Accounting for financial investments. Accounting for financial investments With changes and additions from
Accounting financial investments is maintained on account 58. Let's consider what and in what order is reflected in the composition of such investments.
Accounting for financial investments
The following are subject to accounting as part of the indicator under consideration:
- securities with fixed maturities and redemption values;
- contributions to the capital of other enterprises and organizations;
- issued loans (except interest-free) and deposits;
- acquired accounts receivable etc.
Investments and assets are subject to accounting as part of financial investments if they:
- documented;
- they are expected to bear financial risks;
- aimed at making profit.
Thus, PBU 19/02 states about accounting for financial investments.
The following do not apply to this indicator:
- own shares of the enterprise purchased for cancellation or subsequent sale;
- bills of exchange issued in legal relations of purchase and sale and provision of services;
- investments in property leased for a fee;
- jewelry, paintings, etc., if their acquisition is not related to ordinary activities enterprises;
- fixed assets, inventories and intangible assets.
Current accounting of financial investments and securities is maintained on account 58 “Financial investments”. At the same time, deposits are subject to accounting in subaccount 55-3 " Deposit accounts".
Analytical accounting for securities must reflect information about:
- name of the issuer;
- name and details of the security;
- cost;
- total quantity;
- date of acquisition and disposal;
- storage location.
Value of financial assets
Russian organizations financial investments are accepted for accounting at original cost.
The costs take into account:
- amounts paid under contracts;
- the cost of various services associated with the corresponding investments;
- remuneration for intermediaries;
- other costs of financial investments.
To correctly establish the value of financial investments for accounting purposes, all available sources are used.
One type of asset is traded on the market. Such investment investments are subject to accounting and reporting at the end of the relevant year at the current market value. It is determined by adjusting the value determined at the previous reporting date. This adjustment is made at the organization's discretion:
- or once a month;
- or once a quarter.
Other assets are not traded on the securities market. They are accounted for at the reporting date according to historical cost. They provide for the need:
- control depreciation;
- introduce a provision for impairment.
When financial investments are impaired, an analysis of the reasons that served as the basis for the corresponding result should be carried out. For this purpose, we need control over everyone financial investments, for which the current market value if there are signs of impairment.
Analytical accounting is created for account 59. The cost of investments in respect of which such a reserve has been created corresponds to the balance sheet minus the corresponding reserves.
According to section IV PBU 19/02 accounting for the disposal of financial investments is carried out when:
- repayment;
- sale;
- gratuitous transfer, etc.
The disposal of the corresponding asset for which the current market value is not determined is accounted for:
- or at original cost;
- or at the average initial cost;
- or using the FIFO method.
When disposing of financial investments, the following entries are made in accounting: Dt 76 - Kt 91 (income from sales is taken into account), Dt 91 - Kt 58 (the original cost is written off), Dt 51 - Kt 76 (receipt cash).
Materiality in the audit and audit risk.
Information is considered material if its omission or distortion could significantly affect the reliability of the report and the decisions of users made on the basis of this report. The auditor evaluates what is material according to his professional judgment. When developing the audit plan, it establishes an acceptable level of materiality to identify material misstatements. Materiality may be influenced by legal acts of the Russian Federation, as well as factors related to individual accounts of used financial statements and the relationships between them. If the auditor concludes that the identified misstatements may be material, he needs to reduce audit risk by performing additional audit procedures or require management of the audited entity to amend the financial statements. Audit risk is the risk of expressing an erroneous opinion about the reliability of reporting. Includes three components: - inherent risk (consists of the human factor and the specifics of the organization’s activities.) - risk of controls (ICS - the set of organizational measures, methods and procedures used by the management of the audited entity as a means for orderly and effective management of financial activities, ensuring the safety of assets, identifying, correcting and preventing errors and distortion of information, as well as timely preparation reliable reporting.) - risk of non-detection. (Due to the selective nature of the inspection.) Risk minimization methods: 1. Use systematic approach(standardization of all essential aspects of control, testing, accounting and presentation of information); 2. Insurance of auditors' liability (the insurance contract will act as a form of financial security for the auditor's liability). 3. Development and implementation internal system quality control of audit services. (internal audit quality standards, clear regulation of employee responsibilities audit firms etc.). 4. Timely identification of risks. 5. Minimizing the consequences associated with the occurrence of risk (development of a set of measures) There is an inverse relationship between materiality and audit risk.
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Certification of auditors and conditions for carrying out audit activities.
An auditor is an individual who has received in the prescribed manner auditor certificate and a member of one of the SRO auditors, accredited by the Ministry of Finance of the Russian Federation. Persons who have higher education and work experience of at least 3 years, of which the last 2 were in the position of assistant auditor. The applicant is required to undergo training in a 240-hour program in one of the training and methodological centers accredited by the SRO. 5 sections: research, legal regulation, financial management, used and reporting, audit.
