The amount of the allowance for depreciation of securities was written off. Postings on the allowance for depreciation of financial investments
Topic 12. Accounting for capital and reserves.
Accounting for authorized capital.
Accounting reserve capital.
Accounting for additional capital.
Accounting for targeted financing.
Accounting for reserves of future expenses and payments.
Allowance for doubtful debts.
Accounting for reserves for depreciation of material assets.
Accounting for provisions for depreciation of investments in securities.
1. Each organization, regardless of ownership, must have capital to carry out its activities. The initial and main source of formation of the property of the enterprise is its authorized capital. In accordance with the Civil Code of the Russian Federation and depending on the organizational and legal form of ownership, there are:
ü Authorized capital - a set of contributions of the founders to the property p / p in monetary terms when it is created to ensure activities in the amounts determined founding documents(joint stock companies, LLC).
ü Shared capital - (general partnerships, partnerships not in faith (limited partnerships) - partnerships that do not have a charter, there are only constituent documents) a set of shares (contributions) of participants in partnerships to ensure its financial and economic activities (its value is reflected in the constituent documents and may be changed by decision of the founders).
ü Statutory fund - a set of basic and working capital, donated to the enterprise by the state or municipal authorities (state and municipal enterprises).
ü Share and indivisible fund - share contributions, in the form of Money and other property for joint management entrepreneurial activity(production cooperatives, artels).
Thus, the authorized capital is a value registered in the founding documents equity, contributed by the founders in the form of cash and other property (OS, NA, commodities, securities) when organizing a payment order.
In accordance with normative documents the authorized capital is paid in full or in part at the time of their state registration. Before registration, the organization opens a special savings account with a bank, from which the bank does not perform any operations until the moment of state registration. After registration, the savings account is converted into a current account. If within a year from the date of registration of the enterprise, its partially paid-up charter capital is not brought to the declared one, then the company is obliged to register a decrease in the charter capital. If the reduced Criminal Code is less than the lower limit of the p / p established by law, it is subject to liquidation.
Accounting of the Criminal Code is carried out on the passive account 80 "Authorized capital". The credit of the account reflects the formation of the UK, the increase in the UK, after making appropriate changes in the constituent documents. For debit - a decrease in the authorized capital, after making appropriate changes in the constituent documents and the use of the Criminal Code when declaring the enterprise bankrupt. Balance - only credit, shows the size of the UK and must correspond to the size of the UK, fixed in the constituent documents. Analytical accounting on account 80 is carried out for each founder, by stages of capital formation, by types of shares. Synthetic accounting is maintained in G / O 12
Dt. 75 ct. 80 - the authorized capital is accrued, reflected in the constituent documents.
In settlements with founders, A-P account 75 “Settlements with founders” is used. Two sub-accounts can be opened for this account:
75-1 A "Calculations on contributions to the authorized capital"
75-2 P "Calculations for the payment of income".
75-3 A “Settlements with municipal and government agency»
Dt. 08 (01.04), 58, 07, 10, 51, 50, 52 Ct. 75/1, 75/3 - receipt of deposits, property from the state.
Dt. 83 "additional capital" Art. 80 - increase in the authorized capital at the expense of additional capital
Dt. 84 "Retained earnings" K 80 - increase in the authorized capital due to retained earnings.
Dt. 80 ct. 75/1 - reduction of the authorized capital by the amount of contributions returned to the founders.
Dt. 80 ct. 81 "Own shares (stakes)" - the value of canceled shares repurchased from shareholders.
Dt. 80 ct. 75/3 - for the amount of property or funds seized from the enterprise by the state.
Minimum size The authorized capital for CJSC - 100 minimum wages, JSC - 1000 minimum wages, in accordance with the Federal Law "On joint-stock companies»
On the date of registration of a joint-stock company, its authorized capital must be paid up by at least 50%. JSC may increase or decrease the authorized capital.
Increase in the authorized capital due to:
Dt. 75/1 Kt 80 - issue of additional or increase in the par value of shares
Dt. 83 ct. 80 - increase in property due to its revaluation of property.
Dt. 84 ct. 80 - retained earnings
Reduction of the authorized capital due to:
Dt. 80 ct. 75/1 - decrease in the par value of shares.
