after the reporting date; such an obligation is classified as long-term.

31. For debt obligations classified in the accounting (financial) statements as short-term, the accounting entity discloses information about the following events that occurred between the reporting date and the date of approval of the accounting (financial) statements:

a) refinancing for a long-term period;

b) elimination of violation of the long-term financing agreement;

c) obtaining from the creditor a deferment of fulfillment of obligations for a period ending no earlier than 12 months after the reporting date.

32. The assets of reporting entities are disclosed on a net basis, that is, less any accumulated depreciation of depreciable assets, impairment losses, provisions for impairment of inventories and provisions for doubtful debts.

33. In the Explanations, the reporting entity discloses detailed, significant information about assets and liabilities necessary for users of the accounting (financial) statements to understand the financial position of the reporting entity.

34. In the Explanations, the reporting entity discloses information about net assets. In cases where net assets do not exceed the lower limit of permissible limits established by the current legislation of the Russian Federation, the Explanations additionally disclose the reasons for deviation from the requirements, as well as an action plan to normalize indicators.

Financial results report

35. Balanced reflection of income and expenses (reflection of income minus the corresponding expenses) when disclosing indicators of the financial results statement is allowed only in cases provided for by this Standard and other regulatory legal acts governing accounting and preparation of accounting (financial) statements.

36. When detailing the indicators of the financial performance report, the reporting entity discloses detailed information on income and expenses for the reporting period and the same period of the previous year, systematized by the degree of their significance in relation to the financial result of the reporting period.

Explanatory note and explanations

37. In addition to disclosing balance sheet indicators, financial performance statements, and cash flow statements, the reporting entity is required to draw up an explanatory note to the accounting (financial) statements.

The explanatory note to the accounting (financial) statements of the reporting entity is presented in an orderly manner and contains the following information:

a) information about the location and legal form of the reporting entity;

b) information about changes in the name of the entity during the reporting period, if such changes were made;

c) a list of the main regulatory legal acts regulating the activities of the reporting entity;

d) the name of the founder of the reporting entity and the name of the body exercising external state (municipal) financial control;

e) if the reporting entity was created for a certain period, then information about the duration of its activities;

f) information about the main activities of the reporting entity, other information about the activities of the entity that is essential for users of the reporting to understand the financial position, financial results of activities and cash flows of the entity;

g) an indication that the presented accounting (financial) reporting indicators are formed on the basis of regulatory legal acts governing accounting and preparation of accounting (financial) reporting;

h) a brief description of the main provisions of the accounting policy, including:

methods for assessing assets, liabilities, income and expenses used by the reporting entity when preparing accounting (financial) statements in cases where regulatory legal acts governing accounting and preparation of accounting (financial) statements allow the reporting entity to choose one of several acceptable assessment methods assets, liabilities, income and expenses;

the accounting policies applied by the reporting entity when it first applies this Standard and the nature of such provisions;

information about professional judgments made in the process of applying accounting policies and having a significant impact on the performance of the accounting (financial) statements (for example, professional judgments about whether objects are classified as fixed assets or investment real estate, whether contracts are lease agreements);

other provisions of the accounting policy of the reporting entity necessary for users of the accounting (financial) statements to understand its financial position, financial performance and cash flows;

i) information, the disclosure of which in the Explanatory Note to the accounting (financial) statements is required in accordance with this Standard, other regulatory legal acts governing accounting and preparation of accounting (financial) statements;

j) information about the key sources of uncertainty in accounting estimates, including key assumptions about future events and other key sources of uncertainty that have the risk of causing a material adjustment to the carrying amount of assets and liabilities in the next reporting year, as well as the name and carrying amount such assets and liabilities to . Such accounting estimates include, for example, estimates of the recoverable amount of certain classes of property, plant and equipment, estimates of the impact of technological obsolescence on the value of inventories, estimates of provisions in connection with the future outcome of ongoing litigation;

k) information on the results of the reporting entity’s implementation of its financial and economic activity plan (budget estimate) or an indication of the name and place of publication of the report containing such information;

l) information on the results of the reporting subject’s execution of a state (municipal) task or an indication of the name and place of publication of the report containing such information;

m) other financial and non-financial information necessary for users of the accounting (financial) statements to understand the financial position, financial performance and cash flows of the reporting entity.

V. Transitional provisions of this Standard upon its first application

38. When applying this Standard for the first time, the reporting entity discloses the accounting (financial) reporting indicators on its portal on the Internet information and telecommunications network and (or) other resource on the Internet information and telecommunications network.

39. The presentation of comparable information for at least one previous reporting period in the accounting (financial) statements generated upon the first application of this Standard is carried out by the reporting entity in accordance with its accounting policies applied in the reporting period.

40. If the reporting entity does not present comparable information for at least one previous reporting period in the accounting (financial) statements generated upon the first application of this Standard, this fact is indicated in the Explanations.

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* approved by order of the Ministry of Finance of the Russian Federation dated March 25, 2011 No. 33n (registered with the Ministry of Justice of the Russian Federation on April 22, 2011, registration number 20558), as amended by orders of the Ministry of Finance of the Russian Federation dated October 26, 2012 No. 139n (registered with the Ministry of Justice of the Russian Federation on December 19, 2012, registration number 26195), dated December 29, 2014 No. 172n (registered with the Ministry of Justice of the Russian Federation on February 4, 2015, registration number 35854), dated March 20, 2015. No. 43n (registered with the Ministry of Justice of the Russian Federation on April 1, 2015, registration number 36668), dated December 17, 2015 No. 199n (registered with the Ministry of Justice of the Russian Federation on January 28, 2016, registration number 40889), dated November 16, 2016 No. 209n (registered with the Ministry of Justice of the Russian Federation on December 15, 2016, registration number 44741);

** approved by order of the Ministry of Finance of the Russian Federation dated December 31, 2016 No. 256n “On approval of the federal accounting standard for public sector organizations “Conceptual framework for accounting and reporting of public sector organizations” (registered with the Ministry of Justice of the Russian Federation on April 27, 2017, registration number No. 46517);

Document overview

The federal accounting standard for public sector organizations “Presentation of accounting (financial) statements” has been approved. It is used in the preparation of budget reporting, accounting (financial) reporting of state (municipal) budgetary and autonomous institutions, starting with reporting in 2018.

