Russian chart of accounts and its application (order 94N)

ORDER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION NO. 94N OF OCTOBER 31, 2000 ON THE APPROVAL OF THE CHART OF ACCOUNTS OF THE ACCOUNTING RECORDS
OF THE FINANCIAL AND ECONOMIC ACTIVITY OF AN ORGANISATION
AND OF THE INSTRUCTIONS ON ITS APPLICATION (with the Amendments and Additions of May 7, 2003, September 18, 2006)

 

According to Statement of the Ministry of Justice of the Russian Federation No. 9558-YuD of November 9, 2000 the present Order shall not be subject to state registration

 

In pursuance of the Programme of reforming accounting records in accordance with the international standards of financial accounting, approved by Decision of the Government of the Russian Federation No. 283 of March 6, 1998, I order:

1. The approval of the Chart of accounts of accounting records of the financial and economic activity of organisations and theInstructions on Its Application.

2. To bring into effect the present Order from January 1, 2001. The transition to the application of the Chart of accounts of accounting records of the financial and economic activity of the organisation shall be allowed during 2001 to the extent of the readiness of the respective organisation.

 

Minister of Finance

of the Russian Federation

A.L.Kudrin

 

 

The Chart of Accounts of the Accounting Records of the Financial
and Economic Activity of Organisations (approved by Order of the Ministry of Finance No. 94n of October 31, 2000)
(with the Amendments and Additions of May 7, 2003, September 18, 2006)

 

In pursuance of coming into force of new Chart of Accounts, on application of this Chart of Accounts see Letter of the Ministry for Taxes and Fees of the Russian Federation No. VG-6-02/193 of March 6, 2001 and Letter of the Ministry of Finance of the Russian Federation No. 16-00-13/05 of March 15, 2001

 

 

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│   Name of    account                                                            │Number      │     Number and  name                                                 │

│                                                                                                 │ of                 │     of   subaccount                                                         │

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Section I. Non-current Assets

 

 Fixed assets 01   According to the types of Depreciation of fixed assets 02   fixed assets Profitable placements in material  03According to the types of  values material values

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended position 04 of this Chart

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the position   Intangible assets 04   By the type of  intangible asset and by the expense towards research and

development; Depreciation of intangible assets   05   ................................    06  Equipment for installation 07 Investments in non-current  08   1. Acquisition of  land  plots  assets

       2.  Acquisition  of objects of natural resources

       3. Construction  of objects of fixed assets

       4. Acquisition  of  objects of fixed assets

       5. Acquisition  of  intangible assets

       6. Transfer  of  young animals to the main herd

       7. Acquisition     of    adult animals

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 supplemented position 08 of this Chart with the following subaccount :

The amendments shall come into force beginning from financial reporting as of the Year 2003

 

       8. Performance of Research and Development

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 reworded position 09 of this Chart

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the position  Deferred tax assets  09 

 

Section II. Production Supplies Materials 

10   1. Raw and auxiliary materials

        2. Purchased     semi-finished products and components, structures and parts

        3. Fuel

        4. Containers and packaging materials

        5. Spare parts

        6. Other materials

        7. Materials turned over aside for processing

        8. Building materials

        9. Implements  and  house-hold accessories

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 supplemented this Chart with the following subaccounts:

The amendments shall come into force beginning from financial reporting as of the Year 2003

 

       10. Special tooling and special clothes in warehouse

       11. Special tooling and special clothes in use

 

 Animals for rearing and fattening   11  ................................    12 ................................    13  Reserves for the decline  in  the   14  value of material values  Procurement  and  acquisition  of   15 material values  Divergence  in   the   value   of   16  material values ...............................    17  ................................    18  Value-added   tax   on

19   1. The value-added tax on acquired values acquired  fixed assets                                         

        2. The value-added tax on acquired intangible assets

        3. The value-added tax on acquired inventories

 

                    Section III. Manufacturing Costs

 

 Productive work  20  Semi -  finished   products   of    21 domestic manufacture  ................................    22

 

See the Specifics of Application by Insurance Institutions of the Plan of Accounts for the Business Accounting of the Organizations' Financial and Economic Activity, and the Instructions on Its Application, approved by Order of the Ministry of Finance of the Russian Federation No. 69n of September 4, 2001

 

  Auxiliary services 23  ................................    24  General manufacturing costs  25  General household costs  26................................    27

 Spoilage in production  28  Operating production  units  and    29 farms  ................................    30  ................................    31  ................................    32  ................................    33 ................................    34  ................................    35 ................................    36 ................................    37  ................................    38  ................................    39

 

                Section IV. Finished Products and Goods

 

 Output  of   products    (works,    40  services)  Goods    

 41   1. Merchandise in storage

        2. Goods in retail trade

        3. Containers for goods and empty containers

        4. Purchased articles

 Markup  42  Finished products   43  Expenses on sales   44  Goods shipped 45 Fulfilled stages in  incomplete 46 works................................    47  ................................    48  ................................    49

 

                      Section V. Monetary funds

 

 Cash in hand 

50   1. Cash department  of   an organisation

        2. Operational cash department

        3. Cash items

 Settlement accounts 51 Foreign currency accounts 52 ................................    53 ................................    54  Special accounts with banks         55   1. Letters of credit

        2. Cheque books

        3. Deposit accounts

 ................................    56  Transfer in transit  57  Financial placement 

   58   1. Unit share and shares

           2. Debt securities

           3. Granted loans

           4. Deposits under the contracts of simple partnership

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 reworded position 59 of this Chart

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the position Reserves for devaluation of financial investments 59

 

                          Section VI. Settlements

 

 Settlements with  suppliers  and    60  contractors  ................................    61  Settlements with   buyers    and    62 customers  Reserves for doubtful debts  63 ................................    64  ................................    65

  Payments for short-term  credits                              66  According to  types of credits 

                                and loans                                               and loans

 Payments for  long-term  credits                               67   According  to types of credits

 and loans                                                                               and loans

 Payments of taxes and fees                                       68   According  to types  of  taxes

 Payments for  social   insurance                               69   and fees  and social security   

     1. Payments     for     social insurance

     2. Pensions payments

     3. Payments   for   obligatory medical insurance

 Payments of wages  and  salaries    70  to personnel  Settlements with     accountable    71  persons  ................................    72  Settlements with       personnel    73   

    1. Payments for granted loans for other operations

    2. Payments for compensation for material damage

 ................................    74  Settlements with founders  75

    1. Payment of contributions to authorised (pooled) capital

    2. Payment of incomes

 Settlements with various debtors    76   

      1. Payments for  property  and  and creditors personal insurance

      2. Payment for claims

      3. Payments of  due  dividends and other incomes

      4. Settlements  for  deposited amounts

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 reworded position 77 of this Chart

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the position  Deferred tax liabilities  77

 

See Letter of the Ministry of Finance of the Russian Federation No. 16-00-14/129 of April 15, 2003 on the Keeping of Record of Deferred Tax Assets and Liabilities for Bookkeeping Purposes

 

See Addenda to and Specifics in the Application by Insurance Organizations of the Plan of Accounts for the Business Accounting of the Organizations' Financial and Economic Activity, and the Instructions on Its Application, approved by Order of the Ministry of Finance of the Russian Federation No. 69n of September 4, 2001

 

 ................................    78  In-house settlements    79  

      1. Settlements in allocated assets

      2. Payments in current transactions

      3. Payments under  contracts of trust management of property

 

                          Section VII. Capital

 

 Authorised capital    80  Own shares (stakes)   81  Reserve capital   82  Additional capital  83  Retained profit (uncovered loss)84

 ................................    85  Target-oriented financing  86   According to  the   types of  ................................    87 financing  ................................    88  ................................    89

 

                 Section VIII. Financial Results

 

 Sales 90  

         1. Proceeds

         2. Sales cost

         3. Value-added tax

         4. Excises

         9. Profit or loss from sales

 Other incomes and expenses 91

        1. Other incomes

        2. Other expenses

  9. Balance  amount  of   other incomes and expenses  ................................    92

 

See Addenda to and Specifics in the Application by Insurance Organizations of the Plan of Accounts for the Business Accounting of the Organizations' Financial and Economic Activity, and the Instructions on Its Application, approved by Order of the Ministry of Finance of the Russian Federation No. 69n of September 4, 2001

 

 ................................    93  Shortages and losses from damage    94  to valuables  ................................    95

 

See Addenda to and Specifics in the Application by Insurance Organizations of the Plan of Accounts for the Business Accounting of the Organizations' Financial and Economic Activity, and the Instructions on Its Application, approved by Order of the Ministry of Finance of the Russian Federation No. 69n of September 4, 2001

 

 Reserves for forthcoming expenses   96   According to types of reserves  Deferred expenses  97   According to types of expenses

 Deferred incomes  98 

       1. Incomes received on account of future periods

       2. Gratuitous receipts

       3. Forthcoming   receipts   of indebtedness for shortages revealed for past years

       4. The difference between  the amount subject   to   recovery from guilty  persons  and  the balance cost  of  shortages of               valuables

 Profits and losses 99

 

                        Off-balance Sheet Items

 

 Rented fixed assets   001  Material assets   accepted   for   002  safe-keeping Materials accepted for   003 processing Goods taken on commission  004 Equipment accepted for assembly    005  Strict accountancy forms  006  Debts of  insolvent  debtors  007  written off as a loss  Received security  for   008  liabilities and payments  Issued security for  liabilities   009  and payments  Wear and tear of fixed assets 010  Leased fixed assets  011

 

Instructions
on the Application of the Chart
of Accounts of the Accounting Records of the Financial
and Economic Activity of Organisations
(approved by Order of the Ministry of Finance No. 94n
of October 31, 2000)

 

The present Instructions establish uniform approaches to the application of the Chart of accounts of the accounting records of the financial and economic activity of organisations and to the reflection of economic activity in accounting records. The Instructions contain the brief characteristics of synthetic accounts and subaccounts opened: they reveal their structure and purpose, the economic content of the economic activity generalised on them and the order of the reflection of the most widespread facts. The accounts of accounting records shall be described by sections in the sequence provided for by the Chart of accounts of accounting records.

Principles, rules and methods of the keeping by organisations of the accountancy records of particular assets, liabilities, financial and economic operations, including recognitions, appraisals and groupings, shall be established by regulations and other normative acts and methodological directions on accounting.

According to the Chart of accounts of accounting and to the present Instructions accountancy records shall be kept by organisations (save credit and budgetary) of all forms of property and organisational structure and legal status, by the double entry method.

Proceeding from the Chart of accounts of accounting records and the present Instructions the respective organisation shall approve its working chart of accounts of accounting containing a full list of synthetic and analytical subaccounts and accounts needed for accounting records.

The Chart of accounts of accounting records is a scheme of the registration and grouping of facts of economic activity (assets, liabilities, financial and economic operations, etc.) in accounting records. It contains the names and numbers of synthetic accounts (accounts of the first order) and subaccounts (accounts of the second order).

To keep a record of specific operations, the organisation concerned may, by agreement with the Ministry of Finance of the Russian Federation, introduce into the Chart of accounts of accounting records additional synthetic accounts by using free account numbers.

Subaccounts provided for by the Chart of accounts of accounting records shall be used by the organisation, proceeding from the requirements of the management of the organisation, including the needs of analysis, control and reporting. The organisation may clarify the content of subaccounts cited in the Chart of accounts of accounting records, exclude or unite them, and also introduce additional subaccounts.

The order of keeping analytical accounting shall be established by the organisation, proceeding from the present Instructions, regulations and other normative acts, methodological directions on accounting records (fixed assets, material supplies, etc.).

After the characteristic of each synthetic account the Instructions shall give a standard scheme of its correspondence with other synthetic accounts. Should facts of economic activity arise, correspondence on which is not provided for by the standard scheme, the organisation may supplement it, while observing uniform approaches set by the present Instructions.

 

Section I.
Non-current Assets

 

The accounts of this Section are intended for the generalisation of information about the presence and movement of the organisation's assets, which in accordance with the rules for accounting relate to fixed and intangible assets and other extra-budgetary assets, and also about transactions associated with their construction, acquisition and retirement.

 

Account 01 "Fixed Assets"

 

See Regulations on Business Accounting "Recording of the Fixed Assets PBU 6/01" approved by Order of the Ministry of Finance of the Russian Federation No. 26n of March 30, 2001

 

See the Methodical Directions in Respect of Business Accounting of Fixed Assets endorsed by Order of the Ministry of Finance of the Russian Federation No. 91n of October 13, 2003. The Directions shall come into force as of January 1, 2004

 

Account 01 (Fixed assets) is intended for the generalisation of information about the existence and movement of the organisation's fixed assets in operation, in reserve, lease and trust management.

Fixed assets shall be introduced into accounting records on Account 01 (Fixed assets) at their original cost. The object of fixed assets owned by two or several organisations shall be reflected by each organisation in Account 01 (Fixed assets) in the corresponding share.

The acceptance of fixed assets for accounting, and also any change in their original cost in the case of putting final touches to construction, equipping and reconstruction shall be reflected in the debit of Account 01 (Fixed assets) in correspondence withAccount 08 (Investments in extra-floating assets).

The change in original cost during the revaluation of relevant facilities shall be reflected in Account 01 (Fixed assets) in correspondence with Account 83 (Additional capital).

The subaccount (Retirement of fixed assets) may be opened with Account 01 (Fixed assets) to keep a record of the retirement of fixed assets (sales, write-offs, partial liquidation, gratuitous transfer, etc.). The cost of the retired object shall be transferred in debit of this subaccount, while the amount of accumulated amortisation shall be transferred in credit of this subaccount. At the end of the procedure of retirement the residual cost of the object shall be debited from Account 01 (Fixed assets) to Account 91(Other incomes and expenses).

Analytical accounting in Account 01 (Fixed assets) shall be kept per separate inventory facilities of fixed assets. The building of analytical accounting shall make possible the reception of data on the existence and the movement of fixed assets needed for making out accounting (according to types, location, etc.).

