Promising application

Retrospective application

retrospectively

promising

When restating comparative amounts due to changes in accounting policies, correction of errors or regrouping of balance sheet items, the balance sheet must be disclosed for three reporting dates, including the beginning of the previous reporting period.

Adjustment of accounts receivable and payable

While for other forms of reporting (for example, a report on total income) information is required to be provided for two reporting periods.

Read also:

Promising application– applying the new accounting policy to transactions, other events and conditions that arise after the date of the change in the accounting policy, and reflecting changes in the estimate in the current and subsequent reporting periods affected by the change.

Retrospective application means that the new accounting policy is applied to events and transactions as if it new policy has always been used. When assessing the need for adjustments previous periods The Fund takes into account the materiality of such adjustment.

Changes in accounting policy Fund apply retrospectively unless the amount of the related prior period adjustment cannot be reasonably determined or where transitional rules for applying new IFRS provisions are specified. Any resulting adjustment should be reported as an adjustment to the opening balance of retained earnings.

The change in accounting policy must be applied promising when the amount of the adjustment to the opening balance of retained earnings for all prior periods cannot be reasonably determined and when prospective application is permitted by the standard.

Didn't find what you were looking for? Use the search:

Read also:

1. II. APPLICATION OF ANALYTICAL TECHNIQUES TO THE RESEARCH OF MENTAL FORMATIONS
2. IV. 6.Application physical methods cooling
3. VOCABULARY STUDY. 1) application n application
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6. Alternative application of international law
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   Retrospective restatement of financial statements: Is everything so complicated?

   Main effects, application

8. Aniline. Amines. Physical and chemical properties. Receipt. Application
9. Antibiotics from the aminoglycoside group. Spectrum and mechanism of action, comparative characteristics drugs, use, side effects
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Correction of significant accounting errors

Promising application– applying the new accounting policy to transactions, other events and conditions that arise after the date of the change in the accounting policy, and reflecting changes in the estimate in the current and subsequent reporting periods affected by the change.

Retrospective application means that the new accounting policy is applied to events and transactions as if the new policy had always been used. When assessing whether an adjustment to prior periods is necessary, the Fund takes into account the materiality of the adjustment.

Changes in the Fund's accounting policies apply retrospectively unless the amount of the related prior period adjustment cannot be reasonably determined or where transitional rules for applying new IFRS provisions are specified. Any resulting adjustment should be reported as an adjustment to the opening balance of retained earnings.

The change in accounting policy must be applied promising when the amount of the adjustment to the opening balance of retained earnings for all prior periods cannot be reasonably determined and when prospective application is permitted by the standard.

When restating comparative amounts due to changes in accounting policies, correction of errors or regrouping of balance sheet items, the balance sheet must be disclosed for three reporting dates, including the beginning of the previous reporting period. While other forms of reporting (for example, statement of comprehensive income) require the presentation of information for two reporting periods.

Read also:

1. II. APPLICATION OF ANALYTICAL TECHNIQUES TO THE RESEARCH OF MENTAL FORMATIONS
2. IV. 6.Use of physical cooling methods
3. VOCABULARY STUDY. 1) application n application
4. A. Techniques that are widely used at all stages
5. Absolute values, their application in medicine
6. Alternative application of international law
7. Alpha and beta adrenergic agonists. Main effects, application
8. Aniline. Amines. Physical and chemical properties. Receipt. Application
9. Antibiotics from the aminoglycoside group. Spectrum and mechanism of action, comparative characteristics of drugs, application, side effects
10. Antibiotics fluoroquinolones. Spectrum and mechanism of action, comparative characteristics of drugs, application, side effects
11. Antibiotics. Classification. Clinical Application
12. Antihypertensive drugs with neurotropic action, their classification, mechanism of action, drugs, use, side effects

Promising application– applying the new accounting policy to transactions, other events and conditions that arise after the date of the change in the accounting policy, and reflecting changes in the estimate in the current and subsequent reporting periods affected by the change.

Retrospective application means that the new accounting policy is applied to events and transactions as if the new policy had always been used. When assessing whether an adjustment to prior periods is necessary, the Fund takes into account the materiality of the adjustment.