In particular, the standard establishes mandatory general requirements for the minimum composition and procedure for presenting publicly disclosed indicators of accounting (financial) statements and explanations thereto, the publication of which is mandatory in accordance with Russian legislation.

The standard is applied in the preparation of both individual and consolidated general purpose reporting. Its provisions are applied simultaneously with the application of the provisions of the federal accounting standard "Conceptual Framework for Accounting and Reporting of Public Sector Organizations."

General requirements for reporting are established, the composition and content of indicators of accounting (financial) statements that are subject to public disclosure are listed.

The document also indicates what the reporting period is, the reporting date. The beginning of the reporting period is determined for entities created during the reporting year, or whose type was changed at this time.

Accounting (financial) reporting, goals and objectives

Concept, composition of financial statements and general requirements for them

Accounting statements are a unified system of data on the property and financial position of an organization and the results of its economic activities. It is compiled in accordance with established forms based on accounting data (Regulations on accounting “Accounting statements of an organization” (PBU 4/99), approved by Order of the Ministry of Finance of Russia dated July 6, 1999 N 43n, - as amended on September 18, 2006 N 115n). Reporting data is used by external users to assess the effectiveness of the organization's activities, as well as for economic analysis within the organization itself. At the same time, it 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.

Modern accounting (financial) reporting should be distinguished by transparency and interpretability of information about equity capital, which is ensured, in our opinion, by an item-by-item decoding of the main components: authorized capital, share premium, reserve capital, retained (reinvested) profit. Differentiated information about the actually paid capital allows the founders to calculate the price of equity capital, assess the measure of financial risks and financial leverage. An additional increase in indicators requires not only the balance sheet, profit and loss statement, but also a statement of changes in capital (for example, accrued dividends on ordinary and preferred shares). Additional information on the owner's capital is expected to be presented in accordance with the requirements of IFRS. In terms of disclosing the organization's obligations, it is necessary to group capital financed by third parties in the form of external sources. The allocation of debt financing items will not only make it possible to more clearly distinguish between equity and borrowed capital, but also reveal the mechanism for servicing debt obligations, control the timeliness, completeness and payment of the financial resources provided. A fundamentally important point in structuring liabilities is their differentiation into short-term and long-term; unification of capital providers within the framework of current obligations into four groups - commercial partners, government agencies, personnel and settlements with founders; The participation of investors is supposed to be reflected in the context of the organization’s financing forms. The presented approach to disclosing liabilities in the balance sheet according to the minimum program, but taking into account additional indicators (for example, in an explanatory note), will, in our opinion, allow us to assess the scale of debt financing, the optimality of its sources, the price of borrowed capital and other important financial characteristics. The information disclosed in the accounting (financial) statements must be simple enough to interpret. This goal cannot be achieved without reforming the accounting and reporting system in accordance with IFRS. According to the Accounting Regulations “Accounting Statements of an Organization” (PBU 4/99), approved by Order of the Ministry of Finance of the Russian Federation dated July 6, 1999 No. 43n, “accounting statements are a unified system of data on the property and financial position of an organization and its results economic activity, compiled on the basis of accounting data in established forms.”

Accounting statements are a unified system of data on assets, capital, liabilities and financial results of an organization’s economic activities, generated on the basis of accounting data in approved forms. Accounting statements serve as a tool for planning and monitoring the achievement of the economic goals of an economic entity, the main one of which is making a profit, as well as preserving and increasing capital. Profit and capital, their value and changes are reflected in the financial statements. Based on their data you can:

Assess the financial situation of potential partners;

Make a decision on the feasibility and conditions of doing business with a partner;

Avoid issuing loans to unreliable clients;

Assess the feasibility of acquiring assets (for example, securities) of a particular organization;

Diagnose bankruptcy, etc.

Based on the frequency of preparation, a distinction is made between interim financial statements and annual statements.

The annual financial statements include the following forms: - balance sheet (Form No. 1);

• - profit and loss statement (form No. 2);
• - explanations to the balance sheet and profit and loss statement, which include:

statement of changes in capital (Form No. 3);

cash flow statement (Form No. 4);

Appendix to the balance sheet (Form No. 5);

explanatory note.

The final part of the auditor's report issued based on the results of the mandatory audit of financial statements.