A commission is appointed: a chairman and 5 members. Certification is carried out in 3 stages over 3 days. Stage 1 – testing (50 tests within 3 academic hours. Correct answer = 2 points. Those who have scored at least 86 points, i.e. no more than 7 errors, are admitted to stage 2) Stage 2 – written in the first three sections of the program. Stage 3 – written on sections 4 and 5 + practical assignment. (Each answer is assessed: excellent = 10b, good = 8b, satisfactory = 6b. Task = 0b, 25b, 50b. An applicant who has scored at least 67 points is considered to have passed the certification; from one letter to the next, at least 42 points are received). The certificate is issued without limitation of validity period, but starting from the year following the year of receipt. The auditor is obliged to annually improve his qualifications in one of the educational centers according to one of the approved programs in the amount of at least 20 hours per year and 120 in 3 years. The qualification certificate is also canceled in cases where: - the fact of obtaining the certificate using forged documents is established; - a court verdict prohibiting engaging in auditing activities has entered into force; - a fact of non-compliance with confidentiality and independence requirements has been established; - violation by the auditor of the requirements of the law and auditing standards; - the auditor issued a deliberately false conclusion;
For 2 calendar years in a row the auditor did not carry out audit activities; - the auditor violates the requirement to undergo training under advanced training programs established by federal law.
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15. Financial analysis and planning at the enterprise
Financial analysis is a way of accumulating, transforming and using financial information for the purpose of assessing financial results, the financial state of past activities, the effectiveness of investment and financial investments, and assessing the future potential of the organization. According to the time aspect, financial analysis is divided into retrospective, operational and prospective. In terms of the range of issues studied, it can be complex and thematic.
Financial analysis is carried out in stages: 1. Determination of the goals and objectives of the analysis. 2. Activities to prepare the available information necessary for the analysis. 3. Choice of methods financial analysis, the tools used, models and analysis procedures are carried out. 4. Generalization of the obtained results. The main goal of financial analysis is to obtain a certain number of key indicators and their quantitative values, giving an objective picture of the financial results and financial condition of the organization. The main objectives of financial analysis are to assess: 1. Property and financial condition, as well as the results of financial activities based on retrospective analysis methods. 2. The efficiency of the formation and use of financial resources and the identification of potential opportunities for the sustainable development of the organization. 3. Results of planning and forecasting of economic and financial activities based on retrospective and prospective analysis. Analysis of the property status of the organization includes analysis of the composition and structure balance sheet in the dynamics of the structure and dynamics of fixed assets. To assess the property status of an organization in terms of fixed assets, a number of indicators are used: 1. The share of the active part of fixed assets in momentary and average estimates. The active part of analytics can include all fixed assets, with the exception of buildings and structures, or only machinery, equipment and vehicles. 2. The depreciation rate characterizes the share of the cost of fixed assets written off as expenses in previous periods in the original (replacement) cost. 3. The addition of this indicator to 100% (or one) is the suitability coefficient. The interpretation of indicators is related to the concept of depreciation. 4. The renewal coefficient shows what part of the fixed assets available at the end of the reporting period is made up of new fixed assets. 5. The retirement rate determines what part of the fixed assets with which the enterprise began operations in reporting period, dropped out due to disrepair and other reasons. Analysis of financial condition involves a general assessment of the state of the organization from the position of liquidity and solvency, financial stability And business activity for a certain period of time. The most important among the indicators from the point of view of financial management are the following: 1. General (current) liquidity ratio
2. Quick liquidity ratio 3. Ratio absolute liquidity 4. The amount of net working capital, the value of which is the difference between current assets the company and its short-term liabilities.
The purpose of analyzing financial results is to assess the amount net profit and the elements that form it, as well as their changes, in identifying and quantifying the influence of factors that have a predominant influence on the volume of income, expenses and various types profit. Analysis of market activity refers to external analysis, since the main consumer of this assessment is investors, both those related to a particular enterprise and potential ones. When assessing market activity, the following indicators are used: 1. Earnings per share allows you to estimate how much net profit the company received per share. 2. The share value indicator allows you to determine how the market evaluates the return received by the company per share. 3. Dividend yield of a stock 4. Dividend yield characterizes the share of net profit paid in the form of dividends. Financial planning is the main function of enterprise financial management and allows the owner and management of the company to imagine the future financial condition both the enterprise as a whole and its individual business units, timely assess the need for financial resources for the further development of the enterprise. A financial plan is a comprehensive plan for the functioning and development of an enterprise in value (monetary) terms. In financial terms, the efficiency and financial results production, investment and financial activities of the company. An important tool operational financial management, which includes analysis, planning, monitoring the implementation of planned indicators, is budgeting. Budgeting is interpreted: -as the process of developing and executing budgets; -as a management technology aimed at realizing strategic goals through the organization of planning procedures, control and analysis of the execution of enterprise budgets.