Dt. 81 ct. 50 - ransom own shares from shareholders
Dt. 81 ct. 91 – for the amount of income arising from the redemption (if shares are redeemed at a price lower than their nominal value)
Dt. 91 ct. 81 – for the amount of redemption expenses (if the shares were redeemed at a price higher than their nominal value)
Dt. 80 ct. 81 - for the amount of shares redeemed from shareholders.
Dt. 50, 51 Ct. 81 - resale of repurchased shares
Dt. 80 ct. 81 - canceled shares are written off to reduce the authorized capital
Dt. 83 ct. 81 - reduction of additional capital by the difference in the value of sold and canceled shares
Dt. 81 ct. 83 - increase in additional capital for the difference in the value of sold and canceled shares
At the end of the reporting period (quarter, year), shareholders (participants) receive income in the form of dividends.
Dividends are paid subject to following conditions:
1. The authorized capital must be fully paid up.
2. The company needs to pay for all its shares, the redemption of which is required by shareholders
3. At the time of payment of dividends, the enterprise should not have signs of bankruptcy.
4. Cost net assets must be more than a certain indicator (authorized capital + reserve fund+ the amount formed as a result of deduction from the nominal value of the liquidation value of the placed preferred shares).
Dt. 84 ct. 70, 75/2 - dividends accrued.
If the shareholder entity, then the amount of dividends is subject to income tax (15%), which is paid by the source of payment of dividends (i.e. the JSC itself).
Dividends are transferred to the recipient minus tax.
If the shareholder is an individual, then income tax is paid individuals (30%)
When calculating this tax, the company must apply the exemption. First, the amount of tax on income from individuals is calculated - the amount of dividends x 30%; then determine the amount of income tax that the JSC paid on the part of the profit distributed to the individual; deducting from the amount of personal income tax a part of the amount of paid income tax, determine how much it is necessary to withhold from the shareholder. In most cases, a negative difference is obtained, which is not reimbursed from the budget.
Dt. 70, 75/2 Ct. 68 - tax withheld
Dt.70, 75/2 Kt 50, 51 - dividend payments
When forming mutual fund production and consumer cooperatives are being followed. entries:
Dt. 86 " Special-purpose financing» Qt. 80 - the amount of the share contribution is reflected
Dt. 75/1 Ct. 86 "Target financing" - reflects the debt of members of cooperatives for contributions to the mutual fund.
Dt. 50, 51 Ct. 75/1 - contribution of members of the cooperative.
When forming state and municipal p / p:
Dt. 75/3 Ct. 80 - UV registration
Dt. 08, 07, 06, 10, 41, 50, 51, 52 Ct. 75/3 - contribution to the authorized capital.
Dt. 84/1 Ct. 80 - increase UV due to profit
Dt. 86 ct. 80 - increase in the UV due to targeted funding.
Dt. 75/3 Ct. 91 - withdrawal of property from the authorized fund.
Dt. 75/3 Ct. 51 - withdrawal sum of money from the statutory fund
Simultaneously:
Dt. 02, 05, Ct. 01.04 - for the amount of accumulated depreciation of objects
Dt. 91/ (subaccount disposal OS, ON) Ct. 01, 04 - on residual value returned property
Dt. 91ct. 91/ "balance of other income and expenses" - closing of accounts with the transfer of the balance to the destination
Dt. 91/ "balance of other income and expenses" Ct. 99 - the balance on the seizure of state property was written off. enterprises
Dt. 80 ct. 75/3 - closure of the organization.
The accrual of income in such an organization is carried out:
Dt. 84 ct. 75/3 - accrual of income
Dt. 75/3 Ct. 68 - income tax withholding
Dt. 75/3 Ct. 50, 51 - payment of income.
1. The concept of the authorized capital.
2. The procedure for the formation of the authorized capital.
3. Description of account 80 "Authorized capital".
4. Analytical accounting of the authorized capital.
5. Synthetic accounting of the authorized capital.
6. Characteristics of account 75 "Settlements with founders".
7. Accounting for settlements with founders.
8. The procedure for changing the size of the authorized capital.
2. The reserve capital in the organization may be formed in accordance with the law (mandatory OJSC, CJSC and enterprises with foreign investment) or in accordance with the founding documents and accounting policy(voluntarily).