Accounting (financial) statements in accordance with regulatory requirements for accounting and reporting are prepared monthly and submitted in accordance with the established procedure quarterly or annually to the appropriate addresses (founders, statistical and tax authorities). Based on the results of the quarter, two main forms of reporting are compiled - the balance sheet (Form No. 1) and the profit and loss statement (Form No. 2); at the end of the year, reporting is prepared in all forms, including a report on changes in capital (Form No. 3) and a report on cash flow (form No. 4). An appendix to the balance sheet, consisting of certificates that explain the main items of forms No. 1 and 2, is drawn up by organizations at their own discretion. In addition, the reporting includes special forms on the use of budget funds and forms provided for specific sectors of the national economy (railway transport, communications). The quality of the explanatory note and the presence of an auditor’s report (if the organization is the subject of a mandatory audit) are of great importance to ensure that the reporting is properly informative. The content of the explanatory note is not regulated by law. It is determined by the peculiarities of economic activity, its changes during the reporting period, the development of new types of production, entry into new markets, etc. When considering the content of reporting, first of all, the completeness and accuracy of its preparation should be determined. This is ensured by its formal, arithmetic and logical control. First of all, it is necessary in the reporting forms to highlight those items that are the most significant, that is, they occupy the largest share in the final indicators, and to identify the need for their detailing. In addition, it is advisable to determine whether the organization is legitimately failing to complete certain typical reporting lines. For example, the balance sheet may not highlight the profitable use of property, but Form No. 2 shows significant income from the rental of property or at an enterprise where the production process is taking place; the balance sheet does not reflect “Fixed Assets” and there is no data on off-balance sheet accounting of fixed assets, i.e., leased ones. 25The second stage of verification is arithmetic, i.e. control over the correctness of detail and aggregation of indicators, as well as over the accuracy of filling out all reporting forms (the same data in all forms, etc.). A special place in understanding the content of reporting is occupied by its interpretation depending on the adopted accounting policy, in particular on the accepted forms of assessment and write-off of property, the fact of registration of property (for example, in leasing operations - after full payment or after putting into operation) and recognition before - moves and expenses. The third stage is associated with logical verification. At this stage, the analyst, taking into account the current economic situation, finds out how much one can trust the data of internal and external information about the quality of manufactured (sold) products (or services), the income and expenses of the analyzed business entity, the assessment of the qualifications and integrity of its managers and personnel, the state of the accounting accounting and control. In particular, at this stage it is necessary to familiarize yourself with the comparison sheets of the inventory of fixed and working assets. In practice, the absence of discrepancies between the actual availability of inventories and the corresponding accounting data for their various types is impossible due to natural loss, just as the complete coincidence of their write-offs almost rarely coincides with the norms of natural loss. The absence of such discrepancies is a signal of a fictitious or low-quality inventory. Another signal that causes distrust of internal information is a sharp deviation of the profitability of individual transactions from its industry average level. The lack of comments from internal control regarding the storage of property, as well as regarding the execution of transactions related to the main and non-core activities should cause concern. In the process of logical verification of the collected information, other inconsistencies may be discovered, for example, regarding the level of certain types of production and distribution costs, which undermine confidence in the information. At the stage of logical verification, the analyst’s conclusions are mainly preliminary in nature and depend entirely on his qualifications and experience in practical auditing or auditing activities. The logical verification technique is very subjective and almost impossible to formalize. 26The final stage of checking the statements should be an adjustment of the value of property, balance sheet profit and the amount of equity capital. Making such adjustments is objectively necessary even with the strictest adherence to the accounting and reporting procedures established by laws and regulations, as well as the generation of external information.

The Federal Law of November 21, 1996 No. 129-FZ “On Accounting” states that the main objectives of accounting are:

• * formation of complete and reliable information about the activities of the organization and its property status;
• * providing information necessary for internal and external users of financial statements to monitor compliance with legislation, business transactions and their feasibility, the presence and movement of property and liabilities, the use of material, labor and financial resources in accordance with approved norms, standards and estimates;
• * preventing negative results of the organization’s economic activities and identifying intra-company reserves to ensure its financial stability. Presentation of information is an important condition for ensuring the stability of market relations. Therefore, accounting legislation pays great attention to the quality of this information.

In turn, with the increasing level of requirements for the quality of information on the part of market participants and regulatory authorities, business entities are also interested in improving internal information systems, which will allow them to acquire a reputation as companies providing high-quality information. Essential data on the main elements of reporting of any commercial organization (assets, liabilities, capital, income, expenses and profits) in the balance sheet prepared in financial reporting format is proposed to be characterized in the amount of the minimum requirements prescribed by laws and regulations, as well as in the form additional information provided by the organization's management on its own initiative. In particular, the minimum required data option means disclosure of information about assets that support operating, financial and investing activities.

The advisability of reflecting such information in the balance sheet is dictated by the need to control compliance with parity in the level of return on assets, the importance of monitoring the risk of capital return, and comparative characteristics of the profitability of an organization’s business with the profitability of organizations included in the immediate economic space (immediate market environment). By qualitative characteristics of financial statements, international standards mean attributes that make the information useful to users. These include relevance (the ability to use information to make proactive decisions) and reliability. The following factors influence the appropriateness of reporting: timeliness, relevance, predictive value and feedback.

Timeliness - access to information when the user's need arises. As foreign practice shows, the period for publishing reports should not exceed 6 months from the date of its preparation, otherwise there is no point in using the information. In Russia, the same deadline for publishing reports has been adopted.

Significance - all data that can have a significant impact on the decision-making of information users must be reflected in the reporting. The predictive value of information lies in the ability to determine the viability of an organization over the long term.

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International Financial Reporting Standard “First Time Adoption (IFRS 1)” (IFRS-1) discloses the structure and content of each reporting form.

The purpose of this standard is to disclose the basic requirements for the content of financial statements. These requirements are aimed primarily at ensuring the comparability of information contained in financial statements.

Financial statements are a structured presentation of data about the business activities and financial position of a company. The main objective of reporting is to meet the needs of a wide range of users for financial information necessary for making economic decisions. To accomplish this task, financial statements must include data on assets, liabilities, equity, income and expenses (including profits and losses), and movements. These materials, contained in exhibits to financial statements, assist users in forecasting an entity's ability to accumulate economic benefits.