Budgeting objectives: -to form a unified information base for making management decisions, in particular for developing employee incentive systems; -receive real financial forecasts- economic activity enterprises; -increase the coordination of actions of various divisions of the company; -strengthen the focus of the departments’ activities on achieving strategic objectives; -gain the opportunity to promptly respond to information about deterioration of financial indicators and take measures to prevent the development of crisis phenomena; -strengthen control over effective use resources and funds by structural divisions of the company. The budget process is implemented using a management mechanism, which includes three main blocks of tools: 1. Methodological block (involves the development of methods that determine the setting of development goals for the enterprise and the calculation of indicators for assessing the effectiveness of its activities) 2. Organizational block (a clear idea of the participants in the budgeting process, their rights and responsibilities in the implementation of budgeting procedures) 3. Software and hardware unit.
The consolidated budget is compiled on the basis of data from functional budgets and consists of revenue and expenditure parts. When forming a budget, it is determined priority areas expenses, including: wages; costs for the purchase of materials, components, etc., necessary to complete the production program; payments to state trust funds, taxes. Drawing up a consolidated budget for the enterprise, as well as forecasting rates bank interest and the solvency of customers make it possible to determine the amount of profit necessary to ensure the solvency of the enterprise. Basis within budget process current control is in favor, since management action based on the results of control activities should be carried out in a timely and regular manner. Final analysis and control are important for adjustments to strategic indicators and for making changes to the methodological basis of the budget process. Control: provision of operational, current and summary reports. After developing reporting forms, a list of indicators is compiled for conducting financial and economic analysis, and the methodology for calculating and analyzing indicators and reports is described. Analysis of deviations includes two areas: -studying problems of a methodological nature, i.e. detection of incorrect formulas for calculating performance indicators, the use of unattainable standards, imperfect forms of planning and reporting documents, errors in planning the timing of tasks, etc.; -monitoring the expenditure of resources in accordance with operating budgets and monitoring the expenditure of funds within the limits approved in the cash flow budget.
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Audit sample.
Two basic requirements apply to the audit sample: 1) The sample must be representative (representative). This requirement implies that each element of the population being studied must have an equal probability of being selected in the sample. To ensure representativeness, auditors should use the following methods:
Random selection - systematic selection (elements are selected at a constant interval, starting from a randomly selected number. The interval is based either on the number of elements of the property, or on their valuation) - combined selection (a combination of random and systematic) The auditor may resort to non-representative sample only when his professional judgment should not concern the entire population as a whole. 2) The sample size is sufficient to obtain the audit evidence necessary to support the audit opinion on the results of the audit with a reasonable degree of confidence. The volume of the audit sample for each accounting object is determined subjectively by the auditor. Despite the fact that the audit is carried out on a sample basis, the general conclusions formulated by the auditor based on the results of its implementation relate to the entire set of accounting documents. In this regard, the auditor is forced, based on studying the data found in the sample, to make subjective proposals about the presence and degree of materiality of the distortions contained in the unverified indicators. Last condition determines the risk of an audit sample, which consists in the likelihood of missing significant data, including distortions when forming a sample. This risk can be minimized by increasing the sample size.
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Audit evidence.
Audit evidence is the information obtained by the auditor during the audit, and the result of the analysis of this information on which the auditor’s opinion is based. Documents: FSAD 7/2011 “Audit evidence”, Standard 17 “Obtaining audit evidence in specific cases” Audit documents can be internal, external and mixed. Internal includes information received from an external entity in written or oral form. External information received from a third party in writing. Mixed information received from an entity in writing or orally and confirmed in writing by a third party. Audit evidence is obtained as a result of: 1) a set of tests of internal controls 2) the necessary substantive testing procedures. Tests of internal means mean actions carried out in order to obtain audit evidence in relation to the proper organization and the effectiveness of the functioning of used and internal control systems. Substantive procedures are performed to obtain audit evidence of material misstatements in the financial statements. Audit evidence must meet two mandatory requirements: 1) be sufficient 2) be of appropriate nature. Sufficiency is a quantitative measure of audit evidence. Appropriateness is the qualitative aspect of audit evidence that determines its consistency with a specific training assertion. financial statements and its reliability. The auditor's judgment of what constitutes sufficient appropriate audit evidence is influenced by the following factors: 1) the auditor's assessment of the nature and magnitude of audit risk (at the level of financial statements and at the level of balances in used or similar business transactions; 2) the nature of the systems used and internal controls, as well as risk assessment of internal controls; 3) the materiality of the audited item in the financial statements; 4) experience acquired during previous audit procedures; 5) the results of audit procedures, including possible detection of fraud or errors; 6) source and reliability of information. The reliability of audit evidence depends on: 1) its source (internal or external) 2) the form of its presentation (visual, documentary or oral).
