Income from ordinary activities is revenue from sales of products, works, and services. Expenses for ordinary activities represent the cost of goods, works and services sold.

Conditions for accepting income and expenses into account.

Revenue is accepted for accounting if the following conditions are simultaneously met:

Expenses are accepted for accounting if the following conditions are simultaneously met:

the organization has the right to receive revenue arising from the terms of the contract or otherwise confirmed the amount of revenue can be reliably estimated there is confidence that the economic benefits of the organization will increase as a result of a particular transaction ownership of the goods, work, service has passed to the buyer the amount of expenses associated with the income received must be determined If at least one of the conditions is not met, the accounts reflect not revenue, but accounts payable for the asset received.

expenses were incurred in accordance with a specific agreement or legal requirements the amount of expenses can be reliably estimated there is a certainty that the economic benefits of the entity will be reduced as a result of a particular transaction If at least one of the conditions is not met, the accounting reflects not the expense, but the receivables.

Account 90 “Sales” is intended to summarize information about income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them.

During the year, account 90 collects data on the organization’s income and expenses for ordinary activities. Sub-accounts are opened for account 90:
90-1 "Revenue";
90-2 “Cost of sales”;
90-3 "Value added tax";
90-4 "Excise duties";
90-9 "Profit / loss from sales."

Proceeds from the sale are reflected in the credit of account 90 “Sales” and the debit of account 62 “Settlements with buyers and customers”.

At the same time, the cost of goods sold, products, works, services is written off to the debit of account 90 “Sales” from the credit of accounts 43 “Finished Products”, 41 “Goods”, 44 “Sales Expenses”, 20 “Main Production”, etc.

After the revenue is reflected in subaccounts 90-3 and 90-4 in correspondence with account 68 “Calculations for taxes and fees”, VAT and excise taxes are charged.

At the end of each month, the amount of debit turnover on subaccounts 90-2, 90-3, 90-4 is compared with credit turnover on subaccount 90-1. The resulting result is the profit or loss from sales for the month.

Thus,

To reflect the financial result from sales, subaccount 90-9 “Profit/loss from sales” is used, the result of which is written off at the end of the reporting month to account 99:
D 90-9 K 99 - the amount of profit for the month is reflected
D 99 K 90-9 - reflects the amount of loss received for the month.

At the end of each month, account 90 has no balance, but all subaccounts have debit or credit balances, the value of which accumulates.

At the end of the reporting year, after writing off the financial result for December, all subaccounts within account 90 are closed. In this case, the balances on them are transferred to subaccount 90-9:
D 90-1 K 90-9 - the balance of the “Revenue” subaccount is written off;
D 90-9 K 90-2, 90-3, 90-4 - the balance of subaccounts of account 90 is written off.

As a result of these entries, as of January 1 of the new reporting year, subaccounts account 90 do not have a balance.

Line 2110 “Revenue” (minus value added tax, excise taxes) shows revenue from the sale of products and goods, receipts associated with the performance of work and provision of services, business transactions (receipts associated with individual facts of economic activity), which are income from ordinary activities recognized by the organization in accounting in accordance with the conditions defined for their recognition in PBU 9/99 “Income of the organization”, and in the amount calculated in monetary terms in accordance with the rules of PBU, including the terms of contracts for the sale of goods and products , performance of work and provision of services (taking into account discounts (mark-ups), amount differences, changes in the terms of the contract, settlements in kind, etc.).

In addition to revenue from, income from ordinary types includes other income, provided that transactions that generate such income must be recognized as the subject of the company’s activities. Otherwise, these incomes are considered other.

This line is filled in as the difference between the credit turnover of the “Revenue” subaccount to account 90 and the debit turnover of the “VAT”, “Excise”, “Export duties” subaccounts of account 90 “Sales”.

Based on this, when determining income and expenses from activities indicated in the breakdown of individual indicators of the Profit and Loss Statement, one should be guided by the so-called materiality rule. Namely, it is necessary to decipher operations whose income is “significant”, that is, they constitute at least 5 percent of the total revenue of the enterprise.

Line 2120 “Cost of sales” reflects expenses for ordinary activities of the organization, i.e. taken into account costs of production of products, works, services in the share related to products, works, services sold in the reporting period. This indicator is shown in parentheses.