 

Account 01 (Fixed Assets) Corresponds with Accounts:

 

               in debit                                                                           in credit

 

03   Income-bearing placements in                               02   Depreciation of fixed assets material values

11   Domestic animals  for   rearing                               08   Investments in non-current  and fattening assets

76 Settlements with various                                             76   Settlements with various debtors and creditors     debtors and creditors 

79   Intra-economic settlements                                      79   Intra-economic settlements

80   Authorised capital                                                       80   Authorised capital

83   Additional capital                                                         83   Additional capital 

91   Other incomes and expenses                                  94   Shortages and losses from damage to valuables 

99   Profits and losses

 

Order of the Ministry of Finance of the Russian Federation No. 115n of September 18, 2006 amended description of Account 02 of these Instructions. The amendments shall enter into force beginning with the annual accounting for 2006

See text of Item in previous wording

 

Account 02 "Depreciation of Fixed Assets"

 

See Regulations on Business Accounting "Recording of the Fixed Assets PBU 6/01" approved by Order of the Ministry of Finance of the Russian Federation No. 26n of March 30, 2001

 

Account 02 (Depreciation of fixed assets) is intended for the generalisation of information about depreciation, accumulated during the operation of the facilities of fixed assets.

The charged amount of depreciation of fixed assets shall be reflected in accounting records in credit of Account 02 (Depreciation of fixed assets) in correspondence with the accounts recording production costs (sales costs). The lessor organisation shall reflect the charged amount of depreciation of rented fixed assets, in credit of Account 02 (Depreciation of fixed assets) and in debit of Account 91 (Other incomes and expenses), if rental forms other incomes.

With the retirement of fixed assets (sale, write-off, partial liquidation, gratuitous transfer, etc.) the amount of charged depreciation shall be debited from Account 02 (Depreciation of fixed assets) in credit of Account 01 (Fixed assets), subaccount (Retirement of fixed assets). A similar record shall be made in the case of the write-off of the charged depreciation of missing and totally damaged fixed assets.

Analytical accounting on Account 02 (Depreciation of fixed assets) shall be kept by separate inventory facilities of fixed assets. The building up of analytical accounting shall make possible the reception of data on the depreciation of fixed assets needed for the management of the organisation and the compilation of accounting records.

 

Account 02 "Depreciation of fixed assets" corresponds with
the accounts:

 

               in debit                                                                                    in credit

 

01   Fixed assets                                                                     02   Depreciation of fixed assets

02   Depreciation of fixed assets                                          08   Investments in extra-floating assets

03   Profitable  investments   in                                             20   Main production material values 

23   Auxiliary services                                                              79   Intra-economic settlements   

25   General production expenses

83   Additional capital   

26   General household expenses

29   Operational production   units and farms

44   Expenses on sales

79   Intra-economic settlements

83   Additional capital

91   Other incomes and expenses

97   Deferred expenses

 

Account 03 (Profitable Investments in Material Assets)

 

Account 03 (Profitable investments in material assets) is intended for the generalisation of information about the presence and movement of the organisation's investments in property, buildings, premises, equipment and other assets in a physical form (hereinafter, referred to as material assets), granted by the organisation for a charge for temporary use (temporary possession and use) with the aim of obtaining profit.

Material assets, acquired or received by the organisation for granting for temporary use (temporary possession and use for a charge, shall be accepted for accounting on Account 03 (Profitable investments in material values) at the original cost, proceeding from the actual expenses on their acquisition, including expenses on their delivery, assembly and installation.

Material assets, acquired or received by the organisation for granting for temporary use (temporary possession and use) for a charge, shall be accepted for accounting in debit of Account 03 (Profitable investments in material assets) in correspondence with Accounts 08 (Investments in non-current assets).

The depreciation of material assets granted for temporary use (temporary possession and use) with the aim of obtaining income shall be accounted for in Account 02 (Depreciation of fixed assets) separately.

To keep a record of the retirement (sale, write-off, partial liquidation, gratuitous transfer, etc.) of material assets accounted for on Account 03 (Profitable investments in material assets, the subaccount (Retirement of material assets) may be opened. In debit of this subaccount it is necessary to transfer the value of the retired facility and in credit of this subaccount it is necessary to transfer the amount of accumulated depreciation. As the procedure of retirement is over, the residual cost of a facility shall be debited from Account 03 (Profitable investments in material assets) to Account 91 (Other incomes and expenses).

Analytical accounting on Account 03 (Profitable investments in material assets) shall be kept according to the types of material values, leaseholders and separate facilities of material assets.

 

Account 03 (Profitable investments in material assets)
corresponds with the accounts:

 

               In debit                                              in credit

 

08   Investments in   extra                      01   Fixed assets budgetary assets                            

02   Depreciation of fixed assets         76   Settlements   with   various        

76   Settlements with various                            debtors and creditors              

             debtors and creditors               80   Authorised capital                      

80   Authorised capital

91   Other incomes and expenses

94   Shortages and losses from damage to values

99   Profits and losses

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended the characteristics of account 04 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 04 "Intangible Assets"

 

See Bookkeeping Regulations "Accounting of Intangible Assets (PBU 14/2007)" approved by Order of the Ministry of Finance of the Russian Federation No. 153n of December 27, 2007

 

Account 04 (Intangible assets) is intended for the generalisation of information about the presence and movement of the organisation's intangible assets and also on the organisation's expenses towards research and development.

Intangible assets shall be accepted for accounting on Account 04 (Intangible assets) at their original cost.

For intangible assets, on which depreciation is accounted without using Account 05 (Depreciation of intangible assets), the accrued amounts of depreciation deductions shall be written off directly in credit of Account 04 (Intangible assets).

The acceptance of intangible assets for accounting shall be reflected in debit of Account 04 (Intangible assets) in correspondence with Account 08 (Investments in extra-budgetary assets).

With the retirement of objects of intangible assets (sale, write-off, gratuitous transfer, etc.) their value accounted on Account 04 (Intangible assets) shall be reduced by the amount the depreciation accrued during their use [from debit of Account 05(Depreciation of intangible assets)]. The residual value of the retired objects shall be debited from Account 04 (Intangible assets) to Account 91 (Other incomes and expenses).

The organisation's expenses towards the research and development of which the results are used for the production or managerial needs of the organisation shall be recorded on account 04 "Intangible Assets" as a separate item.

Research and development expenses shall be accepted for being put on bookkeeping records on account 04 "Intangible Assets" in the amount of actual costs, with account 04 "Intangible Assets" being debited in correspondence with the credit of account 08"Investments in Non-Current Assets".

When the research and development expenses of which the results are used for production or managerial needs of the organisation are written off in the established procedure as expenses towards ordinary types of activity account 04 "Intangible Assets" shall be credited in correspondence with the debit of the accounts intended for keeping record of costs (20 "Main Production Facilities", 26 "General Economic Expenses etc.").

In the event of termination of the use of results of research and development in the manufacture of products (performance of works, provision of services) or for managerial needs the amounts of expense not posted as expenses relating to ordinary types of activity shall be written off to the debit of account 91 "Miscellaneous Incomes and Expenses" in correspondence with the credit of account 04 "Intangible Assets";

Analytical accounting on account 04 "Intangible Assets" shall be performed by the intangible asset item and also by the type of research and development expense. Here, the keeping of analytical records shall provide an opportunity for obtaining data on the availability and movement of intangible assets and also on the amounts of research and development expense.

 

Account 04 "Intangible assets" corresponds with the accounts:

 

               in debit                                                       in credit

 

08   Investments in non-current                05   Depreciation    of   intangible

     assets                                                               assets

51   Settlement accounts                           20   Productive work

52   Foreign currency accounts                23   Auxiliary services

55   Special accounts with banks            25   General production expenses

76   Settlements with     various               26   General economic expenses

     debtors and creditors                           29   Service production  units   and

79   Intra-economic settlements                      farms

80   Authorised capital                               44   Expenses on sales

                                                                       76   Settlements with        various

                                                                               debtors and creditors

                                                                       79   Intra-economic settlements

                                                                       80   Authorised capital

91   Other incomes and expenses

97   Deferred expenses

 

Account 05 "Depreciation of Intangible Assets"

 

See Bookkeeping Regulations "Accounting of Intangible Assets (PBU 14/2007)" approved by Order of the Ministry of Finance of the Russian Federation No. 153n of December 27, 2007

 

Account 05 (Depreciation of intangible assets) is intended for the generalisation of information about depreciation, accumulated during the use of the organisation's intangible assets (except for objects on which depreciation deductions are written off directly in credit of Account 04 (Intangible assets).

The accrued amount of depreciation of intangible assets shall be reflected in accounting records in credit of Account 05 (Depreciation of intangible assets) in correspondence with the accounts recording expenses on production (expenses in sales).

With the retirement of the objects of intangible assets (sale,write-off, gratuitous transfer, etc.) the amount of accrued depreciation shall be written off from Account 05 (Depreciation of intangible assets) in credit of Account 04 (Intangible assets).

Analytical accounting on Account 05 (Depreciation of intangible assets) shall be kept on particular intangible assets. In this case the building up of analytical accounting shall make possible the reception of data on the depreciation of intangible assets needed for the management of the organisation and the making out of accounting records.

 

Account 05 "Depreciation of intangible assets"
corresponds with the accounts:

 

               in debit                                    in credit

 

04   Intangible assets                         08   Investments in non-current

79    Intra-economic settlements             assets

                                    20   Main production

                                    23   Auxiliary services

                                    25   General production expenses

                                    26   General economic expenses

                                    29   Service production  units   and farms

                                    44   Expenses on sales

                                    79   Intra-economic settlements

                                    97   Deferred expenses

 

Account 07 "Equipment for Installation"

 

Account 07 (Equipment for installation) is intended for the generalisation of information about the existence and movement of technological, power and production equipment (including equipment for workshops, pilot plants and laboratories) requiring assembly and meant for erection in the facilities being constructed or reconstructed. This account is used by organisations-developers.

Equipment requiring assembly also includes equipment commissioned only after the assembly of its parts and the fastening to the foundation or supports, to the floor, intermediate floors and other supporting structures of buildings, and also sets of spare parts for such equipment. This equipment includes control and measuring equipment and other devices intended for assembly within the equipment being installed.

It is not necessary to record on Account 07 (Equipment for installation) equipment that does not require erection: transport vehicles, freely standing lathes, building mechanisms, agricultural, machines, assembly tools, measuring and other instruments, production stock, etc. Expenses on the acquisition of equipment that does not require erection shall be reflected directly in Account 08 (Investments in non-current assets) to the extent of their reception in a warehouse or in any other place of storage.

Equipment for installation shall be accepted for accounting in debit of Account 07 (Equipment for installation) at the actual cost-price of acquisition, which is formed from the cost at prices of acquisition and from expenses on the acquisition and delivery of these values to the organisation's warehouses.

The acquisition of equipment for a charge from other organisations and persons shall be reflected in debit of Account 07 (Equipment for installation) in correspondence with Account 60 (Settlements with suppliers and contractors).

The acceptance for accounting of equipment, contributed by the promoters on account of their investments in the organisation's authorised (pooled) capital, shall be reflected in debit of Account 07 (Equipment for installation) and in credit of Account 75(Settlements with founders)

The reception of equipment for installation may be reflected with the use of Account 15 (Procurement and acquisition of material assets) or without its use in the order similar to the order of recording appropriate operations with materials.

The cost of equipment delivered for erection shall be written off from Account 07 (Equipment for installation) in debit of Account08 (Investments in non-current assets). In this case the equipment brought to the building site and requiring erection shall be accepted by the contractor and placed on the off-balance accounting in Account 005 (Equipment accepted for erection). The cost of this equipment or its parts delivered for erection shall be struck off the off-balance register in Account 005 (Equipment accepted for erection). The cost of equipment turned over to the contractor, and the erection and installation of which on the permanent place of operation have not started, shall not be taken off the books of the contractor.

When equipment for installation is sold, written off or transferred gratis, its cost shall be written off in debit of Account 91 (Other incomes and expenses).

Analytical accounting in Account 07 (Equipment for installation) shall be kept by places of storage of equipment and its separate denominations (types, marks, etc.).

 

Account 07 "Equipment for installation" corresponds with the accounts:

 

               in debit                                                   in credit

 

15   Procurement and  acquisition           08   Investments in non-current

     of material assets                                          assets

23   Auxiliary services                                 23   Auxiliary services

60   Settlements with   suppliers             76   Settlements with various

     and contractors                                              debtors and creditors

66   Payments for      short-term               79   Intra-economic settlements

     credits and loans                                   80   Authorised capital

67   Payments for       long-term               91   Other incomes and expenses

     credits and loans                                   94   Shortages and losses from

71   Settlements with accountable                   damage to values

     persons                                                   99   Profits and losses

75   Settlements with founders

76   Settlements with     various

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

86   Target-oriented financing

91   Other incomes and expenses

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended the characteristics of account 08 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 08 "Investments in Non-current Assets"

 

Account 08 Investments in non-current assets is intended for the generalisation of information about the organisation's expenses on facilities, which afterwards will be accepted for accounting as fixed assets, land plots and objects for the utilisation of natural resources, intangible assets, and also about the organisation's expenses on the formation of the main herd of productive stock and the workstock (except for poultry, fur-bearing animals, rabbits, bee swarms, police dogs, experimental animals, which are accounted within turnover resources).

 

According to PBU 17/02 information about expenditure on research and development and technological works shall be reflected in accounting as investment in extra-circulating assets

 

The following subaccounts may be opened for Account 08 (Investments in non-current assets):

08-1 "Acquisition of land plots",

08-2 "Acquisition of objects for the utilisation of natural resources",

08-3 "Building of facilities of fixed assets",

08-4 "Acquisition of separate facilities of fixed assets",

08-5 "Acquisition of intangible assets",

08-6 "Transfer of young animals to the main herd",

08-7 "Acquisition of adult animals".

08-8 "Performance of Research and Development" and others;

Expenses on the acquisition by the organisation of land plots shall be accounted on Subaccount 08-1 (Acquisition of land plots)".

Expenses on the acquisition by the organisation of objects for the utilisation of natural resources shall be accounted on Subaccount 08-2 (Acquisition of objects for the utilisation of natural resources).

Expenses on the erection of buildings and structures, the assembly of equipment, the cost of equipment turned over in assembly and other expenses, provided for by estimates and estimate and finance calculations and itemised lists on capital construction (regardless of whether this construction is carried out on a contractual or a non-contractual basis) shall be accounted on Subaccount 08-3 (Building of facilities of fixed assets).