Requirements and conditions for preparing financial statements

Financial statements must present fairly the financial position, financial performance for the reporting period and cash flows of the reporting company. Its reliability is ensured by the strict application of all provisions of IFRS, the correct selection and application of accounting policies that allow the presentation of relevant, reliable, comparable and understandable information, which, together with its correct additional disclosure in explanatory notes, allows users to understand the essence of the company’s operations, events that occurred in course of its activities, and their impact on the financial results and financial position of the company.

As you know, the essence of the accrual method is that business transactions and completed events are reflected in the financial statements in the reporting period in which they actually occurred, regardless of the payment or receipt of funds to pay for these transactions and events.

Expenses are reflected when corresponding income arises and is reflected in accounting. In the absence of income, expenses incurred are reflected in budgetary regulatory items as deferred expenses or expenses carried over to the next period for work in progress or the creation of inventory. This is how the principle of matching expenses with income works.

The standard states that “each material item shall be presented separately in the financial statements. Immaterial amounts should be aggregated with amounts of a similar nature or purpose and should not be presented separately.” When preparing reports, one should proceed from the fact that one should not clutter the reports with non-essential items, thereby complicating its perception and understanding by users.

How to separate essential information from non-essential information? There are no precise quantitative criteria, although certain provisions state that items exceeding the total for a given report should be considered material. Qualitatively, information is considered material if its absence or insufficient disclosure could influence the decisions that users make on the basis of the financial statements.

Items of assets and liabilities, income and expenses are not subject to offset and are reflected in the statements as separate items in cases where they are significant.

Offsetting is possible only when:

IFRSs require or allow offsets;
items of assets, liabilities, profits, losses, and associated expenses are defined as immaterial.

It is important to understand that offsetting items in financial statements reduces users' understanding of the organization's transactions; reduce their ability to predict future performance and financial condition of the organization.

The standard contains some guidance and clarification that limits the application of the standard's guidance regarding the offsetting of individual items. Balance sheet items are reflected at net cost. The notes to the financial statements should disclose the amounts of accrued reserves and should not offset balance sheet items presented at their residual value.

Reporting period and submission deadlines. The reporting period for financial statements is the calendar year. The beginning of the reporting period can be determined from the 1st day of any month of the year. Intra-annual reporting by quarters or months is considered interim and is presented to users by decision of the organization's management.

An important condition for the usefulness of information is the timely presentation of financial statements to users. The standard sets a deadline for the preparation and submission of reports in accordance with the laws or business customs in the markets of individual countries.

Each report included in the financial statements must have a name that distinguishes it from other forms of reporting.

In addition, the financial statements - and, if necessary, each individual report - include general background information describing:

Name and corporate designation of the organization;
an indication of the coverage of the reporting provided by only one organization or several organizations included in the consolidated group;
information about the reporting date on which it was compiled, about the reporting period based on the results of operations of which other financial reports were compiled;
the reporting currency, indicating its unit of measurement, used for the preparation of financial statements (it is necessary to inform users of the level of accuracy applied when presenting numerical data in the statements).

A complete set of financial statements includes:

Balance Sheet;
profit and loss statement;
statement of capital flows;
cash flow statement;
accounting policies and explanatory material.

The balance sheet should include such indicators as cash and cash equivalents, inventories, accounts receivable and investments, tax liabilities, capital and reserves. Additional materials disclosing the content of the listed items are provided in the balance sheet or in appendices to the financial statements in accordance with the requirements of IFRS.

The main idea of ​​drawing up a balance sheet, as is known, is to disclose the company's funds and their sources in the context of the main items of assets and liabilities, as well as to compare data for the reporting period with data for the previous period.

The income statement must include the following information: financial result from operating activities, expenses, part of the income and expenses of associates and joint ventures, tax expenses, profit or loss from operating activities, unexpected income and expenses, minority interest (for consolidating companies) and profit or loss for the reporting period. Additional information disclosing the content of the listed items is provided in the balance sheet or in appendices to the financial statements in accordance with the requirements of IFRS.

As interpreted before October 2004, IFRS 1 included such concepts as: profit from ordinary activities, . Currently, the word “net” has been removed from IFRS 1. This appears to be a transition point towards the concept of “full income” (the IASB plans to issue a discussion paper “Full Income” in 2005).

For the income statement, IFRS 1 provides two alternative forms, one of which classifies expenses according to their origin, the other according to their function.

Classifying expenses by origin means that items such as , etc., reflected in the income statement, are simply amounts of homogeneous costs. Classification of expenses by function implies their analysis according to three main items: cost of sales, commercial and administrative expenses. This approach is considered the most common.

The main idea of ​​the income statement is to adjust the income received in the reporting period by adding the amount of expenses received and subtracting the expenses incurred, which ultimately gives the amount of profit for the reporting period.

The statement of capital flows is also an integral part of financial statements. The presentation form of this report contains separate information for each element and reserves and lines with a list of their possible changes. A separate line shows data on net profit for the reporting period, which is an integral part of equity capital and forms the final data on the company’s capital.

The main idea of ​​the capital flow statement is to sequentially adjust the capital balance for the previous reporting period by subtracting accrued and the result of revaluation of investments and adding the result of revaluation of fixed assets, net profit for the reporting period and additional, which ultimately gives the amount of the company's capital at the end of the reporting period.

The accounting policies and explanatory material reflect the basic methodological principles for the preparation of financial statements adopted in this organization.

The standard provides a list of essential information that must be included in the Balance Sheet and Income Statement.