When assessing the reliability of audit evidence, depending on the specific situation, we proceed from the following: 1) audit evidence obtained from external sources, more reliable than evidence obtained from internal sources; 2) audit evidence obtained from internal sources is more reliable if existing systems accounting and internal controls are effective; 3) audit evidence collected directly by the auditor is more reliable than evidence received from the audited entity; 4) audit evidence in the form of documents and written statements is more reliable than statements presented orally. Audit evidence is more convincing if it is obtained from different sources, has different content and does not contradict each other. The auditor obtains audit evidence by performing the following procedures: inspection, observation, inquiry, confirmation, recalculation, analytical procedures. Inspection - examination of records, documents or tangible assets. Observation - the auditor's monitoring of a process or procedure performed by others. Request-search for information from knowledgeable persons within or outside the audited entity. Confirmation is a response to a request for information contained in accounting records. Recalculation - checking the accuracy of arithmetic calculations in primary documents and accounting records or the auditor performing the calculations himself. Analytical procedures- analysis and assessment of the information received by the auditor, research of the most important financial and economic indicators of the audited entity in order to identify unusual or incorrectly reflected in used business transactions, identifying the causes of such errors.
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Audit planning.
Standard 3 “Audit Planning”. Audit organization d. begin planning the audit before writing a letter of commitment and before concluding an agreement with an entity. In all cases where, based on the audit results, an audit report is expected to be issued, the auditor must, having received an invitation to conduct an audit, write a letter of consent to conduct the audit in order to avoid misunderstanding by the management of the subject of the terms of the upcoming contract. The letter must contain: 1) instructions on the conditions of the inspection: about the object and purpose of the inspection; on regulatory documents regulating audit; on checking the reporting of subsidiaries and dependent subsidiaries, if any; 2) on the auditor’s obligations: on providing information on identified deficiencies; about the auditor's responsibility; about the presence of a risk of undetecting significant errors due to the selective nature of the audit and the imperfection of used and internal control systems; 3) on the obligations of the economic entity: on creating conditions for conducting an inspection; on providing the auditor with documentation in full for the audit and a receipt stating that the documentation does not contain distortions; about sending letters to third parties with a request to confirm the debt; about not putting pressure on auditors to change their opinion Planning is initial stage conducting an audit and consists of developing a general audit plan, as well as developing an audit program that determines the volume, types and sequence of audit procedures. Stages: preliminary planning; drawing up a general audit plan; preparation and drawing up of an audit program. Pre-planning. At this stage, the auditor will become familiar with the FHD of the subject, as well as with: 1) the organizational and management structure; 2) types of production activities and range of products; 3) capital structure and stock price; 4) technical features production of products; 5) R level; 6) main buyers and customers; 7) the procedure for distribution of profits; 8) the existence of subsidiaries and dependent subsidiaries; 9) principles of formation of remuneration. At this stage, the auditor must decide whether to enter into an agreement or not; in the case of a “+” decision, he proceeds to drawing up a general audit plan.
At the stage of drawing up a general audit plan, the composition of specialists included in the audit team is planned. It is necessary to take into account: 1) the working time budget for each stage of the audit; 2) the expected time frame for the group’s work; 3) the number of group members; 4) job level of group members; 5) continuity of group personnel; 6) qualification level of group members. At this stage, the auditor should calculate the expected audit risk and level of substance. Drawing up an audit program is a development of the general audit plan and represents a detailed list of audit procedures necessary for the practical implementation of audit plans. The audit program should be drawn up in the form of a program of tests of controls and in the form of a program of substantive audit procedures. Test program for monitoring p.s. list of actions intended to collect information on the functioning of the control system
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Accounting of financial investments. PBU 19/02.
To accept used assets as a financial asset, it is necessary to simultaneously fulfill the following conditions: - the presence of properly executed documents confirming the rights of the subsoil to the financial asset and to receive a DS or other rights arising from this right; -transition to semi-financial risks associated with financial investment (risk of price changes, risk of debtor insolvency, liquidity risk); - the ability to bring organizational and economic benefits (income) in the future in the form of%, dividends or an increase in their value. Investments: -in own activities (capital investments) 08; -v dr p/p (FV) 58. The PV p/p include: state and municipal Central Banks, Central Bank dr p/p; contributions to the management company dr p/p; loans provided to others, deposits in credit institutions, debt acquired on the basis of assignment of the right of claim. Evaluation of financial investments. PVs are accepted for used ones according to Sfirst (∑ actual costs for their acquisition). First of all, the financial assets made as a contribution to the management company are recognized as their monetary value, agreed upon by the founders. The first financial assets received by organizations free of charge, such as the Central Bank, are recognized: - their Stack of the market on the date of acceptance for use; - ∑ DS, cat m.b. received as a result of the sale of securities received on the date of their acceptance for use; - for securities for which the market price is not calculated by the organizer of trade on the securities market. First, financial assets acquired under agreements providing for the enforcement of obligations (payment) in non-monetary means are recognized as item A, transferred or subject to transfer sub-item. Accounting for financial assets whose current market value is determined. The PV, which can be determined in the prescribed manner Stack of the market, is reflected in the accounting reports for the Stack of the market.
