Accounting for future income and expenses briefly. Accounting for income and expenses of future periods. Expenditures aimed at developing natural resources
Introduction
1 The concept and essence of accounting for income and expenses of future periods.
2 Regulatory regulation of accounting for income and expenses of future periods
3 Inventory and documentation of write-off of deferred expenses
4 Accounting for income and expenses of future periods
Introduction
The chart of accounts for the accounting of financial and economic activities of enterprises and the Instructions for its application establish that deferred expenses belong to the “Production Costs” group, are the property of the organization and are recorded in the “Deferred Expenses” account. Analytical accounting for this account should be organized by type of expense. Deferred income includes future receipts of debt for shortfalls identified in the reporting period for previous years; the difference between the amount to be recovered from the guilty parties and the value of the valuables accepted for accounting when shortages and damage are identified.
The relevance of the chosen topic is determined by the fact that expenses and income of future periods have their own accounting specifics, in contrast to the accounting of expenses and income that are currently taking place. In order to avoid making mistakes when accounting for the financial and economic activities of an enterprise, you need to know this specificity.
The purpose of this work is to study the accounting of expenses and income of future periods.
To achieve this goal, the following tasks have been identified:
Consideration of future expenses, their types and accounting features;
Study of future income and the accounting features of each type of income.
1 Concept, essence of accounting for income and expenses of future periods
The concepts of “deferred expenses” and “deferred revenue” are one example of the discrepancies between generally accepted accounting principles and current practice because they do not fully correspond to the definitions of an asset and a liability. As a result of this, their inclusion in the Balance Sheet is somewhat questionable, but by their nature they cannot be included in the Financial Results Report, because it reflects the income and expenses of the reporting period. However, such costs and income do exist and should be properly accounted for. This will be discussed in this consultation.
The essence of expenses classified as “deferred expenses” is defined in PBU 18 “Balance”. Namely: deferred expenses reflect expenses that occurred during the current or previous reporting periods, but relate to the following reporting periods. S. Golov calls such expenses “unexhausted (unconsumed) expenses” and at the same time indicates that “unexhausted expenses” are reflected in the balance sheet asset...”.
A more detailed list of deferred expenses is given in the explanations to account 97 “Deferred Expenses” of the Chart of Accounts. Such costs include costs associated with pre-production work in seasonal industries; with the development of new production facilities and units; rental payments paid in advance; payment of an insurance policy; payment for a trade patent; subscription to newspapers, magazines, periodicals and reference publications, etc. The debit of account 97 “Deferred expenses” reflects the accumulation of expenses of future periods, and the credit reflects their write-off (distribution) and inclusion in the expenses of the reporting period. In addition to the expenses listed in the Chart of Accounts, we are also talking about prepayment for the use of the Internet and mobile communications.
The provisions on accounting and reporting in the Russian Federation (clause 56) provide that “Expenses incurred in the reporting period, but relating to subsequent reporting periods, are reflected in the statements as a separate item as deferred expenses and are subject to attribution to production or distribution costs during the period to which they relate."
In the chart of accounts for accounting for future expenses, account 97 “Deferred expenses” is provided. The debit of this account reflects expenses that are subject to inclusion in the cost of products (works, services) of the reporting period (during the period) to which they relate.
Deferred expenses include costs associated with preparatory work in seasonal industries and the seasonal nature of production; costs for production development, start-up and commissioning costs; expenses for repairs of fixed assets (when the company does not create a repair fund or reserve for repairs); rent expenses paid to the landlord in advance; subscription fees to newspapers, magazines and other sources of information; costs associated with cultural and technical work, etc.
The company sets its own deadline for writing off deferred expenses for each group.
The “Deferred Expenses” account is intended to summarize information about expenses incurred in a given reporting period, but relating to future reporting periods.
According to clause 73 of the Regulations on Accounting and Reporting in the Russian Federation, income received in the reporting period, but relating to the following reporting periods, is reflected in the accounting period, but relating to the following reporting periods, is reflected in accounting and reporting as a separate item as deferred income. These incomes are subject to inclusion in the results of economic activities upon the onset of the reporting period to which they relate. These include the difference between the amount recovered and the book value of missing valuables from the guilty parties, exchange rate differences, etc. Deferred income is accounted for in account 98 “Deferred income” and, as necessary, is written off to financial results from the debit of account 98 to the credit of account 91 “Other income and expenses”.
2 Regulatory regulation of accounting for income and expenses of future periods
In accordance with the Instructions for the use of the Chart of Accounts, approved. Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n, account 97 “Expenditures of future periods” is intended to summarize information on expenses incurred in a given reporting period, but relating to future reporting periods. A similar definition of deferred expenses (FPR) is given in clause 65 of the Regulations on accounting and financial reporting in the Russian Federation (approved by order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n).
Thus, accounting for expenses as deferred expenses is a way of distributing expenses already incurred. Therefore, deferred expenses must comply with the definition of expenses given in PBU 10/99 “Expenses of an organization” (reduction of economic benefits as a result of disposal of assets). Operations related to the disposal of assets listed in clause 3 of PBU 10/99, including prepayments or advances, cannot be taken into account as deferred expenses.
It is also necessary to pay attention to the conditions for recognizing expenses (clause 16 of PBU 10/99), according to which expenses are recognized in accounting if:
Expenses are made in accordance with a specific agreement, the requirements of legislative and regulatory acts, and business customs;
The amount of expenditure can be determined;
There is a certainty that a particular transaction will result in a reduction in the economic benefits of the entity.
As an interesting curiosity, one can cite the Resolution of the FAS VSO dated April 22, 2003 No. A33-12803/02-С3н/Ф02-1010/03-С1, in which the high court decided that PBU 10/99 “Organization expenses” does not regulate accounting issues expenses of future periods.
In accordance with the Instructions for the chart of accounts, the expenses reflected in this account, according to their economic content, can be divided into two groups:
a) preparatory expenses related to income that will (may) be received in the future. These are expenses for the development of new production facilities, mining and preparatory work, preparation for seasonal work, etc.
b) expenses of the current period, for example, for repairs of expensive equipment. For such expenses, reflection according to Account 97 is nothing more than “smoothing out” unevenness due to the arbitrary distribution of a significant amount of expenses over several periods.
Please note that the Instructions do not mention periodic or ongoing expenses, such as the cost of obtaining a license for a type of activity, paying for insurance, or the cost of rights to use software transferred for a limited period. Also, reference to advances on rental payments disappeared from the Instructions.
In the above definition, the nature of the connection between expenses and future periods remains unclear. When are expenses deferred? The answer to this question is given in paragraph 19 of PBU 10/99. It divides expenses associated with future income into two types:
a) Expenses directly related to future income generation. Obviously, these include preparatory expenses of a production nature.
b) Expenses related to future income indirectly, unclearly.
According to paragraph 19 of PBU 10/99 "Expenses of the organization", expenses are recognized in the income statement, taking into account the relationship between expenses incurred and income (the principle of matching income and expenses). It follows that deferred expenses should include expenses that directly determine income that will (may) come in the future. As already noted, these are preparatory expenses directly related to production.
In addition, according to paragraph 19 of PBU 10/99, expenses can be reasonably distributed between reporting periods when
Expenses determine the receipt of income over several reporting periods
When the relationship between income and expenses cannot be clearly defined or is determined indirectly.
Thus, the method of accounting for expenses that are indirectly (indirectly) related to future income depends on the professional judgment of the accountant. Such expenses can be allocated, but only if there is a convincing justification for their connection with future income. If the connection between incurred expenses and future income is not convincingly justified, the incurred expenses should be accounted for as current period expenses without distribution.
According to clause 94 of the Methodological Guidelines for the Accounting of Mining Plants (approved by order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n), the cost of materials released for production, but relating to future reporting periods (preparatory work in seasonal production, mining and preparatory work, development new enterprises, production facilities, workshops and units (start-up costs), for the preparation and development of production of new types of products and new technologies, land reclamation), is credited to the account of deferred expenses. The cost of materials supplied may also be included in this account in other cases when there is a need to distribute costs over a number of reporting periods.
According to clause 26 of PBU 14/2000 “Accounting for intangible assets” PBU 14/2000 (approved by order of the Ministry of Finance of the Russian Federation dated October 16, 2000 No. 91n), payments for the granted right to use intellectual property objects, made in the form of a fixed one-time payment, including royalties are reflected in the accounting records of the user organization as deferred expenses and are subject to write-off during the term of the contract.