According to paragraph 8 of PBU 10/99 “Expenses of the organization”, expenses for ordinary activities are divided into:

Material;

Labor costs;

Contributions for social needs;

Depreciation;

The following are not considered expenses and are not reflected in the report:

Amounts from the sale of goods transferred in favor of the principal (principal, principal);

Costs for the acquisition of non-current assets (fixed assets, intangible assets, construction in progress, etc.);

Amounts transferred in the order of prepayment of material assets, works, services;

Amounts issued as a deposit;

Amounts transferred to repay a loan or loan previously received by an enterprise.

This line is filled in as a debit turnover of the subaccount “Cost of sales” of account 90 “Sales” in correspondence with accounts 20, 41, 43, 45, as well as 23 and 29 if the products of auxiliary and service industries are sold externally. Organizations that use account 40 “Product Output” to account for finished products must adjust the debit turnover in the “Cost of Sales” subaccount for the difference between the actual and standard cost of production. If the actual cost turns out to be higher than the standard cost, then the excess amount is added to the debit turnover of the “Cost of Sales” subaccount, and if lower, it is subtracted from it.

Gross profit is the first indicator in the profit and loss statement, in the definition of which there is no unity of understanding of its economic content.

According to clause 23 of the Accounting Regulations “Accounting Reports of an Organization” (PBU 4/99), approved by Order of the Ministry of Finance of Russia dated July 6, 1999 No. 43n, gross profit is the difference between the indicators “Revenue” and “Cost of Sales”.

The definition of gross profit given in the Big Economic Dictionary as the difference between the revenue of an enterprise or entrepreneur from the sale of goods and the costs of their production does not contradict the current Accounting Regulations.

The data presented in line 2100 “Gross profit (loss)” represents the difference between the indicators reflected in the first two lines of the report (line 2110 - line 2120). If a negative result (loss) is obtained, it must be indicated in parentheses.

On line 2210 “Commercial expenses” - manufacturing companies show expenses associated with the sale of products. Trade organizations reflect here the amount of distribution costs. The report includes only those expenses that were written off for sales.

Paragraph 9 of PBU 10/99 allows you to write off business expenses in two ways. The first is to distribute them between sold and remaining products. That is, all collected costs are written off to the cost of production: Dt 20 Kt 44. Then part of the commercial expenses as part of the cost is written off Dt 90 Kt 43. With this option, line 030 is not filled out.

The second method is that all business expenses include the cost of products sold in the reporting period: Dt 90 Kt 44. In this case, line 2210 is filled in. Thus, this line is filled in based on the debit turnover of account 90 “Cost of sales” in correspondence with account 44 “ Selling expenses."

Line 2220: “Administrative expenses” reflects the organization’s general business expenses associated with direct management, collected on account 26 “General business expenses.” Enterprises indicate in this line indirect costs that are not directly related to production and are not included in the cost of production. These are costs associated with remuneration of administrative personnel, training and retraining of personnel, security of the enterprise, conducting an audit, purchasing office supplies, etc.

This line is filled in based on the debit turnover of account 90 “Cost of sales” in correspondence with account 26 “General business expenses”.

Line 2200 “Profit (loss) from sales” shows the difference between gross profit (loss) and the amount of commercial and administrative expenses. If this difference is negative, it must also be indicated in parentheses.

Line 2200 is the last indicator that forms the result from the usual activities of the enterprise.

Other income and expenses

The indicators in the other income and expenses section of the financial results statement are formed as follows.

Line 2310: “Income from participation in other organizations” reflects the following income:

· from participation in the authorized capitals of other organizations, which must be received within the period established by the constituent documents (dividends on shares, income from equity participation), including interest and other income on securities;

· from participation in joint activities without forming a legal entity (under a simple partnership agreement).

Income from equity participation in the authorized capitals of other enterprises and dividends on shares are reflected in accounting as their size is declared by the source of payment.

To fill out the line, the credit turnover of the subaccounts of account 91 is used, which shows the amount of such income.

