We talked about the composition of the 2017 financial statements in ours. At the same time, it was pointed out that the approved forms of annexes to the balance sheet and the financial results statement are provided by Order of the Ministry of Finance dated July 2, 2010 No. 66n, a report on changes in capital, a cash flow report, and for non-profit organizations also a report on the intended use of funds. What is considered Form 5 (Appendix to the Balance Sheet)?

Application or Explanation?

Let us immediately make a reservation that the concept of “form No. 5” is not used in the currently used accounting reporting forms. This form was valid until 2011 in accordance with Order of the Ministry of Finance dated July 22, 2003 No. 67n, which has now lost force. Form No. 5 was called “Appendix to the Balance Sheet” and consisted of the following sections:

• intangible assets;
• fixed assets;
• profitable investments in material assets;
• expenses for research, development and technological work;
• expenses for the development of natural resources;
• financial investments;
• expenses for ordinary activities (by cost elements);
• provision;
• government assistance.

Currently, the Appendix to the Balance Sheet is not used as an independent approved form of reporting. At the same time, Appendix No. 3 to the Order of the Ministry of Finance dated 07/02/2010 provides an example of the preparation of explanations to the balance sheet and financial performance statement, which is recommended to be used when preparing explanations in tabular form (clause 4 of the Order of the Ministry of Finance dated 07/02/2010 No. 66n) .

The composition of these explanations is in many ways the same form No. 5 that was previously used. Only if previously it was a mandatory form of reporting, now it is submitted as an explanation for reporting if the organization considers it necessary to provide this type of information. The given example of explanations to the balance sheet and profit and loss statement, relatively speaking “Form No. 5,” now contains the following sections:

• intangible assets and expenses for research, development and technological work (R&D);
• fixed assets;
• financial investments;
• stocks;
• accounts receivable and accounts payable;
• production costs;
• estimated liabilities;
• securing obligations;
• government assistance.

You can download an example of formatting explanations for the balance sheet and profit and loss statement in Excel format.

Form 5 - Appendix to the Balance Sheet (now it is replaced by explanations for the balance sheet and financial results report) - designed to simplify the perception of the content of the reporting for internal and external users. The article talks about how additional explanations to the statements help to better understand the balance sheet and income statement and what format is used for this document.

Form 5 of the appendix to the balance sheet or explanations to the statements - which is correct?

Form 5 of the appendix to the balance sheet was included in the reporting until 2010 inclusive. It was needed to decipher the balance sheet lines (at that time Form No. 1 of the financial statements). Form 5 of the appendix to the balance sheet, like all other reporting forms in force at that time, was approved by Order of the Ministry of Finance dated July 22, 2003 No. 67n.

Currently, the so-called Explanations to the Balance Sheet and the Statement of Financial Results are relevant - Appendix No. 3 to Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n.

What is the importance of accounting explanations?

An accountant is also a financial specialist in order to see much greater meaning behind the dry numbers on the balance sheet. However, for other interested parties - a bank making a decision about the reliability of the borrower, an investor assessing the profitability of investments, a shareholder making management decisions - everything is not so obvious. To get a more comprehensive and clear picture of the company's financial situation, users can read the notes to the balance sheet (formerly Form 5 of the balance sheet appendix).

Simplified organizations can submit a shortened application without a detailed transcript. The main thing is that the information presented always satisfies the basic principles of reporting, which include relevance, materiality, reliability, reliability, usefulness, etc.

What is the relationship between the balance sheet and its notes?

In the balance sheet, in the first column “Explanations”, the section numbers are reflected with explanations in the appendix of the corresponding balance sheet lines.

Explanations (formerly Form 5 balance sheet) reveal the meaning of reporting lines.

Some balance lines cannot be deciphered using this form; for them there are special reports that provide additional detail. For example, the line item “Cash and cash equivalents” is described in the statement of cash flows (CSF). And the lines with authorized capital and retained earnings describe the statement of changes in capital (OIC), as well as the statement of financial results (OFR).

What explanations can be provided by the balance sheet notes?

This form can be prepared in tabular or text form.

Let's look at what is supposed to be reflected in the notes to the financial statements (formerly Form 5 appendix to the balance sheet).

For the balance sheet line “Fixed assets”, information can be provided on the initial cost of assets, disposal, the amount of depreciation at the beginning and end of the period, on monthly depreciation charges, on revaluation of value in accordance with the market price or in connection with additional equipment, on methods of valuing fixed assets , if it was acquired under an agreement with non-monetary settlement.

If the organization has intangible assets, the explanations must contain information about their presence at the beginning/end of the period and movement during the period, the depreciation method, the period of use, the cost of write-off and acquisition, the initial and market value, the amount of revaluation, the presence of intangible assets, created by the organization itself.

Data on financial investments can be further detailed by indicating information about their composition, initial cost, cost of receipt and disposal, amount of interest accrued, and division of investments by time (short-term/long-term). Also, if investments were used in the interests of third parties (for example, pledged), the column “Other use of financial investments” must be completed.