The requirements of international financial reporting standards became the basis for the development of a national standard - the Regulations on accounting for “organizations” (PBU 4/99), approved by order of the Ministry of Finance of the Russian Federation No. 43n.

PBU 4/99 defines the composition, content and methodological basis for the formation of financial statements of organizations that, according to the legislation of the Russian Federation, are legal entities (except for credit and budget organizations).

Accounting statements must provide a reliable and complete picture of the financial position of the organization, and if the data is insufficient, additional indicators and explanations can be used, which complies with the requirements of IFRS.

In accordance with PBU 4/99, the balance sheet must characterize the financial position of the organization as of the reporting date, i.e. the last calendar day of the reporting period.

As in world practice, assets and liabilities are presented in the balance sheet - depending on their maturity (maturity) - as short-term and long-term.

In form, the balance sheet contains the names of sections, groups of items and individual items for assets and liabilities.

The developed form of the balance sheet of organizations is, of course, a reflection of new approaches to the formation of balance sheet indicators, taking into account the transition to a new accounting methodology embedded in.

The balance sheet is compiled in rubles (thousand rubles, million rubles), in net valuation, i.e. minus the regulatory values ​​that are disclosed in the notes to the balance sheet (for example, depreciation of fixed assets, intangible assets, uncovered loss, etc. .p.).

The result of structuring the articles was a more accurate construction of balance sheet sections that meets IFRS recommendations. The conceptual apparatus has been clarified: for example, liabilities show long-term and short-term liabilities, which more accurately reflects the essence of debt to banks, legal entities and individuals.

At the same time, the structuring of sections and consolidation of articles based on PBU 4/99 necessitates an increase in the volume of information disclosed in explanations and additions to reporting.

Explanations to the balance sheet and income statement are interrelated with disclosure.

They must disclose the following additional information:

On the availability at the beginning and end of the reporting period and on the movement during this period of certain types of fixed assets, including leased and intangible assets;
on the availability and movement of fixed assets transferred to this category from inventory and supplies and vice versa;
about the presence and movement of individual species;
on the presence and movement during the reporting period of certain types of receivables and payables, including advances received and issued;
about the state and changes in the organization’s capital;
on the availability and movement of shares issued by the joint-stock company;
on the availability and movement of reserves for future expenses and reserves for doubtful debts;
about products (works, services) by type of activity and geographic markets;
on the composition of production costs ();
on the composition of non-operating income and expenses;
about extraordinary facts of economic activity and their consequences;
about events after the reporting date and contingent facts of economic activity;
about discontinued operations;
about affiliated persons, i.e. persons who own more than the capital of the company (founders, shareholders, company managers, etc.);
about earnings per share.

Additions to the balance sheet appear in the form of separate reporting forms (for example, cash flow statement; report on the intended use of funds received) and in the form. At the same time, the explanations to the balance sheet should disclose the main types of activities, the average annual number of employees for the reporting period, as well as the composition of the members of the executive and control bodies of the organization.

The balance sheet is also accompanied by calculations, certificates, declarations - in particular, for , for , for , for excisable goods, etc.

Thus, the balance sheet is a form of reporting open to users, providing the opportunity to familiarize themselves with the financial position of the organization, including the performance indicators of its branches, representative offices and other divisions, including those allocated to separate balance sheets. The balance sheet based on the results of work for the reporting period is presented to each founder within the established time frame.

The balance sheet is signed by the head and chief accountant of the organization.

The main provision of IFRS 1 is the requirement for full retrospective application of all IFRSs in force at the reporting date when preparing the first financial statements. There are six exceptions to this requirement to facilitate retrospective application in cases where the impact on reporting would be greater than the effect on its users. Companies will need to follow requirements regarding both the retrospective application rule and exceptions to it. This guide is intended to help with this.

The transition to IFRS is associated with certain difficulties. Companies will need to change their existing accounting policies to comply with the complex requirements relating to pensions, deferred taxes, provisions and shares. Some companies may need to collect additional information to comply with increasingly stringent IFRS disclosure requirements.

When to adopt IFRS 1. Any entity preparing financial statements in accordance with IFRS for the first time for the period beginning on or after 1 January 2004 or any subsequent periods must adopt IFRS 1. Early adoption is encouraged. – a company can prepare financial statements in accordance with IFRS for the first time as early as 2003.

The first financial statements prepared in accordance with IFRS is the first that “clearly and substantially complies with the requirements of IFRS.”

Opening balance sheet prepared in accordance with IFRS. First-time adopters prepare an opening balance sheet in accordance with IFRS as of the date of transition to IFRS, which is the end of the earliest period for which full comparative information is prepared in accordance with IFRS.

Many companies will present such information in accordance with IFRS 1 as at 1 January 2004. Their financial statements must include comparative information for at least one full financial year. Publication of the opening balance sheet is not required.

In the opening balance sheet prepared in accordance with IFRS:

All assets and liabilities that must be reflected in accordance with IFRS are reflected;
assets and liabilities prohibited from recognition under IFRS are not reflected;
all items of assets, liabilities and capital are classified in accordance with IFRS;
all balance sheet items are assessed in accordance with IFRS.

Adjustments to the financial statements resulting from the first-time application of IFRS are recorded within or in another line of equity.

Accounting policy. The first financial statements under IFRS are prepared on the basis of accounting policies that meet the requirements of IFRS in force at the end of the reporting period. Therefore, many companies will be required to develop accounting policies that comply with the requirements of IFRS in effect at 31 December 2005. These policies are applied retrospectively when preparing the opening IFRS balance sheet and presenting information for all other periods covered by the first IFRS financial statements.