Reserve capital is created as a guarantee of increased liability for obligations. It is created by deduction from net profit. The size of the Republic of Kazakhstan is determined by the charter of the JSC and should be within 15% (p / p with foreign investment - 25%) of the authorized capital, and the size annual deductions- at least 5% of annual net profit.
The reserve capital is used to cover unforeseen losses and losses for the reporting year, to redeem JSC bonds, to pay dividends on preferred shares with a lack of profit.
Accounting of the Reserve capital is carried out on the passive account 82 "Reserve capital". On the credit of the account - the formation of reserve capital, on the debit - its use. The balance is credit and shows the amount of unused reserve capital at the beginning and end of the reporting period. Analytical accounting on account 82 is organized in such a way as to obtain information on the areas of use of funds. Synthetic accounting - in G / O 12
Dt. 84 ct. 82 - deductions to reserve capital
Dt.82 Ct. 84 - use of reserve capital to cover the loss.
In accordance with paragraphs. 3 p. 2 art. 291, bank expenses include deductions to the reserve for the depreciation of investments in securities created by credit institutions in accordance with the current legislation or regulations of the Central Bank of the Russian Federation, taking into account the provisions of Art. 300 of this Code.
Article 300 establishes the following restrictions: professional participants in the securities market may create reserves and attribute them to expenses for tax purposes under the following conditions:
1) they have a license for the right to carry out dealer activities;
2) they determine income and expenses on an accrual basis.
What does it mean, taking into account the provisions of Art. 300? Can all banks attribute the created reserve to expenses or does this apply only to banks that are professional participants in the securities market?
Two points of view are possible.
First point of view.
Considering that Art. 291 is of a special nature and establishes the powers of banks (more precisely, as written in the commented subparagraph, credit institutions), it follows from this that all banks have the right to attribute to expenses the amounts of deductions to the reserve for the depreciation of investments in securities. Whether they are professional securities market participants with a dealer license or not. And also, regardless of whether they use the accrual or cash basis.
In this view, the application of the provisions of Art. 300 of the Tax Code of the Russian Federation means that the created reserves for each type of securities should not exceed the amount determined by Art. 300.
Second point of view.
Turnover "subject to the provisions of Article 300" means that banks should be subject to the restrictions defined in that Article. Consequently, only banks that have a license for dealer activity and that apply the accrual method can attribute the created reserve to the reduction of the taxable base.
However, this view has weaknesses. The basis for doubt may be that Art. 300 establishes special powers for professional participants in the securities market. In the event that the bank has a license for dealer activity and applies the accrual method, then by virtue of the norm of the Code established in Art. 300, he, of course, has the right to attribute to expenses for tax purposes the created reserve for the depreciation of securities.
Therefore, if the second point of view is correct, then why actually duplicate this rule in paragraphs. 3 p. 2 art. 291? Article 291 in this part simply loses its meaning, since it is completely covered by the norms of Art. 300 and does not establish new norms.
Isn't that what the norm in Art. 291 to emphasize that all banks, and not just professional participants in the securities market, can deduct such expenses tax base; those. establish their (banks) special powers?
And why then in the upcoming changes to supplement paragraph 2 of Art. 291 with another subparagraph, which states that reserves for depreciation of securities are accounted for as expenses in the manner and on the conditions established by Art. 300 of this Code? In other words, to introduce a formulation that no longer allows one to doubt that one should be guided by the second point of view. Is it not to eliminate the duality and uncertainty that exists in the Code at the moment?
The issue under discussion is very important to solve it only on the basis of someone else's opinion. In deciding which point of view to follow, one must weigh all possible consequences and soberly assess how convincing the argument will be in defense of your position in court.
The procedure for creating reserves is determined by the current legislation or regulatory legal acts of the Bank of Russia.
Article 300 specifies that:
reserves are created for issue-grade securities;
reserves are created in the amount of the excess of the purchase price over the market quotation of the security;
the purchase price includes the cost of acquiring the security.
It should be remembered that the procedure for classifying securities as emission securities is established by national legislation (second paragraph of paragraph 1 of article 280 of the Tax Code of the Russian Federation). In accordance with Russian legislation emissive securities include shares and bonds, including those issued in non-documentary form. In accordance with the national legislation of other countries, other objects of civil rights may be classified as equity securities.
