With the advent of the Central Bank and the development of the financial regulation system at the state level, reserves of commercial banks, as well as credit organizations, were created. At their expense, the amount of balances on the corresponding (spare) accounts or the conditions for their replenishment are controlled. Let us next consider what the bank's required reserves are.

General information

Bank reserves ensure the availability of funds for the uninterrupted fulfillment of payment obligations relating to the return of deposits to depositors and settlements with other financial institutions. In other words, they act as a guarantee. Reserves must be held in cash as deposits with the Central Bank or in the form of securities to secure obligations.

Requirements

Today, almost all countries with market economies are introducing banks. The effectiveness of this instrument of financial and credit regulation has been confirmed by both fundamental research and world practice. In the Russian Federation, minimum requirements also act as a source of repayment of obligations to creditors and depositors in the event of the revocation of an organization’s license to carry out operations. In practice, the return of funds constituting the reserve of the Central Bank is clearly regulated. Minimum requirements are mainly used within the framework of financial and credit regulation when solving long-term problems of stabilizing the circulation of money and fighting inflation. This instrument acts as a limiter on the growth rate of the cash supply and regulates the demand for bank reserves. Its specific purpose is given in Regulation No. 342. In accordance with the definition given in this act, the use of this instrument ensures regulation of the overall liquidity of the banking structure of the Russian Federation. Cash supply is controlled by reducing the money multiplier.

Main goal

In the practice of financial organizations, there is always a risk of unplanned losses. No institution is 100% immune from them. In this regard, during operation and in the process of risk regulation, each financial institution needs to ensure the formation of bank reserves. To guarantee its reliability, the organization is obliged to create various funds, the funds from which will be used to cover possible losses. The procedure in accordance with which their formation and subsequent use is carried out is, in most cases, established by legislative acts and the Central Bank. The amount of deductions from profit before taxation is regulated by the Federal Tax Law. The minimum amount of bank reserves is set by the Central Bank. As practice shows, the use of a “reserve” is appropriate if there is an objective need to reduce the money supply in circulation (to suspend or control growth) to prevent “overheating” of the economy, if to achieve this goal, restriction of the credit capabilities of financial institutions through the withdrawal of a certain share of borrowed funds from them will be used. funds (or an increase in this part). It follows from this that the reserve of the Bank of Russia is the funds of financial organizations accumulated as permanent deposits, which must be excluded from any circulation.

Classification

Bank reserves, in general, have one purpose - to compensate for probable expenses or losses if necessary. However, they are divided into types. Thus, the required reserve is an instrument through which the overall liquidity of the system is regulated. It is used by the Central Bank to ensure control of funds by reducing the accumulation of money in commercial banks. This mechanism limits the lending capabilities of financial companies and maintains the money supply in circulation at a certain level. At its core, required reserves are funds that commercial banks must keep with the Central Bank. They act as a financial guarantee fund that ensures reliability in the fulfillment of obligations to their clients. Such bank reserves are created not so much in the interests of the organization itself. They act as an instrument of state monetary policy. Being highly liquid, these assets cannot be fully used by financial institutions in the event of adverse circumstances. For example, if an institution begins to outflow depositors’ funds, then the reserve can be used exclusively within the established standard.

Fund

It is presented as part of equity capital formed by annual deductions from profits. The reserve fund is necessary to cover losses arising in the course of the activities of a financial organization. It is also created to increase the authorized capital. The standard for contributions is determined at the general meeting of shareholders. The value can be any within the established amount of the authorized capital. A financial enterprise has the right to transfer funds only when there is a profit. Its replenishment, therefore, is carried out due to the increase in the net asset. The fund accumulates funds received by a financial institution in the course of its activities. By making transfers from profits to the fund, the banking organization provides for the use of a share of its assets exclusively in certain areas. The main one is loss coverage.

Banks' reserves for probable loan losses

Their creation is determined by credit risks that may arise in the course of activity. Such reserves help prevent profit from fluctuating when loan losses are written off. Thus, the amount of capital is affected. The formation of such reserves comes from deductions that are charged to expenses for each loan. These funds are used only to cover the outstanding debt on the main obligation. These reserves are used to write off losses on loans that cannot be collected. If there is insufficient funds, debt recognized as unrealistic or hopeless is included in the losses of the reporting period. Due to this, the tax base of the financial institution is reduced.

Funds for impairment of securities

Every month, on the last working day, investments in shares are revalued at market value. The latter should be understood as the weighted average price of one security for transactions that were completed during the last day on the exchange or with the help of a trading organizer. In some cases, the actual purchase price of a security as of the last business date, reduced by half, may be taken as the market value. If it is below the book price, then the financial institution must create an impairment reserve. Its value should not be more than 50% of the specified cost. Formation is carried out on the last working date of the month in which the security was purchased. Its write-off is carried out simultaneously with the disposal of the share. The creation of these reserves, as mentioned above, is carried out separately for each security, regardless of the increase or preservation of their total value.

Specifics of the impairment reserve

When revaluing investments, the need to form reserves arises. However, the securities remain unchanged. In this regard, these funds are rather considered not so much as a reserve, but rather act as an adjustment to the share price for accounting purposes. At the end of the reporting month, credit institutions must revaluate previously created reserves for depreciation of investments, taking into account the market value and number of securities.

Other types

In addition to those listed, there are other bank reserves. They are combined into a group of probable losses for other assets. These include, in particular, reserves:

• Under balance sheet assets with risk of loss.
• For a number of instruments reflected in off-balance sheet accounts.
• For urgent transactions.
• For other losses.

Classification of losses

Possible losses of a financial organization that determine the formation of reserves should be understood as hypothetical risks in the coming periods associated with the occurrence of the following circumstances:

1. An increase in the amount of expenses or liabilities compared to those previously reflected in the accounting records.
2. Decrease in the value of the credit company's assets.
3. Failure to fulfill obligations assumed by counterparties of a financial institution for completed operations (concluded transactions) or in connection with failure to fulfill the promise of entities whose proper repayment of debt is ensured by the servicing banking organization.

Of the above bank reserves, only the fund is considered the most efficient. This is due to the fact that due to the funds that form it, a financial institution can control its expenses. All other bank reserves are not considered as efficient. This is because increasing their size will not enhance the organization's ability to withstand emerging adverse circumstances.

Gold and foreign exchange reserves of the bank

They are financial assets that are highly liquid. are under the jurisdiction of the Central Bank and the Ministry of Finance. They include:

1. Monetary gold.
2. Special borrowing rights.
3. Reserve position in the World WF.
4. Foreign currency.

The value of these inventories is stated at the reporting date in US dollar terms.

Purpose

Gold and foreign exchange reserves act as a financial reserve, through which, if necessary, government debt payments can be made or budget expenditures can be carried out. Their presence, in addition, allows the Central Bank to exercise control over the dynamics of the ruble exchange rate through interventions in foreign exchange markets. The size of this reserve should largely cover the volume of money in circulation, provide for both private and sovereign payments on external debt and guarantee 3 months of imports. If such a value of gold and foreign exchange reserves is reached, the Central Bank will be able to effectively control the movement of the ruble exchange rate and interest rates.