Line 2320: “Interest receivable” reflects the amount of income due that is not related to the company’s participation in the authorized capital of other enterprises or to the conduct of joint activities. This line, in particular, indicates interest accrued on bonds, deposits, bank account agreements, loans provided and for the credit organization’s use of funds held in the organization’s account with this credit organization, etc.

To fill out the line, the credit turnover of the subaccounts of account 91 is used, which shows interest receivable.

Line 2330: “Interest payable” shows the interest accrued to the enterprise for the temporary use of loans and credits. This group of expenses includes interest on loans and borrowings not related to the acquisition of property.

However, interest on loans taken for the purchase of fixed assets, materials, goods is included in their actual cost until they are accepted for accounting (for fixed assets - before commissioning, etc.), subsequently they are also charged to account 91 .

The company's debt on loans and credits is reflected taking into account the interest due for payment (clause 73 of the Accounting Regulations). Interest is calculated regardless of the time of actual payment.

To fill out the line, use the debit turnover of the subaccounts of account 91, which reflects the interest payable.

Income that is reflected in line 2340 “Other income” includes the income specified in clause 7 of PBU 9/99 “Income of the organization”:

Receipts associated with the provision for a fee for temporary use (temporary possession) of the organization’s assets - in correspondence with the accounts of settlements or cash (accounts 51, 52, 76);

Receipts related to the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property (accounts 51, 52, 76);

Receipts related to the sale and other write-off of fixed assets and other assets other than cash in Russian currency, products, goods - in correspondence with accounts for accounting settlements or cash (accounts 51, 52, 62, 76);

Fines, penalties, penalties for violation of the terms of contracts, received or recognized for receipt - in correspondence with accounts for accounting settlements or funds (accounts 51, 76);

Receipts associated with the gratuitous receipt of assets - with the account for accounting for deferred income, account 98-2 “Gratuitous receipts”;

Receipts for compensation of losses caused to the organization - in correspondence with the settlement accounts (accounts 60, 76); amounts of accounts payable for which the statute of limitations has expired - in correspondence with the accounts payable accounts (accounts 60, 76);

Profit of previous years identified in the reporting year;

Amounts of accounts payable and depositors for which the statute of limitations has expired;

Exchange differences - in correspondence with accounts for accounting for cash, financial investments, settlements, etc. (accounts 50, 52, 58, 62, 76);

The amount of revaluation of assets;

Receipts arising as a consequence of emergency circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.): the cost of material assets remaining from the write-off of assets unsuitable for restoration and further use, etc.;

Other income.

To fill out the line, the credit turnover for the remaining subaccounts of account 91 is used, where other income is indicated minus the amount of VAT.

The expenses that are reflected in line 2350 “Other expenses” include the expenses specified in clause 11 of PBU 10/99 “Organization’s expenses”:

Costs associated with the provision for a fee for temporary use (temporary possession and use) of an organization's assets, rights arising from patents for inventions, industrial designs and other types of intellectual property, as well as costs associated with participation in the authorized capital of other organizations - in correspondence with cost accounting accounts (accounts 02, 05, 50, 51);

The residual value of assets for which depreciation is calculated and the actual cost of other assets written off by the organization - in correspondence with the accounts of the corresponding assets (accounts 01, 04, 10, etc.);

Expenses associated with participation in the authorized capital of other organizations;

Expenses associated with payment for services provided by credit institutions;

Losses of previous years recognized in the reporting year - in correspondence with the accounts of settlements, depreciation, etc.;

Deductions to reserves for the depreciation of investments in securities, for a decrease in the value of material assets, for doubtful debts in correspondence with the accounts of these reserves (accounts 14, 59, 63);

Fines, penalties, penalties for violation of contract terms;

Compensation for losses caused by the organization;

1. The concept of financial results

Final financial result- is an increase or decrease in the capital of an organization in the process of financial and economic activities for the reporting period, which is expressed in the form of total profit or loss.

Profit (loss) of the reporting period is determined monthly by comparing all income and expenses accepted for accounting. If the income received exceeds the expenses incurred in the reporting period, then a profit is made, otherwise - a loss.

When forming the final financial result, the following are taken into account:

Profit (loss) from ordinary activities;

Profit (loss) from other operations;

Income and expenses attributable to a decrease in profit (income tax, tax sanctions).