A change in the Stack of the market is reflected by direct adjustment directly to D or K of account 58. If the Stack of the market, then the increase in value is reflected in D58 K91; if ↓, then D91 K58. This adjustment must be made at the end of the year. The accounting policy may provide for the revaluation of FV1 more often than once a year, namely on the dates of interim reporting.
When FV1 is disposed of, they are written off according to the last valuation (D90.91 K58). Accounting for financial assets whose market stack is not determined. FV, which is not determined by the Stack of the market, are subject to reflection in second-hand and accounting reports as of the reporting date according to the first.
Exceptions: 1-related to taking into account debt securities, 2-related to the depreciation of financial assets. When disposing of a financial vehicle, the market stack is not determined, its value is determined based on an assessment determined in one of the following ways: - according to the first unit of used financial vehicle; - according to average Sfirst; - FIFO. The first method is recommended for use for all types of PV, except for CB. For them, PBU 19/02 recommends using methods 2 and 3. Features of accounting for debt securities. For debt securities for which the Stack of the market is not determined, the organization is allowed to write off the difference between Sfirst and Sno-min evenly over the course of their circulation as Dx is accrued. A) Sp>Sn => difference – other Рх; B) Sp
We continue to analyze new documents on accounting methodology recently released by the Russian Ministry of Finance. In this article V.V. Patrov, Doctor of Economics, Professor, St. Petersburg state university, and M.V. Semenova, Ph.D., certified auditor, comment on the Accounting Regulations “Accounting for Financial Investments”, approved by Order of the Ministry of Finance of Russia dated December 10, 2002 No. 126n, which was registered by the Ministry of Justice of Russia just before the New Year (December 27, 2002).
General provisions
Pursuant to the Accounting Reform Program in accordance with international standards financial statements approved by Decree of the Government of the Russian Federation dated March 6, 1998 No. 283, the Ministry of Finance of Russia, by order No. 126n dated December 10, 2002, approved the Accounting Regulations “Accounting for Financial Provisions” (PBU 19/02). The above order was registered with the Ministry of Justice of the Russian Federation on December 27, 2002, registration number 4085. At the same time, the order of the Ministry of Finance of Russia dated January 15, 1997 No. 2 “On the procedure for reflecting transactions with securities in accounting” was declared invalid.
PBU 19/02 comes into force starting with financial statements for 2003 and applies to all organizations (except credit institutions And budgetary institutions), including on professional participants securities market.
Concept of financial investments
Unfortunately, so far none regulatory document there was no definition of the term “financial investments,” which indicated the absence of a unified concept for classifying objects as financial investments. Therefore, it is no coincidence that the lists of objects taken into account as part of financial investments before the advent of PBU 19/02 and in this PBU differ significantly.
In clause 3 of PBU 19/02, financial investments include:
1) securities (state, municipal, corporate);
2) contributions to the authorized (share) capital of other organizations (including subsidiaries and dependent companies);
3) loans provided to other organizations;
4) deposits in credit institutions;
5) receivables acquired on the basis of assignment of the right of claim;
6) contributions of the partner organization under a simple partnership agreement, etc.
Compared to the old accounting procedure, in addition to financial investments, objects numbered 4, 5 and 6 are included. In addition, if previously the list of financial investments was closed, in PBU 17/02 it is open, i.e., according to the authors, There may be other objects of financial investment.
PBU 19/02 classifies as financial investments only loans granted to other organizations, while the instructions for using the chart of accounts require that subaccount 3 “Provided loans” and loans provided be taken into account in account 58 “Financial investments”. individuals(except for employees of the organization). Since the status of PBU is higher than the specified Instruction, in this case one should be guided by PBU 19/02.
Clause 2 of PBU 19/02 lists three conditions that assets must meet in order to be accounted for as financial investments.
Clause 5 of PBU 19/02 states that the organization independently selects the unit of accounting for financial investments.
Depending on their nature, the order of acquisition and use, it may be a series, batch, etc. In this case, the main feature of the totality characterizing the unit of accounting for financial investments is their homogeneity.
Clause 6 of PBU 19/02 specifies the basic principle analytical accounting financial investments - by organizations (issuers of purchased securities, borrowers in whose authorized (share) capitals financial investments were made, holders of deposits, simple partnerships, etc.).
In addition, for some financial investments you should have additional information. For contributions to authorized (share) capital and simple partnerships - by type of financial investment, etc. For example, for securities - name, number, series, quantity, par value, price and date of purchase, price and date of sale, etc.
That is, PBU 19/02 does not contain mandatory list details of securities that must be recorded in analytical accounting registers.
Moreover, PBU 19/02 does not provide for requirements for the compilation of special registers that reflect the movement of securities stored in the organization (previously, in accordance with paragraph 6 of the Procedure for reflecting transactions with securities in accounting, approved by order of the Ministry of Finance of Russia dated January 15, 1997 No. 2, provided for the maintenance of a Securities Book).