Expenses on the acquisition of equipment, machinery, tools, stock and other facilities of fixed assets which require no assembly shall be recorded on Subaccount 08-4 (Acquisition of particular facilities of fixed assets).

Expenses on the acquisition of intangible assets shall be accounted in Subaccount 08-5 (Acquisition of intangible assets).

The actual expenses of a developer included in the original cost of the objects of fixed assets, intangible assets and other appropriate assets shall be reflected in the debit of Account 08 (Investments in non-current assets).

The formed original cost of fixed and intangible assets, etc., commissioned and completed in the established order, shall be written off from Account 08 (Placements in extra-budgetary assets) in debit of Account 01 (Fixed assets), Account 03 (Profitable placements in material values), Account 04 (Intangible assets), etc.

Expenses of the organisation on the rearing of young productive livestock and workstock to be transferred to the main herd shall be record on Subaccount 08-6 (Transfer of young animals to the main herd).

The cost of adult livestock and workstock acquired for the main herd or received gratis, including delivery costs, shall be record on Subaccount 08-7 (Acquisition of adult animals).

Young animals transferred to the main herd shall be assessed at actual cost-price. Young animals of productive livestock and workstock of all kinds, transferred to the main herd, shall be written off within one year from Account 11 (Domestic animals for rearing and fattening) in debit of Account 08 (Investments in non-current assets) at the cost reckoned at the beginning of the reporting year with the addition of the planned cost-price of gain in weight or increment over the period from the beginning of the reporting year to the time of the transfer of animals to the main herd. When young animals are transferred to the main herd it is necessary to debit Account 01 (Fixed assets) and to credit Account 08 (Investments in non-current assets). At the end of the reporting year, after the compilation of a cost-information report the difference between the said cost of the young animals transferred during the reporting year and their actual cost-price shall be debited additionally or reversed from Account11 (Domestic animals for rearing and fattening) to Account 08 (Investments in non-current assets) during the simultaneous clarification of the assessment of livestock on Account 01 (Fixed assets).

The acquired adults animals shall be received in debit of Account 08 (Investments in non-current assets) at the actual cost-price of their acquisition, including expenses on delivery. Adult animals received gratis shall be accepted for accounting at market value, to which actual expenses on their delivery to the respective organisation are added.

Subaccount 08-8 "Performance of Research and Development" shall be used to keep record of the expenses relating to the performance of research and development.

Expenses towards the research and development of which the result is subject to application for the manufacture of products (performance of work, provision of services) or for the managerial needs of the organisation shall be written off the credit of account 08 "Investments in Non-Current Assets" to the debit of account 04 "Intangible Assets".

Expenses towards the research and development of which the result is not subject to application for the manufacture of products (performance of work, provision of services) or for managerial needs or which did not produce positive results shall be written off the credit of account 08 "Investments in Non-Current Assets" to the debit of account 91 "Miscellaneous Incomes and Expenses.

Expenses on the completed operations of the formation of the main herd shall be written off from Account 08 (Investments in non-current assets) in debit of Account 01 (Fixed assets).

A balance amount in Account 08 (Investments in non-current assets) shall reflect the size of the investments of the organisation concerned in incomplete construction, unfinished transactions in the acquisition of fixed assets, intangible and other extra-floating assets, and also in the formation of the main herd.

When the placements recorded on Account 08 (Investments in non-current assets are sold or transferred gratis, their value shall be written off in debit of Account 91 (Other incomes and expenses).

Analytical accounting in Account 08 (Investments in non-current assets) shall be kept:

on expenses involved in the building and acquisition of fixed assets - on each fixed asset facility that is being built or acquired. The building up of analytical accounting shall make possible the reception of data on the expenses on: construction works and reconstruction; borings; equipment assembly; equipment requiring assembly; equipment requiring no assembly, and also tools and stock, provided for by capital construction estimates; design and survey works; other expenses on capital investments;

on the expenses involved in the acquisition of intangible assets - on each acquired object;

on the expenses involved in the formation of the main herd - on the types of domestic animals (cattle, pigs, sheep, horses, etc.).

for the expenses relating to the performance of research and development - by the type of work by the contract (order).

 

Account 08 "Investments in non-current assets"
corresponds with the accounts:

 

               in debit                                                     in credit

 

02   Depreciation of fixed assets               01   Fixed assets

05   Depreciation of   intangible                 03   Profitable investments in

     assets                                                               material assets

07   Equipment for installation                   04   Intangible assets

10   Materials                                                 76   Settlements with        various

11   Animals for   rearing    and                          debtors and creditors

     fattening                                                     79   Intra-economic settlements

16   Variation  in the  value  of                     80   Authorised capital

     material assets                                        91   Other incomes and expenses

19   Value-added tax on  acquired             94   Shortages and    losses    from

     values                                                                  damage to valuables

23   Auxiliary services                                   99   Profits and losses

26   General economic expenses

60   Settlements with   suppliers

     and contractors

66   Payments for      short-term

     credits and loans

67   Payments for       long-term

     credits and loans

68   Payments for taxes and fees

69   Payments     for      social

     insurance    and      social

     security

70   Payments for the  labour  of

     personnel

71   Settlements with accountable

     persons

75   Settlements with founders

76   Settlements with     various

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

86   Target-oriented financing

91   Other incomes and expenses

94   Shortages and   losses  from

     damage to valuables

96   Reserves for     forthcoming

     expenses

97   Deferred expenses

98   Deferred incomes

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 supplemented this Chart the characteristics subaccount 09

The amendments shall come into force beginning from financial reporting as of the Year 2003

 

Account 09 "Deferred Tax Assets"

 

Account 09 "Deferred Tax Assets" is intended for summing up information on the availability and movement of deferred tax assets. Deferred tax assets are recognised for bookkeeping purposes in the amount calculated as the deductible differences occurring in the accounting period times the profit tax rate effective as of the accounting date.

The debit of account 09 "Deferred Tax Assets" in correspondence with the credit of account 68 "Settlement of Accounts for Taxes and Fees" shall be used to record the deferred tax asset increasing the amount of conditional expense (income) of the accounting period.

The credit of account 09 "Deferred Tax Assets" in correspondence with the debit of account 68 "Settlement of Accounts for Taxes and Fees" shall be used to record a decrease or complete repayment of deferred tax assets as offsetting the reduction of the conditional expense (income) of the accounting period.

A deferred tax asset, at the retirement of the asset item on which it has been accrued, shall be written off the credit of account 09 "Deferred Tax Assets" to the debit of account 99 "Profits and Losses".

The analytical accounting of deferred tax assets shall be performed by the type of asset or liability in the valuation of which a temporary difference occurred.

Account 09 "Deferred Tax Assets"

 

       Under the Debit                                  Under the Credit

 

   68 "Settlement of  Accounts       68 "Settlement of Accounts

       for Taxes and Fees"                      for Taxes and Fees"

 

                                        99 "Profits and Losses"

 

 

 

Section II
Production Supplies

 

See the Accounting Regulations "Inventory Accounting" PBU 5/01, endorsed by Order of the Ministry of Finance of the Russian Federation No. 44n of June 9, 2001

 

The accounts of this Section are designed for the generalisation of information about the presence and movement of labour materials intended for processing, treatment or use in production or for meeting economic needs, means of labour, which in accordance with the established order are included in the composition of means in turnover, and also for transactions associated with their procurement or acquisition.

Material values accepted for safe-keeping shall recorded on Off-balance Account 002 (Material assets accepted for safe-keeping). Raw and auxiliary materials of a customer, accepted by the organisation concerned for processing (the customer's raw material) but not payable, shall be recorded on Off-balance Account 003 (Materials accepted for processing).

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended the characteristics of account 10 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 10 (Materials)

 

Account 10 (Materials) is designed for the generalisation of information about the presence and movement of raw and auxiliary materials, fuel, spare parts, stock and household accessories, containers and other such valuables of the organisation (including those en route to processing).

Materials shall be accounted on Account 10 (Materials) at the actual cost-price of their acquisition (procurement) or at accounting prices.

Organisations engaged in the output of agricultural products shall record their own products put out in the reporting year and reflected in Account 10 (Materials) at planned cost during this year before the compilation of the annual cost-information report. After the compilation of the annual cost-information report the planned cost-price of materials shall be corrected to transform it into actual cost-price.

When materials are recorded at accounting prices (the planned cost-price of acquisition or procurement, average purchase prices, etc) the difference between the cost of valuable at these prices and the actual cost-price of the acquisition or procurement of valuables shall be reflected in Account 16 (Deviation in the cost of materials).

The following subaccounts may be opened for Account 10 (Materials):

10-1 "Raw and auxiliary materials";

10-2 "Purchased semi-finished products, components, constructions and details";

10-3 "Fuel";

10-4 "Container and packaging materials";

10-5 "Spare parts";

10-6 "Other materials";

10-7 "Materials turned over for processing elsewhere";

10-8 "Building materials";

10-9 "Implements and household accessories"

10-10. "Special tooling and special clothes in warehouse";

10-11. "Special tooling and special clothes in use" and others;

 

See also Methodical Directions for Accounting for Special Tools, Special Gadgets, Special Equipment and Special Clothing, approved by Order of the Ministry of Finance of the Russian Federation No. 135n of December 26, 2002

 

The presence and movement of the following materials shall be accounted on Subaccount 10-1 (Raw and auxiliary materials): the raw and basic materials (including building materials of contracting agencies), which are a part of manufactured products by forming its basis or which are essential components during their manufacture; auxiliary materials, which take part in the output of products or are consumed for meeting economic needs, for technical purposes, for promoting production process; farm products procured for processing, etc.

On Subaccount 10-2 (Purchased semi-finished products, components, constructions and details) it is necessary to account the presence and movement of purchased semi-finished products, ready-made complimentary parts (including building constructions and details of contracting agencies), acquired for completing manufactured goods (construction), which require processing or assembly costs. Items acquired for completing, whose cost is not included in the cost-price of products, shall be accounted on Account 41 (Goods).

Organisations engaged in scientific-research, construction and technological works and acquiring else where special equipment, tools, appliances and other instruments, needed for them as components for these works according to a definite scientific-research or construction topic, shall record these values on Subaccount 10-2 (Purchased semi-finished products and complementary parts, constructions and details).

On Subaccount 10-3 (Fuel) it is necessary to account the presence and movement of oil products (oil, diesel fuel, paraffin oil, petrol, etc.) and lubricants meant for the operation of motor transport vehicles, for meeting the technological needs of production, generation of power and heating, solid fuel (coal, peat, firewood, etc.) and gaseous fuel.

On Subaccount 10-4 (Containers and packaging materials) it is necessary to account the presence and movement of all types of container (except for that used as farm implements), and also of the materials and details intended for the production of packaging and its repair (details for the assembly of boxes, barrel riveting, band iron, etc.). Objects intended for the additional equipment of goods wagons, barges, vessels and other transportation facilities, used for the purpose of keeping safe shipped products shall be accounted on Subaccount 10-1 (Raw and auxiliary materials).

Organisations engaged in trade shall record containers for goods and empty containers on Account 41 (Goods).

On Subaccount 10-5 (Spare parts) it is necessary to keep a record of the existence and movement of the spare parts acquired or manufactured to meet the needs of production and intended for repairs, the replacement of worn-out parts of machinery, equipment, transport vehicles, etc., and also of car tyres in reserve and turnover. The movement of the exchange stock of fully complete machines, equipment, engines, units and joints produced in the repair subdivisions of organisations, in technical interchange points and repair works is also recorded on this account.

Automobile tyres (outer types, inner tubes and rim bands) on wheels and in reserve on a transport vehicle, included in its original cost shall be recorded as part of fixed assets.

On Subaccount 10-6 (Other materials) it is necessary to keep a record of the presence and movement of production waste (chopping, cuttings, shavings, etc.) irreparable spoilage; material values received from the retirement of fixed assets, which may not be used as materials, fuel or spare parts in the given organisation (metal scrap, utility waste); worn-out tyres and scrap rubber, etc. Production waste and secondary material values used as solid fuel shall be recorded on Subaccount 10-3 (Fuel).

On Subaccount 10-7 (Materials turned over for processing elsewhere) it is necessary to keep a record of the movement of materials turned for processing elsewhere, whose cost shall be subsequently included in the costs of production of the items received from them. Expenses on the processing of materials paid for outside organisations and persons shall be directly charged in debit of the accounts on which items received from processing are recorded.

Subaccount 10-8 (Building materials) shall be used by organisations-developers. It is necessary to keep a record on this subaccount of the presence and movement of materials used directly in the process of construction and assembly works, for the manufacture of building parts, for the erection and finishing of constructions and parts of buildings and structures, steel sections and parts, and also other material values needed to meet the needs of construction (explosives, etc.).

On Subaccount 10-9 (Stock and household appliances) it is necessary to keep a record of the presence and movement of the stock, tools and household appliances and other means of labour, which are included as a part of the means in turnover.

Subaccount 10-10 "Special tooling and special clothes in warehouse" is intended for keeping record of the receipt, accrual and movement of the special tools, special accessories, special equipment and special clothes located in the warehouses of the organisation or in other places of storage.

Subaccount 10-11 "Special tooling and special clothes in use" shall be used to keep record of the receipt and availability of special tools, special accessories, special equipment and special clothes in use (in the manufacture of products, performance of work, provision of services, for the managerial needs of the organisation). The credit of subaccount 10-11 shall be used to record the redemption (transfer) of the value of special tools, special accessories, special equipment and special clothes to the cost of products (works, services) in correspondence with the debit of cost accounts and the write-off of the balance sheet value of facilities in the event of their retirement before due time, in correspondence with the debit of the account intended for keeping record of miscellaneous incomes and expenses.

Organisations engaged in the output of farm products may open for Account 10 (Materials) particular subaccounts for recording: seeds, planting material and feed-stuffs (purchased and own feed-stuffs); mineral fertilizers; chemical pesticides used to control pests and plants diseases; biopreparations, medicines and chemicals used to control domestic animal diseases, etc.

Depending on the accounting policy adopted by the organisation the reception of materials may be reflected with the use of Account 15 (Procurement and acquisition of material values) and Account 16 (Deviation in the value of material assets) or without their use.