Income- this is an increase in economic benefits as a result of the receipt of assets (cash, other property) and (or) repayment of liabilities, leading to an increase in the capital of this organization, with the exception of contributions from participants (owners of property).

Expenses- this is a decrease in economic benefits as a result of the disposal of assets (cash, other property) and (or) the occurrence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by decision of participants (owners of property).

2. Structure and procedure for generating financial results

Income of the organization:

1. From normal activities:

Revenue from the sale of products and goods, income related to the performance of work, provision of services

2. Other income:Income related to:

Providing for a fee the temporary use (possession) of the organization’s assets;

Providing for a fee rights arising from patents and other types of intellectual property;

Participation in the authorized capital of other organizations;

Profit received by the organization as a result of joint activities (under a simple partnership agreement);

Sale of fixed assets and other assets other than cash, products, goods;

Interest received for the provision of funds to the organization for use, incl. banks;

Assets received free of charge, including under a gift agreement;

Proceeds to compensate for losses caused to the organization;

Profit of previous years identified in the reporting year;

Amounts of accounts payable and depositors for which the statute of limitations has expired;

Exchange differences;

The amount of revaluation of assets;

Other non-operating income.

Receipts arising as a consequence of emergency circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.):

Insurance compensation;

The cost of material assets remaining from the write-off of assets unsuitable for restoration and further use, etc.

The following are not recognized as income of the organization:

The amount of VAT, excise taxes, sales tax, export duties and other similar mandatory payments;

Amounts under commission agreements, agency agreements and other similar agreements;

In the order of advances, prepayment, deposit of collateral;

To repay a loan granted to a borrower.

Organization expenses:

1.For normal activities:

Expenses associated with the manufacture of products and the sale of products, the acquisition and sale of goods, expenses the implementation of which is associated with the performance of work and the provision of services.

Grouping by elements:

Material costs;

Labor costs;

Contributions for social needs;

Depreciation;

Other expenses.

2.Other expenses:

Asset disposals related to:

Providing for a fee the temporary use (possession) of the organization’s assets*;

Providing for a fee rights arising from patents and other types of intellectual property *;

Participation in the authorized capital of other organizations *;

With the sale, disposal and other write-off of fixed assets and other assets other than cash, goods, products;

Payment for services provided by credit institutions;

Interest paid by an organization for the provision of loans and borrowings;

Deductions to valuation reserves and reserves created in connection with the recognition of contingent facts of economic activity;

Others

* If this type of activity is not the main one (otherwise it is classified as expenses for ordinary activities)

Fines, penalties, penalties for violation of contract terms;

Compensation for losses caused by the organization;

Losses from previous years;

Amounts of receivables for which the statute of limitations has expired, and other debts that are unrealistic for collection;

Exchange differences;

Amount of asset write-down;

Transfer of funds related to charitable activities;

To carry out sporting events, recreation, entertainment, cultural and educational events and other similar events;

Other.

Expenses arising as a consequence of emergency circumstances of economic activity (natural disaster, fire, accident, nationalization of property, etc.):

Losses from forced stoppage of production;

Expenses associated with the prevention (liquidation) of the consequences of natural disasters.

The following are not recognized as expenses of the organization:

Amounts for the acquisition (creation) of non-current assets;

Contributions to the capital of other organizations;

Amounts under commission agreements, agency agreements and other similar agreements;

In the form of advance payment, in the form of advances, deposits;

To repay loans received by the organization.

3. Accounting for financial results from ordinary activities

Income from ordinary activities is revenue from sales of products, works, and services. Expenses for ordinary activities represent the cost of goods, works and services sold.

Conditions for accepting income and expenses into account:

1. Revenue is accepted for accounting if the following conditions are simultaneously met:

The organization has the right to receive revenue arising from the terms of the contract or otherwise confirmed;

There is confidence that the economic benefits of the organization will increase as a result of a particular transaction;

Ownership of goods, work, or services has passed to the buyer;

The amount of expenses associated with the income received must be determined.

If at least one of the conditions is not met, the accounts reflect not revenue, but accounts payable for the asset received.