In accordance with clause 12 of PBU 2/94 “Accounting for agreements (contracts) for capital construction”, approved by Order of the Ministry of Finance of the Russian Federation dated December 20, 1994 No. 167, the contractor’s expenses associated with obtaining (concluding) construction contracts, which can be separately allocated , and there is confidence that the contract will be concluded, may relate to this contract and, before its conclusion, be accounted for as deferred expenses.
In accordance with clause 11 of PBU 17/02 “Accounting for expenses for research, development and technological work” (approved by order of the Ministry of Finance of the Russian Federation dated November 19, 2002 No. 115n), write-off of expenses for each completed research, development and development work , technological work is carried out in one of the following ways:
Linear method;
The method of writing off expenses in proportion to the volume of products (works, services).
The period for writing off expenses for research, development and technological work is determined by the organization independently based on the expected period of use of the results of research, development and technological work, during which the organization can receive economic benefits (income), but no more 5 years. In this case, the indicated useful life cannot exceed the life of the organization.
According to paragraphs 18 and 19 of PBU 15/01 “Accounting for loans and credits and the costs of servicing them” (approved by order of the Ministry of Finance of the Russian Federation dated August 2, 2001 No. 60n), in order to evenly (monthly) include the amounts of interest or discount due in As income on bills issued, the drawer organization can preliminarily take them into account as deferred expenses. Similarly, for the purpose of uniform (monthly) inclusion of the amounts due to the lender of income on sold bonds, the issuing organization may preliminarily take into account these amounts as deferred expenses.
In the Letter of the DNP of the Ministry of Finance of the Russian Federation dated April 20, 2000 No. 04-02-05/6, the opinion was expressed that the fee for encumbering rights to real estate can be included in the financial results of the organization either at a time or by attributing such costs to the “Expenses” account future periods" and their subsequent write-off in accordance with the accounting policies adopted by the organization during the term of the real estate lease agreement. At the same time, if the subject of the agreement is the lease of land, the fee for encumbering rights to real estate should be charged to financial results at a time, taking into account that such agreements are concluded for a long period (usually 49 years).
In accordance with clause 12 of Order of the Ministry of Finance of the Russian Federation dated February 17, 1997 No. 15 “On the reflection in accounting of transactions under a leasing agreement”, in the case of a repurchase before the expiration of the leasing agreement, early accrued payments are debited to the “Deferred Expenses” account, and if the lessee decides to use its own sources - to the debit of the accounts of the organization's own sources ("Retained earnings (uncovered loss)") in correspondence with account 76 "Settlements with various debtors and creditors", subaccount "Debt on leasing payments".
If, under the terms of the leasing agreement, the leased property is accounted for on the balance sheet of the lessee, then the payments transferred ahead of schedule are debited either to the “Deferred Expenses” account, or, if the lessee decides to use its own sources, to the debit of the accounts of the organization’s own sources in correspondence with account 02 "Depreciation of fixed assets." At the same time, the specified amount is taken into account as a debit to account 76 “Settlements with various debtors and creditors”, subaccount “Debt on leasing payments” in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Lease obligations”.
Balances on account 97 are reflected in the balance sheet as an asset of the organization. An asset is generally recognized as a resource controlled by an entity that has the potential to produce economic benefits in the future (see IFRS Principles for the Preparation and Presentation of Financial Statements).
The objective criterion of “the ability to bring benefits” (as well as the conditionality of income on expenses) is given in the Concept of Accounting in a Market Economy of Russia (approved by the Methodological Council on Accounting under the Ministry of Finance of the Russian Federation on December 29, 1997). The concept is not a normative document, but it formulates the general principles of accounting used in countries with market economies.
A property is considered to provide future economic benefits to the organization when it can be:
a) used separately or in combination with another object in the process of production of products, works, services intended for sale;
b) exchanged for another piece of property;
c) used to pay off accounts payable;
d) distributed among the owners of the organization.
Obviously, the “assets” formed from “smoothed” expenses do not satisfy any of the listed conditions. Accounting for “smoothed” expenses on account 97 leads to the appearance of fictitious assets in the balance sheet and to a distortion of the balance sheet structure, which negatively affects the reliability of the financial statements. In addition, this method of accounting contradicts the requirement of prudence (clause 7 of PBU 1/98 “Accounting Policy of an Organization”), according to which, when generating information in accounting, a certain prudence in judgments and estimates should be exercised so that assets and income are not overstated , and liabilities and expenses were not understated.
The use of account 97 is acceptable for smoothing out large periodic operating expenses, such as scheduled equipment repairs, the cost of some licenses, i.e. expenses with a known maturity and which are an integral part of the normal production process. Reflecting such expenses in full in the current period may lead to incorrect conclusions about the deterioration of the financial condition of the organization when comparing the financial results of the current period with the results of previous periods.
However, it would be more acceptable for the reliability of reporting to pre-form reserves for the mentioned expenses and write them off against reserves. It is this approach that meets the requirement of prudence.
In any case, large "sudden" expenses or expenses with an indefinite maturity should not be included in deferred expenses, nor should minor recurring expenses. It is irrational (even for a small enterprise) to write off payments in the amount of 1,300 rubles over 5 years. for a license to operate.
Accounting for income received for deferred periods Income received in the reporting period, but relating to subsequent reporting periods, is reflected in the balance sheet as a separate item as deferred income (clause 81 of the Regulations on accounting and financial reporting in the Russian Federation).
Deferred income includes future receipts of debt for shortfalls identified in the reporting period for previous years; the difference between the amount to be recovered from the guilty parties and the value of the valuables accepted for accounting when shortages and damage are identified (Chart of accounts for accounting of financial and economic activities of organizations, approved by order of the Ministry of Finance of Russia dated October 31, 2000 N 94n).
3 Inventory and documentation of write-off of deferred expenses
In accordance with clause 27 of the Accounting Regulations, before drawing up annual financial statements, an inventory of property and liabilities is mandatory (except for property, the inventory of which was carried out no earlier than October 1 of the reporting year). Inventory of amounts listed in the deferred expenses account is carried out in the manner established by the Methodological Instructions for Inventorying Property and Financial Liabilities (Order of the Ministry of Finance of Russia dated June 13, 1995 N 49), as well as on the basis of the procedure approved by the organization in the order on accounting policies . The inventory commission appointed by order for the organization, based on documents, establishes the amount to be reflected in the deferred expenses account and attributed to production and distribution costs (or to the relevant sources of funds of the organization) within a documented period in accordance with the documents, calculations and accounting policies available to the organization . The results of the inventory are recorded in form N INV-11 “Act of inventory of future expenses”, established by Resolution of the State Statistics Committee of Russia dated August 18, 1998 N 88 “On approval of unified forms of primary accounting documentation for recording cash transactions and recording inventory results.” This act is drawn up in two copies. One copy is transferred to the accounting department to enter its results into the comparison sheet in accordance with the deadlines established in the order for the inventory; another copy remains with the employee of the organization who oversees the execution of documents according to which these deferred expenses arose.
Based on the inventory results, the store revealed a shortage of goods at sales prices in the amount of 100,000 rubles. Trade margin – 10,000 rubles. The financially responsible person acknowledged the shortage and agreed to pay it off. Money to repay the debt for the shortfall is deposited in the cash register.
The following entries will be made in accounting:
Debit 94 Credit 41 90,000 rub. – the shortage of goods is written off;
Debit 41 Credit 42 10,000 rub. – trade margin reversed;
Debit 73-2 Credit 94 90,000 rub. – for the amount of the deficiency to be recovered from the guilty party;
Debit 73-2 Credit 98-4 10,000 rub. – the difference between the selling price and the actual cost of the missing goods;
Debit 50 Credit 73-2 100,000 rub. – the amount for damages has been deposited into the cash register;
Debit 98-4 Credit 91-1 10,000 rub. – income is reflected in the form of the difference between the amount collected and the actual cost of the missing valuables.
In this case, not the entire shortage - 100,000 rubles - is recognized as deferred income, but only the potential profit that was included in the missing goods. The shortfall amounted to 100,000 rubles, and the financially responsible person agreed to pay it. However, 90,000 rubles. the organization paid the supplier for these goods, but if these goods were sold, the trading organization would receive 10,000 rubles. arrived. Therefore, under the current circumstances, future income is 10,000 rubles.
From the definition of deferred expenses it follows that the procedure for writing them off must be established by the organization’s administrative document. Accepted methods for determining such an order should be reflected in the accounting policies of the organization. If a method of writing off incurred expenses relating to future periods is used that is not specified in the accounting policy, it is necessary to adopt the appropriate administrative document (for example, an order for the organization signed by the manager).