In the event of the use by an organisation of Account 15 (Procurement and acquisition of material values) and Account 16(Deviation in the value of material assets) and on the basis of the accounting documents of suppliers received by the organisation it is necessary to make a record in debit of Account 15 (Procurement and acquisition of material values) and in credit of Account 60 (Settlements with suppliers and contracts), Account 20 (Main production), Account 23 (Auxiliary services), Account 71 (Settlements with accountable persons), Account 76 (Settlements with various debtors and creditors), etc., depending on the place from which the values came and on the character of expenses on the procurement and delivery of materials to the organisation. A record in debit of Account 15 (Procurement and acquisition of material values) and in credit of Account 60(Settlements with suppliers and contractors) shall be made regardless of the time when the materials were received by the organisation - before or after the reception of the documents of the respective supplier.

The registration of materials actually received by the organisation shall be reflected by a record in debit of Account 10 (Materials) and in credit of Account 15 (Procurement and acquisition of material values).

If the organisation does not use Account 15 (Procurement and acquisition of material values) and Account 16 (Deviation in the value of material assets), the registration of materials shall be reflected in full in debit of Account 10 (Materials) and in credit of Account 60 (Settlements with suppliers and contractors), Account 20 (Main production}, Account 23 (Auxiliary services), Account71 (Settlements with accountable persons), Account 76 (Settlements with various debtors and creditors), etc., depending on the place from which the values came and on the character of expenses on the procurement and delivery of materials to the organisation. These materials shall be accepted for accounting, regardless of the time when they came in - before or after the reception of the supplier's accounting documents.

The value of materials left en route at the end of a month or not taken away from the warehouses of suppliers shall be reflected at the end of a month debit of Account 10 (Materials) and in credit of Account 60 (Settlements with suppliers and contractors) without the registration of these values in a warehouse.

The actual consumption of materials in production or for other economic purposes shall be reflected in credit of Account 10 (Materials) in correspondence with the accounts recording expenses on production (expenses on sales) or with other relevant accounts.

When materials are retired (sold, written off or transferred gratis, etc.), their values shall be written off in debit of Account 91(Other incomes and expenses).

Analytical accounting in Account 10 (Materials) shall be kept for places of storage of materials and by their separate denominations (types, sorts, dimensions, etc.).

 

Account 10 (Materials) corresponds with the accounts:

 

               in debit                                                in credit

 

10   Materials                                         08   Investments  in  non-current

                                                                        assets

15   Procurement and acquisition     10   Materials

     of material values                            20   Main production

20   Main production                             23   Auxiliary services

23   Auxiliary services                           25   General production costs

25   General production costs            26   General economic costs

26   General economic costs             28   Spoilage in production

28   Spoilage in production                 29   Service  production  units  and

29   Service production units and                 farms

     farms                                                  44   Expenses on sales

40   Output of  products  (works,        45   Shipped goods

     services)                                            76   Settlements with        various

41   Goods                                                     debtors and creditors

43   Finished products                         79   Intra-economic settlements

44   Expenses on sales                       80   Authorised capital

60   Settlements  with  suppliers        91   Other incomes and expenses

     and contractors                                 94   Shortages and    losses    from

66   Payments   for    short-term                 damage to values

     credits and loans                              97   Deferred expenses

67   Payments   for     long-term          99   Profits and losses

     credits and loans

68   Payments of taxes and fees

71   Settlements with accountable

     persons

75   Settlements with founders

76   Settlements with     various

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

86   Target-oriented financing

91   Other incomes and expenses

97   Deferred expenses

99   Profits and losses

 

 

Order of the Ministry of Finance of the Russian Federation No. 115n of September 18, 2006 amended description of Account 11 of these Instructions. The amendments shall enter into force beginning with the annual accounting for 2006

See text of Item in previous wording

 

Account 11 "Domestic Animals for Rearing and Fattening"

 

Account 11 (Domestic animals for rearing and fattening) is intended for the generalisation of information about the presence and movement of young animals; adult animals for fattening and grazing; poultry; fur-bearing animals; rabbits; bee swarms; adult cattle culled from the main herd for sale (without fattening); livestock accepted from household for sale. Rearing and fattening costs shall be accounted on Account 20 (Main production) or Account 29 (Service production units and farms).

The acquisition of domestic animals from other organisations and persons shall be reflected in debit of Account 11 (Domestic animals for rearing and fattening) and in credit of Account 15 (Procurement and acquisition of materials values) or Account 60(Settlements with suppliers and contractors) and of other relevant accounts (to the sum of expenses on delivery and other similar expenses).

Animals culled from the main herd shall be accepted for accounting on Account 11 (Domestic animals for rearing and fattening) from credit of Account 01 (Fixed assets) (productive livestock according to initial cost; productive livestock in the amount actually received from sale and culling).

Young animals received as offspring shall be registered in debit of Account 11 (Domestic animals for rearing and fattening) and in credit of the account on which expenses are recorded for the maintenance of animals which yielded offspring.

The cost of the gain in weight of young cattle, pigs and animals for fattening or grazing, and also the cost of the gain in weight of young animals (foals, etc.) shall be debited every month to Account 11 (Domestic animals for rearing and fattening) from credit of the account, which recorded the costs of rearing these animals, at planned cost-price of rearing. At the end of the reporting year it is necessary to make a record (reversed or additional), which corrects the cost of gain in weight or in addition, accepted for accounting during the reporting year at planned cost-price of rearing, until the actual cost-price of rearing.

Young animals transferable to the main herd shall be charged off Account 11 (Domestic animals for rearing and fattening) in debit of Account 08 (Placements in extra-floating assets). When young animals are transferred to the main herd, it is necessary to debit Account 01 (Fixed assets) and to credit Account 08 (Placements in extra-floating assets).

The retirement elsewhere of animals whose cost is accounted on Account 11 (Domestic animals for rearing and fattening), including the delivery to procurement organisations of domestic animals culled from the main herd, shall be reflected in credit of Account 11 (Domestic animals for rearing and fattening) and in debit of Account 90 (Sales) with the simultaneous reflection in credit of Account 90 (Sales) of the sums of money due to the organisation for these animals from the buyer in correspondence with debit of Account 62 (Settlements with buyers and customers). When animals culled from the main herd are delivered to livestock procurement organisations without placing them for fattening, sales shall be reflected directly from credit of Account 01(Fixed assets) in debit of Account 91 (Other incomes and expenses).

The cost of fallen or slaughtered animals, except for those which fell in connection with an epizooty or disaster, shall be reflected as spoilage of values in credit of Account 11 (Domestic animals for rearing and fattening) and in debit of Account 94 (Shortage and losses from damage to values). Skins, horns, hoofs, technical fats, etc., received from the fallen or slaughtered animals, shall be assessed at the prices of the possible use or sale and credited from credit of the account which records the cost of rearing animals as livestock secondary output. The cost of the animals fallen or slaughtered in connection with an epizooty or disasters and other developments shall be written off from Account 11 (Domestic animals for rearing and fattening) directly in debit of Account 99 (Other incomes and expenses).

Analytical accounting on Account 11 (Domestic animals for rearing and fattening) shall be kept according to the places of stock keeping, the types and age groups, sex, etc., established for accounting expenses on the rearing and fattening of domestic animals.

 

Account 11 (Domestic animals for rearing and fattening)

 

               in debit                                             in credit

 

01   Fixed assets                                   08   Investments in non-current

                                                                           assets

11   Domestic animals for rearing     11   Domestic animals  for   rearing

     and fattening                                              and fattening

15   Procurement and  acquisition     20   Main production

     of material  values                            23   Auxiliary services

20   Main production                              29   Service  production  units  and

23   Auxiliary services                                     farms

29   Service production units and       45   Shipped goods

     farms                                                   76   Settlements    with     various

44   Expenses on sales                                debtors and creditors

60   Settlements  with  suppliers        79   Intra-economic settlements

     and contractors                                 80   Authorised capital

66   Payments   for    short-term          90   Sales

     credits and loans                              91   Other incomes and expenses

67   Payments    for    long-term          94   Shortages and    losses    from

     credits and loans                                      damage to values

68   Payments for taxes and fees       99   Profits and losses

71   Settlements with accountable

     persons

75   Settlements with founders

76   Settlements   with   various

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

86   Target-oriented financing

91   Other incomes and expenses

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended the characteristics of account 14 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 14 "Reserves Against the Reduction of the Value
of Material Assets"

 

Account 14 (Reserves against the reduction of the value of material assets) is intended for the generalisation of information about reserves against deviations in the cost of raw and auxiliary materials, fuel and other values, computed on accounts of accounting, from market cost (Reserves against the reduction of the value of material assets). This account shall be also applied to generalise information about reserves against the reduction of the value of other funds in turnover: incomplete production, finished products, goods, etc.

The formation of reserves against the reduction of the value of material assets shall be reflected in accounting in credit of Account 14 (Reserves against the reduction of the value of material assets) and in debit of Account 91 (Other incomes and expenses). In the next accounting period as the write-off of the material valuables for which the reserve is maintain progresses, the reserves amount shall be restored: a record shall be made in debit of Account 14 (Reserves against the reduction of the value of material assets) and in credit of Account 91 (Other incomes and expenses). A similar entry shall be made if an increase occurs in the market value of the material valuables for which the reserves concerned have been maintained.

Analytical accounting in Account 14 (Reserves against the reduction of the value of material assets) shall be kept for each reserve.

 

Account 14 (Reserves against the reduction of the value
of material assets) corresponds with the accounts:

 

               in debit                                                   in credit

 

91   Other incomes and expenses            91   Other incomes and expenses

 

Account 15 "Procurement and Acquisition of Material Assets"

 

Account 15 (Procurement and acquisition of material assets) is intended for the generalisation of information about the procurement and acquisition of inventories referring to funds in turnover.

The purchased value of inventories, for which the accounting documents of suppliers were delivered to the respective organisation shall be charged in debit of Account 15 (Procurement and acquisition of material assets). Records shall be made in correspondence with Account 60 (Settlements with suppliers and contractors), Account 20 (Main production), Account 23 (Auxiliary services), Account 71 (Settlements with accountable persons), Account 76 (Settlements with various debtors and creditors), etc. depending on the place from which the values came and on the character of expenses on the procurement and delivery of inventories to the organisations concerned.

The value of inventories received and registered by the respective organisation shall be charged in credit of Account 15 (Procurement and acquisition of material assets) in correspondence with Account 10 (Materials).

The amount of the difference in the value of acquired inventories calculated at the actual cost price of acquisition (procurement) and accounting prices shall be debited from Account 15 (Procurement and acquisition of material assets) to Account 16(Deviation in the value of material assets).

Balance on Account 15 (Procurement and acquisition of material assets) at the end of a month shows the presence of inventories en route.

 

Account 15 (Procurement and acquisition of material assets)
corresponds with the accounts:

 

               in debit                                           in credit

 

16   Deviation in the value of             07   Equipment for installation

     materials assets                           10   Materials

20   Main production                          11   Domestic  animals  for  rearing

23   Auxiliary services                                and fattening

44   Expenses on sales                      16   Deviation in   the   value   of

60   Settlements with  suppliers               material assets

     and contractors                              41   Goods

68   Payments of  taxes and fees        76   Settlements with        various

71   Settlements with accountable          debtors and creditors

     persons                                          79   Intra-economic settlements

75   Settlements with founders            80   Authorised capital

76   Settlements   with  various            91   Other incomes and expenses

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

86   Target-oriented financing

91   Other incomes and expenses

 

Account 16 "Deviation in the Value of Material Assets"

 

Account 16 (Deviation in the value of material assets) is intended for the generalisation of information about differences in the value of acquired inventories, calculated in the actual cost price of acquisition (procurement) and accounting prices, and also about the data characterising amount differences.

The amount of a difference in the value of acquired inventories calculated in the actual cost price of acquisition (procurement) and accounting prices, shall be written off in debit or credit of Account 16 (Deviation in the value of materials assets) from Account 15 (Procurement and acquisition of material assets).

Differences in the value of acquired inventories calculated in the actual cost price of acquisition (procurement), accumulated on Account 16 (Deviation in the value of material assets) and in accounting prices shall be written off (reserved in case of a negative difference) in debit of the accounts recording costs of production (costs of sales) or of other relevant accounts.

Analytical accounting on Account 16 (Deviation in the value of material assets) shall be kept by groups of inventories with approximately similar level of these deviations.

 

Account 16 (Deviation in the value of materials assets)
corresponds with the accounts:

 

               in debit                                                      in credit

 

15   Procurement and acquisition                08   Investments in   non-current

     of material assets                                               assets

79   Intra-economic settlements                   15   Procurement and  acquisition of

80   Authorised capital                                             material assets

                                                                           20   Main production

                                                                           23   Auxiliary services

                                                                           25   General production costs

                                                                           26   General economic costs

                                                                           29   Service  production  units  and

                                                                                  farms

                                                                           44   Expenses on sales

                                                                           79   Intra-economic settlements

                                                                           80   Authorised capital

                                                                           91   Other incomes and expenses

                                                                          94   Shortage and losses from damage

                                                                                     to values

                                                                         97   Deferred expenses

                                                                         99   Profits and losses

 

Account 19 "Value-added Tax on Acquired Values"

 

Account 19 (Value-added tax on acquired values) is intended for the generalisation of information about VAT paid (due to be paid) by the organisation on acquired values, and also works and services.

The following subaccounts may be opened for Account 19 (Value-added tax on acquired values):

19-1 Value-added tax on acquired fixed assets;

19-2 Value-added tax on acquired intangible assets;

19-3 Value-added tax on acquired inventories, etc.

On Subaccount 19-1 (Value-added tax on acquired fixed assets) it is necessary to account the amounts of VAT paid (due to be paid) by the organisation on the construction and acquisition of facilities of fixed assets (including separate facilities of fixed assets, land plots and objects for the utilisation of material resources).

On Subaccount 19-2 (Value-added tax on acquired intangible assets) it is necessary to record the amounts of VAT paid (due to be paid) by the organisation on the acquired intangible assets.