2. expenses are taken into account if the following conditions are simultaneously met:

Expenses were incurred in accordance with a specific agreement or legal requirements;

The amount of revenue can be reliably estimated;

There is confidence that the economic benefits of the organization will increase as a result of a particular transaction.

If at least one of the conditions is not met, the accounting reflects not the expense, but the receivables.

Account 90 “Sales” is intended to summarize information about income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them.

During the year, account 90 collects data on the organization’s income and expenses for ordinary activities. Sub-accounts are opened for account 90:

90-1 "Revenue";

90-2 “Cost of sales”;

90-3 "Value added tax";

90-4 "Excise duties";

90-9 "Profit / loss from sales."

Proceeds from the sale are reflected in the credit of account 90 “Sales” and the debit of account 62 “Settlements with buyers and customers”.

At the same time, the cost of goods sold, products, works, services is written off to the debit of account 90 “Sales” from the credit of accounts 43 “Finished Products”, 41 “Goods”, 44 “Sales Expenses”, 20 “Main Production”, etc.

After the revenue is reflected in subaccounts 90-3 and 90-4 in correspondence with account 68 “Calculations for taxes and fees”, VAT and excise taxes are charged.

At the end of each month, the amount of debit turnover on subaccounts 90-2, 90-3, 90-4 is compared with credit turnover on subaccount 90-1. The resulting result is the profit or loss from sales for the month.

Thus,

Financial result from sales = Amount of sales revenue (credit turnover for the reporting month in subaccount 90-1) - Cost of sales (total debit turnover in subaccounts 90-2, 90-3, 90-4, 90-5, 90-6) .

To reflect the financial result from sales, subaccount 90-9 “Profit/loss from sales” is used, the result of which is written off at the end of the reporting month to account 99:

D 90-9 K 99 - the amount of profit for the month is reflected

D 99 K 90-9 - reflects the amount of loss received for the month.

At the end of each month, account 90 has no balance, but all subaccounts have debit or credit balances, the value of which accumulates.

At the end of the reporting year, after writing off the financial result for December, all subaccounts within account 90 are closed. In this case, the balances on them are transferred to subaccount 90-9:

D 90-1 K 90-9 - the balance of the “Revenue” subaccount is written off;

D 90-9 K 90-2, 90-3, 90-4 - the balance of subaccounts of account 90 is written off.

As a result of these entries, as of January 1 of the new reporting year, subaccounts account 90 do not have a balance.

Financial results

The concept of financial result

Final financial result- is an increase or decrease in the capital of an organization in the process of financial and economic activities for the reporting period, which is expressed in the form of total profit or loss.

Profit (loss) of the reporting period is determined monthly by comparing all income and expenses accepted for accounting. If the income received exceeds the expenses incurred in the reporting period, then a profit is made, otherwise - a loss.

When forming the final financial result, the following are taken into account:

1. Profit (loss) from ordinary activities

2. Profit (loss) from other operations

3. Income and expenses attributable to a decrease in profit (income tax, tax sanctions).

Income- this is an increase in economic benefits as a result of the receipt of assets (cash, other property) and (or) repayment of liabilities, leading to an increase in the capital of this organization, with the exception of contributions from participants (owners of property).

Expenses- this is a decrease in economic benefits as a result of the disposal of assets (cash, other property) and (or) the occurrence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by decision of participants (owners of property).

Classification of income for accounting purposes

The classification of the organization's income according to PBU 9/99 is presented in the table.

Income of the organization (PBU 9/99)
From normal activities	Other income
Revenue from the sale of products and goods, income related to the performance of work, provision of services	Receipts associated with: · provision for a fee for temporary use (ownership) of the organization's assets* · provision for a fee of rights arising from patents and other types of intellectual property* · participation in the authorized capital of other organizations* · profit received by the organization as a result of joint activities ( under a simple partnership agreement);	· sale of fixed assets and other assets other than cash, products, goods;	· interest received for the provision of funds to the organization for use, incl. banks * If this type of activity is not the main one (otherwise it is classified as expenses for ordinary activities)
· fines, penalties, penalties for violation of contract terms;
· the amount of VAT, excise taxes, sales tax, export duties and other similar mandatory payments;