Regardless of the current situation, an accounting document must be drawn up to document the amount of the write-off (credit to the Deferred Expenses account). Such a document must have the required details: date of preparation; basis for compilation; correspondent account to which the write-off will be made; the period over which expenses are distributed; write-off amounts for individual months of the established period; position and signature of the person who compiled the document.
Synthetic accounting of deferred expenses is carried out using the following entries in the accounting accounts: debit account 97 “Deferred expenses” credit accounts of inventory and production costs (10, 13, 23, 25, 26, etc.) - the amount of actual expenses incurred; debit account 20, 23, 25, 26, etc. credit to account 97 - for the amount of previously incurred expenses attributable to the cost of products (works, services) in a given reporting period. D-t inc.97 Invoice inc.60, 71, 76, etc. - reflects the amounts of expenses incurred in the current period, but relating to future periods D-t inc.20, 26, 44, etc. Invoice account 97 - deferred expenses are written off in the reporting period to which they relate, in the manner established by the organization.
Account 97 also shows the costs of repairing fixed assets, which is carried out at the beginning of the year: D-t account 97 K-t account 02, 10, 70, 69, etc. - the amount of costs for repairing fixed assets is reflected. Dt. 20, 23, 25, 26, 44, etc. Kt. 97 - attributed to expenses the amount of expenses for the repair of fixed assets. Accounting for deferred expenses is carried out by debiting account 97 “Deferred Expenses” from the credit of the corresponding material, settlement and other accounts. Monthly or at other times, expenses recorded on the debit of account 97 are written off to the debit of accounts 20, 23, 25, 26, 44, 99. The timing of writing off deferred expenses, as well as the corresponding costs or other sources to which these expenses are written off, are regulated by legislative and other regulations or determined by the organizations themselves. For example, expenses for the repair of fixed assets, recorded at the beginning of the year on account 97, are written off monthly either in proportion to the volume of production by month, or in proportion to the planned costs of repairing fixed assets, or evenly by month. Of the total composition of future expenses, a separate calculation item under account 20 “Main production” reflects only the costs of preparation and development of production. The remaining expenses are written off from account 97 to the debit of collection and distribution (25, 26) or other accounts.
4 Accounting for income and expenses of future periods
Account 98 “Deferred Income” is intended to summarize information on income received (accrued) in the reporting period, but relating to future reporting periods, as well as upcoming receipts of debt for shortfalls identified in the reporting period for previous years, and the differences between the amount subject to recovery from the guilty parties, and the value of the valuables accepted for accounting when shortages and damage are identified.
Sub-accounts can be opened to account 98 “Deferred income”:
98-1 "Income received for future periods",
98-2 "Gratuitous receipts",
98-3 “Upcoming debt receipts for shortfalls identified in previous years”,
98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, etc.
Subaccount 98-1 “Income received for future periods” takes into account the movement of income received in the reporting period, but relating to future reporting periods: rent or apartment payments, utility bills, revenue for freight transportation, for passenger transportation on a monthly basis and quarterly tickets, subscription fees for the use of communication facilities, etc.
On the credit side of account 98 “Deferred income”, in correspondence with the accounts for cash or settlements with debtors and creditors, the amounts of income related to future reporting periods are reflected, and on the debit side - the amounts of income transferred to the corresponding accounts upon the onset of the reporting period to which these incomes are included.
Analytical accounting for subaccount 98-1 “Income received on account of future periods” is carried out for each type of income.
Subaccount 98-2 “Gratuitous receipts” takes into account the value of assets received by the organization free of charge.
The credit of account 98 “Deferred income” in correspondence with accounts 08 “Investments in non-current assets” and others reflects the market value of assets received free of charge, and in correspondence with account 86 “Targeted financing” - the amount of budget funds allocated by a commercial organization for financing expenses. Amounts recorded on account 98 “Deferred income” are written off from this account to the credit of account 91 “Other income and expenses”:
for fixed assets received free of charge - as depreciation is calculated;
for other material assets received free of charge - as production costs (sales costs) are written off to accounts.
Analytical accounting for subaccount 98-2 “Gratuitous receipts” is maintained for each gratuitous receipt of valuables.
Subaccount 98-3 “Upcoming debt receipts for shortfalls identified in previous years” takes into account the movement of upcoming debt receipts for shortfalls identified in the reporting period for previous years.
The credit of account 98 “Deferred income” in correspondence with account 94 “Shortages and losses from damage to valuables” reflects the amounts of shortages of valuables identified in previous reporting periods (before the reporting year), found guilty by persons, or the amounts awarded for collection on them court. At the same time, account 94 “Shortages and losses from damage to valuables” is credited with these amounts in correspondence with account 73 “Settlements with personnel for other operations” (sub-account “Settlements for compensation of material damage”).
As the debt for shortfalls is repaid, account 73 “Settlements with personnel for other operations” is credited in correspondence with the cash accounts while simultaneously reflecting the received amounts on the credit of account 91 “Other income and expenses” (profits of previous years identified in the reporting year) and debit account 98 “Deferred income”.
Subaccount 98-4 “The difference between the amount to be recovered from the guilty persons and the cost of shortages of valuables” takes into account the difference between the amount recovered from the guilty persons for missing material and other valuables and the value listed in the organization’s accounting records.
In the credit of account 98 “Deferred income” in correspondence with account 73 “Settlements with personnel for other operations” (sub-account “Settlements for compensation for material damage”) the difference between the amount to be recovered from the guilty parties and the cost of shortages of valuables is reflected. As the debt accepted for accounting under account 73 “Settlements with personnel for other operations” is repaid, the corresponding amounts of the difference are written off from account 98 “Deferred income” to the credit of account 91 “Other income and expenses”.
Financial distribution account 98 “Deferred income” must reflect assets received in a given reporting period on account of future reporting periods, but with the condition:
1) that assets can never be claimed back by counterparties (correspondents). If such a possibility exists, then we should talk about accounts payable, and not about income of future reporting periods. And in fact, an organization, having received income for future periods, as a rule, invests it in its turnover and, therefore, the assets covering the future income received have already changed their form, could well turn into losses, which means they will be in liabilities income already received, sources of own funds are shown, and the asset may correspond to a “emptiness”;
2) that assets for deferred income, even if they correspond to “emptiness,” must cover the passive item “Deferred Income” with something else. However, the compilers of the chart of accounts abandoned this previously immutable rule and allow cases when, instead of assets already received, they enter into accounting assets that are still expected to be received. This is a significantly new feature of the current chart of accounts.
Let's consider four sub-accounts, which, in essence, are fundamentally independent accounts.
Account 98.1 "Income received for future periods"
This is the traditional deferred income account. The credit of this account should record received assets, which, according to the rule of matching income with expenses, can and should be recognized as income not for this reporting period, but for future reporting periods. The main criterion for recording these incomes under the credit of subaccount 98.1 “Income received on account of future periods” is that the assets received on account of these incomes will not be claimed back by counterparties (correspondents).
The debit of account 98.1 “Income received for future periods” reflects the amounts attributed to accounts 90 “Sales” and 91 “Other income and expenses.” Account 90 “Sales” should be credited for the amount of income from ordinary activities, and account 91 “Other income and expenses” - for the amount of income.
Account 98.2 "Gratuitous receipts"
Traditional accounting practice involved recording assets received free of charge, usually under a gift agreement, by debiting the account for the asset that was donated and by crediting, in relation to this chart of accounts, account 83 “Additional capital”. This was logical, since, according to the static theory of balance, in this case the capital of the enterprise increases, but its income does not increase. The previous chart of accounts was based on precisely this concept.
The compilers of the new chart of accounts in this case assume, according to the dynamic concept, that assets received free of charge are the income of the enterprise, and not just an increase in capital. They proceed from the fact that the newly received, albeit gratuitously, assets will be used by the recipient organization to generate income, and, therefore, a gift is income, but income from such a gift can only be received in the future. Hence the use of account 98 “Deferred income”.
Taxation practices also influenced the decision. Over the past ten years, tax authorities have classified assets received free of charge as taxable income. And the entire cost of the gift was subject to income and property taxes.
In the new chart of accounts, in this case we are faced with another feature: the capitalization of a gratuitously received asset does not go directly from account 98.2 “Gratuitous receipts,” but through intermediate accounts.