Changes in the Fund's accounting policies apply retrospectively unless the amount of the related prior period adjustment cannot be reasonably determined or where transitional rules for applying new IFRS provisions are specified. Any resulting adjustment should be reported as an adjustment to the opening balance of retained earnings.

The change in accounting policy must be applied promising when the amount of the adjustment to the opening balance of retained earnings for all prior periods cannot be reasonably determined and when prospective application is permitted by the standard.

When restating comparative amounts due to changes in accounting policies, correction of errors or regrouping of balance sheet items, the balance sheet must be disclosed for three reporting dates, including the beginning of the previous reporting period. While other forms of reporting (for example, statement of comprehensive income) require the presentation of information for two reporting periods.

Didn't find what you were looking for? Use the search:

Read also:

1. II. APPLICATION OF ANALYTICAL TECHNIQUES TO THE RESEARCH OF MENTAL FORMATIONS
2. IV.

   How to determine the materiality of an error in financial statements

   6.Use of physical cooling methods

3. VOCABULARY STUDY. 1) application n application
4. A. Techniques that are widely used at all stages
5. Absolute values, their application in medicine
6. Alternative application of international law
7. Alpha and beta adrenergic agonists. Main effects, application
8. Aniline. Amines. Physical and chemical properties. Receipt. Application
9. Antibiotics from the aminoglycoside group. Spectrum and mechanism of action, comparative characteristics of drugs, application, side effects
10. Antibiotics fluoroquinolones. Spectrum and mechanism of action, comparative characteristics of drugs, application, side effects
11. Antibiotics. Classification. Clinical Application
12. Antihypertensive drugs with neurotropic action, their classification, mechanism of action, drugs, use, side effects

The word retrospective

The word retrospective in English letters (translit) - retrospektivnyi

The word retrospective consists of 15 letters: v e e i y k n o p r r s t y

Meanings of the word retrospective. What is retrospective?

Retrospective analysis

Retrospective analysis (from the Latin retro - back and specto - look), in chess - finds out objective assessment positions based on estimates of all final positions that can be obtained from a given one.

en.wikipedia.org

Retrospective analysis is a psychological autopsy in which clinicians and researchers collect full information about the identity of the suicide based on the fact of his life.

Zhmurov V.A. Big explanatory dictionary terms on psychiatry

Retrospective analysis is a psychological autopsy in which clinicians and researchers collect as much information as possible about the personality of a suicide (or suspected suicide) based on the facts of his life and ...

Retrospective forecast

A retrospective forecast is a simulation experiment that allows you to predict data from a past period and compare the obtained values ​​of the variables of the simulation model with known (actual) data.

slovar-lopatnikov.ru

RETROSPECTIVE FORECAST is a simulation experiment that allows you to predict data from a past period and compare the obtained values ​​of the variables of the simulation model with known (actual) data.

Lopatnikov. - 2003

Retrospective delirium

Retrospective delusion B., containing false judgments about real or imaginary events of the past, including those preceding the onset of the disease.

Large medical dictionary. — 2000

Retrospective delirium (lat. retro - back, spektare - look) is delirium, the imaginary events of which the patient attributes to the past. Synonym: Retroactive delirium.

Retrospective information retrieval

Retrospective information retrieval

Dictionary of financial terms

Retrospective information search is an information search conducted in the entire accumulated array of documents or facts for any request corresponding to the topic and type of information array.

Dictionary of financial terms

Retrospective information search is an information search conducted in the entire accumulated array of documents or facts for any request corresponding to the topic and type of information array.

Retrospective Study

Retrospective Study - the study of any signs inherent in a certain group of people associated with the development of a particular disease in them in the past...

Medical terms from A to Z

Retrospective Study is the study of any signs inherent in a certain group of people associated with the development of a particular disease in them in the past...

Medical terms. — 2000

RETROSPECTIVE STUDY - the study of any signs inherent in a certain group of people associated with the development of a particular disease in them in the past...

Retrospective bibliography

Retrospective bibliography is a term adopted in world bibliographic practice to designate bibliographic aids that take into account literature published over a certain past period of time.