The transition provisions of individual standards and the guidance on changes to accounting policies contained in IFRS should be applied by companies already reporting under IFRS. They are not applicable for companies preparing financial statements under IFRS for the first time.

IFRS 1 clarifies the accounting policies used when preparing the first financial statements in accordance with IFRS. Planning for the transition to IFRS may be complicated by the development of new and revisions of existing IFRSs, which have not yet been published but will come into force in 2005. This includes revisions to the rules for accounting for financial instruments, new standards relating to share-based payments, and business combinations.

Business combination

Restatements of data relating to business combinations recognized before the transition date are not required. However, the company may, at its discretion, re-evaluate prior business combinations. In this case, subsequent business combinations will also need to be re-evaluated. Applying this exception is complex and requires careful consideration of the relevant guidance. Even if a company uses this exception, it may need to make some adjustments to its financial statements.

Thus, when reporting a business combination:

The classification of a business combination as an acquisition or a combination of interests remains unchanged;
acquired assets and liabilities are recognized in the opening balance sheet of the acquiring company, unless their recognition is completed by IFRS;
the historical cost of assets and liabilities acquired through a business combination is their pre-acquisition value;
assets and liabilities subsequently measured in accordance with the requirements of IFRS at fair value are revalued and shown at this measurement in the opening balance sheet.

Assets and liabilities that were not recognized after the business combination are recognized in the opening IFRS balance sheet only if they would have been recognized in the acquiree's IFRS balance sheet. The amount of goodwill (business reputation of the company) is adjusted only in special cases and is tested for provision on the date of transition to new standards. When switching to IFRS, goodwill written off directly to capital is not restored.

The financial statements of all subsidiaries must be consolidated in the opening balance sheet prepared in accordance with IFRS. At the same time, subsidiaries apply new standards simultaneously with the parent.

Fair value as initial measurement

Fair value can become the initial cost of any item of property, plant and equipment. A similar rule may apply to real estate investments where an entity decides to move from fair value to initial measurements, and to intangible assets that must be remeasured under IAS 38.

Employee benefits

Under IAS 19, companies can choose the accounting policy for recognizing current provisions in the income statement during a particular period. Companies applying IFRS for the first time may recognize all actuarial gains and losses in the opening balance sheet prepared in accordance with IFRS requirements and not charge them to profit and loss. This rule must be applied consistently to all pension plans.

Differences in foreign currency translation of foreign subsidiaries

When preparing a balance sheet under IFRS for the first time, differences from currency translation resulting from the preparation of consolidated statements of foreign subsidiaries are not determined.

Compound financial instruments

When the portion of a composite financial instrument that represents a liability is repaid, the company's equity items show the cost of the debt instrument originally recorded therein. This element of capital need not be disclosed if the liability portion of the composite financial instrument is settled at the date of transition to IFRS.

Assets and liabilities of subsidiaries

If a subsidiary adopts IFRS reporting later than its parent, it may measure its assets and liabilities either at the carrying amounts in the parent's consolidated financial statements or by applying IFRS 1 at the date of transition. In the consolidated statements of the parent company, the relevant items must be adjusted.

If a parent adopts IFRS later than its subsidiary, it must use the carrying amount of the subsidiary's assets and liabilities.

Derecognition

IAS 39 is applied retrospectively when financial assets and liabilities are derecognised. Financial assets and liabilities disposed of before 1 January 2001 are not recognized in the opening balance sheet prepared in accordance with IFRS. Derivatives and interest accruing as a result of derecognition of financial assets are recognized and all special purpose vehicles are consolidated in the entity's first financial statements to adopt IFRS.

Hedge accounting

Hedge transactions are not accounted for in the opening balance sheet or in the first-time IFRS financial statements unless the hedge accounting criteria set out in IAS 39 are met. Hedges should only be accounted for when the transactions are completed and documented. documents

Calculated values

Estimated values ​​as of the date of transition to IFRS, made in accordance with previously applied national standards, are included in the opening balance sheet prepared in accordance with IFRS, unless there is objective information about their error. If necessary, the calculated data can be revised. However, they should reflect conditions that existed at the date of transition to IFRS. Estimated values ​​that were not reflected in the statements in accordance with previously applied national standards must be shown in the statements under IFRS.

The disclosure includes an explanation of the differences between the following indicators calculated under previous national standards and IFRS:

Capital at the date of transition and at the end of the last period for which reporting was presented in accordance with national standards;
net profit for the last reporting period, the reporting for which was prepared in accordance with national standards.

These disclosures allow users to analyze the differences between national standards and IFRS and obtain sufficient information to understand what significant adjustments need to be made to the balance sheet and income statement. If impairment losses are recognized in the opening balance sheet prepared under IFRS, they must be disclosed in accordance with IAS 36. If fair value is taken as the initial measurement, the items so measured are broken down by item.

Interim financial statements must disclose the same information on equity and net income as the annual financial statements for the comparable interim period and at its end.

Interim financial statements

Interim financial statements in accordance with IFRS 34 contain a set of financial statements for a period shorter than the full reporting year of a given organization. Interim reporting may consist of abbreviated forms of financial statements, although it is not prohibited to prepare them in full as required by international financial reporting standards.

Each reviewer of the interim financial statements has had access to the annual financial statements for the preceding year, and therefore the notes to the annual financial statements are not repeated or updated in the interim statements. The latter should contain notes on those events and changes that occurred after the reporting date of the last annual report and disclose the company's results in the new reporting year.

The standard does not insist on mandatory preparation of interim financial statements, but encourages those companies whose securities are freely traded on the stock market to prepare them. The standard recommends that such reports be prepared no later than 60 days after the end of the interim reporting year. It is specifically emphasized that the reporting of such companies must be prepared in accordance with the requirements of IFRS 34.