So, if assets, for example fixed assets, were received free of charge, then the accountant must make entries:
Debit 01 "Fixed assets" Credit 08.4 "Purchase of fixed assets"
Debit 08.4 "Purchase of fixed assets" Credit 98.2 "Gratuitous receipts"
The main difficulty arises in connection with the assessment of the assets received.
In this case, it is not important at what value the donor took them into account, or at what value he indicates in the accompanying documents, but what is important is that the valuation must be given at the market value on the day of receipt of these funds, that is, at the time of transfer of ownership of them .
As the fixed assets received free of charge are used, they will be depreciated and entries will be made for the amount of monthly depreciation:
Debit 20 “Main production” (and/or other cost accounts)
Credit 02 "Depreciation of fixed assets"
This entry is common and traditional. However, the Supreme Court of the Russian Federation clarified that if fixed assets were received free of charge, then there is no depreciation in this case, and the accountant has no reason to accrue it. But if this entry is not made, then the cost of finished products will be underestimated and the enterprise will have additional taxable income.
The tax authorities say that this entry can be made if the accountant wishes, for the needs of the enterprise, for example, to reduce profits paid on dividends, but its results should not affect the amount of taxable profit.
At the same time, an entry is made for the amount of accrued depreciation on fixed assets received free of charge:
Debit 98.2 "Gratuitous receipts" Credit 91.1 "Other income"
If working capital, for example, materials, are received free of charge, then an entry is made:
Debit 10 “Materials” Credit 98.2 “Gratuitous receipts”
When writing off materials for production, two entries are made:
Debit 20 "Main production" (or other cost accounts) Credit 10 "Materials"
Debit 98.2 "Gratuitous receipts" Credit 91.1 "Other income"
Thus, upon receipt of the “gift,” it is received, but is not yet considered income, although it is recognized as income for future reporting periods, but it will be declared income only when materials are written off for production.
The paradox is that if such property is stolen even before it is written off for production, then precisely at the moment the theft is activated, according to the spirit of the instructions to the chart of accounts, it will have to be recognized as income.
And finally, if we are faced with targeted financing, then, first of all, it is necessary to capitalize the money:
Debit 51 "Current accounts" Credit 86 "Targeted financing"
Debit 86 "Targeted financing" Credit 98.2 "Gratuitous receipts"
Account 86 “Targeted financing” is closed in this case. But the further system of records repeats what we said regarding the accounting of non-current and working capital received free of charge.
Account 98.3 "Upcoming debt receipts for shortfalls identified in previous years"
It is assumed that the balance of the accounts on which the assets are reflected is currently correct, that is, the shortage is not reflected in the accounting as a result of the inventory. A typical example. The shortage, identified in one of the previous reporting periods, was written off as losses by decision of the court of first instance. However, a higher court ruled in favor of the organization, and the accountant now again notes the emergence of previously written off receivables.
Account 98.4 "The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables"
This subaccount acts as a regulating counterpart to account 73.2 “Calculations for compensation for material damage.” And, strictly speaking, it has almost nothing to do with future income.
The differences between subaccounts 98.3 “Forthcoming debt receipts for shortfalls identified in previous years” and 98.4 “The difference between the amount to be recovered from the guilty parties and the book value for shortfalls of valuables” boil down to the fact that in the first case, the shortfall previously written off as a loss is simply compensated , and the entire amount is considered income, and in the second case, only the markup is considered income.
Analytical accounting for account 98 “Deferred income”
Analytical accounting is carried out in the context of each of the four accounts considered.
In essence, any of them has a purely independent meaning and only by the will of the compilers of the chart of accounts, these very diverse operations were combined under the name of account 98 “Deferred income”.
In general, it must be said that when reflecting income for future reporting periods, it is necessary to maintain object-based accounting, where each case is an object:
· or receipt of money against future income;
· or gratuitous receipt of each object allocated under a donation agreement;
· or for each case of shortages of previous reporting periods;
· or for each case of shortage of valuables identified in a given reporting period.
For tax purposes, income is recognized in the reporting (tax) period in which it occurred, regardless of the receipt of funds, other property (work, services) and (or) property rights (clause 1 of Article 271 of the Tax Code of the Russian Federation). Consequently, all income that is reflected in accounting as deferred income and will be recognized as income in subsequent reporting periods is also not accepted for tax purposes. The only exceptions are gratuitously received property or property rights, which, in accordance with subparagraph 8 of Article 251, are included in non-operating income, but according to accounting rules are reflected in account 98 “Deferred income”.
Property received free of charge upon receipt is not included in the tax base:
· within the framework of targeted financing;
· from an organization, if the authorized (share) capital (fund) of the receiving party consists of at least 50 percent of the contribution of the transferring organization;
· from an organization, if the authorized (share) capital (fund) of the transferring party consists of at least 50 percent of the contribution of the receiving organization;
· from an individual, if the authorized (share) capital (fund) of the receiving party consists of at least 50 percent of the contribution of this individual.
Received property is not recognized as income for tax purposes only if, within one year from the date of its receipt, the specified property (except for cash) is not transferred to third parties.
The assessment of income when receiving property (work, services) free of charge is carried out at market prices, determined taking into account the provisions of Article 40 of the Tax Code, but not lower than the residual value - for depreciable property and production (purchase) costs - for goods (work, services). Information on prices must be confirmed by the taxpayer - the recipient of the property (work, services) documented or through an independent assessment.
Costs incurred by the organization in the reporting period, but related to the following reporting periods, are reflected in the balance sheet as a separate item as deferred expenses and are subject to write-off to the debit of the accounts:
20 “Main production” - costs related to the main production (that production whose products (works, services) were the purpose of creating an enterprise or organization);
23 “Auxiliary production” - deferred expenses of auxiliary workshops and ancillary production;
25 “General production expenses” - future expenses for servicing the main and auxiliary production of the enterprise;
26 “General business expenses” - administrative and business expenses of the enterprise, related by their nature to expenses of future periods;
44 “Sales expenses” - deferred expenses associated with the sale (sale) of products, etc.
Expenses are written off during the period to which they relate in the manner established by the organization in each specific case (evenly, in proportion to the volume of production, etc.), based on calculations made after payment has been made or the completion of work performed.
Amount to be distributed;
Corresponding account to which the write-off will be made;
The calendar period to which deferred expenses are allocated;
Amounts written off for individual months of the calendar period in which the expenses occur.
Expenses incurred by the enterprise are recorded in account 97 without any value added tax.
Analytical accounting for account 97 is carried out by types of expenses for future periods. To do this, a separate analytical account is opened for each type of future expenses.
| Primary document | Contents of operations | Corresponding |
|
| debit | credit | ||
| Development table - calculation of depreciation of fixed assets | Depreciation was accrued for fixed assets involved in mining preparation and seasonal work during the development of new types of products | 97 | 02 |
| Calculation of amortization of intangible assets | Depreciation was accrued on intangible assets used in mining and seasonal work, during the development of new types of products | 97 | 05,04 |
| Demand-invoice (form No. M-11), limit-fence card (form No. M-8) | Materials were written off at book price or actual cost for carrying out mining preparation, seasonal work, during the development of new types of products, etc. | 97 | 10 |
| List of distribution of expenses of auxiliary productions | Services of auxiliary production provided during work related to future periods are written off | 97 | 23 |
| Sheet of distribution of overhead costs | General production expenses related to work related to future periods are written off | 97 | 25 |
| General expenses distribution sheet | General business expenses related to work related to future periods are written off | 97 | 26 |
| Request-invoice (form No. M-11) | Finished products used in work related to future periods are written off | 97 | 43 |
| Certificate of work completed, services rendered, invoices of suppliers and contractors | Debt to suppliers or contractors for work performed or services rendered used in work related to future periods is written off | 97 | 60,76 |
| Payroll (form No. T-49), personal account (forms No. T-54, 54a) | Accrued wages to employees involved in work related to future periods | 97 | 70 |
| Payroll statement (form No. T-49) | Social tax has been accrued on wages to employees participating in work related to future periods | 97 | 69 |
| Advance report, official assignment for sending on a business trip and report on its implementation (Form No. T-10a), invoices, receipt order (Form No. M-4) | Travel and business expenses related to future periods are written off | 97 | 71 |
| Accounting certificate, statement of distribution of expenses for future periods | Part of the expenses of future periods attributable to the expenses of the current reporting period was written off | 20, 23, 25, 26 | 97 |
| Accounting certificate, statement of distribution of future expenses | In the current reporting period, part of the expenses of future periods attributable to expenses related to sales was written off | 44 | 97 |
The main purpose of controlling income and expenses of future periods is an objective study of the state of accrual and write-off of expenses and income of future periods, the completeness and timeliness of display of information in consolidated documents and accounting registers, the correctness of accounting for income and expenses of future periods in accordance with the adopted accounting policy, the reliability of the display of balances in the statements of a business entity and the timeliness of correction of deviations at the enterprise.