At present, the effective normative act of the Bank of Russia is Letter No. 127 dated December 08, 1994 "On the procedure for creating reserves for the depreciation of securities." By the decision of the Supreme Court of the Russian Federation N GKPI 01-793 dated April 26, 2001, the legality of this document was confirmed as normative act Bank of Russia.
The procedure for creating reserves in accordance with the requirements of this Letter has a number of differences from the rules established by Art. 300 of the Tax Code of the Russian Federation.
The reserve is created if the market price on the last working day of the month is lower than book value securities. In this case, the book value is understood as the amount on the balance sheet accounts 50202, 50302, 50402, 50502, 50602, 50702, 50802, 50803, 50902, 50903, 51002, 51003, 51102, 51103, those. without taking into account the costs associated with the acquisition of securities. In this case, the amount of the reserve should not exceed 50% of the book value of the security. It follows from this that the reserve created in accordance with the requirements of the Bank of Russia will always be less than that allowed by tax legislation.
However, in accordance with the requirements of Art. 300 the reserve is adjusted at the end of the reporting (tax) period, i.e. at the end of a quarter (year), and not a month, as established by the Bank of Russia.
It is not clear how to take into account changes in the reserve created on monthly (intra-quarter) dates for tax purposes.
Apparently, in tax accounting, it will be necessary to display the total balance of the created reserve, taking into account all its changes at the end of the quarter for each security.
The letter of the Bank of Russia determines which securities may be classified as securities with a market quotation (clause 2 of Letter No. 127).
The most significant requirement is the amount of turnover for the reporting month for stock exchange or through a trade organizer, the turnover of which must be at least the equivalent of 20 thousand euros. Tax law does not contain such a requirement.
In addition, in the event that the auction was held on several trading floors, to calculate the reserve, the market price is taken for the trade organizer who had the largest turnover in reporting month. The tax legislation gives the taxpayer the right to independently choose the quotation that has developed with one of the trade organizers (paragraph 4 of article 280).
Thus, the requirements of the Bank of Russia are more stringent in relation to the creation of reserves than provided for tax code(Art. 300 and 280). Consequently, the reserves created in accordance with Letter N 127 will be less than the reserves that could be created in accordance with Art. 300 of the Tax Code of the Russian Federation, and therefore they must be taken into account as expenses for tax purposes in full.
Creation of an allowance for impairment financial investments required in the event of a significant reduction in their valuation. Under what factors a steady decrease in financial investments is recognized and how to take into account such reserves in accounting, we will describe further.
Conditions under which a provision for depreciation of financial investments is created
Financial investment is the deposit of cash (FC) or other property into the accounts of third-party companies for the purpose of subsequent income generation. These include, in particular:
- purchase of securities (CB);
- acquisition of receivables under a contract for the assignment of rights of recovery;
- investment in the authorized capital (UK) of companies;
- lending at interest.
The accounting algorithm for financial investments is regulated by PBU 19/02.
See the article for the accounting procedure for financial investments.
It is convenient to consider the procedure for creating a reserve for the depreciation of financial investments using the example of securities. They are divided into circulating and non-circulating stock market. The valuation of circulating securities is made on the basis of their market value which is subject to annual revaluation. The assessment can also be made monthly or quarterly (clause 20 PBU 19/02).
In the case when financial investments are not circulated on the market, the investor determines their valuation independently or with the involvement of an appraiser. Score in without fail carried out annually or at the end of each quarter (month) at the discretion of the organization itself (clause 38 PBU 19/02).
If, based on the results of the assessment, a stable decrease in the price of financial investments in the Central Bank is revealed, the company must form a reserve for their depreciation. A stable decrease in the price of financial investments is recognized if the following factors are present at the same time (clause 37 of PBU 19/02):
- At the time of the appraisal and as of the previous reporting date, the book value of investments significantly exceeds the estimated value.
- Within 12 months, the estimated valuation changed only downward.
- At the reporting date, there is no information about a subsequent price increase financial assets companies.
For example, depreciation of financial investments occurs when:
- bankruptcy or the presence of signs of bankruptcy of the company in which the funds were invested;
- non-payment or reduction of dividend or interest payments;
- the presence on the market of similar securities at a price much lower than the book value of the paper that is listed in accounting, etc.