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Introduction

In market economic conditions, as well as during the transition to a market, financial reserves play an important role as a stabilizer of the economy. Moreover, the more difficult the economic situation in the country, the greater the importance of financial reserves, the availability and volume of which sometimes determines the fate of the country and its position in the global economy.

Relevance of the work. Currently, the issues of managing the financial reserves of the state are very relevant. However, there are simply no traditions of managing financial reserves as capital in Russia. In past eras, the state at best had a reserve. Today, the state has crossed the line separating such a nest egg from capital, which must work and make a profit. But this fundamental fact has not yet been recognized by society and has not been properly reflected in state policy, therefore the research carried out within the framework of this work has elements of novelty.

In recent years, the budget process in Russia has been reformed, and the changes in it are obvious and positive. The presence of a significant component of income from natural resources, such as oil, gas, and non-ferrous metals among the country's budget sources of income, poses a number of pressing issues for the Russian government. First, the problem of saving for future generations is a long-term task of creating a mechanism for redistributing existing income from resources between the present moment and the future, when resources are exhausted. Secondly, the stabilization motive is the task of equalizing in the short term government expenditures and, in general, the economic development of the country with sharp fluctuations in prices on world commodity markets. Long-term planning of budget parameters and fiscal policy directions is necessary to ensure dynamic economic development. All this makes the work on the topic “Financial reserves, their dynamics and development problems in modern Russia” especially relevant.

The purpose of the work is to study financial reserves and their importance.

To achieve this goal, it is necessary to solve the following tasks:

Determine the essence and purpose of financial reserves.

Study the forms of existence of financial reserves at the macro and micro levels

Consider the reserve funds of the executive bodies of state power in the Russian Federation, their purpose, the procedure for their formation and use

Analyze the procedure for the formation, purpose and use of the Welfare Fund of the Russian Federation and the Reserve Fund of the Russian Federation

Explore the problems of formation and prospects for the development of funds

The object of the work is relations in the sphere of formation and use of financial reserves of the Russian Federation.

The subject of the work is the processes of formation, use and improvement of the management of financial reserves of the Russian Federation.

Chapter 1. Theoretical foundations of the formation and use of financial reserves

executive state financial reserve

1.1 Concept and purpose of financial reserves

In the context of the transition to a market economy, great importance is attached to all institutions of the financial system, since they make a certain contribution to the development of the state’s economy. Improving financial relations is the main condition for the functioning of a market economy.

Finance is an integral part of the economy, helping to implement methods of government regulation through the formation of various funds of funds.

Finance as a scientific concept is usually associated with those processes that appear on the surface of social life in various forms and are necessarily accompanied by the movement (cash or non-cash) of funds.

The distribution and redistribution of value through finance is necessarily accompanied by the movement of funds, which take a specific form of financial resources.

The subject of state financial resources is the state itself.

The object of state financial resources are financial relations as a result of actions that create target funds: budget revenues of all levels and revenues of extra-budgetary funds.

Financial resources act as material carriers of financial relations. They act as objects of real money turnover , are sources of financing for expanded reproduction.

The main material source of monetary funds is the country's national income - newly created value. It is divided into the cost of necessary and surplus product. The necessary product and part of the surplus is the fund for the reproduction of labor power. The rest is a savings fund. For economic entities, the main monetary funds are the accumulation fund, the consumption fund and the financial reserve fund.

Thus, financial reserves (English contingency funds) are a special form of financial resources set aside by state and municipal authorities and business entities in the event of unforeseen expenses and specific needs caused by the need to eliminate the negative consequences of random, unexpected events and circumstances.

The formation of financial reserves is objectively predetermined by the needs of social reproduction, which requires uninterrupted financing even in the event of unforeseen events and various types of accidents. It occurs at the stage of distribution of financial resources among designated funds: the stock form of functioning of financial reserves is determined by the need for their intended use. Financial reserves are spent only upon the occurrence of events, in case of occurrence for which they were foreseen, and only for purposes related to the adverse consequences of the events that occurred. If random, unforeseen events do not occur, the remaining and unspent financial reserves act as a source of accumulation of financial resources, increasing the stability of the financial system. The processes of functioning of financial reserves and financial resources are closely interrelated: the timeliness and completeness of the formation of financial reserves largely depends on the amount of financial resources; the use of financial reserves for their intended purpose restores the normal course of the reproduction process even in the event of unfavorable events, leading to the uninterrupted formation of financial resources.

Functional purpose of financial reserves:

Cover unforeseen expenses, the need for which arises during the implementation of production and financial plans (reserve funds of the President of the Russian Federation, the Government of the Russian Federation, reserve funds of business entities, as well as special reserve funds of ministries)

Ensure stable execution of budgets at all levels (all types of budget reserves, and, if necessary, the country’s gold and foreign exchange reserves)

Provide industry expenses (industry funds of ministries and departments, reserve funds of the President of the Russian Federation and the Government of the Russian Federation, formed at the federal and regional levels)

Cover losses and other damage caused by natural disasters, adverse weather conditions, accidents and other circumstances (various insurance reserves, reserve (insurance) funds of business entities and (partially) budget reserves)

The formation and use of state financial reserves in Russia is determined mainly not by achieving the goals of developing the national economy and modernizing industry by obtaining a new source of financing, but by ensuring the balance of its main macroeconomic indicators (Fig. 1).

Rice. 1. The dual role of state financial reserves.

Today, the main problem in implementing an effective policy of state financial reserves is the search for ways to direct these financial resources to the development of the national economy and industrial modernization while simultaneously ensuring a balance of the main macroeconomic indicators of the Russian economy.

The study of state financial reserves should be aimed at studying groups of problems, firstly, in the area of ​​formation of these reserves, and, secondly, in the area of ​​their use. In turn, problems in the area of ​​use fall into two subareas: problems arising when placing state financial reserves, and problems when spending them. The solution to problems should be based on deepening theoretical and methodological ideas about the formation and use of state financial reserves in order to develop measures in the field of ensuring the security and development of the Russian economy.

The role of financial reserves is very significant both during the transition to a market economy and in a market economy. Financial reserves serve as an economic stabilizer, and their importance only increases as the economic situation in the country worsens.

Thus, the position of the state in the global economy and its future fate directly depend on the availability and volume of financial reserves and the provision of a greater variety of forms of decentralized financial reserves formed by economic entities.

1.2 Forms of existence of financial reserves at the macro- and microlevel of the Russian Federation

Classification of financial reserves:

Budget reserves. They contribute to the elimination of imbalances and temporary disruptions in the course of socio-economic processes

Insurance reserves and reserve funds of business entities. They ensure the continuity of the reproduction process at the micro- and macro-level in the required scale and proportions, even in the event of unexpected circumstances and various types of accidents.

Gold and foreign exchange reserves are official centralized reserves of liquid reserve assets that are used for international macroeconomic calculations of countries, repayment of external debt obligations, and regulation of market exchange rates of national monetary units. Are in the possession and disposal of central banks and state, governmental and financial bodies, as well as international monetary organizations.

Special reserve funds of some ministries and departments. They make it possible to finance new needs arising during the financial year due to scientific and technical achievements and discoveries; Thanks to special funds of ministries, opportunities are created to reserve part of the financial resources within individual ministries.