Clause 7 of PBU 19/02 states that the specifics of assessment and additional rules for disclosing information on financial investments in dependent business companies in financial statements are established by a separate regulatory act on accounting. Such normative act currently not yet.
Initial assessment of financial investments
According to clause 8 of PBU 19/02, financial investments are accepted for accounting at their original cost. The definition of the initial cost of financial investments acquired for a fee is given in clause 9.
Clause 10 of PBU 19/02 states that if payment for financial investments is made in rubles in an amount equivalent to the amount in foreign currency(conditional monetary units), then the amount differences arising before the acceptance of financial investments for accounting can (emphasized by the authors) be included in their initial cost.
If for inventories (clause 6 of PBU 5/01) and fixed assets (clause 8 of PBU 6/01) similar amount differences must clearly be included in the actual costs of acquiring the above assets, then for some financial investments they may not turn on. The fact is that clause 11 of PBU 19/02 states that if the amount of costs (including amount differences) for the acquisition of securities (compared to the amount paid in accordance with the agreement to the seller) is insignificant, they can be recognized other operating expenses (i.e. debited to account 91.2 “Other expenses”) in the reporting period in which the specified securities were accepted for accounting.
Problems will not arise if payment of expenses and acceptance of securities for accounting take place in the same reporting period. If costs arise earlier, they can be reflected in some intermediate account (for example, account 97 “Deferred expenses”), from which they will be written off to account 91 “Other income and expenses” in the period of acceptance of securities for accounting.
Since the Tax Code of the Russian Federation considers amount differences as non-operating income and expenses that increase (decrease) the tax base in the period of their occurrence, then, in our opinion, it is advisable to bring together accounting and tax accounting do not include them in the initial cost of financial investments, but reflect them immediately on the accounts of financial results.
It should be noted that paragraph 11 of PBU 19/02 speaks only about negative differences and does not say anything about cases of positive differences. In our opinion, it is better to write them off as operating income.
Clause 13 of PBU 19/02 states that original cost Securities received free of charge are recognized at their current market value as of the date of acceptance for accounting. The latter is determined depending on whether or not these assets are quoted on the securities market.
In the first case (if the security is traded on an organized securities market), this will be the market price. It seems that the accounting policy of an organization that carries out transactions with securities on a regular basis should establish a procedure for determining their market prices. In the second case, this is the amount of money that can be received as a result of the sale of the received securities.
Under a simple partnership agreement, partner organizations undertake to pool their contributions, which can be in the form of money, property, etc. If nothing is said about the assessment of contributions in the form of inventories and fixed assets in PBU 5/01 and PBU 6/01, then paragraph 15 of PBU 19/02 states that the initial cost of financial investments made towards the deposit under the agreement of a simple partnership, their monetary value agreed upon by the partners is recognized.
If financial investments were purchased for foreign currency, then their initial cost is determined by converting the foreign currency into rubles at the exchange rate Central Bank of the Russian Federation, valid on the date of acceptance of financial investments for accounting (clause 16 of PBU 19/02).
Clause 17 of PBU 19/02 talks about the book value of securities that do not belong to the organization by right of ownership, economic management or operational management, but in its use or disposal. They must be taken into account in the assessment provided for in the contract. Most likely, this paragraph refers to organizations engaged in brokerage activities in the securities market. Securities purchased at the expense of clients are not property brokerage company, the latter makes purchase and sale transactions of such securities (disposes of securities) on behalf of the client.
Subsequent assessment of financial investments
According to clause 18 of PBU 19/02, the initial cost of financial investments at which they are accepted for accounting may change in cases where established by law and PBU 19/02.
For the purpose of changing the initial value, financial investments are divided into two groups: by which it is possible and by which it is impossible to determine their current market value.
Financial investments of the first group are reflected in the financial statements at the end of the reporting year at the current market value by adjusting their valuation as of the previous reporting date (clause 20 of PBU 19/02).
The difference between the assessment of financial investments at the current market value as of the reporting date and their assessment as of the previous reporting date is required to be attributed commercial organizations to operating income or expenses (i.e. to the debit or credit of account 91 “Other income or expenses”), and non-profit organizations- to increase income or expenses in correspondence with account 58 “Financial investments”.
Previously, such an adjustment of financial investments was provided for in clause 45 of the Regulations on accounting and financial reporting, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n only for shares, and for the difference it was prescribed to form a reserve for the depreciation of investments in securities (if the market the cost is less than the cost at which the securities are accepted for accounting). Revaluation of other securities purchased for the purpose of generating income from their sale, as the quote changes to stock exchange was allowed only for professional participants (see paragraph 44 of the above Regulations).
Financial investments of the second group are subject to reflection both in accounting and in financial statements at their original cost.