Account 59 "Provisions for depreciation of financial investments"
Creation of a reserve for the depreciation of financial investments, as well as its subsequent adjustment and movement are carried out using account 59.
This account corresponds with account 91. The creation of reserves, as well as their increase, are recorded in the accounting entry Dt 91 Kt 59. In the event of an increase in the settlement price or disposal of investments, a reverse posting is made: Dt 59 Kt 91.
Since financial investments are divided into long-term (with a maturity of more than a year) and short-term (less than 12 months) and are displayed in different lines and sections of accounting, it is more expedient to divide reserves for their depreciation into short-term and long-term. For example, to account for impairment allowances long-term investments you can use account 59.1, and for short-term accounts - account 59.2. Analytical accounting should be organized by types of reserves.
A provision for depreciation of financial investments has been created - posting
Consider the procedure for creating and subsequent adjustment of reserves using an example.
LLC "Assorti" owns 10 shares of JSC "Mir" with a total value of 150,000 rubles. Mir JSC pays quarterly dividends to its shareholders. However, for the 2nd quarter of 2016 payments were overdue, and for the 3rd quarter of 2016 there were no payments at all.
In October 2016, an independent appraiser conducted an appraisal, in the conclusion of which the total estimated value of JSC Mir shares amounted to 100,000 rubles. Based on this conclusion, it was decided to create a reserve for the depreciation of financial investments. The accountant reflected this operation by recording Dt 91.2 Kt 59 - 50,000 rubles. (150,000 - 100,000).
IMPORTANT! In tax accounting, the amount of reserves for depreciation of the Central Bank is not taken into account when calculating tax profit (clause 10, article 270 of the Tax Code of the Russian Federation). In this regard, between tax accounting and accounting, constants are formed tax liability(PNO).
With accounting algorithm tax differences can be found in the material.
As of 12/31/2016 financial position JSC "Mir" improved, and the total estimated value of the shares amounted to 120,000 rubles.
The accountant reflected the price increase with an adjustment entry Dt 59 Kt 91.1 - 20,000 rubles. (120,000 - 100,000).
Results
The reserve for depreciation of financial investments is created in the presence of a steady decline in their value. Accounting for the movement of such reserves is carried out on account 59 and is displayed in the analytics on its sub-accounts in terms of terms (more or less than 12 months), as well as by types of reserves.
To account for the formation of the organization's reserves for the depreciation of investments in securities, account 59 "Reserves for the depreciation of investments in securities" is used.
Professional participants in the securities market create provisions for the depreciation of investments in securities for any securities of other organizations that are not subject to revaluation, acquired both for their own needs and for resale, the quotes of which are regularly published. This is done on the date of compilation of not only the annual, but also the quarterly financial statements if the market value of the securities falls below their book value. If, as of the date of preparation of financial statements, transactions were made for the same security through two or more trade organizers, then professional participants have the right to independently choose the rate of the security to reflect the value of their own investments (clause 5.1. Rules for reflection by professional participants in the securities market and investment funds in the accounting of certain operations with securities, approved by the Decree of the Federal Commission for the Securities Market of Russia dated November 27, 1997 No. 40).
Reserves are created at the expense of the financial results of commercial organization or an increase in expenses of a non-profit organization by the amount of the difference between the value at which securities are accepted for accounting:
Debit 91 Credit 59 - reserves are created;
Debit 59 Credit 91 - reduced (written off) previously created provision for impairment.
At the same time, in balance sheet securities are recorded at market value. The amount of the formed reserve is not reflected separately in the liabilities side of the balance sheet.
Analytical accounting on account 59 “Reserves for depreciation of investments in securities” is kept for each reserve.
Professional participants in the securities market engaged in dealer activities are entitled to deduct deductions to reserves for depreciation of securities as expenses for taxation purposes, if such taxpayers determine income and expenses on an accrual basis. In this case, the amounts of restored provisions for depreciation of securities, deductions for the creation (adjustment) of which were previously taken into account when determining the tax base, are recognized as income indicated by the taxpayer.
In tax accounting, the creation of a reserve for the depreciation of financial investments for the purpose of taxing profits is not taken into account (clause 10, article 270 of the Tax Code of the Russian Federation).