This classification of financial reserves is determined by the grouping of financial relations, their place and role in the reproduction process.

In accordance with it, budget reserves help eliminate imbalances and temporary disruptions in the course of socio-economic processes; insurance reserves and reserve funds of business entities ensure, in the required scale and proportions, the continuity of the reproduction process at the micro- and macro-level, even in the event of unexpected circumstances and various types of accidents:

gold and foreign exchange reserves guarantee the stability of the national currency;

special reserve funds of ministries and departments and budget reserves make it possible to finance new needs arising during the financial year due to scientific and technical achievements and discoveries;

Thanks to special funds of ministries, opportunities are created to reserve part of the financial resources within individual ministries.

There is a division of financial reserves into:

strategic, related to the development of new mineral deposits, strengthening the borders of the state, etc. (funds from the Reserve Fund of the President of the Russian Federation and reserve executive authorities are used);

operational, designed to eliminate failures in the reproduction process of business entities (at the expense of insurance funds) or intra-annual class gaps in the budgets of authorities at different levels (at the expense of circulating cash).

Grouping of financial reserves can also be carried out depending on:

level of their formation (centralized and decentralized),

educational methods (budgetary, insurance, self-insurance)

financial reserves formed by business entities.

Financial reserves are divided into:

budget funds formed in the state budget for the uninterrupted financing of planned activities and financial support for newly arising expenses of an urgent nature;

insurance reserves, part of the insurer's property.

Unlike an ordinary company, in which all property is at its full disposal, the property of an insurance company is divided into two parts: funds from insurance reserves and the so-called “own funds” of the insurer.

The insurer can dispose of its own funds at its own discretion, and the possibilities for disposing of reserve funds are strictly regulated.

Essentially, the insurer’s ability to manage reserve funds is as follows:

the insurer pays insurance compensation or security from these funds;

upon expiration of the insurance contract, part of the reserves corresponding to this contract passes into the insurer’s own funds and upon this transition is subject to income tax; the size of this part is calculated according to a special formula and depends on whether payment under this agreement occurred or did not occur and on other reasons;

funds that were not spent on payments and did not become part of own funds are invested in various investment objects in order to make a profit; they say that this part of the reserves is “placed.” The insurer cannot dispose of reserve funds in any other way.

The grouping of financial reserves can also be carried out depending on the level of their formation (centralized and decentralized), methods of education (budgetary, insurance, self-insurance), etc.

In market economic conditions, as well as during the transition to a market, financial reserves play an important role as a stabilizer of the economy; Moreover, the more difficult the economic situation in the country, the greater the importance of financial reserves, on the availability and volume of which the fate of the country and its position in the global economy sometimes depends. In Russia, a significant part of financial resources is formed at the disposal of state and municipal authorities. These include:

various types of budget reserves created in federal, regional and local budgets;

gold and foreign exchange reserves of Russia;

reserve funds as part of state extra-budgetary funds, etc.

At the same time, the laws of a market economy, as world experience shows, dictate the need to increase the volume and provide a greater variety of forms of decentralized financial reserves formed by business entities.

1.3 Reserve funds of executive bodies of state power in the Russian Federation

The expenditure side of budgets at all levels of the budget system of the Russian Federation provides for the creation reserve funds: executive authorities; local government bodies.

Budget reserve funds are a separate part of funds in budgets of all levels, in the form of targeted budget funds designed to ensure uninterrupted financing of both previously foreseen expenses and unforeseen expenses that arose suddenly and are of an emergency or accidental nature.

Reserve funds are designed to:

ensure uninterrupted financing of budgeted activities even in cases where budget revenues are lower than planned;

contribute to maintaining a balance between budget revenues and expenditures, directly influencing its sustainability;

act as one of the sources of compensation for damage caused to state and municipal property by natural forces;

maneuver cash in order to eliminate intra-annual cash gaps;

satisfy newly emerging urgent needs, eliminate imbalances that arise during budget execution.

Being a type of financial reserves, budget reserve funds are characterized by specific features:

they belong to the centralized reserves of society and have a wide scope of application;

they are distinguished by the scale of their influence on the reproduction process, since they contribute to the stability of the country’s economy as a whole, maintaining the stable functioning of its industries in the event of emergency and unforeseen events;

their education is always compulsory and legally established;

they are universal in areas of use, since they are designed to provide any additional need for funds that arises in the budget of any level due to the occurrence of unforeseen and emergency events.

The source of formation of reserve funds is funds accumulated in budgets of all levels. The formation of budget reserves is reflected in the expenditure side of the budget, in some cases it is shown in the balance of budget income and expenses. However, the inclusion of budgetary reserves in the expenditure side of the budget does not mean that they are a regular budget expense, since they represent a kind of reserve of budgetary resources that are mobilized into the budget, but reserved in case of the need for additional financing associated with the occurrence of unplanned expenses in the process of budget execution.

In contrast to ordinary budget expenditures, which are gradually and continuously carried out during the budget year, they are used only during the occurrence of certain types of events and circumstances. If such events do not occur during the budget year, then these funds remain unclaimed and must be transferred to the next year as an element of national wealth.

Reserve funds of executive authorities of the Russian Federation and constituent entities of the Russian Federation are created in the federal and regional budgets, and reserve funds of local self-government bodies are created in local budgets.

The expenditure side of the budgets of the budgetary system of the Russian Federation (with the exception of the budgets of state extra-budgetary funds) provides for the creation of reserve funds of executive bodies of state power (local administrations) - the reserve fund of the Government of the Russian Federation, reserve funds of the highest executive bodies of state power of the constituent entities of the Russian Federation, reserve funds of local administrations (according to Article 81 of the Budget Code of the Russian Federation).

The total amount of reserve funds in the federal budget cannot exceed 3% of the approved volume of budget expenditures; The size of reserve funds in the budgets of the constituent entities of the Russian Federation is established by the legislative authorities of the constituent entities of the Russian Federation when approving regional budgets for the next financial year.

Since budget reserve funds are created in case of unforeseen or extraordinary expenses that arise during the execution of the budget, their financing is the prerogative of the executive, but not the legislative authorities. The range of issues resolved by legislative bodies is planned in advance, is not random or spontaneous, and therefore must be financed in a legally established manner through the corresponding indicators of the approved budget. The use of funds from budget reserve funds occurs on the basis of decisions of those state authorities and local governments at whose disposal they were created; funds are allocated to finance unforeseen expenses, including emergency restoration work to eliminate the consequences of natural disasters and other emergencies that occurred this year; the expenditure of budget reserve funds is carried out in the same forms that are used in accordance with Art. 69 of the Budget Code of the Russian Federation for the provision of budget funds to legal entities and other possible budget recipients. The form of expenditure of budget reserve funds is determined by the functional purpose of the allocated resources.

The procedure for spending funds from budget reserve funds is established by regulatory legal acts of the Government of the Russian Federation, executive authorities of constituent entities of the Russian Federation and local governments. Federal and regional executive authorities, as well as local self-government bodies, are required to inform the relevant legislative and local government bodies on a quarterly basis about the expenditure of budget reserve funds. Thanks to such information, at all levels of the budget system of the Russian Federation, current control is carried out by the legislative authorities and local self-government over the targeted and rational use of budget reserve funds.