TSB. - 1969-1978

RETROSPECTIVE BIBLIOGRAPHY - type of bibliography, purpose. to-rogo - accounting and reflection of literature (doc. flow) for comparison. a large period of time. If the current library takes into account production print for a week, month, quarter, year, then R.

Humanitarian Dictionary. - 2002

Retrospective picking

Dictionary of financial terms

Retrospective acquisition - acquisition of a fund of documents with missing profile documents or missing copies of documents for previous years.

Retrospective Feelings

Retrospective feelings (retro Greek: scopeo - to look) - in psychopathology - the tendency to emotionally experience events of the past at the present moment in time no less intensely than it was during the period when they actually occurred.

Retrospective feelings - (retro + Greek.

scopeo - to look) - the tendency to experience past events in the present tense no less intensely than it was when they actually happened.

Zhmurov V.A.

Retrospective recalculation

Large explanatory dictionary of terms in psychiatry

RETROSPECTIVE FEELINGS (retro Greek skopeo - to look). Tendency to relive past events, for example, feelings of guilt, remorse, regret (often observed in depressed patients).

Explanatory dictionary of psychiatric terms

Russian language

Retrospective; cr. f. -ven, -vna.

Spelling dictionary. - 2004

Retrospective.

Morphemic-spelling dictionary. - 2002

Usage examples for retrospective

During the festival, a retrospective screening of films by participants and winners of the VIII International Sretensky Orthodox Film Festival "Meeting" will take place.

This is a retrospective project designed to remember the merits of this outstanding artist.

Let's try to take a retrospective look and remember who said what.

A special event of the festival will be a special retrospective screening of the best films by the master of Polish and world cinematography, classic of Polish cinema Krzysztof Zanussi.

Or (b) the change in accounting policy shall be applied retrospectively unless it is impracticable to determine the effect this change applied to a specific period or the cumulative impact of a given change.

24 When it is impracticable to determine the effect of a change in accounting policy in a particular period on comparative information for one or more prior periods presented, an entity shall apply the new accounting policy to the carrying amounts of assets and liabilities at the beginning of the earliest period that for which retrospective application is practicable and which may be the current period, and make an appropriate adjustment to the opening balance of each component affected by the change equity for a given period.

25 When it is not practicable to determine at the beginning of the current period the cumulative effect of applying a new accounting policy across all prior periods, an entity shall adjust comparative information to apply the new accounting policy prospectively from the earliest date from which application is practicable.

26 When an entity applies a new accounting policy retrospectively, it applies the accounting policy to comparative information for prior periods as far back as is reasonably practicable. Retrospective application to a prior period is not considered practicable if it is not practicable to determine the cumulative effect on the amounts in the statement of financial position at both the beginning and the end of the period. The amount of the related adjustment relating to periods prior to those presented in financial statements, refers to the opening balance of each affected component of equity in the earliest prior period presented. Typically, retained earnings are adjusted. However, the adjustment may also apply to another component of equity (for example, to comply with any IFRS). Any other prior period information, such as historical summary financial data, is also adjusted back as many periods as practicable.

27 In the event that it is impracticable for an entity to apply a new accounting policy retrospectively because it cannot determine the cumulative impact of the application of that policy on all previous periods, the entity, in accordance with paragraph 25, applies the new accounting policy prospectively from the beginning. early period for which application is practically feasible. Therefore, the entity does not take into account the portion of the cumulative adjustment to assets, liabilities and equity that arose before that date. A change in accounting policy is permitted even if prospective application of the policy for any prior period is impracticable.

By general rule if we made changes to the accounting policy and decided to create a reserve, then we must reflect the same reserve in the financial statements retrospectively. Question: how to do this? I am interested in the reserve for audit services and the reserve for impairment material assets.Previously the reserve was not created, but now they decided to create it. As of December 31, 2016, it’s clear how to do it, but it’s not clear how to do it retrospectively

When retrospectively recalculating, reporting indicators must be recalculated as if the new accounting policy had been applied throughout the entire recalculation period (2014-2016). The accounting should reflect the difference between the actual data and the results of recalculation. Enter the entries into accounting in the inter-reporting period between December 31, 2016. and January 1, 2017 As a result, they will not be included in the closing balance sheet for 2016, but will be included in the opening balance sheet for 2017. The results of recalculation are attributed to account 84 “Retained earnings (uncovered loss)”. The results of the recalculation must be reflected in the reporting.