For debt securities (for example, bonds), for which the current market value is not determined, the difference between the initial value and the nominal value during the period of their circulation is allowed, as before, to be classified as commercial organizations for operating income or expenses, and non-profit organizations for decreasing or increasing expenses.
It should be especially noted that financial investments (see clause 3) include, in particular, short-term securities, loans provided to other organizations, deposits in credit institutions, as well as receivables acquired on the basis of assignment of claims.
If these assets are expressed in foreign currency, then in accordance with the requirements of clause 7 of PBU 3/2000 “Accounting for assets and liabilities, the value of which is expressed in foreign currency”, approved by order of the Ministry of Finance of Russia dated January 10, 2000 No. 2n, their value is subject to recalculation according to exchange rate of the Central Bank of the Russian Federation on the date of preparation of financial statements. As a result of this recalculation, as a rule, exchange rate differences (positive or negative) are formed, by the amount of which the value of financial investments increases or decreases.
Disposal of financial investments
Clause 25 of PBU 19/02 lists the main directions of disposal of financial investments and states that this disposal is recognized in accounting on the date of the one-time termination of the conditions for their acceptance for accounting given in clause 2 of PBU 19/02.
The procedure for evaluating retiring financial investments depends on their type: securities and all other financial investments. The cost of retiring securities is calculated depending on whether the current market value is determined for them or not. If it is not determined, then the value of the retiring securities is calculated in one of three ways:
1) at the initial cost of each accounting unit of securities;
2) at the average initial cost;
3) FIFO method, i.e. at the original cost of the first securities acquired.
As we can see, of the four asset valuation methods known in Russian accounting, the LIFO method is not used in this case.
For tax purposes in accordance with clause 9 of Art. 280 of the Tax Code of the Russian Federation, retiring securities can also be valued in three ways, but among them there is no average initial cost, and at the same time the LIFO method is provided.
For each group (type) of securities during the reporting year, only one valuation method should be used (clause 31). The appendix to PBU 19/02 provides digital examples of the use of various valuation methods when disposing of financial investments. If the current market value is determined for securities, then their value upon disposal is calculated based on the latest valuation. All other retiring financial investments (except for securities) are valued at the original cost of each retiring unit.
Income and expenses on financial investments
Income from financial investments can be recognized by the organization independently or as income from ordinary activities, or other income (clause 34 of PBU 19/02). This right is also granted by clause 4 of PBU 9/99. However, based on paragraphs. 5 and 7 PBU 9/99, such classification of income is possible only based on income from participation in the authorized (share) capital of other organizations. Consequently, income from other financial investments should be classified as other income, in particular operating income. Hence, it is logical to classify the expenses named in paragraphs as operating expenses. 35 and 36. If income from financial investments is recognized by the organization as income from ordinary activities, then expenses associated with servicing these financial investments should be classified as expenses on common types activities. This should have been mentioned in section V of PBU 19/02.
Impairment of financial investments
In the course of the organization’s economic activity, its financial investments, for which their current market value is not determined, may depreciate. Approximate reasons for this are listed in paragraph 37 of PBU 19/02. From the content of this paragraph we can conclude that theoretically all types of financial investments can depreciate, but in practice, securities most often depreciate.
The procedure for calculating the amount of reduction in value (CC) of securities of the second group is set out in clause 37 of PBU 19/02. In our opinion, SS can be calculated using the formula:
SS = EVP - EVF (1)
EVP- economic benefits (income) that the organization planned to receive;
EVF- economic benefits (income) received by the organization.
After calculating the CC, the estimated value of the securities is determined - (RS) using the formula:
RS = US - SS (2)
US- book value of securities (the value at which securities are reflected in accounting).
Declines in the value of securities may or may not be sustainable.
Clause 37 of PBU 19/02 lists three conditions, in the presence of which the above reduction in value is considered sustainable. A check for the presence of conditions of sustainable decline in value should be carried out for all securities for which there are signs of depreciation.
In the event of a sustainable decrease in the value of securities, a reserve is formed for the impairment of financial investments (P): by commercial organizations - at the expense of financial results (as part of operating expenses), and by non-profit organizations - due to an increase in expenses. The amount of contributions to the reserve is calculated using the formula:
P = US - ZS (3)
In the financial statements, securities are shown at their book value minus the amount of the reserve created for their depreciation.
The above check for impairment of financial investments can be carried out by an organization not only at the end of the year, but also at the reporting dates of interim financial statements, i.e. at the end of each quarter. In this case, confirmation of the results of this check must be ensured. PBU 19/02 does not say how to do this; in our opinion, it is necessary to draw up an appropriate calculation with justification for the relevant indicators (SS, EVP, EEF, etc.).
In the future, the estimated value of financial investments may either decrease or increase. In this regard, it is necessary to adjust the amount of the created reserve for the depreciation of financial investments. When the estimated value decreases, the reserve increases, and when it increases, it decreases. The amount of an increase or decrease in the reserve is applied to financial results for commercial organizations (as part of operating expenses or income, respectively), and for non-profit organizations - to an increase or decrease in expenses.