An impairment test is performed at least once a year as at 31 December when there are indications of impairment.
If, as a result of the audit, a further decrease in the estimated value is revealed, then the amount of the previously created provision for impairment increases and the financial result decreases.
If the results of the audit reveal an increase in their estimated value, then the amount of the reserve is reduced, and the financial result is increased.
If the financial investment no longer satisfies the criteria for a steady decline in value, then the amount of the created reserve is attributed to financial results(included in other income).
Provisions for depreciation of securities are created in foreign currency Russian Federation regardless of the currency of the security's face value. For securities denominated in foreign currency, the purchase price and the market price are converted into Russian rubles at the official exchange rate of the Bank of Russia on the date of creation and adjustment of the provision.
Consider an example of creating a reserve for the enterprises of Solaris LLC. The nominal value of the share of the contribution to the authorized capital is 500,000 rubles. (share size - 51%). Based on the value of the net assets of LLC according to the balance sheet for 9 months of 2011, the organization created a provision for the impairment of these financial investments in the amount of 40,000 rubles.
In February 2012, upon receipt by the organization of the annual financial statements of the LLC for 2011, proposed for approval, the organization found that the net asset value of the LLC amounted to 800,000 rubles. The financial statements of the organization for 2011 were approved on March 30, 2012.
A decrease in the value of assets ((500,000 RUB - 40,000 RUB) - 800,000 RUB x 51% = 52,000 RUB) due to an event after the reporting date is material to the organization (52,000 RUB / (500,000 RUB) - 40,000 rubles) x 100% \u003d 11.3%), which means that the event is reflected in the synthetic and analytical accounting of the organization with the final entries in December 2008.
The creation of the reserve was formalized by the following accounting entries.
Upon confirmation of a significant decrease in the cost of financial investments, the company creates a reserve for the depreciation of financial investments (clause 38 of PBU 19/02). What are the procedures for such an operation? How is the amount of the provision reflected in the balance sheet? About everything in order.
What is a reserve for depreciation of financial investments
The conditions for classifying various assets of an enterprise as financial investments are indicated in paragraph 2 of PBU 19/02. In accordance with legislative norms, these are securities (municipal and state); third party securities, including debt securities; issued loans; contributions to authorized capitals, except for their own; deposits; receivables acquired by assignment, etc. (clause 3 of PBU).
The depreciation of financial investments occurs when there is a steady and significant decrease in their original cost. In other words, if the current market price is not determined for financial investments, but the estimated economic benefit from the use of the asset in normal conditions falls, they talk about the depreciation of the object. At the same time, the following conditions must be met:
- The book value for the current and previous reporting dates is higher than the market value.
- Per reporting period there is a significant decrease in the estimated value.
- At the reporting date, there is no indication that a significant increase in the settlement price is highly likely.
Depreciation of objects is possible, for example, when an issuer of securities is declared bankrupt. When appropriate signs appear, the enterprise is obliged to check the presence of a decrease in the cost of financial investments. The measure is carried out in respect of those investments for which there are signs of impairment. If the results of the audit are positive, that is, a steady decline in the value of assets is confirmed, a reserve should be created for the difference between the accounting and estimated value of the object.
Provisions for depreciation of investments in securities – accounting
In the accounting of the enterprise, the formation of a reserve is displayed according to the account. 59 of the same name. This account is passive: with an increase - on a loan, a decrease - on a debit. Analytics is conducted by types of reserves and terms - short-term and long-term. Correspondence 59 is performed with sc. 91:
- A reserve for the depreciation of financial investments has been created - entry D 91.2 K 59.
- Written off in the accounting reserve for depreciation of investments - D 59 K 91.1.
Provisions for depreciation of financial investments in the balance sheet are not reflected directly, but through a decrease in the book value of objects on line 1170. If a company creates provisions, it is necessary to conduct an annual check for signs of impairment in the future. Date of verification - December 31 or as of the formation of interim accounting. The results of the event must be documented.
In the event that the audit confirmed a subsequent decrease in the market price, the amount of the already established reserve is adjusted by increasing. If the price rises, the reserve decreases. The financial results of the enterprise are changed in an appropriate way (clause 39 of PBU). When an asset is disposed of during its sale, the amount of the reserve relates to other income (clause 40).