The functioning of budget reserve funds in budgets of all levels of the budget system, the versatility of their purpose requires the creation of various types of budget reserve funds. This is explained by the different composition of powers assigned to each level of government, on which the need for reserves depends and what is associated with the differentiation of types and purposes of use. In addition, the existence of many types of budgetary reserves is caused by a large number of unforeseen events and circumstances, the maintenance of which is entrusted to them.

In Russia, the budget reserve funds include:

Reserve Fund of the President of the Russian Federation

Reserve funds of the presidents of the republics within the Russian Federation

Reserve funds of executive authorities.

The excess of income over expenses generated during budget execution can also be used as a reserve.

Budget reserve funds according to their functional purpose are divided into:

Strategic - intended to finance large-scale expenses designed for the future: the development of promising high-tech industries, the development of newly discovered mineral deposits, and strengthening the country's defense capability. Funds from the reserve fund of the President of the Russian Federation and the reserve fund of the Government of the Russian Federation are partially used for these purposes.

Insurance - make it possible to ensure the uninterrupted development of the economy and the life of the population in the event of large-scale natural disasters and catastrophes, and compensate for the damage caused by such emergency circumstances. These primarily include the Reserve Fund of the Government of the Russian Federation for the Prevention and Elimination of Emergency Situations and the Consequences of Natural Disasters, which performs the functions of a centralized insurance fund. Similar funds can be created in the budgets of constituent entities of the Russian Federation. In practice, the insurance function is usually performed by the budget reserves of executive bodies of state power.

Operational - are formed for the purpose of financing unforeseen measures of an urgent nature, eliminating intra-annual cash gaps, etc. To solve these problems, contingency funds, circulating cash, etc. are created in the budgets.

In the course of writing the first chapter, devoted to the study of the theoretical basis for the formation and use of financial reserves, it was determined that financial reserves are a special form of financial resources set aside by state and municipal government bodies and business entities in case of unforeseen expenses and specific needs caused by the need to eliminate negative consequences of random, unexpected events and circumstances. The functional purpose of financial reserves is examined in detail, which include: covering unforeseen expenses, ensuring stable execution of budgets at all levels, providing for industry expenses, covering losses and other damage. During the writing process, it was revealed that finding ways to direct financial resources to the development of the national economy and industrial modernization is the most important and pressing problem in the implementation of an effective policy of state financial reserves.

Having analyzed scientific sources that show exactly where the study of state financial reserves should be directed: to study groups of problems (in the field of formation of these reserves and in the field of their use), we came to the conclusion that their solution should be based on deepening theoretical and methodological ideas about the formation and use of state financial reserves. During the writing, it was also emphasized that the position of the state in the global economy, and its future fate, directly depend on the availability and volume of financial reserves and the provision of a greater variety of forms of decentralized financial reserves formed by economic entities. The classification of financial reserves was also considered, the analysis of which showed that it is determined by the grouping of financial relations, their place and role in the reproduction process. It was revealed that there are divisions of financial reserves (strategic and operational), and a more detailed study showed that the grouping of financial reserves can be carried out depending on the level of their formation, methods of formation and financial reserves formed by business entities. While studying the theoretical basis for the formation and use of financial reserves, it was revealed that the expenditure side of budgets at all levels of the budget system of the Russian Federation provides for the creation of reserve funds. Also, it was analyzed why reserve funds are so necessary and what exactly is included in their composition. It has been studied how budget reserve funds are divided by functional purpose (strategic, insurance and operational) and what purpose this or that fund pursues.

Chapter 2. Reserve Fund and National Welfare Fund of the Russian Federation

2.1 Purpose, procedure for the formation and use of the Reserve Fund of the Russian Federation

The Reserve Fund of the Russian Federation was formed on February 1, 2008, after the division of the Stabilization Fund into the Reserve Fund and the National Welfare Fund of Russia.

The Reserve Fund actually replaced the Stabilization Fund of the Russian Federation. Unlike the Stabilization Fund of the Russian Federation, in addition to federal budget revenues from oil production and export, the sources of formation of the Reserve Fund are also federal budget revenues from gas production and export.

The Reserve Fund of the Russian Federation is a part of the federal budget funds that are subject to separate accounting and management for the purpose of carrying out an oil and gas transfer in the event of insufficient oil and gas revenues to financially support the specified transfer.

The reserve fund is designed to ensure that the state fulfills its spending obligations in the event of a decrease in oil and gas revenues to the federal budget.

The Fund contributes to the stability of the country's economic development, reducing inflationary pressure and reducing the dependence of the national economy on fluctuations in revenues from the export of non-renewable natural resources.

The reserve fund is formed from:

oil and gas revenues of the federal budget in an amount exceeding the amount of oil and gas transfer approved for the corresponding financial year, provided that the accumulated volume of the Reserve Fund does not exceed its standard value (starting from 2008, oil and gas revenues are counted separately from other federal budget revenues);

income from the management of the Reserve Fund.

The standard value of the Reserve Fund is approved by the federal law on the federal budget for the next financial year and planning period in an absolute amount determined on the basis of 10% of the volume of gross domestic product projected for the corresponding year. The funds of the Reserve Fund can be placed in foreign currency and a number of financial assets denominated in foreign currency. It is also expected that the Reserve Fund will be able to invest in bonds of foreign central banks.

Oil and gas revenues of the federal budget are generated through:

tax on the extraction of mineral resources in the form of hydrocarbon raw materials (oil, combustible natural gas, gas condensate);

export customs duties on crude oil;

export customs duties on natural gas;

export customs duties on goods produced from oil.

A certain part of these oil and gas revenues in the form of oil and gas transfers is annually used to finance federal budget expenses. The amount of oil and gas transfer is approved by the federal law on the federal budget for the next financial year and planning period in an absolute amount, calculated as 3.7% of the volume of gross domestic product projected for the corresponding year, specified in the federal law on the federal budget for the next financial year and planning period.

After the formation of the oil and gas transfer in full, oil and gas revenues go to the Reserve Fund.

After filling the Reserve Fund to the specified amount, oil and gas revenues are sent to the National Welfare Fund.

From January 1, 2010 to January 1, 2015, the standard value of the Reserve Fund is not determined; oil and gas revenues of the federal budget are not used to financially support oil and gas transfers and for the formation of the Reserve Fund and the National Welfare Fund, but are directed to financially support federal budget expenditures.

Another source of formation of the Reserve Fund is income from the management of its funds.

From January 1, 2010 to February 1, 2016, income from the management of the Reserve Fund is not credited to the Fund, but is directed to financial support for federal budget expenses. Oil and gas revenues from the Reserve Fund are accounted for in separate accounts for federal budget funds opened by the Federal Treasury in the Central Bank of the Russian Federation. From January 1, 2010 to January 1, 2015, separate accounting of oil and gas revenues from the federal budget is not carried out.

The goals of managing the Reserve Fund are to ensure the safety of the Fund’s assets and a stable level of income from its placement in the long term. Managing the fund's assets for these purposes allows for the possibility of obtaining negative financial results in the short term.