The tasks of on-farm control of income and expenses of future periods are presented in Fig. 12.6.
Rice. 12.6. V Tasks of internal control of income and expenses of future periods
Checking account balances 69 “Deferred Income” 39 “Deferred Expenses” allows you to establish the accuracy and completeness of the reflection of transactions on these accounts.
A study of concluded agreements and orders of the manager on the opening of these accounts will make it possible to determine the existence and legality of these agreements and orders, as well as accruals and write-offs of income and expenses of future periods.
Having checked the correctness of the documentation of transactions, the inspector establishes the reliability, legality of the accrual and write-off of these income and expenses, as well as the correctness of the reflection of these transactions in accounting and reporting. Assessing the state of synthetic and analytical accounting of income and expenses will help the controller check their balance among themselves. Checking the enterprise's compliance with tax legislation on transactions related to the accrual and write-off of income and expenses of future periods will help verify the correctness of the reflection of tax calculations.
Objects of control The enterprise has income and expenses for future periods.
Deferred expenses, in turn, can be further detailed, for example, deferred expenses include expenses associated with the development of new organizations, production facilities, workshops and units, expenses associated with the payment of rent for the use of fixed assets, expenses for subscriptions to periodicals, and the reserve for future payments and payments may include expenses for the payment of additional pensions, expenses for vacations to employees, expenses related to warranty obligations.
Future income is funds already received or what will be received not in this reporting period, but in others, those ahead. That is, we can consider this in such a way that when the debtors repay their debts and the creditor enterprise receives its future income, or the products are shipped to customers and the selling enterprise receives money.
Source of information for on-farm control at the enterprise there are primary documents, namely accounting registers used to reflect business transactions, the general ledger, preliminary control acts, accounts, payment orders, invoices, limit cards, receipt orders, receipts, lease agreements, checks, patents, cash registers orders, expense reports and other documentation. Also accounting accounts, accounting registers and reporting forms Form No. 1 "Balance, Form No. 3 "Cash Flow Statement" and other documentation.
Income at the enterprise arises at the time of shipment of products, that is, when ownership of the products passes from the seller to the buyer and at the same time the right to demand payment for their cost arises. Therefore, in this case, there is no future income.
In relation to the future prospects for the shipment of products and the receipt of funds, then these issues are inherent in planning the activities of the enterprise, and not in accounting, intended to record the facts of business activities.
Verification of documents that confirm the accrual and write-off of income and expenses of future periods and provision of future payments and payments can be carried out by checking both one document and several documents that confirm the same or interrelated transactions.
Document control techniques apply to accounting documents, entries in accounting registers, submitted reports, statistical and operational materials. The object of documentary control is information that characterizes completed business transactions.
By using formal verification The controller can check the correct document, which should contain all the information necessary to substantiate the accounts.
By using arithmetic check The controller checks accruals and write-offs of income and expenses for future periods.
By using regulatory audit checks the legality of a particular operation.
Logical check allows you to identify possible thefts using actual results and related documents.
Also, to control income and expenses of future periods, you can check several documents and carry out:
- counter check (comparison of two copies of the same document located at different enterprises or departments). For example, our company writes off a significant amount of funds monthly for expenses incurred to pay lease payments for the use of fixed assets. The owner of the enterprise questioned the implementation of this operation, as well as the amount of monthly write-off. We can check this operation for help by submitting a request to the company from which we rent the object. This request will help to verify the information contained in the agreement, which is located at our enterprise, namely the amount of the rental payment, the rental period, etc.;
- mutual control (documents of different names and natures are compared, reflecting various aspects of the same operation). For example, the head of an enterprise can check the accuracy of the reflection of business transactions, namely the accrual and write-off of expenses incurred for subscriptions to periodicals;
- analytical check reporting and balance sheets (checking synthetic and analytical accounting).
Control at an enterprise depends not only on methods of checking documents, but also on a skillful combination of various methods, methods, and techniques for exercising control.
Control of income and expenses of future periods at the enterprise occurs in certain stages (Fig. 12.7).
Rice. 12.7. V
in accordance with fig. 12.7 at the first stage, general actions are carried out regarding the determination of the subject and object of control at the enterprise, in accordance with which regulatory legal acts, constituent documents, orders and other documents of a business entity are determined and analyzed, which reflect charges for writing off income and expenses of future periods, then there is a selection and accumulation of the necessary information. Next, the financial and statistical reporting of the business entity is studied, the administrative documents of the management body of the enterprise are studied, and the materials of previous control activities are examined.
Inspectors need to formulate problematic issues that need to be investigated and worked out, as a result of which conclusions will be drawn regarding the monitoring of income and expenses of future periods. After processing the research results, the form of presentation of the obtained verification data is determined and provided to the head of the enterprise, with the formulation and presentation of proposals for solving the problems posed.
So, internal control at an enterprise is a means of preventing theft and avoiding it in the future, which will be helped by the methodology and the stages of monitoring income and expenses of future periods. It has been established that with the help of an internal audit, the manager (owner) receives reliable and timely information about the object of the audit in order to make effective management decisions.
In the process of getting acquainted with accounting, we did not touch upon two more interesting accounts: account 97 “Deferred expenses” And account 98 “Deferred income”. What is interesting and remarkable about these accounts, and what are they used for? Let's look at these questions in this article.
Accounting for deferred expenses: account 97
Account 97 records expenses incurred in a given month, but not related to sales of that month, that is, this account is used when incurred expenses need to be deferred until the next month.
For example, an organization insures its property for six months. The insurance company submits an invoice for a certain amount; this invoice reflects the insured amount for the entire insurance period; the organization must pay it in full at the time of receipt of the insurance policy. In this case, the organization can terminate the contract with the insurance company at any time and return the remaining money.
In this case, it is impossible to completely write off the entire amount as expenses, so the insured amount is evenly distributed over six months, that is, divided by 6, and each month 1/6 of the amount is written off as expenses for the current month.
How to reflect this in accounting?
Postings for accounting for deferred expenses on account 97
date | Debit | Credit | Operation name |
Insurance premium paid to the insurance company |
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An insurance policy for 6 months has been accepted for registration |
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Insurance costs reflected (1/6 of the amount) |
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At the end of the insurance period, the entire amount from account 97 will be completely written off as expenses, and the balance will be zero.
Thus, in order to reflect future expenses on account 97, you need to know the amount and period for recognizing expenses; during this period, the amount is gradually written off (written off in a similar way).
What other expenses can be reflected on account 97? Newly created organizations can use this account and reflect their initial expenses (preparatory) when there are no sales yet, not on account 44 (for trading organizations), but on account 97. When sales appear, expenses from account 97 are written off to account 44 or general amount, or gradually, at the request of the management of the enterprise.
Accounting for deferred income: account 98
What income can be reflected in account 98? For example, inventory items received free of charge under a gift agreement. According to accounting rules, gratuitous receipt of goods and materials cannot be recognized as income; income is recognized gradually as they are used. Income recognition is reflected using entry D98 K91.
Postings when receiving goods and materials free of charge to account 98
date | Debit | Credit | Operation name |
Fixed asset received free of charge |
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The fixed asset is accepted for accounting |
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Depreciation has been calculated for this asset |
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Recognized income from the gratuitous receipt of fixed assets equal to the monthly depreciation amount |
In the future, every month, its amount is recognized as income from the gratuitous receipt of fixed assets until the cost of the fixed asset is fully recognized as income, that is, until it is fully depreciated.
Thus, when income is recognized as depreciation is calculated.
If goods are received free of charge, then they are recognized as income as they leave the enterprise.
Postings when receiving goods free of charge
date | Debit | Credit | Operation name |
Goods received free of charge |
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Goods received free of charge are sold |
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VAT charged on sales |
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The cost of goods received free of charge has been written off |
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Income from goods received free of charge is recognized |
Thus, if inventory items are received free of charge, they are recognized as income gradually. If funds are received free of charge, then they are recognized as income in the entire amount at once (entry D51 K91), account 98 does not apply in this case.