According to the data from the line about inventories, the explanations should contain detailed information about their availability/movement, write-off method, reserve, inventories that have not been paid for or are pledged, and whether there are discrepancies in accounting and warehouse records.

Accounts receivable can be clarified by information about whether there are doubtful debts, what is the amount of the reserve for doubtful debts, what is the composition of debtors, and whether a deferment condition is specified in the contract. Accounts payable are detailed in almost the same way (with the exception of the reserve).

Explanations may contain information about the cost of manufactured products, detailing is carried out according to the elements of production costs.

In addition, if necessary, you can provide data on estimated liabilities, on ensuring the fulfillment of obligations and on received government assistance.

***

Currently, the balance sheet no longer contains Form 5. It was replaced by Explanations to the balance sheet and income statement . This application allows you to more accurately assess the financial condition of the company thanks to a detailed disclosure of dry reporting indicators and additional decoding of the meaning of the lines of the main report.

The activities of any organization or individual entrepreneur are closely related to accounting reporting. Even the most minor errors in the generation of such reporting can lead to a whole range of troubles. A number of forms are provided for the formation of accounting. One of such documents is Form No. 5, as an explanatory appendix to the balance sheet. This article will tell you what the form is, how and when it is filled out.

History of the document

Form 0710005 according to OKUD, or, more simply, form No. 5, is an explanation of the balance sheet, displaying certain explanations of certain provisions. The prototype of the form, called the Appendix to the Balance Sheet, appeared back in 2003. after the entry into force of Order of the Ministry of Finance dated July 22, 2003 No. 67n., then became invalid due to the approval of new forms of documentation by Order of the Ministry of Finance dated July 2, 2010 No. 66n., as amended on October 5, 2011 No. 124n. In 2011, reports were submitted without the usual form No. 5. All additional information was submitted in the form of an explanatory note as a separate file attached to the main report. Many questions arose regarding what information was required to be entered and what information was not necessary. In this regard, the need arose to return clarifying, modified documentation.

Why do you need form No. 5?

It is assumed that an enterprise may have many different data that require reflection in accounting with explanations. This requires a separate documentation format to allow this to happen. An appendix to the balance sheet made it possible to provide explanations for reporting losses and profits. The feasibility of filling it out was decided on an individual basis, since individual companies or institutions simply have nothing to add to the application, that is, there was no need to fill it out. Organizations submitting reports under the simplified taxation regime, if necessary, use Appendix No. 5, Order No. 66n of the balance sheet and reporting of losses and profits of small businesses. Such an application is submitted only if there is relevant data that needs to be detailed, without which it is impossible to make an objective assessment of the financial condition of the organization.

Form No. 5 details the organization’s balance sheet indicators with a breakdown into groups and individual types. All main indicators are combined into the following groups of sections:

• assets classified as intangible;
• fixed assets taking into account depreciation;
• investments in material assets;
• expenses spent on research and development activities;
• expenses associated with the development of natural resources;
• investments in securities, authorized capital of other organizations, bonds, etc.;
• debt (payable and receivable);
• expenses associated with ordinary activities;
• types of security;
• government subsidies.

The photo shows a sample of the first page of this application:

The form also contains free lines where you can enter additional information to be reflected in one or another section of the document.

Important! Information included as explanations in the Appendix to the balance sheet must completely duplicate what is stated in the main report.

What to pay attention to when filling out

Learn more about some of the nuances associated with filling out individual sections of this form.

Intangible assets section

The section itself consists of a pair of tables, the first of which details assets by type, and the second reflects the amounts of accruals taking into account depreciation at the beginning and end of the reporting period (year). Lines 010-015 are filled in in cases where the organization owns the right or patent to a particular object of intellectual property. That is, in line 010 itself the cost of the right is indicated, in subsequent lines the decoding is given:

• 011 - in cases where a company or organization owns a patent for an invention;
• 012 - the company owns the rights in the field of programming for electronic computers;
• 013 - patented development of integrated circuits;
• 014 - ownership of the logo, trademark, issued in accordance with current legislation;
• 015 - if the company is the copyright holder in the field of breeding plants, animals, and even new strains of cells and bacteria.

A number of questions are raised by line 030, called “Business reputation of the company.” This column must be filled out by those organizations that were privatized through a competition or auction, and the actual cost of the company turned out to be higher than the original stated price of the lot. The price difference indicator is called positive business reputation and is reflected in column 030.

Fixed assets section

It also consists of a pair of tables, where in the first there is a breakdown into groups indicating the total quantity and cost of all items, and in the second table there is detail taking into account depreciation and other factors that can affect the value of the property in one direction or another. This is what the tables look like on the form:

Section of investing, profitable investments in material assets

Section tables are provided to detail property transferred to other companies or individual citizens for temporary use or lease for the purpose of generating income. There are usually no particular difficulties when filling out the tabular cells of this section, with the exception of the last line of the section, where it is necessary to indicate the value of the accrued depreciation on property applicable at the beginning and end of the reporting period.