· amounts under commission agreements, agency agreements and other similar agreements in favor of the principal, principal, etc.;

· in the order of advances, prepayment, deposit of collateral;

· to repay a loan granted to the borrower.
Classification of expenses for accounting purposes	The classification of the organization's expenses according to PBU 10/99 is presented in the table.
Organizational expenses (PBU 10/99)	By normal activities	other expenses	Expenses arising as a consequence of emergency circumstances of economic activity (natural disaster, fire, accident, nationalization of property, etc.): · Losses from forced stoppage of production · Costs associated with the prevention (liquidation) of the consequences of natural disasters · Loss of assets as a result of emergency incidents (at residual value
The following are not recognized as expenses of the organization:
· amounts for the acquisition (creation) of non-current assets;

· contributions to the capital of other organizations;

Income from ordinary activities· amounts under commission agreements, agency and other similar agreements in favor of the principal, principal, etc.;

Conditions for accepting income and expenses into account.

· in the form of advance payment, in the form of advances, a deposit to pay for inventories and other valuables, works, services;	· to repay loans received by the organization.
Income and expenses from ordinary activities	is revenue from sales of products, works, and services. Expenses for ordinary activities represent the cost of products, works, and services sold.

Account 90 “Sales” is intended to summarize information about income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them.

During the year, account 90 collects data on the organization’s income and expenses for ordinary activities. Sub-accounts are opened for account 90:
Revenue is accepted for accounting if the following conditions are simultaneously met:
Expenses are accepted for accounting if the following conditions are simultaneously met:
1. the organization has the right to receive revenue arising from the terms of the contract or otherwise confirmed 2. the amount of revenue can be reliably estimated 3. there is confidence that as a result of a specific transaction the economic benefits of the organization will increase 4. ownership of goods, work , the service has been transferred to the buyer 5. the amount of expenses associated with the income received must be determined. If at least one of the conditions is not met, the accounting does not reflect revenue, but accounts payable for the asset received.
1. expenses are incurred in accordance with a specific contract or legal requirements 2. the amount of expenses can be reliably estimated 3. there is confidence that as a result of a specific transaction the economic benefits of the organization will decrease If at least one of the conditions is not met, no expense is reflected in accounting , and accounts receivable.
90-1 "Revenue";

90-2 “Cost of sales”;

At the same time, the cost of goods sold, products, works, services is written off to the debit of account 90 “Sales” from the credit of accounts 43 “Finished Products”, 41 “Goods”, 44 “Sales Expenses”, 20 “Main Production”, etc.

After the revenue is reflected in subaccounts 90-3 and 90-4 in correspondence with account 68 “Calculations for taxes and fees”, VAT and excise taxes are charged.

At the end of each month, the amount of debit turnover on subaccounts 90-2, 90-3, 90-4 is compared with credit turnover on subaccount 90-1. The resulting result is the profit or loss from sales for the month.

Thus,

To reflect the financial result from sales, subaccount 90-9 “Profit/loss from sales” is used, the result of which is written off at the end of the reporting month to account 99:
D 90-9 K 99 - the amount of profit for the month is reflected
D 99 K 90-9 - reflects the amount of loss received for the month.

At the end of each month, account 90 has no balance, but all subaccounts have debit or credit balances, the value of which accumulates.

At the end of the reporting year, after writing off the financial result for December, all subaccounts within account 90 are closed. In this case, the balances on them are transferred to subaccount 90-9:
D 90-1 K 90-9 - the balance of the “Revenue” subaccount is written off;
D 90-9 K 90-2, 90-3, 90-4 - the balance of subaccounts of account 90 is written off.

As a result of these entries, as of January 1 of the new reporting year, subaccounts account 90 do not have a balance.

Income from ordinary activities considered revenue from the sale of products and goods, receipts associated with the performance of work and provision of services.

In organizations whose subject of activity is the provision for a fee for temporary use of their assets under a lease agreement, the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property, participation in the authorized capital of other organizations, revenue is considered to be receipts, receipt which are associated with these types of activities. Income received by the organization from these types of activities, when this is not the subject of the organization’s activities, is classified as operating income.