The management of the Reserve Fund is carried out by the Ministry of Finance of the Russian Federation in the manner established by the Government of the Russian Federation. Certain powers to manage the resources of the Reserve Fund may be exercised by the Central Bank of the Russian Federation.

Management of the Reserve Fund funds can be carried out in the following ways (both individually and simultaneously):

by purchasing foreign currency at the expense of the Fund and placing it on accounts for the Reserve Fund in foreign currency (US dollars, euros, pounds sterling) in the Central Bank of the Russian Federation. For the use of funds in these accounts, the Central Bank of the Russian Federation pays interest established by the bank account agreement;

by placing the Fund's funds in foreign currency and financial assets denominated in foreign currency, the list of which is determined by the legislation of the Russian Federation.

The Ministry of Finance of the Russian Federation manages the funds of the Reserve Fund in accordance with the first method, that is, by placing funds in foreign currency accounts with the Central Bank of the Russian Federation, as follows. According to the procedure for calculating and crediting interest accrued to accounts for accounting for the Reserve Fund in foreign currency, approved by the Ministry of Finance of the Russian Federation, the Bank of Russia pays on the balances on these accounts interest equivalent to the yield of indices formed from financial assets in which the Reserve Fund's funds can be placed , the requirements for which are approved by the Government of the Russian Federation.

The Government of the Russian Federation establishes maximum shares of permitted financial assets in the total volume of allocated funds of the Reserve Fund. In order to improve the efficiency of management of the Reserve Fund, the Ministry of Finance of the Russian Federation is authorized to approve the regulatory shares of permitted financial assets in the total volume of allocated funds of the Reserve Fund within the limits of the corresponding shares established by the Government of the Russian Federation.

The use of Reserve Fund funds for the formation of oil and gas transfers is carried out without making changes to the federal law on the federal budget for the next financial year and planning period in the event that the oil and gas revenues of the federal budget received for the corresponding financial year are insufficient for these purposes.

The maximum volume of use of the Reserve Fund for financial support of oil and gas transfers is approved by the federal law on the federal budget for the next financial year and planning period.

The use of the Reserve Fund to finance oil and gas transfers during periods of unfavorable conditions in world energy prices allows for a balanced budget policy, ensuring stable socio-economic development of the country, reducing its dependence on fluctuations in world commodity markets.

The use of the Reserve Fund for early repayment of the state external debt of the Russian Federation is aimed at reducing the debt burden of the federal budget due to unplanned federal budget revenues and saving federal budget funds by reducing the cost of servicing the debt obligations of the Russian Federation.

The Government of the Russian Federation has the right, until January 1, 2015, without amending the federal law on the federal budget, to direct funds from the Fund to make payments that reduce debt obligations, reduce borrowing and ensure the balance of the federal budget, including in excess of the total volume of federal budget expenditures in the event and within the limits of increasing budgetary allocations of the federal budget for the provision of interbudgetary transfers in order to ensure the balance of the budgets of state extra-budgetary funds of the Russian Federation.

The total volume of funds of the Reserve Fund (Appendix, Table 1)

The total volume of funds of the Reserve Fund, expressed in Russian rubles and US dollars, corresponds to the sum of the balances in the accounts of the Federal Treasury with the Central Bank of the Russian Federation for accounting of funds of the Reserve Fund, recalculated at the official foreign exchange rates established by the Central Bank of the Russian Federation on the date preceding the reporting date, and cross rates calculated on the basis of the specified rates. From November 12, 2008 to January 17, 2011, the indicated total volume also included funds from the Reserve Fund placed in the reserve position of the Russian Federation in the International Monetary Fund.

This indicator does not take into account the estimated amounts of interest income for the expired part of the interest period on accounts in foreign currency, as well as interest accrued on the Reserve Fund funds placed in the IMF reserve position.

2.2 Purpose, procedure for the formation and use of the National Welfare Fund of the Russian Federation

The National Welfare Fund is part of the federal budget. The fund is intended to become part of a sustainable mechanism for pension provision for citizens of the Russian Federation for the long term.

The National Welfare Fund of Russia was formed on February 1, 2008, after the division of the Stabilization Fund into the Reserve Fund and the National Welfare Fund. As of October 1, 2015, according to the Ministry of Finance, the volume of funds in the Russian National Welfare Fund is 4,878.80 billion rubles.

The goals of the National Welfare Fund are to ensure co-financing of voluntary pension savings of citizens of the Russian Federation and to ensure balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.

Like the Reserve Fund, the National Welfare Fund is formed by:

oil and gas revenues of the federal budget in an amount exceeding the volume of oil and gas transfers approved for the corresponding financial year, if the accumulated volume of the Reserve Fund reaches (exceeds) its standard value;

income from managing funds of the National Welfare Fund.

Oil and gas revenues are sent to the National Welfare Fund after filling the Reserve Fund to the amount of 10% of the gross domestic product forecast for the corresponding year.

Another source of formation of the National Welfare Fund is income from the management of its funds.

From January 1, 2010 to February 1, 2014, income from the management of funds of the National Welfare Fund is not credited to the Fund, but is directed to financial support for federal budget expenditures.

Oil and gas revenues from the federal budget and the National Welfare Fund are accounted for in separate accounts for federal budget funds opened by the Federal Treasury in the Central Bank of the Russian Federation.

From January 1, 2010 to January 1, 2014, separate accounting of oil and gas revenues from the federal budget is not carried out.

Calculations and transfers of funds in connection with the formation and use of oil and gas revenues from the federal budget, oil and gas transfers, and funds from the National Welfare Fund are carried out by the Ministry of Finance of the Russian Federation.

From January 1, 2010 to January 1, 2014, the procedure for settlements and transfers of funds in connection with the formation and use of oil and gas revenues from the federal budget, oil and gas transfers, and funds from the National Welfare Fund was suspended.

From January 1, 2010 to February 1, income from the management of funds of the National Welfare Fund is not credited to the Fund, but is directed to financial support for federal budget expenditures.

The amount of funds from the National Welfare Fund allocated for these purposes is established by the federal law on the federal budget for the next year and planning period.

Funds from the National Welfare Fund can be used to co-finance voluntary pension savings of Russian citizens and ensure balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation. The amount of funds from the National Welfare Fund allocated for these purposes is established by the federal law on the federal budget for the next year and planning period.

The procedure for co-financing voluntary pension savings of citizens of the Russian Federation is defined in the Federal Law of April 30, 2008 No. 56-FZ “On additional insurance contributions for the funded part of the labor pension and state support for the formation of pension savings.”

The Government of the Russian Federation has the right, until January 1, 2014, without amending the federal law on the federal budget, to direct funds from the Fund to make payments that reduce debt obligations, reduce borrowing and ensure the balance of the federal budget, including in excess of the total volume of federal budget expenditures in the event and within the limits of increasing budgetary allocations of the federal budget for the provision of interbudgetary transfers in order to ensure the balance of the budgets of state extra-budgetary funds of the Russian Federation.

The goals of managing the funds of the National Welfare Fund are to ensure the safety of the Fund’s assets and a stable level of income from its placement in the long term. Management of the Fund's assets for these purposes allows for the possibility of obtaining negative financial results in the short term.