How to change accounting policies for accounting purposes

Situation: how to reflect changes in accounting policies in financial statements

The answer to this question depends on whether the organization is a small business or not.

Organizations that are not, when changing their accounting policies, need to recalculate reporting indicators for previous periods (retrospective recalculation). However, first it is necessary to determine the period of such recalculation and assess the possibility of its implementation.

In a situation where the accounting method changes, determine the retrospective recalculation period based on the assumption that the changed accounting method has been used since the inception of the activity of this type. If recalculation cannot be done with a sufficient degree of accuracy, do not carry out it and apply the changed accounting method prospectively. That is, from the beginning of the new reporting period.

If a new legal act is adopted or an existing one is amended, it may establish a specific period or procedure for recalculation. Then carry out the recalculation in the manner prescribed by this document.

When retrospectively restated, financial statements must be recalculated on the assumption that the new accounting policies were applied throughout the restatement period. Since this will lead to changes in the balances of assets and liabilities, information about the results of the restatement should be reflected in the Notes to the Balance Sheet and the Statement of Financial Results to the financial statements. This will be a documentary justification for the changes made*.

After this, you need to make changes to the financial statements of the current period. And reflect in them the results of recalculation of indicators of previous periods (clause 21 of PBU 1/2008). And the accounting should reflect the difference between the actual data and the results of recalculation. Make the necessary entries in accounting in the inter-reporting period between December 31 and January 1. As a result, they will not be included in the final balance sheet for reporting year, but will be included in the opening balance of the next year. The differences between these two indicators will show monetary value changes in accounting policies. The results of the recalculation are attributed to account 84 “Retained earnings (uncovered loss).” When revaluing balance sheet items in the inter-reporting period, use this account, as well as the related accounts involved in the recalculation.*

This procedure is established by paragraph 15 of PBU 1/2008.

Organizations recognized as small businesses may not carry out retrospective recalculation and reflect all changes in reporting prospectively. This means that the changed accounting treatment applies to the relevant facts. economic activity that occurred after changes were made to accounting policies. This right is granted to small enterprises by clause 15.1 of PBU 1/2008.

Changes in accounting policies must be disclosed in the Notes to the Balance Sheet and the Statement of Financial Results for the reporting year. Here they indicate:

• the reason for the change in accounting policy;
• content of the change;
• the procedure for reflecting the consequences of changes in accounting policies in accounting statements;
• the amount of adjustments for each accounting item for each of the periods presented in the reporting;
• the amount of the adjustment that relates to reporting periods earlier than those presented in the financial statements, to the extent practicable.

If such disclosure is not possible for the prior period presented or for earlier reporting periods, disclose such information in the Notes to the Balance Sheet and Statement of Income and Statement of Income and indicate the period in which the changes begin to apply.

If a change in accounting policy is caused by the publication of a new or change in an existing regulatory legal act, disclose information about the consequences of the change in accounting policy in accordance with the rules provided for by this act.

This order follows from the paragraphs and PBU 1/2008.

An example of how to reflect the consequences of changes in accounting policies in financial statements. The change had a significant impact on the financial performance of the organization. Retrospective recalculation

Alpha LLC made the following change to its accounting policy for 2016: “The write-off of amounts accumulated during the reporting month on account 16 “Deviations in the cost of material assets” is made in full to increase the cost of consumed (issued) materials, if they specific gravity(as a percentage of the contractual (accounting) cost of materials) will not exceed 5 percent.”

According to accounting data, account 16 “Deviations in the cost of material assets” contained the balance:

• as of December 31, 2014 – RUB 20,000;
• as of December 31, 2015 – RUB 15,000.

This change in accounting policy had a significant impact on the financial results of the organization. Therefore, the accountant reflected the consequences of changes in accounting policies in the 2016 financial statements retrospectively.

The accountant adjusted the balance sheet data as follows.

• the indicator for line 1210 “Inventories” was reduced by 20,000 rubles;
• the indicator of line 1370 “Retained earnings (uncovered loss)” was reduced by 20,000 rubles.