On Subaccount 19-3 (Value-added tax on acquired inventories) it is necessary to record the amounts of VAT paid (due to be paid) by the organisation on acquired raw and auxiliary materials, semi-finished products and other productive supplies, and also goods.

 

On the accounting for the value-added tax on bought materials, see the Methodical Instructions on Inventory Accounting approved by Order of the Ministry of Finance of the Russian Federation No. 119n of December 28, 2001

 

Amounts of VAT on acquired inventories, intangible assets and fixed assets, paid (or due to be paid) by the organisation shall be reflected in debit of Account 19 (Value-added tax on acquired values) in correspondence with the accounts recording payments.

The write-off of the VAT amounts, accumulated on Account 19 (Value-added tax on acquired values), shall be reflected in credit of Account 19 (Value-added tax on acquired values) in correspondence, as a rule, with Account 68 (Payments for taxes and fees).

 

Account 19 (Value-added tax on acquired values) corresponds
with the accounts:

 

60   Settlements with  suppliersb   80   Investments in  non-current

     and contractors                                     assets

76   Settlements with    various       20   Main production

     debtors and creditors                  23   Auxiliary services

                                                              25   General production costs

                                                              26   General economic costs

                                                              29   Service  production  units  and

                                                                      farms

                                                              44   Expenses on sales

                                                             68   Payments of  taxes and fees

                                                             91   Other incomes and expenses

                                                             94   Shortages and    losses    from

                                                                     damage to values

                                                             99   Profits and losses

 

 

Section III.
Production Costs

 

Accounts of this Section are intended for the generalisation of information about expenses on the common types of activity of organisations (except for expenses on sales).

Information about expenses on common types of activity shall be formed on Accounts 20-29 or on accounts 20-39. In this case Account 20-29 shall be used for the grouping of expenses on items, places of appearance and other signs, and also for the calculation of prime cost of products (works, services); Account 30-39 shall be applied to account expenses according to elements of costs. The interconnection of the accounting of expenses on items and elements shall be realised with the aid of specially opened reflecting accounts. The composition and methods of use of Accounts 20-39 in such a variant of accounting shall be established by the organisation proceeding from the special features of the activity, structure and organisation of management on the basis of the relevant recommendations of the Ministry of Finance of the Russian Federation.

 

Account 20 "Main Production"

 

Account 20 (Main production, or core production) is intended for the generalisation of information about costs of production, whose products (works, services) were the purpose of setting up the given organisation, In particular, this account shall be used to account outlays on:

the output of industrial and agricultural products;

the performance of building and assembly works, geological prospecting, and design and survey works;

the rendering of services by transport and communication organisations;

the performance of scientific and research and development works;

 

See Accounting Regulations Records of Expenditure on Research and Development and Technological Works PBU 17/02 approved by Order of the Ministry of Finance of the Russian Federation No. 115n of November 19, 2002

 

the maintenance and repair of motor roads, etc.

In debit of Account 20 (Main production) it is necessary to reflect the direct expenses on the output of products, the performance of works and the rendering of services, and also the expenses of auxiliary production units, indirect expenses on the management and service of basic industries, and losses from spoilage. Direct expenses on the output of products, the performance of works and the provision of services shall be written off to Account 20 (Main production) from credit of accounts recording productive supplies, the payroll settlements with workers, etc. Costs of auxiliary services shall be written off to Account 20 (Main production) from credit of Account 23 (Auxiliary services). Indirect expenses on the management and service of production shall be written off to Account 20 (Main production) from Account 25 (General production costs) and Account 26(General economic costs). Losses from spoilage shall be written off to Account 20 (Main production) from credit of Account 28(Spoilage in production).

In credit of Account 20 (Main production) it is necessary to reflect the amounts of the actual prime cost of finished products, performed works and services. These amounts may be written off from Account 20 (Main production) in debit of Account 43(Finished products), Account 40 (Output of products, works, services), and Account 90 (Sales), etc.

Balance on Account 20 (Main production) at the end of a month shows the value of incomplete production.

Analytical accounting on Account 20 (Main production) shall be kept according to the types of costs and the types of the output (works, services). If information about expenses on common types of activity is not formed on Account 20-39, analytical accounting on Account 20 (Main production) shall also be realised in the subdivisions of the organisation concerned.

 

Account 20 (Main production) corresponds
with the accounts:

 

               in debit                                                   in credit

 

02   Depreciation of fixed assets        10   Materials

04   Intangible assets                           11   Domestic animals  for   rearing

05   Depreciation of  intangible                       and fattening

     assets                                                 15   Procurement  and acquisition of

10   Materials                                                   values

11   Domestic  animals for                  20   Main production

     rearing and fattening                       21   Semi-finished  products of  own

16   Deviation in  the  value  of                    manufacture

     material assets                                28   Spoilage in production

19   Value-added tax on  acquired     40   Output of   products    (works,

     values                                                         services)

20   Main production                             43   Finished products

21   Semi-finished  products   of        45   Shipped goods

     own manufacture                             76   Settlements with        various

23   Auxiliary services                                 debtors and creditors

25   General production costs            79   Intra-economic settlements

26   General economic costs             80   Authorised capital

28   Spoilage in production                 86   Target-oriented financing

40   Output  of products  (works,        90   Sales

     services)                                            91   Other incomes and expenses

41   Goods                                              94   Shortages and    losses    from

43   Finished products                                 damage to values

60   Settlements with  suppliers        99   Profits and losses

     and contractors

68   Payments of  taxes and fees

69   Payments for         social

     insurance    and     social

     security

70   Payroll settlements with

     personnel

71   Settlements with accountable

     persons

75   Settlements with founders

76   Settlements with    various

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

86   Target-oriented financing

91   Other incomes and expenses

94   Shortages  and  losses  from

     damage to values

96   Reserves for    forthcoming

     expenses

97   Deferred expenses

 

Account 21 "Semi-finished Products of Own Manufacture"

 

Account 21 (Semi-finished products of own manufacture) is designed for the generalisation of information about the presence and movement of semi-finished products of own manufacture in organisations keeping isolated accounting. In particular, this account may reflect the following semi-finished products manufactured by the respective organisation (having a full production cycle): conversion pig iron in ferrous metallurgy; uncured rubber and adhesive in the rubber industry; sulphuric acid in integrated complexes producing fertilizers in the chemical industry, yarn and unbleached stuff in the textile industry, etc.

Organisations which do not keep separate accounting of their semi-finished products shall reflect these values as part of incomplete production, that is, on Account 20 (Main production).

In debit of Account 21 (Semi-finished products of own manufacture) it is necessary to reflect the costs of production of semi-finished products in correspondence, as a rule, with Account 20 (Main production).

In credit of Account 21 (Semi-finished products of own manufacture it is necessary to reflect the value of semi-finished products transferred for further processing [in correspondence with Account 20 (Productive work), etc.] and sold to other organisations and to persons [in correspondence with Account 90 (Sales)].

Analytical accounting on Account 21 (Semi-finished products of own manufacture) shall be kept by places of storage of semi-finished products and individual denominations (types, sorts, dimensions, etc.).

 

Account 21 (Semi-finished products of own manufacture)
corresponds with the accounts:

 

               in debit                                            in credit

 

20   Main production                            20   Main production

23   Auxiliary services                          23   Auxiliary services

40   Output of products  (works,        25   General production costs

     services)                                          26   General economic costs

79   Intra-economic settlements      28   Spoilage in production

80   Authorised capital                       45   Shipped goods

91   Other incomes and expenses  76   Settlements with various

                                                                        debtors and creditors

                                                             79   Intra-economic settlements

                                                             80   Authorised capital

                                                             90   Sales

                                                             91   Other incomes and expenses

                                                             94   Shortages and    losses    from

                                                                    damage to values

                                                             99   Profits and losses

 

Account 23 "Auxiliary Services"

 

Account 23 (Auxiliary services) is intended for the generalisation of information about the costs of services, which are auxiliary for the organisaion's core production. In particular, this account shall be used to account the outlays of production units ensuring:

the service with different types of energy (electric power, steam gas, air, etc.);

transport service;

the repair of fixed assets;

the manufacture of tools, stamps, spare parts; building elements, constructions or the enrichment of building materials (basically in construction organisations);

the erection of (temporary) non-itemised structures;

the extraction of stone, gravel, sand and other non-metallic materials;

lumbering and timber sawing;

pickling, drying and tinning of farm products, etc.

In debit of Account 23 (Auxiliary services) it is necessary to reflect direct expenses on the output of products, the performance of works and the provision of services, and also indirect expenses on the management and servicing of auxiliary services, and spoilage losses. Direct expenses on the output of products, the performance of work and the provisions of services shall be written off to Account 23 (Auxiliary services) from credit of the accounts recording productive supplies, payroll settlements with workers, etc. Indirect expenses on the management and service of auxiliary services shall be written off to Account 23 (Auxiliary services) from Account 25 (General production expenses), and Account 26 (General economic expenses). If expedient expenses on the servicing of production may be accounted directly on Account 23 (Auxiliary services) without preliminary accumulation on Account 25 (General production expenses). Spoilage losses shall be written off to Account 23 (Auxiliary services) from credit of Account 28 (Spoilage in production).

Amounts of the actual prime cost of finished products, performed works and rendered services shall be reflected in credit of Account 23 (Auxiliary services). These amounts shall be written off from Account 23 (Auxiliary services) in debit of the following accounts:

Account 20 (Main production) - during the release of products (works, services) to core production;

Account 29 (Service production units and farms) - during the release of products (works, services) to the service production units and farms;

Account 90 (Sales) - during the performance of works and services for outside organisations;

Account 40 (Release of products, works, services) - when this account is used to keep a record of costs of production, etc.

Balance on Account 23 (Auxiliary services) at the end of a month shows the value of incomplete production.

Analytical accounting on Account 23 (Auxiliary services) shall be kept by type of productive services.

 

Account 23 (Auxiliary services) corresponds
with the accounts:

 

               in debit                                                          in credit

 

02   Depreciation of fixed assets            07   Equipment for installation

04   Intangible assets                               08   Investments in non-current

05   Depreciation of intangible                       assets

     assets                                                     10   Materials

07   Equipment for installation                11   Domestic  animals  for  rearing

10   Materials                                                       and fattening

11   Domestic animals for                       15   Procurement and acquisition  of

     rearing and fattening                                    material assets

16   Deviation in the cost of                     20   Main production

     material assets                                    21   Semi-finished  products  of own

19   Value-added tax on  acquired                manufacture

     values                                                     23   Auxiliary services

21   Semi-finished  products   of            25    General production costs

     own manufacture                                 26    General economic costs

23   Auxiliary services                               28   Spoilage in production

25   General production costs                29   Service production  units   and

26   General economic costs                         farms

28   Spoilage in production                     40   Release of   products   (works,

40   Release of products (works,                   services)

     services)                                                43   Finished products

43   Finished products                             44   Expenses on sales

60   Settlements with  suppliers            45   Shipped products

     and contractors                                    73   Settlements with  personnel  on

68   Payments of  taxes and fees                  other transactions

69   Payments for         social                 76   Settlements with various

     insurance    and     social                         debtors and creditors

     security                                                 79   Intra-economic settlements

70   Payroll   settlements  with              80   Authorised capital

     personnel                                            90   Sales

71   Settlements            with                   91   Other incomes and expenses

     accountable persons                        94   Shortages and    losses    from

76   Settlements with    various                    damage to values

     debtors and creditors                       96   Reserves for        forthcoming

79   Intra-economic settlements                  expenses

80   Authorised capital                           97   Deferred expenses

91   Other incomes and expenses     99   Profits and losses

94   Shortages and  losses  from

     damage to values

96   Reserves for    forthcoming

     expenses

97   Deferred expenses

 

Account 25 "General Production Expenses"

 

Account 25 (General production expenses) is intended for the generalisation of information about expenses on the servicing of basic and auxiliary services of the organisation concerned. In particular, this account may reflect the following expenses: on the maintenance and operation of machinery and equipment; depreciation deductions and expenses on the repair of fixed assets and other assets used in production; expenses on the insurance of said assets; expenses on heating, lighting and the maintenance of premises; rental of premises, machines, equipment, etc. used in production; payment of the labour of workers engaged in production and other similar expenses.

General production expenses shall be reflected in Account 25 (General production expenses) from credit of the accounts recording productive supplies, payroll settlements with workers, etc. Expenses accounted in Account 25 (General production expenses) shall be written off in debit of Account 20 (Main production), Account 23 (Auxiliary services), Account 29 (Service production units and farms).

Analytical accounting in Account 25 (General production expenses) shall be kept by separate subdivision of the organisation and by item of expenses.

 

Account 25 (General production expenses) corresponds
with the accounts:

 

               in debit                                                   in credit

 

02   Depreciation of fixed assets                10   Materials

04   Intangible assets                                   20   Main production

05   Depreciation of intangible                    23   Auxiliary services

     assets                                                         28   Spoilage in production

10   Materials                                                  29   Service     production      and

16   Deviation in the value  of                              household units

     material assets                                         76   Settlements    with     various

19   Value-added     tax     on                               debtors and creditors

     acquired values                                         79   Intra-economic settlements

21   Semi-finished products  of                   97   Deferred expenses

     own manufacture                                      99   Profits and losses

23   Auxiliary services

29   Service   production   and

     household units

43   Finished products

60   Settlements with suppliers

     and contractors

69   Payments    for     social

     insurance    and    social

     security

70   Payroll     settlements

     with personnel

71   Settlements           with

     accountable persons

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

94   Shortages and losses  from

     damage to values

96   Reserves  for  forthcoming

     expenses

97   Deferred expenses

 

Account 26 (General economic expenses)

 

Account 26 (General economic expenses) is designed to generalise information about the needs of management that are not connected directly with the production process. In particular, this account may reflect the following expenses: administrative and executive expenses; the maintenance of the general managerial staff not connected with the production process; depreciation deductions and expenses on the repair of fixed assets with designated administrative and general economic purpose; rental of premises for general economic purposes; expenses on payments for information, audit, consultation and other services; other similar administrative expenses.

General economic expenses shall be reflected in Account 26 (General economic expenses) from credit of accounts recording productive supplies and payroll settlements with workers, settlements with other organisations or persons, etc.