One of the basic principles of accounting for income and expenses in order to form the financial result of an organization’s activities is the principle of their compliance. If expenses determine the receipt of income over several reporting periods, such expenses are subject to distribution between the corresponding reporting periods. Income and expenses related to a given reporting period are reflected in the accounts of current income and expenses (90-1, 91-1, 20, 21, 23, 25, 26, 29, 44, etc.) and participate in determining the financial result for this reporting period. If income received in the reporting period and expenses incurred relate to the following reporting periods (in cases provided for by regulatory acts on accounting), then they are not included in current income and expenses, but are subject to accounting as part of income and expenses of future periods.
By Order of the Ministry of Finance of Russia dated December 24, 2010 No. 186n “On Amendments to Regulatory Legal Acts on Accounting,” changes were made regarding the composition of income and expenses of future periods. Since 2011, organizations should not be guided by their list given in the Instructions for the Application of the Chart of Accounts. When determining the composition of income
Table 13.2. Composition of deferred income since 2011
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and expenses of future periods should be based on the principle of correspondence of income and expenses and accounting regulations in which they are directly named.
Regulatory acts on accounting provide for keeping records of future income in the following cases (Table.
For accounting of income received in the reporting period, but relating to future periods, passive account 98 “Deferred income” is used. On the credit side of the account, income related to future periods is taken into account. By debit, the accounts reflect the write-off of future income to the income accounts of the reporting period (90 “Sales”, 91 “Other income and expenses”).
The Chart of Accounts for account 98 “Deferred Income” provides the following subaccounts:
98-1 “Income received for future periods”;
98-2 “Gratuitous receipts”;
98-3 “Upcoming receipts of debts for shortfalls identified in previous years”;
98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, etc.
In subaccount 98-1 “Income received for future periods” the difference between the total amount of lease payments according to the leasing agreement and the cost of the leased property transferred to the lessee is subject to accounting.
Example. The lessor organization transferred the fixed assets to the lessee under a leasing agreement for a period of 5 years. The total amount of payments under the agreement is 708,000 rubles, including VAT of 108,000 rubles. According to the terms of the agreement, payments under the agreement are made monthly in the amount of 800 rubles, including VAT of 1800 rubles. The fixed asset item was taken into account as part of profitable investments in material assets, its initial cost was 360,000 rubles. (no depreciation was charged).
In the organization’s accounting, income and expenses from leasing operations are reflected in the following entries:
Debit 91-2 “Other income”
Loan 03 “Profitable investments in material assets”
360,000 rub. - the cost of the leased fixed asset is written off;
Debit 76, subaccount “Rental obligations”
Credit 91-1 “Other income”
708 LLC rub. - the total amount of leasing payments is reflected;
Debit 91-2 “Other expenses”
Credit 76, subaccount “Deferred value added tax”
108 LLC rub. - VAT is reflected without incurring obligations to the budget for its payment - deferred VAT (the Tax Code of the Russian Federation establishes a special procedure for paying VAT on leasing operations);
Debit 91-9 “Balance of other income and expenses”
Credit 98-1 “Income received for deferred periods.”
240 OOO rub. (708 LLC - 108,000 - 360,000) - reflects the financial result from the transfer of fixed assets to leasing.
The difference between the total amount of lease payments and the cost of the leased asset, taken into account as deferred income, is included in the lessor's revenue as lease payments are received. At the same time, accounting reflects the occurrence of an obligation to pay VAT to the budget:
Debit 51 “Current accounts”
Credit 76, subaccount “Rental obligations”
11,800 rub. - payment from the lessee is credited to the current account for the next due date;
Debit 76, subaccount “Deferred value added tax”
Credit 68, subaccount “VAT calculations”
1800 rub. - the obligation to pay VAT on the lease payment to the budget is reflected;
Debit 98-1 “Income received for deferred periods”
Credit 90-1 “Revenue”
4000 rub. (240,000/5 years/12 months) - part of deferred income is included in the lessor’s revenue.
Other revenues given in the Instructions for the use of the Chart of Accounts in relation to subaccount 98-1 “Income received for future periods” (rent, utility bills, revenue for the transportation of passengers on monthly and quarterly tickets, subscription fees for the use of communications etc.), should not be taken into account as part of deferred income. To recognize income, a number of conditions must be met, one of which is the transfer of ownership to the buyer (acceptance of work by the customer, provision of services). In relation to the listed facts of economic activity, this condition is not met. Therefore, it is not deferred income that arises, but accounts payable in the form of an advance received, which is accounted for in a separate subaccount to the account for settlements with counterparties.
Subaccount 98-2 “Gratuitous receipts” takes into account the value of gratuitously received assets. The credit of the subaccount reflects the market value of gratuitously received property in correspondence with the debit of account 08 “Investments in non-current assets” (in terms of gratuitously received fixed assets and intangible assets) and other property accounting accounts (10 “Materials”, 41 “Goods”, 43 “ Finished products"). The amount of budget funds allocated to a commercial organization to finance expenses is recorded as a credit to subaccount 98-2 and a debit to account 86 “Targeted financing”.
The debit of subaccount 98-2 reflects the write-off of the recorded amounts to the credit of account 91 “Other income and expenses” in the following order:
For fixed assets received free of charge - as depreciation is calculated;
For other material assets received free of charge - as they are written off for production or upon sale.
Analytical accounting is maintained for each gratuitous receipt.
Receipts for compensation of shortfalls, which are provided for in the Chart of Accounts to be taken into account in subaccounts 98-3 “Forthcoming receipts of debt for shortfalls identified in previous years” and 98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortfalls of valuables” , should be reflected as part of other income (as compensation for losses caused to the organization) in the reporting period in which the court made a decision to collect them or they were recognized as a debtor, regardless of the actual receipt of funds from the debtor, since according to the principle of temporal certainty of the facts of economic activity of the transaction should be reflected in accounts regardless of the actual time of receipt or payment of funds.
Example. During the inventory process, a shortage of goods was established: the accounting value of goods is 5,000 rubles. The shortage is subject to recovery from the culprit at market value - 5100 rubles.
The following entries are made in the accounting records of the organization:
Debit 94 “Shortages and losses from damage to valuables”
Credit 41 “Goods”
5000 rub. - missing goods are written off at book value;
Credit 94 “Shortages and losses from damage to valuables”
5000 rub. - the shortage is attributed to the guilty party at the accounting value;
Debit 73-2 “Calculations for compensation of material damage”
Credit 91-1 “Other income”
100 rub. (5100 - 5000) - reflects the difference between the market value of goods subject to compensation and their accounting value.
The principles of accounting for deferred income also apply to accounting for deferred expenses.
The accounting regulations provide for keeping records of future income in the following cases (Table 13.3).
Table 13.3. Composition of deferred expenses since 2011
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End of table. 13.3
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Expenses relating to future periods, as they arise, are reflected in the debit of active account 97 “Future Expenses” in correspondence with the credit of different accounts depending on the type of expenses incurred (10, 50, 51, 69, 70, 76, etc.) . The credit of the account reflects the write-off of expenses to cost accounting accounts (sales expenses):
Debit 20, 25, 26, 44
Credit 97 “Deferred expenses”.
Write-off of deferred expenses is carried out in the manner established by the relevant regulatory document on accounting. For example, according to clause 8 of PBU 15/2008 “Accounting for expenses on loans and credits”, additional expenses on loans are included evenly as part of other expenses during the term of the loan (credit agreement).
Income received in the reporting period, but relating to subsequent reporting periods, is reflected as deferred income. These incomes are subject to inclusion in the financial results of a commercial organization.
Deferred income includes:
Payment for monthly (quarterly) travel tickets;
Subscription fee;
One-time payments for granting the right to use intellectual property;
The value of assets received by the organization free of charge;
The amount of budget funds allocated by a commercial organization to finance expenses;
Upcoming receipts for shortfalls identified in the reporting period for previous reporting years;
The difference between the amount recovered from the guilty parties for missing material and other assets and their value listed in the organization’s accounting records;
The difference between the total amount of lease payments under the leasing agreement and the cost of the leased property (if the organization, when reflecting transactions under a leasing agreement in accounting, is guided by the Instructions for reflecting transactions under a leasing agreement in accounting);
Other income received in the reporting period, but relating to the following reporting periods.
In addition, deferred income includes unused balances of targeted budget financing provided to the organization at the end of the reporting period, which are accounted for in accounting on account 86 “Targeted financing.” Targeted financing received in the form of grants, technical assistance (assistance), etc. is reflected in a similar manner.