The composition of interim financial statements may be smaller than the annual statements.

The condensed reporting format requires that each of the headings and sub-items included in the most recent annual financial statements be included in the report. Additional items are introduced in cases where their absence may lead to errors in assessing the financial position and financial results of the company.

If the latest annual reporting was presented as summary (consolidated) reporting, then the interim financial reporting is presented in a consolidated version.

Since the statement of changes in equity can be presented in two forms, the interim reports must use the same format as the most recent annual financial statements.

Basic and diluted earnings per share must be disclosed in interim financial statements.

Selected explanatory notes should not repeat those included in the annual financial statements. The information in the notes should be presented as representative of the entire financial year, but should also disclose events and transactions that are significant to an understanding of the financial statements for the interim period.

For interim financial statements presented in full as required by IFRS-1 and IFRS-7, all disclosures and explanations must be shown in full as required by all international financial reporting standards. The fact that interim financial statements have been prepared in accordance with IAS 34 must be specifically disclosed in the notes.

The frequency of interim financial reporting can be semi-annual or quarterly. The balance sheet is presented as of the end of the current interim period, and the comparative balance sheet is presented as of the end of the previous reporting year.

Profit and loss statements are presented for the current interim period and on a cumulative basis from the beginning of the year; comparative reporting indicators – for the comparable interim period of the previous year and on an accrual basis from the beginning of last year to the end date of the comparable interim period; statement of cash flows and statement of changes in equity – on an accrual basis from the beginning of the reporting period to the end of the interim period; comparative reporting data – for the comparable interim period, cumulatively from the beginning of last year.

The accounting policies for interim reporting are the same as for annual financial statements, except for changes made to accounting policies after the annual reporting date. Estimates for interim reporting must be made based on the period that has passed from the beginning of the year to the date of preparation of the interim reporting. But the principles for recognizing assets and liabilities, income and expenses in interim reporting are the same as those applied when preparing annual financial statements.

Interim financial statements throughout the year must be prepared on the basis of a single accounting policy. Therefore, if an accounting policy changes during the year, all previously presented interim financial statements must be re-presented with the changes resulting from the new accounting policy.

IFRS 8 (IFRS) amends this provision. If an organization changes its accounting policy, then all items and profits for previous years are recalculated. If you evaluate the effect of a change in accounting policy, then you select the period from which this re-accounting can begin.

Assets and liabilities in interim reporting are recognized and measured using the same rules and criteria that apply in the standards for annual financial reporting.

Income and expenses are recognized if they arose from the beginning of the reporting year during the period before the interim reporting date. In general, revenue is recognized when it is incurred.

IFRS 7 Cash Flow Statements

The purpose of this standard is to reflect in financial statements information about changes in cash and cash equivalents that would be presented in the Statement of Cash Flows.

Cash, according to IFRS 7, is cash and bank accounts, and cash equivalents are all short-term, highly liquid investments of cash that are easily convertible into cash and are not subject to a significant risk of changes in value.

The general idea of ​​drawing up a Cash Flow Statement is to determine the incoming and outgoing cash flows arising in the reporting period as a result of operating, investing and financing activities.

Operating activities bring the organization the main revenue and main cash flows. Operating also includes any other activity of the organization that is not related to investment or financial. Cash flows from operating activities generally result from transactions and events included in the definition of net income (loss).

Examples include cash flows such as:

Receiving funds from the sale of goods and provision of services;
receiving any commissions, fines and penalties due;
payments to suppliers for goods and services;
payments to company employees;
tax payments related to operating activities.

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In 2018, reporting will need to be generated based on a new concept.

General points

Already on January 1, 2018, Order No. 260n of the Ministry of Finance of Russia dated December 31, 2016 will come into force. The importance of the document is difficult to overestimate: the federal accounting standard for public sector organizations “Presentation of accounting (financial) statements” (hereinafter referred to as Standard No. 260n) has been approved.

On the same day as Standard No. 260n, the financial department issued another order - No. 256n, which approved the standard “Conceptual framework for accounting and reporting of public sector organizations” (hereinafter referred to as Standard No. 256n). These standards are directly related to each other.

Note that both standards do not contain any revolutionary provisions. Almost everything new in them is what is well known to accountants who began working before 2005 - the starting point of accounting (budget) accounting reforms for.

When Standard No. 260n is not necessary to apply

Institutions will not apply Standard No. 260n in all cases. Exceptions are listed in subparagraph “a”, paragraph 3 of Standard No. 260n. Thus, its provisions are not applied when preparing (presenting) special-purpose reporting, including management, tax and statistical.

Another exception (subclause “b” of clause 3 of Standard No. 260n) raises questions. Its wording mentions reporting entities that are endowed with appropriate budgetary powers, including in the preparation (submission) of reporting. Moreover, there are exceptions to this exception:

• government institutions;
• special situations that are provided for by regulatory legal acts regulating, among other things, reporting.

Thus, government institutions always apply Standard No. 260n (except when submitting special reports). At the same time, budgetary and autonomous institutions, having received budgetary powers, submit reports that are not subject to the standard in question.

Continuity Assumption

Standard No. 256n reveals the concept of continuity - one of the main assumptions in accounting. At the same time, paragraph 15 of Standard No. 260n makes its contribution and complements this conceptual concept. So, according to this paragraph, compliance with the assumption under consideration assumes that the reporting entity in the future will:

• continue to function;
• fulfill your obligations.

The exception includes cases where the founder has the following intentions in relation to such an entity, caused, inter alia, by necessity:

• carrying out liquidation;
• termination of activity.