Expenses recorded on Account 26 (General economic expenses) shall be written off, in particular, in debit of Account 20 (Main production), Account 23 (Auxiliary services), for auxiliary services produced articles and works and services rendered elsewhere, Account 29 (Service production and household units), if service production units performed works and services rendered elsewhere.

The said expenses as conditionally permanent may be written in debit of Account 90 (Sales).

Organisations whose activity is not connected with the production process (commission agents, brokers, agents, dealers, etc. except organisations engaged in trade) shall make use of Account 26 (General economic expenses) for the generalisation of information about expenses on this activity. These organisations shall write off the amounts accumulated on Account 26 (General economic expenses) in debit of Account 90 (Sales).

Analytical accounting on Account 26 (General economic expenses) shall be kept by each item of relevant estimates, place of emerging costs, etc.

 

Account 26 (General economic expenses) corresponds
with the accounts:

 

               in debit                                                   in credit

 

02   Depreciation of fixed assets             08   Investments in non-current

04   Intangible assets                                         assets

05   Depreciation of intangible                 10   Materials

     assets                                                      20   Main production

10   Materials                                                23   Auxiliary services

16   Deviation in the value  of                     28   Spoilage in production

     material assets                                       29   Service     production      and

19   Value-added     tax     on                              household units

     acquired values                                      76   Settlements    with     various

21   Semi-finished products  of                            debtors and creditors

     own manufacture                                    79   Intra-economic settlements

23   Auxiliary services                                   86   Target-oriented financing

29   Service   production   and                     90   Sales

     household units                                        97   Deferred expenses

43   Finished products                                  99   Profits and losses

60   Settlements with suppliers

     and contractors

68   Payments of taxes and fees

69   Payments    for     social

     insurance    and    social

     security

70   Payroll  settlements

     with personnel

71   Settlements           with

     accountable persons

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

94   Shortages and losses  from

     damage to values

96   Reserves  for  forthcoming

     expenses

97   Deferred expenses

 

Account 28 (Spoilage in production)

 

Account 28 (Spoilage in production) is intended for the generalisation of information about losses from rejects in production.

In debit of Account 28 (Spoilage in production) it is necessary to collect expenses on the revealed internal and external rejects (the value of irreparable or definite spoilage, expenses on correction, etc.).

In credit of Account 28 (Spoilage in production) it is necessary to reflect the amounts attributed to the diminution of losses from spoilage (the value of rejected products at the price of possible use, amounts subject to deduction from persons guilty of spoilage, amounts subject to recovery from suppliers for the delivery of defective materials or semi-finished products, which resulted in spoilage, etc.), and also amounts written off into production costs as losses from spoilage.

Analytical account on Account 28 (Spoilage in production) shall be kept by separate subdivision of the organisation concerned, type of production, item of expenses, reason for defects and person guilty of spoilage.

 

Account 28 (Spoilage in production) corresponds
with the accounts:

 

               in debit                                          in credit

 

10   Materials                                          10   Materials

20   Main production                              20   Main production

21   Semi-finished products  of           23   Auxiliary services

     own manufacture                              29   Service     production      and

23   Auxiliary services                                   household units

25   General         production                73   Settlements with      personnel

     expenses                                                   for other operations

26   General household expenses     76   Settlements    with     various

40   Output of products (works,                    debtors and creditors

     services)                                             91   Other incomes and expenses

43   Finished products                          96   Reserves    for     forthcoming

60   Settlements with suppliers                  expenses

     and contractors                                 99   Profits and losses

69   Payments    for     social

     insurance    and    social

     security

70   Payroll  settlements

     with personnel

71   Settlements           with

     accountable persons

76   Settlements  with  various

     debtors and creditors

91   Other incomes and expenses

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended the characteristics of account 29 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 29 (Service production and household units)

 

Account 29 (Service production and household units) is intended for the generalisation of information about expenses on the output of products, the performance of works and the provision of services by service production and household units of the organisation concerned.

This account may reflect the costs of the service production and household units kept on the organisation's balance whose activity is not connected with the output of products, the performance of works and the provision of services but pursue the purpose of the support of the given organisation: the housing and communal services (the maintenance of dwelling houses, hostels, laundries, public baths, etc.); tailoring and dress-making establishments and other workshops for everyday service; canteens and snack bars, preschool establishments for children (kindergartens and day nurseries); holiday homes, sanatoria and other health-improvement, cultural and educational establishments.

In debit of Account 29 (Service production and household units) it is necessary to reflect direct expenses on the output of products, the performance of works and the provision of services, and also expenses of auxiliary services. Direct expenses shall be written off to Account 29 (Service production and household units) from credit of the accounts recording productive supplies, payroll settlements with workers, etc. The expenses of auxiliary services shall be written off to Account 29 (Service production and household units) from credit of Account 23 (Auxiliary services).

In credit of Account 29 (Service production and household units) it is necessary to reflect the amounts of the actual prime cost of finished products, performed works and rendered services. These amounts shall be written off from Account 29 (Service production and household units) in debit of the following accounts:

the accounts recording material values and finished articles issued by the service production and household services;

the account recording expenses of customers of works and services performed by service production and household units;

Account 90 (Sales), when works and services performed by service production and household units are sold to outside organisations and private persons, etc.

The balance on Account 29 (Service production and household units) at the end of a month shows the value of incomplete production.

Analytical accounting on Account 29 (Service production and household units) shall be kept for each service production and household unit and for separate items of expenses for these units.

 

Account 29 (Service production and household units)
corresponds with the accounts:

 

               in debit                                      in credit

 

02   Depreciation of fixed assets       10   Materials

04   Intangible assets                          11   Domestic animals  for   rearing

05   Depreciation of intangible                   and fattening

     assets                                                25   General production expenses

10   Materials                                         26   General household expenses

11   Domestic    animals    for            29   Service  production  units  and

     rearing and fattening                             farms

16   Deviation in the value  of             40   Output  of   products   (works,

     material assets                                     services)

19   Value-added     tax     on               43   Finished products

     acquired values                               44   Expenses on sales

23   Auxiliary services                          45   Shipped goods

25   General         production              73   Settlements with personnel

     expenses                                                for other operations

26   General household expenses   76   Settlements    with     various

28   Spoilage in production                         debtors and creditors

29   Service   production   and            79   Intra-economic settlements

     household units                               80   Authorised capital

60   Settlements with suppliers         90   Sales

     and contractors                                91   Other incomes and expenses

68   Payments  of taxes and fees       94   Shortages   and   losses   from

69   Payments    for     social                       damage to values

     insurance    and    social                 96   Reserves    for     forthcoming

     security                                                       expenses

70   Payroll settlements                        97   Deferred expenses

     with personnel                                  99   Profits and losses

71   Settlements with

     accountable persons

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

91   Other incomes and expenses

94   Shortages and losses  from

     damage to values

96   Reserves  for  forthcoming

     expenses

97   Deferred expenses

 

Section IV
Finished Products and Goods

 

See the Accounting Regulations "Inventory Accounting" PBU 5/01, endorsed by Order of the Ministry of Finance of the Russian Federation No. 44n of June 9, 2001

 

The accounts of this Section are intended for the generalisation of information about the presence and movement of finished products (Manufactured products) and goods.

 

Account 40 (Release of products, works, services)

 

Account 40 (Release of products, works, services) is designed to generalise information about released products, works, delivered to customers and rendered services over the reporting period, and also to reveal deviations in the actual production costs of these products, works, services from normative (planned) prime costs. This account shall be used by the organisation concerned in case of necessity.

In debit of Account 40 (Release of products, works, services) it is necessary to reflect the actual production costs of finished products, delivered works and rendered services [in correspondence with Account 20 (Main production), Account 23 (Auxiliary services) and Account 29 (Service production and household units)].

In credit of Account 40 (Release of products, works, services) it is necessary to reflect the normative (planned) costs of finished products, delivered works and rendered services [in correspondence with Account 43 (Finished products) and Account 90 (Sales), etc.]

The comparison of debit and credit turnovers in Account 40 (Release of products, works, services) on the last day of a month determines the deviation of the actual production costs of finished products, delivered works and rendered services from normative (planned) costs. Saving, that is the excess of normative (planned) costs over the actual costs shall be reversed in credit of Account 90 (Sales). Overexpenditure, that is the excess of actual costs over normative (planned) costs, shall be written off from Account 40 (Release of products, works, services) in debit of Account 90 (Sales) by an additional entry.

Account 40 (Release of products, works, services) shall be closed every month and does not have a balance on the reporting date.

 

Account 40 (Release of products, works, services)
corresponds with the accounts:

 

               in debit                                    in credit

 

20   Main production                        10   Materials

23   Auxiliary services                      20   Main production

29   Service   production   and       21   Semi-finished products  of  own

     household units                                manufacture

79   Intra-economic settlements   23   Auxiliary services

                                                             28   Spoilage in production

                                                             43   Finished products

                                                             79   Intra-economic settlements

                                                             90   Sales

 

Account 41 (Goods)

 

Account 41 (Goods) is intended for the generalisation of information about the presence and movement of inventories acquired as goods for sale. This account shall be used chiefly by trading organisations, and also by organisations engaged in public catering.

In organisations carrying out industrial and any other production activity, Account 41 (Goods) shall be used when any articles, materials and food products are acquired specially for sale or when the value of finished items acquired for completeness is not included in the cost price of sold products but is to be compensated by buyers separately.

Trading organisations shall also record on Account 41 (Goods) purchased containers or containers of their own manufacture (except for inventory containers serving production and economic needs and recorded on Account 01 (Fixed assets) or Account10 (Materials).

Goods taken for safe-keeping shall be recorded on Off-balance Account 002 (Material assets taken for safe-keeping). Goods taken on commission shall be recorded on Off-balance Account 004 (Goods) taken on commission).

The following subaccounts may be opened for Account 41 (Goods):

41-1 (Goods in warehouses);

41-2 (Goods in retail trade)

41-3 (Containers with goods and empty containers)

41-4 (Purchased items), etc.

On Subaccount 41-1 (Goods in warehouses) it is necessary to record the presence and movement of commodity stocks in wholesale and distribution bases, warehouses and store-rooms rendering public catering services, in vegetable and cold stores, etc.

On Subaccount 41-2 (Goods in retail trade) it is necessary to register the presence and movement of goods in organisations engaged in retail trade (in shops, market stalls, booths, kiosks, etc.) and in snack bars of public catering organisations. On this Account it is necessary to registered the presence and movements of glass-ware (bottles, pots, etc.) in retail trade organisations and in snack bars of organisations rendering public catering services.

On Subaccount 41-3 (Containers with goods and empty containers) it is necessary to register the presence and movement of containers with goods and empty containers (except for glass-ware in retail trade organisations and in snack bars of organisations rendering public catering services).

On Subaccount 41-4 (Purchased items) organisations engaged in industrial and any other production activity and using Account 41 (Goods) shall register the presence and movement of goods (with reference to the procedure for recording production supplies).

The reception of goods and containers at a warehouse shall be reflected in debit of Account 41 (Goods) in correspondence with Account 60 (Settlements with suppliers and contractors) at the value of their acquisition. When the retail trade organisation registers goods at selling prices, it shall make a record simultaneously with a record in debit of Account 41 (Goods) and in credit of Account 42 (Markup) on the difference between the value of acquisition and the value at selling prices (Discounts and surcharges). Transport (for delivery) and other costs of the procurement and delivery of goods shall be charged from credit of Account 60 (Settlements with suppliers and contractors) in debit of Account 44 (Expenses on sales).

The reception of goods and containers may be reflected with the use of Account 15 (Procurement and acquisition of material values) or without its use in a procedure similar to the procedure for recording relevant operations in materials.

When proceeds from the sale of goods are recognised in accounts, their value shall be written off from Account 41 (Goods) in debit of Account 90 (Sales).

If proceeds from the sale of released (shipped) goods may not be recognised in accounting for a definite time, these goods shall be recorded on Account 45 (Shipped goods) until the time of recognition of the proceeds. When goods are released or shipped in actual fact, it is necessary to make a record in credit of Account 41 (Goods) in correspondence with Account 45(Shipped goods).

Goods transferred to other organisations for processing shall not be debited from Account 41 (Goods), but shall be registered separately.

Analytical accounting on Account 41 (Goods) shall be kept by responsible person, denomination (sorts, batches and bundles) and by place of storage if necessary.

 

Account 41 (Goods) corresponds with the accounts:

 

               in debit                                  in credit

 

15   Procurement  and                  10   Materials

     acquisition  of   material          20   Main production

     assets                                         41   Goods

41   Goods                                       44   Expenses on sales

42   Markup                                      45   Shipped goods

60   Settlements with suppliers  76   Settlements    with     various

     and contractors                                 debtors and creditors

66   Payments  for   short-term    79   Intra-economic settlements

     credits and loans                      80   Authorised capital

67   Payments   for   long-term    90   Sales

     credits and loans                      94   Shortages   and   losses   from

68   Payments of  taxes and fees      damage to values

71   Settlements           with            97   Deferred expenses

     accountable persons                99   Profits and losses

73   Settlements    with

     personnel    for     other

     operations

75   Settlements with founders

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

80   Authorised capital

86   Target-oriented financing

91   Other incomes and expenses

 

Account 42 (Markup)

 

Account 42 (Markup) is intended for the generalisation of information about markups (discounts and surcharges) on goods in retail trade organisations, if their accounting is kept at selling prices.

On Account 42 (Markup) it is also necessary to reflect discounts granted by suppliers to retail trade organisations on possible losses of goods, and also on the compensation of additional transport costs.

When goods are accepted for accounting records at the sums of a markup (discounts, surcharges), it is necessary to credit Account 42 (Markup).

Amounts of markup (discounts and surcharges) on goods, sold, released or written off due to natural losses, spoilage, damage, shortage, etc., shall be reversed in credit of Account 42 (Markup) in correspondence with debit of Account 90 (Sales) and other relevant accounts. Amounts of discounts or surcharges relating to unsold goods shall be clarified on the basis of inventory bills by means estimating the due discount or surcharges on goods in accordance with fixed dimensions.