The text of PBU 19/02 does not imply the need to write off the unused reserve at the end of the reporting year, i.e. the balance of the reserve is carried over from year to year.
The reserve can be written off in two cases:
1) if the financial investment no longer meets the criteria for a sustainable significant decrease in value;
2) upon disposal of financial investments, the estimated value of which was included in the calculation of the reserve for depreciation of financial investments.
The write-off of the reserve in the second case should be reflected at the end of the reporting period when the disposal of financial investments occurred. The moment of writing off the reserve in the first case is not entirely clear from the text of PBU 19/02. We believe that it is better to do this at the end of the year.
By the amount of the written-off reserve, operating income increases for commercial organizations, while expenses for non-profit organizations decrease.
Disclosure of information about financial investments in financial statements
Clause 41 of PBU 19/02 states that financial investments must be reflected in the financial statements, divided into short-term and long-term. In accordance with clause 23 Methodological recommendations on the procedure for generating indicators of the organization’s financial statements, approved by Order of the Ministry of Finance of Russia dated June 25, 2000 No. 60n, financial investments are short-term if the circulation (repayment) period for them is no more than 12 months after the reporting date.
The remaining financial investments are long-term.
Clause 42 of PBU 19/02 lists the minimum set of indicators for financial investments that are subject to disclosure in the financial statements (taking into account materiality requirements).
PBU 19/02 "Accounting for financial investments"
Concept of financial investments
In clause 3 of PBU 19/02, financial investments include:
1) securities (state, municipal, corporate);
2) contributions to the authorized (share) capital of other organizations (including subsidiaries and dependent companies);
3) loans provided to other organizations;
4) deposits in credit institutions;
5) receivables acquired on the basis of assignment of the right of claim;
6) contributions of the partner organization under a simple partnership agreement, etc.
PBU 19/02 classifies as financial investments only loans granted to other organizations, while the instructions for using the chart of accounts prescribe that in account 58 “Financial investments” subaccount 3 “Loans provided” and loans provided to individuals (except for employees of the organization) should be taken into account. Since the status of PBU is higher than the specified Instruction, in this case one should be guided by PBU 19/02.
Clause 2 of PBU 19/02 lists three conditions that assets must meet in order to be accounted for as financial investments. Clause 5 of PBU 19/02 states that the organization independently selects the unit of accounting for financial investments. Clause 6 of PBU 19/02 specifies the basic principle of analytical accounting of financial investments - by organization (issuers of purchased securities, borrowers in whose authorized (joint) capital financial investments were made, holders of deposits, simple partnerships, etc.).
PBU 19/02 does not contain a mandatory list of securities details that must be recorded in analytical accounting registers.
Moreover, PBU 19/02 does not provide for requirements for the compilation of special registers that reflect the movement of securities stored in the organization (previously, in accordance with paragraph 6 of the Procedure for reflecting transactions with securities in accounting, approved by order of the Ministry of Finance of Russia dated January 15, 1997 No. 2, provided for the maintenance of a Securities Book).
Clause 7 of PBU 19/02 states that the specifics of assessment and additional rules for disclosing information on financial investments in dependent business companies in financial statements are established by a separate regulatory act on accounting. There is currently no such regulatory act.
According to clause 18 of PBU 19/02, the initial cost of financial investments at which they are accepted for accounting may change in cases established by law and PBU 19/02.
For the purpose of changing the initial value, financial investments are divided into two groups: by which it is possible and by which it is impossible to determine their current market value.
Financial investments of the first group are reflected in the financial statements at the end of the reporting year at the current market value by adjusting their valuation as of the previous reporting date (clause 20 of PBU 19/02).
The difference between the assessment of financial investments at the current market value as of the reporting date and their assessment as of the previous reporting date is prescribed to be attributed by commercial organizations to operating income or expenses (i.e. to the debit or credit of account 91 “Other income or expenses”), and by non-profit organizations - to increase income or expenses in correspondence with account 58 “Financial investments”.
Financial investments of the second group are subject to reflection both in accounting and in financial statements at their original cost. For debt securities (for example, bonds), for which the current market value is not determined, the difference between the initial value and the nominal value during the period of their circulation is allowed, as before, to be classified as commercial organizations for operating income or expenses, and non-profit organizations for decreasing or increasing expenses.
It should be especially noted that financial investments (see clause 3) include, in particular, short-term securities, loans provided to other organizations, deposits in credit institutions, as well as receivables acquired on the basis of assignment of claims.
1. These Regulations establish the rules for the formation in accounting and financial reporting of information about the organization’s financial investments. The organization hereinafter means legal entity according to the legislation of the Russian Federation (with the exception of credit organizations and state (municipal) institutions).
USING VALUATION TECHNIQUES AT DISPOSAL
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Balance on the 1st