The funds of the National Welfare Fund are managed by the Ministry of Finance of the Russian Federation in the manner established by the Government of the Russian Federation. Certain powers to manage the funds of the National Welfare Fund may be exercised by the Central Bank of the Russian Federation. In the case of attracting specialized financial organizations to exercise certain powers to manage the funds of the National Welfare Fund, the procedure for attracting these organizations, as well as the requirements for them, are established by the Government of the Russian Federation.

The funds of the National Welfare Fund can be managed in the following ways (both individually and simultaneously):

by purchasing foreign currency at the expense of the Fund and placing it on accounts for recording funds of the National Welfare Fund in foreign currency (US dollars, euros, pounds sterling) in the Central Bank of the Russian Federation. For the use of funds in these accounts, the Central Bank of the Russian Federation pays interest established by the bank account agreement;

by placing the Fund's funds in foreign currency and financial assets denominated in Russian rubles and permitted foreign currency (hereinafter referred to as permitted financial assets).

The Ministry of Finance of the Russian Federation manages the funds of the National Welfare Fund in accordance with the first method, that is, by placing funds in foreign currency accounts with the Central Bank of the Russian Federation as follows. According to the procedure for calculating and crediting interest accrued to accounts for accounting for funds of the National Welfare Fund in foreign currency, approved by the Ministry of Finance of the Russian Federation, the Bank of Russia pays interest on the balances on these accounts equivalent to the yield of indices formed from financial assets in which the Fund’s funds can be placed national welfare, the requirements for which are approved by the Government of the Russian Federation.

The Government of the Russian Federation establishes maximum shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund. In order to improve the efficiency of managing the funds of the National Welfare Fund, the Ministry of Finance of the Russian Federation is authorized to approve the regulatory shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund within the limits of the corresponding shares established by the Government of the Russian Federation.

Permitted financial assets determined by the BC RF	Limit shares established by the Government of the Russian Federation	Regulatory shares approved by the Ministry of Finance of Russia
		In foreign currency
Debt obligations of foreign countries
Debt obligations of foreign government agencies and central banks
Debt obligations of international financial organizations, including those issued by securities
Deposits and balances in bank accounts with banks and credit institutions
Deposits in the state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”
Deposits and balances in bank accounts with the Central Bank of the Russian Federation
Debt obligations of legal entities
Shares of legal entities and units of investment funds

The Ministry of Finance of the Russian Federation publishes monthly information on the receipt and use of oil and gas revenues of the federal budget, the amount of assets of the National Welfare Fund at the beginning of the reporting month, the transfer of funds to the specified fund, their placement and use in the reporting month.

The Ministry of Finance of the Russian Federation, as part of reporting on the execution of the federal budget, submits to the Government of the Russian Federation a quarterly and annual report on the receipt and use of oil and gas revenues of the federal budget, the formation and use of funds from the National Welfare Fund, as well as a quarterly and annual report on the management of funds from the specified fund.

The Government of the Russian Federation, as part of reporting on the execution of the federal budget, submits to the State Duma of the Federal Assembly of the Russian Federation and the Federation Council of the Federal Assembly of the Russian Federation a quarterly and annual report on the receipt and use of oil and gas revenues of the federal budget, the formation and use of funds from the National Welfare Fund, as well as a quarterly and annual report on management of the funds of the specified fund.

In the process of executing the federal budget, the Accounts Chamber of the Russian Federation carries out control measures to verify the formation, use and management of funds from the National Welfare Fund. The Accounts Chamber of the Russian Federation quarterly submits to the Federal Assembly of the Russian Federation an operational report on the progress of execution of the federal budget, which provides actual data on the generation of income and expenses incurred, including the formation, use and management of funds from the National Welfare Fund.

The total amount of funds of the National Welfare Fund. (Appendix.tab.2.)

The total volume of funds of the National Welfare Fund, expressed in Russian rubles and US dollars, corresponds to the amount:

1) balances in the accounts of the Federal Treasury with the Central Bank of the Russian Federation for accounting of funds of the National Welfare Fund;

2) funds placed on deposits with Vnesheconombank, VTB Bank (PJSC) and Bank GPB (JSC);

3) funds placed in securities.

To calculate the total volume of funds of the National Welfare Fund, official foreign exchange rates established by the Central Bank of the Russian Federation on the date preceding the reporting date and cross rates calculated on the basis of these rates are used. The value of securities is assessed at market value or at acquisition cost (Order of the Ministry of Finance of the Russian Federation dated May 4, 2008 No. 49n).

The indicator of the total volume of funds of the National Wealth Fund does not take into account the estimated amounts of interest income for the expired part of the interest period on accounts in foreign currency with the Central Bank of the Russian Federation, on deposits with Vnesheconombank, VTB Bank (PJSC) and Bank GPB (JSC), as well as income paid on securities.

The actual values ​​of GDP for the corresponding years published by Rosstat are used (before the publication of data on the actual value of GDP, the projected volume of GDP is used in accordance with the federal law on the federal budget for the corresponding financial year).

2.3 Problems of formation and prospects for the development of funds

The reason for the increased attention of economists, financiers, lawyers, sociologists, political scientists, and finally the general public, not only to the management mechanism of the Reserve Fund and the National Welfare Fund, but even to the very idea of ​​their creation, is the significant discrepancies observed in the theory and practice of its functioning. Along with the positive positioning of the Funds, the formation of a favorable image is negatively affected by several factors, in particular:

ineffective legal support;

questionable economic feasibility;

organizational problems

high growth of taxpayer dissatisfaction and psycho-emotional tension in society.

All proposals for the optimal use of the Reserve Fund can be classified into three areas.

Firstly, this is the continuation of the practice of early repayment of external government debt from its funds with a parallel early (before repayment) purchase of Russian Eurobonds on the market. This will stabilize the Russian Eurobond market during a period of sharp decline in their quotes and save on interest payments.

Secondly, financing from the fund for servicing external public debt, as well as the payment of external public debts that have come due. This will dramatically reduce the issue of government securities. The speed of market development according to a pyramidal pattern will be reduced, and the replacement of external government debt with more expensive internal government debt will be suspended. The freed up budget funds can be spent on government investment programs, increasing social benefits, etc.

Thirdly, issuing foreign currency loans from the fund’s savings to the largest state corporations.

It should also be noted that if the main objective of the Program for the socio-economic development of the Russian Federation, aimed at the medium term, is to improve the quality of life of the population, if the Russian state has adopted standards for the development of a social welfare society, public opinion and the psychological state of taxpayers cannot be ignored.

The changes taking place in our society, associated with the destruction of the economy, its legal regulation, the collapse of finances, led to a decline in spirituality, morality, culture in society, the expansion of corruption among the population, and the inconsistency of the regulatory framework of funds within the framework of fiscal policy.

Due to the fact that the reserve fund and the national welfare fund are a set of rules, they must be regulated by the rules of financial law, including the rules of tax, budget and administrative law.

A large percentage of the Reserve Fund and the National Welfare Fund consists of oil revenues, and officials have a desire to withdraw these funds from the country temporarily or permanently, which would help increase the volume, stability and predictability of oil and gas supplies to the world market.