In accordance with clause 12 of PBU 9/99 Revenue is recognized in accounting if the following conditions are met::

• the organization has the right to receive this revenue arising from a specific contract or otherwise confirmed in an appropriate manner;
• the amount of revenue can be determined;
• there is confidence in increasing economic benefits as a result of a particular transaction;
• the right of ownership (possession, use, disposal) of the product (goods) has passed to the buyer or the work has been accepted by the customer (service provided);
• the expenses that have been or will be incurred in connection with this operation can be determined.

If at least one of the above conditions is not met in relation to cash or other assets received by the organization as payment, then accounts payable are recognized in accounting rather than revenue.

To recognize revenue from the provision of temporary use of one’s assets for a fee and from participation in the authorized capital of other organizations, conditions 1, 2 and 3 must be simultaneously met.

Revenue from the performance of work, the provision of services, or the sale of products with a long manufacturing cycle may be recognized as the work, service, or product is ready or upon completion of the work, the provision of a service, or the manufacture of products in general.

If the amount of revenue from the sale of products (works, services) cannot be determined, then it is taken into account in the amount of recognized expenses for the manufacture of these products, performance of work, provision of services, which will subsequently be reimbursed to the organization.

Expenses for ordinary activities- these are expenses associated with the manufacture and sale of products, performance of work and provision of services, as well as the purchase and sale of goods.

In organizations whose subject of activity is the provision for a fee for temporary use of their assets under a lease agreement and rights arising from patents for inventions, industrial designs and other types of intellectual property, as well as participation in the authorized capital of other organizations, expenses for ordinary activities are considered expenses, the implementation of which is associated with these types of activities. If these types of activities are not the subject of the organization’s activities, then the costs of their implementation are classified as operating expenses.

Expenses for ordinary activities are also considered to be reimbursement of the cost of fixed assets, intangible assets and other depreciable assets, carried out in the form of depreciation charges.

In accordance with clause 16 of PBU 10/99 expenses are recognized in accounting if the following conditions are met:

• the expense is made in accordance with a specific contract, the requirements of legislative and regulatory acts, and business customs;
• the amount of expenses can be determined;
• there is certainty that a particular transaction will result in a reduction in the entity's economic benefits (ie the entity has transferred an asset or there is no uncertainty about the transfer of assets).

If at least one of the specified conditions is not met in relation to any expenses of the organization, then accounts receivable are recognized in accounting.

Depreciation is recognized as an expense based on the amount of depreciation charges, determined on the basis of the cost of depreciable assets, useful life and the methods of depreciation adopted by the organization.

Expenses are subject to recognition in accounting, regardless of the intention to receive revenue, operating or other income and the form of the expense (monetary, in-kind and other).

In accordance with the assumption of temporal certainty of the facts of economic activity, expenses are recognized in the reporting period in which they are incurred, regardless of the time of actual payment of funds and other form of implementation.

If the organization has adopted, in permitted cases, a procedure for recognizing revenue after receipt of cash and other forms of payment, then expenses are recognized after repayment of debt.

Expenses are recognized in the income statement:

• taking into account the relationship between expenses incurred and revenues (correspondence between income and expenses);
• by their reasonable distribution between reporting periods, when expenses determine the receipt of income over several reporting periods and when the relationship between income and expenses cannot be clearly defined or is determined indirectly;
• for expenses recognized in the reporting period when the non-receipt of economic benefits or receipt of assets becomes determined;
• regardless of how they are accepted for the purposes of calculating the tax base;
• when obligations arise that are not caused by the recognition of the corresponding assets.

Revenue is accepted for accounting in monetary terms. The amount of revenue is determined as the sum of cash receipts, the cost of other property and the amount of accounts receivable.

If the amount of receipt covers only part of the revenue, then the revenue accepted for accounting is determined as the sum of receipt and receivables (in the part not covered by receipt). In this case, the amount of receipts and (or) receivables is determined based on the price established by the agreement between the organization and the buyer (customer) or user of the organization’s assets. If the price is not provided for in the contract and cannot be established based on the terms of the contract, then to determine the amount of receipts and (or) receivables, the price at which, in comparable circumstances, the organization usually determines revenue in relation to similar products (goods, works, services) is accepted. or providing for temporary use (temporary possession and use) of similar assets.