Amount of a discount from, or surcharge on, the stock in trade in retail trade organisations may be estimated according to interest calculated on the basis of the ratio of the amount of discounts from, or surcharges on, the stock in trade at the beginning of a month and of turnovers in credit of Account 42 (Markup) (disregarding reversed amounts) to the sum of goods sold over a month (at selling prices) and of the stock in trade at the end of a month (at selling prices).

Analytical accounting on Account 42 (Markup) shall ensure a separate reflection of the amounts of discounts or surcharges and of differences between the prices of goods in retail trade organisations and shipped goods.

 

Account 42 (Markup) corresponds with the accounts:

 

               in debit                            in credit

 

                                    41   Goods

                                    44   Expenses on sales

                                    90   Sales

                                    94   Shortages   and   losses   from

                                         damage to values

 

Account 43 (Finished products)

 

Account 43 (Finished products) is designed to generalise information about the presence and movement of finished products. This account shall be used by organisations engaged in industrial, agricultural and other production activity.

Ready-made articles acquired for completeness (whose value is not included in the prime cost of the organisation's products) or as commodities for sale shall be recorded on Account 41 (Goods). The value of performed works and rendered services on Account 43 (Finished products) shall not be reflected, whereas actual expenses on them shall be written off to the extent of sale from the accounts recording production costs to Account 90 (Sales).

The acceptance for accounting of finished products manufactured for sale, including products partially intended for meeting the organisation's own needs, shall be reflected in debit of Account 43 (Finished products) in correspondence with the accounts recording production costs or of Account 40 (Release of products, works, services). If all finished products are sent for use in the organisation itself, they may not be credited in Account 43 (Finished products), but shall be registered on Account 10 (Materials) and on other similar accounts depending on the purpose of these products.

When proceeds from the sale of finished products are recognised in accounting their value shall be written off Account 43 (Finished products) in debit of Account 90 (Sales).

If proceeds from the sale of shipped products may not be recognised in accounting for a definite time (e.g. in case of export of products), these products shall be accounted on Account 45 (Shipped goods) up to the time of the recognition of the proceeds. When products are actually shipped, it is necessary to make a record in credit of Account 43 (Finished products) in correspondence with Account 45 (Shipped goods).

When finished products are accounted on synthetic Account 43 (Finished products) at actual production costs in analytical accounting, the movement of their individual denominations may be reflected at accounting prices (at planned prime cost, release prices, etc.) with the identification of deviations of the actual production costs of articles from their value at accounting prices. Such deviations shall be accounted according to homogenous groups of finished products, which are formed by the organisation on the basis of the level of the deviations of the actual production costs from the value at the accounting prices of some articles.

When finished products are debited from Account 43 (Finished products), the amount of deviations of the actual production costs from the value at prices adopted in analytical accounting shall be estimated through interest calculated on the basis of the ratio of deviations in the remains of finished goods at the beginning of the reporting period and of deviations in products, which entered a warehouse during the reporting month, to the value of these products at accounting prices.

The amounts of deviations in the actual production costs of finished, shipped and sold products from their value at accounting prices shall be reflected in credit of Account 43 (Finished products) and in debit of relevant accounts by an additional or reversed entry, depending on whether they represent overexpenditure or saving.

Analytical accounting on Account 43 (Finished products) shall be kept by place of storage and type of finished products.

 

Account 43 (Finished products) corresponds with the accounts:

 

               in debit                               in credit

 

20   Main production                           10   Materials

23   Auxiliary services                         20   Main production

29   Service   production   and           23   Auxiliary services

     household units                              25   General production expenses

40   Output of products (works,         26   General household expenses

     services)                                           28   Spoilage in production

79   Intra-economic settlements       44   Expenses on sales

80   Authorised capital                        45   Shipped goods

91   Other incomes and expenses   76   Settlements    with     various

                                                                        debtors and creditors

                                                                 79   Intra-economic settlements

                                                                 80   Authorised capital

                                                                 90   Sales

                                                                94   Shortages   and   losses   from

                                                                        damage to values

                                                                97   Deferred expenses

                                                                99   Profits and losses

 

Order of the Ministry of Finance of the Russian Federation No. 115n of September 18, 2006 amended description of Account 44 of these Instructions. The amendments shall enter into force beginning with the annual accounting for 2006

See text of Item in previous wording

 

Account 44 (Expenses on sales)

 

Account 44 (Expenses on sales) is designed to generalise information about expenses on the sales of products, goods, works and services.

On Account 44 (Expenses on sales) in organisations engaged in industrial and other production activity it is possible to reflect, in particular, the following expenses: on the packing of manufactured articles in merchandise warehouses; on the delivery of products to a station or a wharf of departure, on the loading of products to railway cars, ships and automobiles and other transport vehicles; commission fees (deductions) paid to marketing and other intermediary organisations; on the maintenance of premises for storing products in places of sale and on labour remuneration for sales staff in organisations engaged in agricultural production; on advertising; on hospitality costs; other similar expenses.

In organisations carrying out trade activity, on account 44 (Expenses on Sale there may, in particular, be shown the following expenses (costs of circulation): on the carriage of goods, on the renumeration of labour, on lease, on the maintenance of buildings, structures, premises and equipment; on the storage and working out of goods; on advertising; on entertainment costs; other expenses similar in their purpose.

On Account 44 (Expenses on sales) in organisations procuring and processing farm products (beetroot, milk, wool, cotton, leather material, flax, livestock, poultry, etc.) it is possible to reflect, in particular, the following expenses: other expenses, general procurement expenses, expenses on the maintenance of procurement and reception points; expenses on the maintenance of livestock and poultry in depots and reception points.

In debit of Account 44 (Expenses on sales) it is necessary to accumulate the amounts of the organisation's expenses on the sales of products, goods, works and services. These amounts shall be written off in full or in part in debit of Account 90 (Sales). The following expenses shall be distributed in case of charge off:

- in organisations engaged in industrial and other production activity - expenses on packing and transportation (between the types of shipped products every month on the basis of their weight, volume, primary production cost or other relevant indicators);

- in organisations engaged in trade or any other intermediate activity - expenses on transportation (between sold goods and the remains of goods at the end of each month);

- in organisations procuring and processing agricultural products - in debit of Account 15 (Procurement and acquisition of material values) (expenses on the procurement of agricultural raw material) and/or Account 11 (Domestic animals for rearing and fattening) (expenses on the procurement of livestock and poultry).

All other expenses on the sales of products, goods, works, services shall be charged every month to the prime cost of sold products (goods, works, services).

Analytical account on Account 44 (Expenses on sales) shall be kept by type and item of expenditure.

 

Account 44 (Expenses on sales) corresponds with accounts:

 

               in debit                                        in credit

 

02   Depreciation of fixed assets           10   Materials

04   Intangible assets                              11   Domestic animals  for   rearing

05   Depreciation of intangible                     and fattening

     assets                                                   15   Procurement and acquisition  of

10   Materials                                                    material assets

16   Deviation in the value  of                  45   Shipped goods

     material assets                                    76   Settlements    with     various

19   Value-added     tax     on                       debtors and creditors

     acquired values                                   79   Intra-economic settlements

23   Auxiliary services                              90   Sales

29   Service   production   and               94   Shortages   and   losses   from

     household units                                        damage to values

41   Goods                                                99   Profits and losses

42   Markup

43   Finished products

60   Settlements with suppliers

     and contractors

68   Payments of  taxes and fees

69   Payments    for     social

     insurance    and    social

     security

70   Payroll settlements

     with personnel

71   Settlements           with

     accountable persons

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

94   Shortages and losses  from

     damage to values

96   Reserves  for  forthcoming

     expenses

97   Deferred expenses

 

Account 45 (Shipped goods)

 

Account 45 (Shipped goods) is designed to generalise information about the presence and movement of shipped products (goods), the proceeds from the sale of which may not recognised for some time in accounting (e.g. in case of export of products). On this account it is also necessary to account for finished articles transferred to other organisations for sale on commission principles.

Shipped goods shall be accounted on Account 45 (Shipped goods) at the value formed from actual primary production cost and expenses on the shipment of products or goods (in case of their charge-off).

Account 45 (Shipped goods) shall be debited in correspondence with Account 43 (Finished products), Account 41 (Goods) in accordance with completed documents (waybills, acceptance certificates, etc.) on the shipment of finished articles (goods) or on their transfer for sale on commission principles.

Amounts of money accepted for accounting on Account 45 (Goods shipped) shall be written off in debit of Account 90 (Sales) simultaneously with the recognition of proceeds from the sale of products or goods or upon the receipt of the commission agent's notice about the sale of articles transferred to him.

Analytical accounting on Account 45 (Goods shipped) shall be kept by place of location and type of shipped products or goods.

 

Account 45 (Goods shipped) corresponds with the accounts:

 

                 in debit                                    in credit

 

10   Materials                                      76    Settlements  with   various

11   Domestic    animals    for                      debtors and creditors

     rearing and fattening                     79    Intra-economic settlements

20   Main production                           90    Sales

21   Semi-finished products  of           94    Shortages and  losses  from

     own manufacture                                      damage to values

23   Auxiliary services                            99    Profits and losses

29   Service   production   and

     household units

41   Goods

43   Finished products

44   Expenses on sales

71   Settlements           with

     accountable persons

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

91   Other incomes and expenses

 

Account 46 (Realised stages of uncompleted works)

 

Account 46 (Realised stages of uncompleted works) is intended for the generalisation of information about the stages of works, finished in keeping with concluded contracts and having independent importance. This account shall be used in case of necessity by organisations performing long-term works, whose initial and final terms of realisation refer to different reporting periods (building, scientific, design, geological and other terms).

In debit of Account 46 (Realised stages of uncompleted works) it is necessary to account the cost of the stages of works, paid for by the customer and finished by the respective organisation and accepted in the established order in correspondence with Account 90 (Sales). At the same time the amount of expenses on the finished and accepted stages of works shall be written off from credit of Account 20 (Main production) in debit of Account 90 (Sales). The amounts of monetary funds received from customers in payment for the finished and accepted stages shall be reflected in debit of the accounts recording monetary funds in correspondence with Account 62 (Settlements with buyers and customers).

As soon as the whole project is over the cost of the stages paid for by the customer and recorded on Account 46 (Realised stages of uncompleted works) shall be written in debit of Account 62 (Settlements with buyers and customers). The cost of fully finished works, recorded on Account 62 (Settlements with buyers and customers) shall be paid off at the expense of the earlier received advances and the amounts received from the customer as the final settlement in correspondence with debit of the accounts of recording monetary funds.

Analytical accounting on Account 46 (Realised stages of uncompleted works) shall be kept according to types of works.

 

Account 46 (Realised stages of uncompleted works) corresponds
with the accounts:

 

               in debit                            in credit

 

90   Sales                          62   Settlements  with  buyers   and

                                         customers

 

Section V
Monetary Funds

 

 

The accounts of this Section are designed to generalise information about the presence and movement of monetary funds in Russian and foreign currencies in cash offices and on settlement, foreign currency and other accounts opened with credit organisations on the territory of this country and beyond its borders, and also of securities, payment and monetary documents.

Monetary funds in foreign currencies and transactions in them shall be accounted for on the accounts of this Section in roubles in amounts estimated by the recalculation of foreign currency in the established order. At the same time these funds and transactions in them shall be reflected in the currency of payment and clearing.

 

Account 50 (Cash in hand)

 

Account 50 (Cash office) is intended for the generalisation of information about the presence and movement of monetary funds in the organisation's cash offices.

The following subaccounts may be opened for Account 50 (Cash office):

50-1 (Cash office of the organisation),

50-2 (Operational cash office),

50-3 (Monetary documents), etc.

on Subaccount 50-1 (Cash office of the organisation) it is necessary to account for monetary funds in the organisation's cash office. When the organisation carries out its cash transactions in foreign currency, relevant subaccounts for the separate accounting of the movement of each foreign currency in cash may be opened for Account 50 (Cash office).

On Subaccount 50-2 (Operational cash office) it is necessary to record the presence and movement of monetary funds in the cash desks of freight offices or wharves and operation divisions, in stopping places, river ferries, ships, ticket and luggage offices of ports and wharves, railway and river-boat stations and sea terminals, in cash offices for keeping tickets, post office cash desks, etc. This subaccount shall be opened by organisations (in particular, by transport and communication organisations) in case of necessity.

On Subaccount 50-3 (Monetary documents) it is necessary to keep a record of postage stamps, national duty stamps, bill stamps, paid plane tickets and other pecuniary documents. Monetary documents shall be accounted on Account 50 (Cash office) in the amount of actual expenses on acquisition. Analytical accounting of monetary documents shall be kept by their types.

In debit of Account 50 (Cash office) it is necessary to reflect the receipt of monetary funds and documents by the organisation's cash office. In credit of Account 50 (Cash office) it is necessary to reflect the payment of monetary funds and the issue of monetary documents from the organisation's cash office.

 

Account 50 (Cash office) corresponds with the accounts:

 

               in debit                                        in credit

 

50   Cash in hand                              50   Cash in hand

51   Settlement accounts                  51   Settlement accounts

52   Foreign currency accounts       52   Foreign currency accounts

55   Special   accounts    with          55   Special accounts with banks

     banks                                              57   Transfer in transit

57   Transfer in transit                       58   Financial placements

60   Settlements with suppliers       60   Settlements with suppliers  and

     and contractors                                    contractors

62   Settlements  with   buyers        62   Settlements  with  buyers   and

     and customers                                       customers

66   Payments  for   short-term         66   Payments for short-term credits

     credits and loans                                    and loans

67   Payments   for   long-term        68   Payments of  taxes and fees

     credits and loans                          69   Payments for  social  insurance

71   Settlements           with                       and social security

     accountable persons                    70   Payroll  settlements

73   Settlements    with                             with personnel

     personnel    for     other                 71   Settlements  with   accountable

     operations                                          persons

75   Settlements with founders         73   Settlements with  the personnel

76   Settlements  with  various                 for other operations

     debtors and creditors                    75   Settlements with promoters

79   Intra-economic settlements       76   Settlements    with     various

80   Authorised capital                            debtors and creditors

86   Target-oriented financing            79   Intra-economic settlements

90   Sales                                              80   Authorised capital

91   Other incomes and expenses   81   Own shares (stakes)

98   Deferred incomes                       94   Shortages   and   losses   from

99   Profits and losses                            damage to values

                                                               99   Profits and losses

 

Account 51 (Settlement accounts)

 

Account 51 (Settlement accounts) is designed to generalise information about the presence and movement of monetary funds in the currency of the Russian Federation on settlement accounts of the respective organisation, opened with credit organisations.