However, the possibility of placing this money in other categories of securities, including corporate ones, is also being considered.

But on the other hand, the idea of ​​placing the Funds' funds in corporate foreign securities is not the best - both from the point of view of high economic risks and for political reasons. After all, this would mean that our state would invest budget funds in foreign companies, instead of using them to develop its own economy.

...

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Common reserve currencies are the American dollar, British pound, Japanese yen, Chinese yuan. The US dollar is the main currency, accounting for about 60% of total official international reserves.

Story

In 1944, as a result of the Bretton Woods Agreement between delegates from 44 countries, the US dollar was adopted as the reserve currency, which was converted into gold.

In 1971, due to an increase in foreign debt and a decrease in gold reserves, the United States stopped exchanging dollars for gold. Countries switched to floating exchange rates. The dollar remained the world's currency reserve as a stable and liquid medium of exchange, alongside which the British pound was used. The euro, introduced in 1999 (in cash circulation since 2002), ranks second after the US dollar in distribution with a share of about 20% in the world basket of currencies.

Species

Reserve assets in the balance of payments are:

• cash in foreign currency;
• gold reserves;
• bank deposits abroad;
• reserve positions in the IMF;
• SDR, or special drawing rights;
• debt securities (treasury bills, bonds).

Functions

The state's foreign exchange reserves are formed and used in accordance with its monetary policy. The more foreign exchange reserves accumulated, the greater the central bank's ability to reduce the volatility of the domestic currency. The main functions of international reserves include:

• ensuring solvency. Holding foreign exchange reserves increases a country's solvency because convertible assets can be used to pay off external debt obligations or pay other capital expenditures. Foreign exchange reserves help maintain liquidity in the event of economic crises when the supply of foreign currency is insufficient to pay for imports;
• impact on the exchange rate. In a floating (market) exchange rate regime, central banks indirectly influence quotes by intervening in the open market. They purchase or sell foreign currency to adjust the value of the domestic currency in relation to the foreign one. In the first case, the price and purchasing power of the domestic currency decreases (usually to increase the competitiveness of products on the world market), in the second, it increases due to increased demand (to prevent devaluation);
• carrying out international trade. Countries accumulate foreign exchange reserves to trade internationally because most commodities, including gold and oil, are valued in world currency units. This protects the local currency from volatility in exchange rates. Large holders of international reserves are China, which holds 3.1 trillion in US dollar assets, and Japan, which has foreign exchange reserves of 1.2 trillion. US dollars.

INTRODUCTION

Financial reserves- this is a specially organized part of the funds in the circulation of the enterprise and intended for special needs, covering unforeseen expenses, gaps between the turnover of capital in physical form and its financial support.
Funds can be in the form of financial reserves in one case - if they are temporarily free from servicing the main turnover. The degree of freedom of funds from performing this function can be determined using rationing methods. Maintaining the volume of employed working capital at the standard level is decisive for calculating free cash.
Under normal operating conditions, an enterprise always has available cash. The process of their accumulation is an objective process, not related to anyone’s will. It is a permanent, constant and regular feature of capital.
All available funds, with the exception of specially accumulated reserve funds, are intended for strictly defined purposes. When funds are accumulated and the date for financing targeted activities arrives for the enterprise, the entire monetary supply of this source is used for the planned purposes. However, the discrepancy between the volumes, periods of accumulation and timing of withdrawal of free funds allows the enterprise to always have a certain minimum balance of financial reserves. This minimum for each enterprise is determined during calculations when forming a financial plan. They take into account the main factors: the volume of the financial source, the period of accumulation of funds, the beginning and duration of the expenditure period and other essential elements.

GOALS OF FORMATION OF FINANCIAL RESERVES

ENTERPRISES

Financial reserves as free funds can be used by an enterprise for various production and non-production purposes. The most significant goals are the following:

replenishment of working capital associated with changes in market conditions. An increase in demand for the company's products leads to an increase in its production and requires a corresponding increase in the working capital standard. Rising prices also require this. The amount of normalized working capital under the influence of both of these factors increases proportionally. The source of replenishment of these funds is the financial reserve formed in the previous period, when the volume of production and sales decreased.
protecting your sales markets and expanding sales markets in other regions using various methods of competition;
insurance of your commercial risks without using funds from circulation in the event of a negative result;
directing part of the financial reserves to investments in sponsorship, philanthropy and charity activities.

There are other planned and accidental events where immediate funding is required. In order not to divert the financial resources of the main turnover for this, they use the funds of accumulated financial reserves. Thus, financial reserves act as a kind of stabilizer of the financial condition of the enterprise, which ensures a high level of financial stability of the business under the negative influence of external and internal factors.

SOURCES OF FINANCIAL RESERVES OF THE ENTERPRISE

Sources of an enterprise's financial reserves, methods for determining them, calculations of the volume and periods of accumulation and use, planning and control are the most important tools for managing this part of the enterprise's financial resources. The main sources of financial reserves of an enterprise include the following:

Fund for depreciation of fixed assets.

The main purpose of the depreciation fund is to finance capital investments within the limits of simple reproduction - for capital construction and the acquisition of fixed assets, their reconstruction and renovation. Depreciation rates are set by the state and with their help it influences the investment policy of business entities. Depreciation is included as an element in the cost of goods manufactured. They do not depend on the results of the enterprise; the basis for their calculation is depreciation rates and the initial (replacement) cost of fixed assets. This is an exclusive source of financial resources, which is not only not subject to taxation, but also helps to reduce the tax base for income tax and property tax.
Depreciation deductions are made monthly and, with stable sales, they are also stably returned to the enterprise in cash as part of the cost of products.
As financial reserves, only the balances of the depreciation fund can be used as the difference between the accumulated and spent amounts.

Reducing the working capital standard.

A decrease in the working capital standard due to a decrease in production and sales volumes entails the removal of excess inventories and costs from circulation, i.e. purchases of production resources should be reduced, production backlogs, standard balances of finished products in warehouses, and funds in settlements should be reduced. The entire volume of standardized working capital must be adjusted to the changed operating conditions of the enterprise.

Inflationary income of the enterprise.

Inflationary income of the enterprise- This is additional income due to rising prices. Inflation is a constant component of any economy in market conditions. Depending on the situation, it may be more or less, but it always exists. The conclusion that inflation “eats up” the working capital of an enterprise is incorrect. If an enterprise has lost its working capital, then the reason is not inflation. Depending on the time of capital turnover, inflation, to a greater or lesser extent, provides additional (albeit constantly depreciating) monetary resources. Moreover, with a reasonable pricing policy and a clearly organized financial management system for an enterprise, it can be a source of additional financial resources.

Increasing the authorized capital of the enterprise through the commissioning of fixed production assets

When the authorized capital is formed, fixed production assets are accounted for as additional capital. With a reasonable approach to this issue, by the amount of this increase, the enterprise can receive additional financial resources, which can be considered as a source of financial reserves.

Increasing the authorized capital of an enterprise by the amount of revaluation of fixed production assets

U increase in the authorized capital of the enterprise by the amount of revaluation of fixed production assets- This is an inflationary method of generating income, when, with the natural and material composition of a given property unchanged, its value increases. The results of the revaluation are also reflected in the accounting records in the “Additional capital” account and can be included in the authorized capital, increasing its size.