• the indicator for line 1210 “Inventories” was reduced by 15,000 rubles;
• the indicator for line 1370 “Retained earnings (uncovered loss)” was reduced by 15,000 rubles.

In the financial results report for 2016, the indicator for line 2120 “Cost of sales” for 2015 was reduced by 5,000 rubles. (RUB 20,000 – RUB 15,000).

Accordingly, the accountant recalculated the indicator on line 2300 “Profit (loss) before tax” for 2015.

The indicator for line 2120 “Cost of sales” for 2016 is equal to the cost of sales, determined taking into account the change in the method of accounting for deviations in the cost of material assets.

Legislative changes Russian Federation and (or) regulatory legal acts on accounting;

Development of new methods of accounting by the organization. The use of a new method of accounting involves improving the quality of information about the accounting object;

Significant changes in business conditions. A significant change in the organization’s business conditions may be associated with reorganization, change in types of activities, etc.

It is not considered a change in accounting policy to approve the method of accounting for facts of economic activity that are essentially different from the facts that occurred previously, or that arose for the first time in the organization’s activities.

11. Changes in accounting policies must be justified and formalized in the manner prescribed by paragraph 8 of these Regulations.

12. Changes in accounting policies are made from the beginning of the reporting year, unless otherwise determined by the reason for such a change.

13. Consequences of changes in accounting policies that have had or could have a significant impact on financial situation organizations, financial results its activities and (or) movement cash, are estimated at in monetary terms. The assessment in monetary terms of the consequences of changes in accounting policies is made on the basis of data verified by the organization as of the date from which the changed method of accounting is applied.

14. The consequences of changes in accounting policies caused by changes in the legislation of the Russian Federation and (or) regulatory legal acts on accounting are reflected in accounting and reporting in the manner established by the relevant legislation of the Russian Federation and (or) regulatory legal acts on accounting. If the relevant legislation of the Russian Federation and (or) a regulatory legal act on accounting does not establish a procedure for reflecting the consequences of changes in accounting policies, then these consequences are reflected in accounting and reporting in the manner established by paragraph 15 of these Regulations.

15. The consequences of changes in accounting policies caused by reasons other than those specified in paragraph 14 of these Regulations, and which had or could have a significant impact on the financial position of the organization, financial results of its activities and (or) cash flows, are reflected in the financial statements retrospectively, for except in cases where the assessment in monetary terms of such consequences in relation to periods preceding the reporting period cannot be made with sufficient reliability.

When retrospectively reflecting the consequences of changes in accounting policies, we proceed from the assumption that the changed method of accounting was applied from the moment the facts of economic activity of this type arose. Retrospective reflection of the consequences of changes in accounting policies consists of adjusting the opening balance under the item “Retained earnings (uncovered loss)” and (or) other balance sheet items as of the earliest date presented in the accounting (financial) statements, as well as the values ​​of related accounting items disclosed for each period presented in the financial statements, as if the new accounting policy had been applied from the moment the facts of economic activity of this type arose.

(see text in the previous edition)

In cases where an assessment in monetary terms of the consequences of a change in accounting policy in relation to periods preceding the reporting period cannot be made with sufficient reliability, the changed method of accounting is applied to the relevant facts of economic activity that occurred after the introduction of the changed method (prospectively).

15.1. Organizations that have the right to use simplified accounting methods, including simplified accounting (financial) reporting, may reflect in their financial statements the consequences of changes in accounting policies that have had or may have a significant impact on the financial position of the organization, the financial results of its activities and (or) cash flows. funds, prospectively, except for cases where a different procedure is established by the legislation of the Russian Federation and (or) a regulatory legal act on accounting.

(see text in the previous edition)

16. Changes in accounting policies that have had or are capable of having a significant impact on the financial position of the organization, the financial results of its activities and (or) cash flows are subject to separate disclosure in the financial statements.

"International Accounting", 2007, N 10

IAS 1 Presentation of Financial Statements requires that financial statements present fairly the financial position, financial performance and cash flows of the entity, so compliance with IFRS financial statements should result in a fair presentation of information. In turn, this requires the organization to select and apply accounting policies that allow it to generate meaningful, reliable, comparable and understandable information.