Deferred income is accounted for in account 98 “Deferred income”. Account 98 is passive, budgetary and distribution. On the credit side, the accounts take into account income related to future periods, future receipts of debts, income arising as a result of the excess of the missing values recovered from the culprits over their book value. The debit of the account reflects the write-off of future income to the accounts for property accounting, settlements, account 91 “Other income and expenses”. The balance is always a credit balance and shows the amount of income to be written off to the appropriate accounts in subsequent periods to which these incomes relate.
Sub-accounts can be opened to account 98 “Deferred income”:
98/1 “Income received for future periods”;
98/2 “Gratuitous receipts”;
98/3 “Upcoming debt receipts for shortfalls identified in previous years”;
98/4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, etc.
Subaccount 98/1 takes into account the movement of income received in the reporting period, but relating to future reporting periods: rent or apartment payments, utility bills, revenue for freight transportation, for the transportation of passengers on monthly and quarterly tickets, subscription fees for the use of facilities communications, etc.
On the credit side of account 98/1, in correspondence with the accounts for accounting for cash or settlements with debtors and creditors, the amounts of income relating to future reporting periods are reflected, and on the debit side - the amounts of income transferred to the relevant accounts upon the onset of the reporting period to which these incomes relate .
In accordance with current tax legislation, future income received is subject to value added tax. When calculating VAT payable to the budget on the amount of income for future periods, indicate the following entry:
Debit account 98/1 “Income received for future periods”, Credit account 68 “Calculations for taxes and fees”.
As the reporting period approaches, to which the income previously accounted for under the credit of account 98/1 “Income received on account of future periods” relates, they are written off in the amount minus VAT to the financial results of the organization’s activities in the following correspondence:
Debit account 98/1 “Income received on account of future periods”, Credit account 91/1 “Other income”.
Example:
Under a license agreement, the right-holder organization (licensor) grants another person (licensee) the right to use a trademark included in intangible assets.
The license agreement was concluded for a period of two years. License fee paid to the licensor in the amount of RUB 590,000. (including VAT 90,000 rubles) was credited to the current account in a lump sum. The amount of depreciation for a trademark in the organization’s accounting is 8,334 rubles. per month. During the period of validity of the license agreement, the licensor organization does not use this trademark to label its own products. Granting rights to use intellectual property is not the main activity of the licensor organization.
In the accounting of the licensor organization, the transfer of the non-exclusive right to use the trademark will be reflected as follows.
As of the date of registration of the license agreement:
Debit of account 76 “Settlements with various debtors and creditors”, Credit of account 98/1 “Income received for deferred periods”–590,000 rub. – the amount of the license fee is reflected;
Debit account 98/1 “Income received for future periods”, Credit account 68 “Calculations for taxes and fees”–90,000 rub. – VAT is charged;
Debit of account 51 “Settlement accounts”, Credit of account 76 “Settlements with various debtors and creditors”–590,000 rub.–payment has been received from the licensee.
Monthly during the term of the license agreement:
Debit account 91/2 “Other expenses”, Credit account 05 “Amortization of intangible assets”–8334 rub. – depreciation has been accrued on the trademark;
Debit account 98/1 “Income received for future periods”, Credit account 91/1 “Other income”–RUB 20,833 ((590000-90000) : 2: 12)–income under the license agreement is reflected.
Analytical accounting for subaccount 98/1 “Income received for future periods” is carried out for each type of income.
Account 98/2 reflects information about the value of valuables received by the organization free of charge. Assets received free of charge (including under a gift agreement) are accepted for accounting at market value on the date of acceptance for accounting, which must be confirmed by documents or by conducting an examination. In this case, the following entry is made in the accounting:
Debit of accounts 08 “Investments in non-current assets”, 10 “Materials”, etc., Credit of account 98/2 “Gratuitous receipts”.
Since these assets are accounted for as part of the organization’s other income, their write-off in accounting is recorded as follows:
Debit account 98/2 “Gratuitous receipts”, Credit account 91/1 “Other income”.
Thus, account 98/2 “Gratuitous receipts”, in accordance with the current accounting methodology, is necessary to reflect the value of gratuitously received assets until they are recognized as income of the organization.
Example:
The trade organization LLC "Products" received a container for storing cargo free of charge from the founder - a legal entity. In the accounting records of the transferor, this fixed asset item is fully depreciated.
The market value of the container is 960,000 rubles. In accounting, depreciation on fixed assets is calculated using the linear method (method). Based on the degree of wear and tear of the container, it is expected to be used for five years to equip a retail space on the market.
In the accounting department of the organization, the free receipt of the container will be reflected in the accounts.
During the period of receiving the property and putting it into operation:
Debit of account 08 “Investments in non-current assets”, Credit of account 98/2 “Gratuitous receipts”–960,000 rub.–the market value of the container received from the founder is reflected;
Debit account 01 “Fixed assets”, Credit account 08 “Investments in non-current assets”–960,000 rub. – the container is included in fixed assets.
Monthly during the depreciation period:
Debit account 44 “Sales expenses”, Credit account 02 “Depreciation of fixed assets”–16,000 rub. (960000: 5 x 1/12)–depreciation has been accrued on the object;
Debit account 98/2 “Gratuitous receipts” Credit account 91/1 “Other income”–16,000 rub.–the corresponding part of future income is written off.
Analytical accounting for subaccount 98/2 “Gratuitous receipts” is carried out for each gratuitous receipt of valuables.
Subaccount 98/3 “Forthcoming debt receipts for shortfalls identified in previous years” takes into account the movement of upcoming debt receipts for shortfalls identified in the reporting period for previous years.
In the credit of account 98/3, in correspondence with account 94 “Shortages and losses from damage to valuables”, the amounts of shortages of valuables identified in previous reporting periods (before the reporting year), found guilty by persons, or amounts awarded for recovery by the court are reflected. At the same time, account 94 “Shortages and losses from damage to valuables” is credited with these amounts in correspondence with account 73/2 “Calculations for compensation of material damage.”
As the debt for shortfalls is repaid, account 73/2 “Calculations for compensation of material damage” is credited in correspondence with the cash accounts while simultaneously reflecting the received amounts on the credit of account 91/1 “Other income” and the debit of account 98/3.
Example:
In the reporting period, the organization attributed to settlements with employee I.I. Ivanov, according to a court verdict, the amount of damage caused by this employee in previous years due to the unreasonable execution of documents for write-off in production and theft of materials in the amount of 8,000 rubles.
Repayment of this debt is carried out in the manner established by the court,–500 rub. monthly by deduction from wages (the employee continues to work in this organization).
In the accounting records of the organization, the shortage identified in the reporting period for previous years and resulting from theft is reflected in the following entries:
Debit account 94 “Shortages and losses from damage to valuables”, Credit account 98/3 “Upcoming receipts of debt for shortfalls identified in previous years”–8000 rub.–the cost of materials stolen in previous years is reflected;
–8000 rub.–the employee's debt for damages is reflected;
Debit of account 70 “Settlements with personnel for wages”, Credit of account 73/2 “Calculations for compensation of material damage”–500 rub.–monthly deductions were made from wages to pay off debts for damages;
Debit account 98/3 “Upcoming debt receipts for shortfalls identified in previous years”, Credit account 91/1 “Other income”–500 rub. – other income is recognized monthly as I.I.’s debt is repaid. Ivanov.
If an amount exceeding the book value of lost valuables is recovered from the guilty person, then this difference is reflected in account 98/4 “The difference between the amount to be recovered from the guilty persons and the book value for shortages of valuables”:
Debit of account 73/2 “Calculations for compensation of material damage”, Credit of account 98/4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables” - reflects the difference between the amount to be recovered and the book value of the property.
As the guilty person repays his debt, the amount recorded in account 98/4 is written off to the credit of account 91/1 “Other income”.
Example:
Products LLC sells flour wholesale. Before drawing up annual reports, the organization carried out an inventory, as a result of which a shortage of 200 kg of premium flour was discovered at a price of 27.5 rubles. for 1 kg and surplus grade I flour in the amount of 150 kg at a price of 23.2 rubles. for 1 kg. The financially responsible person is guilty of mis-grading - storekeeper I.S. Petrova.
By decision of the head, the organization offset the shortage of premium flour with a surplus of first grade flour in the amount of 150 kg.
When the shortage is offset by the surplus by re-grading, the cost of the missing flour exceeded the cost of the flour that was in surplus by 645 rubles. (150 kg x (27.5 rub/kg - 23.2 rub/kg)). Since the culprit of the resulting misgrading is the storekeeper, who does not deny his guilt, this difference is attributed to him. In addition, after the offset, the organization’s accounting continues to show a shortage of 50 kg of premium flour, the book value of which is 1,375 rubles. (50 kg x 27.5 rub/kg).