Additional issue of shares

Additional issue of shares provides another source of inflationary income - through the method of capital dilution, when the volume of shares issued by the enterprise exceeds its net assets.

Share premium

Share premium as a source of financial reserves appears for enterprises whose market price of shares is higher than their nominal price. This option is possible if these shares are quoted on the stock market. The excess of market value over nominal value is the amount of free cash and the source of financial reserves of the enterprise.

TYPES OF FINANCIAL RESERVES OF THE ENTERPRISE

The need to create reserves for an organization arises from uncertain obligations or in cases of threat of losses on unfinished transactions. They should be created for deferred (not incurred in the reporting year) repair costs, to create guarantees provided without a legal obligation on the part of the organization, etc.
Reserves can be represented by the following liabilities:

reserves for uncertain liabilities;
reserves for possible losses from unfinished transactions;
guarantee reserves created without a legal obligation on the part of the organization;
reserves for future expenses and payments.

As world practice shows, individual reserves arise on the basis of external and internal obligations (Fig. 1):

Rice. 1 Classification of reserves by the nature of the occurrence of obligations

External liabilities are related to obligations to third parties, for example, reserves for additional pensions, guarantee reserves, etc.
Internal reserves presuppose the existence of obligations within the organization.
Reserve for Uncertain Liabilities is created in cases of probable, but not certain, occurrence of obligations to third parties. In this case, uncertain liabilities are characterized by the following conditions:

obligations to a third party are of a legal nature, for example, in cases of delivery of low-quality products, the organization, on the basis of current legislation or contractual relations, must eliminate deficiencies with compensation for material damage. Similarly, tax obligations may arise, the amount of which has not yet been determined, or a tax return has not been submitted to the tax authority;
The reserve for uncertain liabilities is associated with the economic burden of paying off certain obligations (for example, paying taxes, paying additional pensions, carrying out warranty repairs, etc.). At the same time, in the future, assets are spent, causing a decrease in the organization’s property;
the reserve must have a quantitative expression within a certain interval, for example, when determining the amount of the guarantee reserve, the experience of previous years can be taken into account, for example, if similar expenses previously amounted to 0.5 to 1% of sales revenue, then this reserve can be created in at the rate of 1%, subject to the principle of caution.

In world practice, in particular in Germany, reserves for uncertain liabilities can be formed for the following types of expenses: the legally established amount of trade union contributions;

environmental protection costs;
expenses for mandatory labor safety inspection;
deferred taxes;
audit costs;
expenses for internal audit of the organization;
obligations under warranty agreements;
additional pension provision;
construction contracting costs;
legal costs;
unused employee vacations.

Liabilities for uncompleted transactions are not subject to reflection in the annual statements, since receivables in the asset for such transactions violate the implementation principle, and unfulfilled delivery obligations do not meet the economic burden requirement. Therefore, a reserve is created if the cost of own services exceeds the cost of expected counter services. In other words, the loss can be predicted on the basis of specific facts, i.e. the formation of a reserve must be subject to the principles of equality. For example, if there is a long-term agreement for the supply of products, it is possible that market prices for raw materials may change not in favor of the supplier. In this case, the supplier's obligation to supply products at the agreed price negatively affects its financial result, reducing property, which is a condition of economic burden that can be quantified. In other words, reserve for possible losses from unfinished transactions differs from the reserve for uncertain liabilities in that only the amount of losses on obligations is taken into account, i.e. the reserve is created on the principle of equality, the negative impact on future financial results is neutralized. Therefore, the purpose of creating a reserve for possible losses from unfinished transactions is primarily to preserve the organization’s capital.
The third type of reserves is reserves formed without a legal obligation on the part of the organization, so-called "courtesy reserves" They are created when the warranty period for service under the contract has already expired or the defect is not covered by the terms of the warranty, but the client can obtain services to correct it from a competitor. In this case, the organization may provide additional “courtesy services” to retain the client.
It is obvious that in this situation there is an economic burden, expressed quantitatively. Therefore, when creating a reserve, it is advisable to use past experience.
Reserves for upcoming expenses and payments are created to ensure the correct calculation of the financial result of the reporting period, when the calculation is free from arbitrary interpretation of the right to choose to create such a reserve. In this case, a certain standard is established for the formation of this reserve, and therefore, it is characterized by the principle of reflecting items in the liability side of the balance sheet, i.e. the account “Costs for current repairs” is debited and the account “Reserve for future expenses and payments” is credited.
etc.............

Financial reserves are a special form of financial reserves set aside by state and municipal authorities and business entities in case of unforeseen expenses and specific needs caused by the need to eliminate the negative consequences of random, unexpected events and circumstances.

The formation of financial reserves is objectively predetermined by the needs of social reproduction, which requires continuous financing even in the event of unforeseen events and various types of accidents.

Financial reserves are divided into:

1. Budgetary funds contribute to the elimination and disproportion of temporary disruptions in the course of socio-economic processes

2. Insurance and business entities ensure the continuity of the reproduction process at the micro and macro levels in the event of unforeseen circumstances

3. Gold and foreign exchange reserves guarantee the stability of the national currency

4. Special reserve funds of ministries and departments and budget reserves make it possible to finance new needs that arise during the financial year, due to scientific and technical achievements

Types of government financial reserves:

1. Stabilization and future generation funds usually involve raising revenues from the export of minerals or other non-renewable resources. They are created to smooth out fluctuations in budget revenues and expenses for additional financing of government expenditures in territories where mining is carried out. Future Generations Funds are designed to use funds after the mineral deposits are depleted, for the purposes of social protection of pensioners, payment of additional payments to the population of the territory where mining is carried out

2. Reserve funds associated with raising revenues in years of budget surplus, revenues from the privatization of state property and other emergency revenues.

Reserve funds are most often used to equalize and stabilize government spending, for economic development in years of economic recession,

unfavorable conditions on global commodity markets

3. Foreign exchange/gold reserves are of a long-term strategic nature and represent the excess of reserve foreign exchange assets (gold reserves) of the country's Central Bank over its similar obligations to foreign counterparties.

Sources of foreign exchange reserves can be: part of government revenues from the export of minerals, income from foreign economic activity, etc. In addition to strategic savings and accumulative tasks, foreign exchange reserve funds can also be used to solve tactical problems, for example, to regulate the domestic foreign exchange market through foreign exchange intervention.

The modern Russian system of state financial reserves includes:

1. The reserve fund is determined by the Budget Code of the Russian Federation, Art. 96.9.

Directions for using Russian funds:

1) Financing the planned oil and gas deficit of the federal budget in the part not covered by planned oil and gas revenues

2) Early repayment of the state external debt of the Russian Federation

2. The National Welfare Fund is determined by the Budget Code of the Russian Federation, Art. 96.10 as part of the federal budget funds subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the pension fund budget

3. Gold and foreign exchange reserves of the Bank of Russia - a value measured in US dollars and calculated as the difference between the amount of reserve currency assets of the Bank of Russia, its monetary gold and gold in the accounts of foreign banks, and the obligations of Russian banks to counterparties