Moreover, termination of activity will be considered as an exceptional case only if it occurs no later than three years after the date of approval of the statements. Moreover, not all reporting works as a limiter, but only that which is drawn up on the basis of the relevant standards.

Despite some cumbersomeness, this is a very important clarification. At least it defines at least some boundaries, since in Standard No. 256n the concept of the foreseeable future is not limited by any time frame. Meanwhile, the work of an accountant acquires the necessary certainty if it is possible to determine the boundaries of a particular fact of economic life. However, we note that the limitation of the foreseeable future to even three years in Standard No. 260n is a considerable period for the present time.

Terms and their definitions

Almost all of the terminology used in Standard No. 260n is borrowed from other regulations that accountants currently use. Moreover, Standard No. 260n emphasizes this fact, giving its interpretation only on three points. However, they are also quite familiar to accountants.

What Standard No. 260n calls explanatory notes in its description is very reminiscent of a familiar explanatory note. So, for example, an explanatory note for budgetary and autonomous institutions at present is certainly systematized information, since it presupposes a clear structure:

• text part in the form of a verbal description and (or) detailing of indicators from the reporting;
• various information that must be posted on established forms.

Accordingly, there is a second feature of the explanations established by Standard No. 260n - formalization of information in a unified way, if such a possibility exists. However, in the provisions of Standard No. 260n one can still notice a conflict:

• the explanatory note is mentioned as part of the reporting separately from the explanations (subparagraphs “d” and “f” clause 23 of Standard No. 260n);
• in section IV.III of Standard No. 260n, which is called “Explanatory Note and Explanations,” no distinction is made between them.

A related term to explanations is disclosure. There is nothing new here either:

• value, natural expression;
• verbal descriptions.

It is only noteworthy that verbal descriptions are provided not only for explanations, but also for the reports themselves.

Publicity of reporting

Standard No. 260n pays great attention to publicity. However, this is far from the publicity that is provided for commercial structures. In essence, Standard No. 260n refers to the legislative acts of the Russian Federation, which regulate reporting:

• publication methods;
• Internet placements;
• timing of public disclosure of reporting indicators.

There is only one limitation. The legally established deadlines for publication should not be earlier than the deadlines established for the formation and submission in the prescribed manner of annual reporting of entities.

Another aspect of publicity is also noteworthy. It is permissible to disclose the indicators of a reporting entity to third-party users outside of the principle of assumption of continuity of its activities. It is enough to indicate this fact in the Explanations and disclose:

• reasons for deviation from the fundamental principle;
• the impact of said non-compliance.

At the same time, the presentation and classification of publicly disclosed indicators should be unchanged from period to period. Exceptions are provided only for the following cases:

• significant changes in the nature of activities;
• unexpected results of the analysis of disclosed indicators, which may therefore be considered inappropriate and not in accordance with the accounting policies formed on the basis of the standards;
• changes in the regulatory framework governing both reporting and accounting.

There may also be other cases provided for by applicable regulations.

Reclassification of an asset (liability)

In contrast to the classification, a similar term with the prefix “re” could previously only be found in standards for the commercial sphere, and even then, as the name implies, international ones. In particular, reclassification means:

• reflection of the value of the object in another item(s) of the current balance sheet in comparison with the previous one;
• inclusion of an object in a different classification group (when information on it is disclosed in explanations in comparison with previous explanations, which is not a correction of an error or a consequence of an error).

The need to introduce reclassification was determined by Standard No. 260n due to the possibility of making changes to the presentation (classification) of publicly disclosed reporting indicators. At the same time, no one exempts the reporting entity from generating comparative information for previous reporting periods. Exceptions are allowed only in cases where reclassification is not practicable.

The use of reclassification must be described in the Explanations, disclosing not only its nature and reasons, but also listing indicators. It is especially necessary to dwell in detail in the explanations on cases where reclassification is practically impracticable.

Grouping indicators

All significant groups of reporting indicators, as now, must be presented separately. Sign of a group - indicators differ from others in content or function. Groups should be:

• clearly marked;
• isolated from other published information.

However, nonessential indicators, as now, will not be taken off the balance sheet. They will be combined with other indicators. However, that's not all. Standard No. 260n recognizes that immateriality is a relative concept and for some users, indicators that are insignificant for the vast majority can be very important.

The solution in this case is Explanations. Moreover, in the Explanation, the indicators can be more detailed even in terms of units of measurement, that is, starting not with a thousand rubles, moving on to millions and billions, but, in particular, with rubles.

The role of explanations will constantly increase, since Standard No. 260n requires that comparable information for at least one similar previous period be disclosed for all publicly disclosed groups of indicators. The only exceptions to this are cases where otherwise is expressly provided by regulations.

Reporting forms

Standard No. 260n regulates all forms as part of reporting. However, these are only general recommendations. For example, the balance sheet was considered without taking into account the characteristics of various reporting entities. Moreover, based on their definition, for example, short-term assets, it seems that the immediate characteristics of institutions are not taken into account.

The definitions in Standard No. 260n are given rather for other organizations that will submit reports along with typical institutions. However, some provisions of Standard No. 260n will certainly be applicable in practice by all institutions. So, for example, subparagraph “c” of paragraph 27 of Standard No. 260n states that the following will always be classified as short-term liabilities:

• accrued salary;
• other accrued expenses related to the activities of the reporting entity;
• accounts payable for taxes (fees) and other obligatory payments to the budgets of all levels of the budget system of the Russian Federation (with the exception of investment tax credits provided in the manner established by the legislation of the Russian Federation, the period for which exceeds 12 months after the reporting date).