Standard IFRS (IAS) 8 "Accounting policies, changes in accounting accounting estimates and errors" establishes criteria for selecting and changing accounting policies, accounting procedures and disclosure of changes in accounting policies. At the same time, under accounting policy refers to the specific principles, rules and practices used by an entity to prepare and present financial statements.

To prepare financial statements in accordance with Russian legislation rules for the selection, justification and disclosure of accounting policies by organizations that are legal entities, are established in the Accounting Regulations “Accounting Policy of the Organization” PBU 1/98, approved by Order of the Ministry of Finance of Russia dated December 9, 1998 N 60n, (hereinafter referred to as PBU 1/98). Accounting policy is a “set of accounting methods chosen by the organization - primary observation, cost measurement, current grouping and final generalization of the facts of economic activity.”

The provision of PBU 1/98, like the IFRS (IAS) 8 standard, requires the consistent application of the accounting policies adopted by the organization from one reporting period to another, and also determines the procedure for changing it.

A change in the accounting policy of an organization can be made in the following cases:

• changes in the legislation of the Russian Federation or regulatory acts on accounting;
• development by the organization of new methods of accounting, which involves more true representation facts of economic activity in the accounting and reporting of the organization or less labor intensity of the accounting process without reducing the degree of reliability of the information;
• significant change in operating conditions (reorganization, change of owners, change in types of activities, etc.).

IAS 8 requires changes to accounting policies only when the change:

• dictated by a standard or interpretation of IFRS;
• results in the financial statements providing more reliable information about the effects of transactions, other events or conditions on the entity's financial position, financial performance or cash flows. At the same time, two methods (approaches) are discussed to reflect the consequences of changes in accounting policies (application of accounting policies):

promising application, i.e. "application of the new accounting policy to transactions, other events and circumstances that occurred after the date of change in the accounting policy"<1>;

retrospective application, i.e. "applying a new accounting policy to transactions, other events and conditions as if the new accounting policy had always been applied"<2>.

<1>Cm. International standards financial statements 2006: Translation into Russian O.M-A. Askeri, V.I. Tarusin and L.E. Khodyreva. M.: Askeri-Assa, 2006. P. 62.
<2>Right there. P. 61.

IAS 8 requires retrospective application of changes in accounting policies in almost all cases except:

• situations where changes are made in connection with a newly adopted standard or interpretation containing transitional provisions that specifically establish the procedure for the first application of this standard or interpretation and the accounting for the corresponding change in accounting policy;
• situations where "it is virtually impossible to determine either the impact of the change over a specific period or its cumulative impact"<3>.

<3>Right there. P. 61, § 23.

The term “practicable” is specifically defined in IAS 8 to mean a situation where an entity, having made all reasonable efforts to comply with the requirements of IFRSs, fails to comply with those requirements.

When it is not practicable to determine the period-specific effects of a change in an accounting policy on comparative information covering one or more prior periods presented, the entity applies the new accounting policy to the carrying amounts of assets and liabilities at the beginning of the earliest period. , for which retrospective application is practicable." The current period, in particular, may turn out to be such a period. In doing so, the entity “makes an appropriate adjustment to the opening balance of each affected component of equity for the period.”

When it is not practicable at the beginning of the current period to determine even the cumulative effect of applying a new accounting policy on all prior periods, the entity adjusts the related comparative information so as to apply the new accounting policy prospectively from the earliest date for which it is practicable to do so. ".

Therefore, the entity adjusts the comparative information but neglects that portion of the cumulative adjustment of assets, liabilities and equity that relates to reporting periods before that date. That is, prospective application in the context of the requirements of § 25 IAS 8 assumes that the new accounting policy is applied not from the date of its actual application in the current reporting period, but from the date when it is practicable to apply it to the comparative information disclosed in the financial statements.

In accordance with § 22 of IAS 8, when applied retrospectively, an entity adjusts the opening balance of each affected component of equity for the earliest period presented in the financial statements and other comparative amounts relating to prior reporting periods disclosed in the financial statements for the current period. as if the new accounting policy had always been applied.