After offset, the amount of shortage reflected in account 94 “Shortages and losses from damage to valuables” for premium flour amounted to 2,020 rubles. (645 rubles + 1375 rubles).
Let’s assume that the market price of premium flour on the day the damage occurred was 28.6 rubles/kg. The difference between the book value of premium flour and its market price is 220 rubles. (200 kg x (28.6 rub/kg - 27.5 rub/kg)).
In the accounting records of the organization, transactions are reflected as follows:
Debit account 94 “Shortages and losses from damage to valuables”, Credit account 41 “Goods”, subaccount “Premium flour”–5500 rub. (27.5 rub/kg x 200 kg)– a shortage of 200 kg of premium flour was reported;
Debit account 41 “Goods”, subaccount “I grade flour”, Credit account 94 “Shortages and losses from damage to valuables”–3480 rub. (23.2 rub/kg x 150 kg)–excess flour of the first grade is reflected;
Debit account 41 “Goods”, subaccount “Premium flour”, Credit account 41 “Goods”, subaccount “I grade flour”–3480 rub.–the shortage of premium flour is offset by the surplus of first grade flour;
Debit account 73/2 “Calculations for compensation of material damage”, Credit account 94 “Shortages and losses from damage to valuables”–2020 rub.–the amount of the shortfall is attributed to the guilty person;
Debit of account 73/2 “Calculations for compensation of material damage”, Credit of account 98/4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”–220 rub.–the difference between the market price of flour and its book value is attributed to the guilty party;
Debit account 50 “Cash” Credit account 73/2 “Calculations for compensation of material damage” - 2240 rubles. (2020 rub. + 220 rub.)–the debt for the shortage has been added to the organization's cash desk;
Debit account 98/4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, Credit account 91/1 “Other income”– 220 rub. - the difference between the book value of flour and its market price is reflected in the organization’s other income.
There is no concept of “deferred income” in tax accounting. The procedure for recognizing all income is determined by Art. 271 (accrual method) and 273 (cash method) of the Tax Code of the Russian Federation.
So, for example, income in the form of property received free of charge is recognized as part of non-operating income in full at the time of actual receipt of the property or is not reflected in tax accounting at all (if these income are subject to any benefits).
Amounts of compensation for losses (damage) are recognized as income using the accrual method - on the date of recognition by the debtor or on the date of entry into force of the court decision, and under the cash method - on the date of their actual receipt.
Costs already incurred by the organization, but relating to future periods (provided that the period for their write-off does not exceed 12 months), are recorded in accounting on the active budgetary distribution account 97 “Future expenses”. For example, these include: costs associated with mining and preparatory work; preparatory work for production due to its seasonal nature; development of new production facilities, installations and units; land reclamation and implementation of other environmental measures; repairs of fixed assets carried out unevenly throughout the year (when the organization does not create an appropriate reserve or fund), etc.
Analytical accounting for account 97 “Deferred expenses” is organized by type of expense.
Accounting for deferred expenses is carried out by debiting account 97 “Future expenses” from the credit of the corresponding settlement accounts (60 “Settlements with suppliers and contractors”, 69 “Settlements for social insurance and security”, 70 “Settlements with personnel for wages”, 71 “Settlements with accountable persons”, 79 “Intra-economic settlements”, etc.).
Monthly or at other times, accounted for in account 97 “Deferred expenses”, expenses are written off to the debit of accounts 20 “Main production”, 23 “Auxiliary production”, 25 “General production expenses”, 26 “General business expenses”, 44 “Sales expenses” and etc.
The timing of write-off of future expenses, as well as the corresponding costs and other sources to which these expenses are written off, are determined by the organization itself.
The balance of account 97 “Deferred expenses” is only debit and shows the amount of deferred expenses subject to equal write-off in the following reporting periods, according to calculations made at the time the expenses occurred.
Here are some examples of assets that can be accounted for as deferred expenses.
Today, it is rare that anyone does not use an accounting program. Having installed the program on a computer, the costs of its acquisition are reflected as deferred expenses. After all, the lack of exclusive rights does not allow the program to be taken into account as part of intangible assets. The organization decides for itself when to recognize deferred expenses as current expenses to reduce income, if the license agreement does not indicate the period for using the program.
As an option, the following accounting scheme can be proposed. For many programs, the cost of monthly maintenance is known. It is reflected in the price list for program update services. So, you can determine the period of possible use before the program is completely updated, based on the cost of monthly maintenance (the cost of the software product is divided by the cost of the monthly update).
The same can be said about the costs of acquiring a reference and legal database (in particular, ConsultantPlus).
Expenses in absence of activity. For example, an organization carries out seasonal work for several months a year. In the remaining months, although the organization continues to incur various expenses (depreciation of fixed assets, general business expenses), there is no activity at all. It is incorrect to recognize expenses as current and reflect losses, since these expenses are related to the receipt of income in the future. Therefore, they should be capitalized on account 97 “Deferred expenses”, and when activity begins, they should be written off as cost during the operating season in the manner provided for by the accounting policy.
One more example. The customer-developer, implementing an investment project for the capital construction of a facility, incurs certain expenses (for the maintenance of the administrative and managerial apparatus, consulting and audit services, communication services, transport maintenance costs) directly related to the upcoming construction, but at the moment not even The construction estimate has been approved, not to mention the start of construction. These expenses cannot be considered current, because they obviously form the cost of a certain asset (construction project) and are associated with future income. Then in accounting you should first accumulate them in account 97 “Future expenses”.
Expenses for acquiring the right to lease a land plot. It would be wrong to recognize them as current. After all, an organization can receive income in the future, for example, by assigning these rights (roughly speaking, by selling this asset).
It is an established practice to take into account as deferred expenses the amounts of vacation pay paid in the current month, but due for vacation days in the next month when the vacation falls on different months. For example, in the current month an employee goes on vacation at the end of this month and the beginning of the next. Three days before the vacation, the organization is obliged to pay him vacation pay in full. The organization includes that part of the vacation pay that falls on the vacation days of the reporting month in current expenses, and the remaining part is taken into account in account 97 “Deferred expenses” and recognizes it as a current expense only in the next month.
It is correct that the company does not take into account the next month’s vacation pay as an advance, because it pays them at a strictly defined time for the year already worked (or other time worked). But whether it makes sense to recognize them as expenses of future periods, let the organization decide for itself. Firstly, recognizing vacation pay as an asset is a stretch. After all, the company will never return them (unless it itself recalls the employee from vacation). Secondly, while on vacation, the employee does not generate income, i.e. The connection between these expenses in the form of vacation pay and the next month’s income, in general, is not traceable. Thirdly, it doesn’t make much sense to stretch such non-essential expenses over two months. Therefore, you can apply the principle of rational accounting and write off the entire amount of vacation pay (both the current month and the next) as expenses for the current reporting month.
Another type of cost recognized by many as deferred expenses is the cost of repairing fixed assets performed at the beginning of the year. Organizations try to stretch them over several reporting periods so as not to recognize a large amount at a time as expenses for the current period. But specifically for these purposes (evenly attributing upcoming expenses to the cost of products (works, services)), it is provided for the creation of a reserve for the upcoming repair of fixed assets. And it is more correct to recognize the costs of major, expensive repairs through a reserve. And if the reserve has not been created, then write off the costs at a time as a current expense.
Example:
The licensee organization carried out its own modification of the computer program, the non-exclusive rights to which it received under a license agreement. The term of use of the program is not specified in the contract. The modification (which is permitted by the terms of the license agreement) was carried out in the month of obtaining non-exclusive rights.
Modification costs consist of employee wages (RUB 10,000) and the amount of insurance premiums accrued on wages (RUB 1,430). The organization expects to use the program for three years.
Expenses for modifying a computer program must be reflected in the organization's accounting.
In the month of program modification:
Debit account 23 “Auxiliary production”, Credit account 69 “Settlements for social insurance and security”, 70 “Settlements with personnel for wages”–RUB 11,430–expenses for modifying the computer program are reflected;
Debit account 97 “Deferred expenses”, Credit account 23 “Auxiliary production”–RUB 11,430–expenses for modification of a computer program are included in deferred expenses;
–317.5 rub. (11430:36)–Some of the costs for modifying the program were written off.
Monthly for the next 35 months:
Debit account 20 “Main production”, Credit account 97 “Deferred expenses”–317.5 rub.–the corresponding part of future expenses is written off.