The remaining sections are filled out by analogy if the relevant information is available, to which a detailed explanation should be written that clearly characterizes the general financial condition of the company, firm or enterprise.

Reporting 2016

Report forms are regulated by the current Order of the Ministry of Finance No. 66n dated July 2, 2010, and include:

1. The balance sheet itself.
2. Reports on financial activities, cash flow, changes in the authorized capital, and the use of the targeted nature of the proceeds.
3. Explanations for reporting financial results in text or table form at your discretion.

Important! The obligation to provide explanations is assigned to all organizations and enterprises engaged in business activities, with the exception of those belonging to the category of small businesses. Small businesses attach explanations to the report if desired, if necessary.

​ What a balance sheet is is explained simply and clearly in the following video:

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The assets and liabilities of the enterprise shown in the balance sheet.

What is Form 5 of financial statements

This appendix provides more detailed and detailed information on individual sections of the balance sheet, including reflecting the reasons and methods of occurrence of the amounts in the accounting report, justifying its sections and paragraphs (Order of the Ministry of Finance No. 66n dated July 2, 2010). Appendix 5 to the balance sheet is required to be provided by all enterprises engaged in entrepreneurial activities, except for those using. only if necessary, when additional information is required on sections of the balance sheet.

Form 5 involves filling out tables for various groups of enterprise assets according to their financial affiliation. When filling out some lines of the application, you must use codes approved by the joint order of the Ministry of Finance of the Russian Federation No. 102n and the State Statistics Committee of the Russian Federation No. 475 dated November 14, 2003. For the remaining lines, the codes are approved by the enterprises themselves.

Filling procedure

Structure

Form 5 consists of several sections, which have their own characteristics when filling out. The number of completed tabular blocks in the Form 5 appendix must correspond to the amount of information on the lines of the balance sheet. When drawing up a balance sheet, it contains references to specific ones.

Intangible assets

The form was approved by order of the Ministry of Finance of the Russian Federation No. 67n dated July 22, 2003. But the enterprise has the right to develop such a form itself, taking into account the basic requirements for it according to PBU 4/99. you can do it with us for free.

The basis for entering information is all primary accounting documents of the enterprise. In addition to detailing the various balance sheet items, Form 5 gives a more complete and understandable picture of the organization’s financial position.

Is it possible to do without form 5

Appendix Form 5 is a clarifying document, the need for which has been confirmed by practice: some time ago it was replaced by an explanatory note, which led to confusion, since the format of the explanatory note did not fit into the general format of the financial statements. Therefore, this application was reintroduced and became a necessary component. That is, the inextricable connection between balance and applications to it has been proven by practice.

Paper forms of accounting statements, fraud on the Internet, the use of UTII - you will find all this in the video below:

Appendix to the balance sheet included in the reporting. It has an approved form No. 5. It should not be filled out by small businesses that are not subject to audit, as well as all public non-profit organizations. In the new forms of the application to the balance sheet, the codes of some lines are not written down; they must be assigned independently.

Let's move on to the sections of filling out the application to the balance sheet
“Intangible assets” deciphers article 110 of the balance sheet. Tables 1 and 2 of the appendix to the balance sheet indicate the original cost of assets and their total depreciation, respectively. Table 1 also shows assets written off and acquired during the year.
“Fixed assets” deciphers line 120 of the balance sheet and some lines of the certificate of availability of valuables. This section consists of two tables. The first reflects the availability of fixed assets at the beginning and end of the period, as well as their movement during a given period. The second table of the appendix to the balance sheet reflects the initial cost of fixed assets that were leased and for conservation, depreciation, the cost of leased objects, the initial cost of real estate unregistered in the reporting year, as well as revaluation of fixed assets (table “For reference”).
“Profitable investments in material assets” deciphers line 135 of the balance sheet appendix. Consists of two tables. The first reflects the value of investments at the beginning and end of the year and their movement during the year. The second reflects depreciation on all investments.
“Expenditures on research, development and technological work” serves to disclose information about the costs of technological work that are performed for the organization’s own needs. Consists of two tables. The first indicates all expenses for technological work and R&D. The second reflects data on unfinished work that has not yet produced any results.
“Expenses for the development of natural resources” reflects all costs for the development of deposits, the study of minerals, geological exploration, etc.
“Financial investments” decipher lines 250 and 140 forms annex to the balance sheet.
“Accounts receivable and payable” deciphers lines 230, 240, 510 and 610 of the balance sheet.
“Expenses for ordinary activities (by cost elements)” deciphers the enterprise’s expenses for intra-business activities.
“Provides” deciphers articles 960, 950 of the certificate of availability of valuables.
“State aid” deciphers the subsidies, subventions and other budget funds received by the enterprise for the intended purpose.