If we consider Russian rules preparation of financial statements, it should be noted that the requirement to present comparative information in the financial statements is specified in the Accounting Regulations “Accounting statements of an organization” (PBU 4/99), approved by Order of the Ministry of Finance of Russia dated July 6, 1999 N 43n, (hereinafter referred to as PBU 4 /99). Paragraph 10 of PBU 4/99 prescribes that “for each numerical indicator of the financial statements, except for the report compiled for the first reporting period, data must be provided for at least two years - the reporting year and the one preceding the reporting one."

This paragraph also contains a requirement to adjust comparative information: “If comparative data for the period preceding the reporting period are for some reason incomparable with data for the reporting period, including in cases related to changes in accounting policies, then the comparative data are subject to adjustment , based on the rules established regulations in accounting. Each material adjustment must be disclosed in the notes to the balance sheet and income statement together with the reasons for the adjustment."

Paragraph 21 of PBU 1/98 indicates that the consequences of changes in accounting policies that can have a significant impact on the financial position, cash flow or financial performance of the organization are reflected in the financial statements based on the requirement to present numerical indicators for at least two years. If this requirement is met, one should proceed from the assumption that the changed method of accounting was applied from the first moment the facts of economic activity of this type arose.

Thus, PBU 1/98 deals with a retrospective method of reflecting the consequences of a change in accounting policies, similar to the retrospective approach provided for in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

Retrospective accounting is used in all cases, except for those situations where the monetary assessment of the consequences of a change in accounting policy in relation to previous reporting periods cannot be made with sufficient reliability. In these situations, the changed accounting method is applied to the relevant business transactions and facts of economic activity that occurred only after the introduction of this method, i.e. Perspective reflection is actually used.

If we consider the procedure for reflecting in accounting and reporting the consequences of changes in accounting policies when applying the retrospective method, it should be noted that accounting data, as well as financial reporting indicators, are not adjusted for previous reporting periods, i.e. no accounting entries are made and reporting figures are not changed.

Reflection of the consequences of changes in accounting policies consists in adjusting included in financial statements for the reporting (current) period of comparative data for the periods preceding this reporting period. Adjustments are also made to balances at the beginning of the year in the financial statements of the current year.

Adjustments to comparative information and opening balances must be made in the so-called inter-reporting period, without affecting the financial results (income and expenses) of both the reporting (current) period and previous reporting periods. In other words, the “inter-reporting period” can be called the period between two dates: the reporting date of the previous annual financial statements and the starting date of the subsequent (current) annual financial statements. Typically, this is the period between December 31 and January 1 of the following year.

It should be noted that, unlike IAS 8, PBU 1/98 does not provide for rules (methods of accounting) for reflecting these adjustments in accounting in cases of changes in accounting policies.

In accordance with paragraph 20 of PBU 1/98, the consequences of changes in accounting policies are reflected in accounting and reporting in the manner prescribed by the relevant legislation or regulation.

Unfortunately, as a rule, Russian regulations governing the rules of accounting and reporting do not contain requirements for reflecting the consequences of changes in accounting policies. An exception is Order of the Ministry of Finance of Russia dated November 27, 2006 N 154n (hereinafter referred to as Order N 154n), which approved the Accounting Regulations “Accounting for assets and liabilities, the value of which is expressed in foreign currency" (PBU 3/2006), using the example of which we will explain the procedure for accounting for the consequences of changes in accounting policies.

Paragraph 3 of Order No. 154n establishes that “organizations that are legal entities under the legislation of the Russian Federation (with the exception of credit organizations And budgetary institutions), in the accounting records as of January 1, 2007, recalculate into rubles the value of funds expressed in foreign currency in settlements (including on borrowed obligations) with legal and individuals, subject to payment based on the terms of contracts (regardless of the terms of their conclusion) in rubles."

In addition, Order No. 154n provides for the procedure for reflecting in accounting and reporting the consequences of changes in accounting policies in connection with new rules for accounting for exchange rate differences. Differences arising during the recalculation of funds in calculations are attributed to the accounting for retained earnings (uncovered loss), i.e. are reflected in account 84 “Retained earnings (uncovered loss)”. This approach is consistent with the requirements of IAS 8 when applying the retrospective method, where adjustments affecting previous reporting periods associated with the implementation of new accounting policies are charged to equity accounts.

However, the indication in Order No. 154n that as of January 1, 2007 it is necessary to recalculate only funds in settlements, and not all assets and liabilities, limits the use of the retrospective method.

Based on this, when transitioning to the application of PBU 3/2006, the organization must determine:

1. does it recalculate only funds in settlements in accordance with the norms of Order No. 154n;
2. or, guided by clause 21 of PBU 1/98, it applies the retrospective approach in full, i.e. recalculates not only funds in settlements, but also other assets and liabilities, the value of which is expressed (for comparative information - was expressed in 2006) in foreign currency (notional monetary units), but is subject to payment in rubles.

Recalculation of funds in calculations in accordance with the requirements of Order N 154n will not require entries in accounting, but will only affect reporting indicators as of January 1, 2007.

If an entity uses the retrospective method, if restatement adjustments are likely to have a material effect on its financial position, cash flows or financial performance, the entity will need to restate its 2006 financial statements retrospectively to generate comparative information that will be presented in annual reports for 2007

We will consider the procedure for reflecting adjustments in connection with the recalculation of funds in calculations using the example given below.

Example. As of January 1, 2007, the organization had the item " Accounts payable" there are accounts payable in foreign currency in the amount of 10,000 euros. According to the agreement, payment of accounts payable is made in rubles at the Bank of Russia exchange rate on the day of payment. The specified debt arose in 2006, when the Bank of Russia exchange rate was 34.80 rubles / euro, and was reflected in the accounting records on account 60 “Settlements with suppliers and contractors” in the amount of 345,000 rubles. The Bank of Russia exchange rate as of January 1, 2007 was 34.70 rubles/euro (conditional rate).

Accounts payable in the amount of 10,000 euros are subject to recalculation at the exchange rate as of January 1, 2007 and after recalculation will amount to 347,000 rubles. (10,000 euros x 34.70 rubles/euro).

The difference from the recalculation is 1000 rubles. (RUB 348,000 - RUB 347,000) should be attributed to the increase in the credit balance (decrease debit balance) on account 84 “Retained earnings (uncovered loss)” while simultaneously reducing accounts payable on account 60 “Settlements with suppliers and contractors”.

The results of this recalculation do not affect the financial statements for 2006.

In the balance sheet (Form No. 1 according to OKUD) as of January 1, 2007, the following should be changed:

• the opening balance in the section "Capital and reserves" under the article "Retained earnings (uncovered loss)" in column 3 "At the beginning of the reporting year" - increased by 1000 rubles;
• The opening balance under the item “Accounts payable” in column 3 “At the beginning of the reporting year” is reduced by 1000 rubles.

In addition, the results of the recalculation are reflected in Section. I “Change in capital” of the report on changes in capital (Form No. 3 for OKUD) for 2007 in column 6 “Retained earnings (uncovered loss)” under the article “Changes in accounting policies” for the reporting year.

In the case of recalculation of financial reporting data for previous reporting periods (comparative indicators for 2006 presented in the financial statements for 2007) in comparable conditions, i.e. provided that the new accounting policy has always been applied (retrospective method), the following indicators will be affected:

• in column 4 "For the same period previous year" in the profit and loss statement (Form No. 2 for OKUD) under the items "Other income", "Other expenses";
• in columns 5 and 6 “For the same period of the previous year” in the table “Decoding of individual profits and losses” under the article “Exchange differences in foreign currency”.

With a retrospective approach in accordance with paragraph 21 of PBU 1/98, in order to prepare comparative information that will be presented in the financial statements for 2007, it should also be revised initial cost assets, which was formed taking into account the amount differences.

In addition, fulfilling the requirements of clause 22 of PBU 1/98, it is necessary to disclose in the explanatory note:

• the reason for the change in accounting policy;
• assessment of the consequences of changes in monetary terms (in relation to the reporting year and each other period, data for which are included in the financial statements for the reporting year);
• an indication that the relevant data from the periods preceding the reporting year included in the financial statements for the reporting year have been adjusted.

N.V. Bushmeleva

Leading expert