In debit of Account 51 (Settlement accounts) it is necessary to reflect the receipt of monetary funds on the organisation's settlement accounts. In credit of Account 51 (Settlement accounts) it is necessary to reflect the debiting of monetary funds from the organisation's settlement accounts. Amounts of money, mistakenly charged to credit or debit of the organisation's settlement account and discovered during the verification of its records, shall be reflected in Account 76 (Settlements with various debtors and creditors), Subaccount (Payments for claims).

Transactions on the settlement account shall be reflected in accounting on the basis of the credit organisation's records in the settlement account and of cash documents appended to them.

Analytical accounting in Account 51 (Settlement accounts) shall be kept for each settlement account.

 

Account 51 (Settlement accounts) corresponds with the accounts:

 

               in debit                                    in credit

 

50   Cash in hand                             04   Intangible assets

51   Settlement accounts                50   Cash in hand

52   Foreign currency accounts     51   Settlement accounts

55   Special   accounts    with        52   Foreign currency accounts

     banks                                            55   Special accounts with banks

57   Transfers in transit                  57   Transfers in transit

58   Financial placements             58   Financial placements

60   Settlements with suppliers    60   Settlements with suppliers  and

     and contractors                                  contractors

62   Settlements  with   buyers      62   Settlements  with  buyers   and

     and customers                                    customers

66   Payments  for   short-term      66   Payments for short-term credits

     credits and loans                                 and loans

67   Payments   for   long-term      67   Payments for long-term  credits

     credits and loans                               and loans

68   Payments of  taxes and fees  68   Payments of  taxes and fees

69   Payments    for     social          69   Payments for  social  insurance

     insurance    and    social                   and social security

     security                                         70   Payroll  settlements

71   Settlements           with                       with personnel

     accountable persons                 71   Settlements  with   accountable

73   Settlements    with                            persons

     personnel    for     other              73   Settlements with      personnel

     operations                                             for other operations

75   Settlements with founderss   75   Settlements with promoters

76   Settlements  with  various      76   Settlements    with     various

     debtors and creditors                       debtors and creditors

79   Intra-economic settlements   79   Intra-economic settlements

80   Authorised capital                    80   Authorised capital

86   Target-oriented financing        81   Own shares (stakes)

90   Sales                                          84   Retained   profit    (uncovered

91   Other incomes and expenses              loss)

98   Deferred incomes                   96   Reserves    for     forthcoming

99   Profits and losses                                expenses

                                                            99   Profits and losses

 

Account 52 (Foreign currency accounts)

 

Account 52 (Foreign currency accounts) is designed to generalise information on the presence and movement of monetary funds in foreign currencies of the respective organisation, opened with credit organisations on the territory of the Russian Federation and beyond its border.

In debit of Account 52 (Foreign currency accounts) it is necessary to reflect the receipt of monetary funds on the organisation's foreign currency accounts. In credit of Account 52 (Foreign currency accounts) it is necessary to reflect the debiting of monetary funds from the organisation's foreign currency accounts. Amounts of money, mistakenly charged to credit or debit of the organisation's foreign currency accounts and discovered during the verification of the credit organisation's records, shall be reflected in Account 76 (Settlements with various debtors and creditors), Subaccount (Payment for claims).

Transactions in foreign currency accounts shall be reflected in accounting on the basis of the credit organisation's records and of cash documents appended to them.

The following subaccounts may be opened for Account 52 (Foreign currency accounts):

52-1 (Foreign currency accounts inside the country),

52-2 (Foreign currency accounts abroad).

Analytical accounting of Account 52 (Foreign currency accounts) shall be kept for each account opened for depositing monetary funds in foreign currency.

 

Account 52 (Foreign currency accounts) corresponds
with the accounts:

 

               in debit                                        in credit

 

50   Cash in hand                             04   Intangible assets

51   Settlement accounts                50   Cash in hand

52   Foreign currency accounts     51   Settlement accounts

55   Special   accounts    with        52   Foreign currency accounts

     banks                                            55   Special accounts with banks

57   Transfers in transit                  57   Transfers in transit

58   Financial placements             58   Financial placements

60   Settlements with suppliers    60   Settlements with suppliers  and

     and contractors                                  contractors

62   Settlements  with   buyers      62   Settlements  with  buyers   and

     and customers                                    customers

66   Payments  for   short-term      66   Payments for short-term credits

     credits and loans                                and loans

67   Payments   for   long-term      67   Payments for long-term  credits

     credits and loans                                and loans

68   Payments for taxes and fees   68   Payments of  taxes and fees

69   Payments    for     social            69   Payments for  social  insurance

     insurance    and    social                      and social security

     security                                            70   Payroll  settlements

71   Settlements           with                        with personnel

     accountable persons                   71   Settlements  with   accountable

73   Settlements    with                               persons

     personnel    for     other                 73   Settlements with      personnel

     operations                                             for other operations

75   Settlements with founders       75   Settlements with founders

76   Settlements  with  various        76   Settlements    with     various

     debtors and creditors                          debtors and creditors

79   Intra-economic settlements    79   Intra-economic settlements

80   Authorised capital                     80   Authorised capital

86   Target-oriented financing         81   Own shares (stakes)

90   Sales                                           84   Retained   profit    (uncovered

91   Other incomes and expenses               loss)

98   Deferred incomes                     96   Reserves    for     forthcoming

99   Profits and losses                             expenses

                                                              99   Profits and losses

 

Account 55 (Special accounts with banks)

 

Account 55 (Special accounts with banks) is designed to generalise information about the presence and movement of monetary funds in the currency of the Russian Federation and in foreign currencies on the territory of the Russian Federation and beyond its borders in letters of credit, cheques and other payment documents (except bills), on current, special and other special accounts, and also about the movement of resources of target-oriented financing in that part which is to be kept in custody separately.

The following subaccounts may be opened for Account 55 (Special accounts with banks):

55-1 (Letters of credit),

55-2 (Cheque books),

55-3 (Deposit accounts), etc.

On Subaccount 55-1 (Letters of credit) it is necessary to account for the movement of monetary funds in letters of credit.

Placement of monetary funds to letters of credit shall be reflected in debit of Account 55 (Special accounts with banks) and in credit of Account 51 (Settlement accounts) and Account 52 (Foreign currency accounts), Account 66 (Payments for short-term credits and loans) and of other similar accounts.

Funds in letters of credit, accepted for accounting in Account 55 (Special accounts with banks) shall be written off to the extent of their use (according to abstracts of a credit organisation), as a rule, in debit of Account 60 (Settlements with suppliers and contractors). After making out unused funds in letters of credit to the account from which they were transferred funds shall be reflected in credit of Account 55 (Special accounts with banks) in correspondence with Account 51 (Settlements accounts) or Account 52 (Foreign currency accounts).

Analytical accounting in Subaccount 55-1 (Letters of credit) shall be kept for each letter of credit issued by the respective organisation.

On Subaccount 55-2 (Cheque books) it is necessary to record the flow of funds to be found in cheques.

The depositing of monetary funds upon the issue of cheque books shall be reflected in debit of Account 55 (Special accounts with banks) and in credit of Account 51 (Settlement accounts), Account 52 (Foreign currency accounts), Account 66 (Payments for short-term credit and loans) and other similar accounts. Amounts of money received in a credit organisation from cheques shall be written off to the extent of payment of cheques issued by the respective organisation, that is, in the amounts of cashing by a credit organisation of the cheques presented to it (according to the credit organisation's statements), from credit of Account 55 (Special accounts with banks) in debit of accounts recording settlements (Account 76 Settlements with various debtors and creditors), etc. Amounts of funds in cheques issued but not paid by a credit organisation (not presented for payment) shall remain on Account 55 (Special accounts with banks); the balance amount in Subaccount 55-2 (Cheque books) shall correspond to the balance amount according to the credit organisation's statement. Amounts of money in cheques returned to the credit organisation and remaining unused shall be reflected in credit of Account 55 (Special accounts with banks) in correspondence with Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts).

Analytical accounting in Account 55-2 (Cheque books) shall be kept for each received cheque book.

The flow of funds invested by the organisation in bank and other deposits shall be accounted on Subaccount 55-3.

 

See also Accounting Regulations Records of Financial Investment PBU 19/02, approved by Order of the Ministry of Finance of the Russian Federation No. 126n of December 10, 2002

 

The transfer of monetary funds to deposits shall be reflected by the organisation in debit of Account 55 (Special accounts with banks) in correspondence with Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts). When the credit organisation repays the amounts of deposits, it is necessary to make reversing entries in the accounting of the respective organisation.

Analytical accounting in Subaccount 55-3 (Deposit accounts) shall be kept for each deposit.

The movement of the funds of target-oriented financing kept separately in the credit organisation concerned shall be accounted on individual subaccounts opened for Account 55 (Special accounts with banks). In particular, this concerns budget resources received and the resources for the financing of capital investments, accumulated and spent by the respective organisation from a separate account, and so on.

The branches, representative offices and other structural units of the respective organisation, which have separate balance-sheets and for which current accounts are opened with credit institutions for the realisation of current expenses (labour remuneration, individual household expenses, travel allowances, etc.) shall reflect the flow of said funds in a separate subaccount for Account 55 (Special accounts with banks).

The presence and movement of monetary funds in foreign currencies shall be recorded on Account 55 (Special accounts with banks) separately. The building up of analytical accounting on this Account shall make possible the reception of data on the presence and movement of money in letters of credit, cheque books, deposits and so on in the territory of the Russian Federation and abroad.

 

Account 55 (Special accounts with banks)
corresponds with the accounts:

 

               in debit                                         in credit

 

50   Cash in hand                               04   Intangible assets

51   Settlement accounts                    50   Cash in hand

52   Foreign currency accounts          51   Settlement accounts

60   Settlements with suppliers            52   Foreign currency accounts

     and contractors                              60   Settlements with suppliers  and

62   Settlements  with   buyers                    contractors

     and customers                                62   Settlements  with  buyers   and

66   Payments  for   short-term                    customers

     credits and loans                            66   Payments for short-term credits

67   Payments   for   long-term                    and loans

     credits and loans                            67   Payments for  long-term credits

68   Payments of  taxes and fees               and loans

71   Settlements with                            68   Payments of  taxes and fees

     accountable persons                       69   Payments for  social  insurance

75   Settlements with founders                     and social security

76   Settlements  with  various              70   Payroll  settlements

     debtors and creditors                             with personnel

79   Intra-economic settlements            71   Settlements  with   accountable

80   Authorised capital                                  persons

86   Target-oriented financing               75   Settlements with founders

91   Other incomes and expenses         76   Settlements    with     various

98   Deferred incomes                                  debtors and creditors

99   Profits and losses                           79   Intra-economic settlements

                                                              80   Authorised capital

                                                              81   Own shares (stakes)

                                                              84   Retained   profit    (uncovered

                                                                     loss)

 

 

Account 57 (Transfers in transit)

 

Account 57 (Transfers in transit) is designed to generalise information about the movement of monetary funds (transfers) in the currency of the Russian Federation and in foreign currencies in transit, that is, monetary sums (chiefly proceeds from the sale of goods by trading organisations) brought to the cash offices of organisations, savings banks or cash post offices for placing these funds into the organisation's settlement or any other account without charge according to designation.

Receipts of a credit organisation, a savings bank or a post office, and also copies of accompanying sheets on the delivery of receipts to collectors shall be ground for acceptance of cash for accounting in Account 57 (Transfers in transit), (for example, upon the surrender of proceeds from sales).

The movement of cash (transfers) in foreign currencies shall be accounted separately on Account 57 (Transfers in transit).

 

Account 57 (Transfers in transit) corresponds
with the accounts:

 

               in debit                                        in credit

 

50   Cash in hand                               50   Cash in hand

51   Settlement accounts                    51   Settlement accounts

52   Foreign currency accounts          52   Foreign currency accounts

62   Settlements  with   buyers            62   Settlements  with  buyers   and

     and customers                                      customers

76   Settlements  with  various            73   Settlements with  the personnel

     debtors and creditors                            for other operations

79   Intra-economic settlements

90   Sales

91   Other incomes and expenses

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended the characteristics of account 58 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 58 (Financial placements)

 

See also Accounting Regulations Records of Financial Investment PBU 19/02, approved by Order of the Ministry of Finance of the Russian Federation No. 126n of December 10, 2002

 

Account 58 (Financial placements) is designed to generalise information about the presence and movement of the organisation's investments in government securities, shares, bonds and miscellaneous securities of other organisations, charter (pooled) capitals of other organisations, and also loans granted to other organisations.

The following subaccounts may be opened for Account 58 (Financial placements):

58-1 (Unit shares and shares),

58-2 (Debt securities),

58-3 (Granted loans),

58-4 (Contributions under a contract of special partnership and so on).

On Subaccount 58-1 (Unit shares and shares) it is necessary to account for the presence and movement of investments in shares of joint-stock companies, charter (pooled) capitals of other organisations, etc.

On Subaccount 58-2 (Debt securities) it is necessary to account the presence and movement of investments in government and private debt securities (bonds and so on).

Financial placements made by the respective organisation shall be reflected in debit of Account 58 (Financial placements) and in credit of the accounts which register the values subject to transfer against these placements. For example, the acquisition by the organisation of securities of other organisations for a charge shall be posted in debit of Account 58 (Financial placements) and in credit of Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts).

For the debt securities for which no current market value is assessed the organisation is permitted to post the difference between the original value and face value to the financial results of the commercial organisation or to the decrease or increase in the expenses of the non-commercial organisation over their maturity term evenly as the income progresses that is payable on these securities in compliance with the terms of issue.

When the amount of the excess of the purchase value of bonds and other debt securities acquired by the organisation over their nominal value is written off, it is necessary to made records in debit of Account 76 (Settlements with various debtors and creditors) (to the sum of income receivable from securities) and in credit of Account 58 (Financial placements) (for a part of the difference between purchase and nominal value) and Account 91 (Other incomes and expenses) [to the difference between the sums of money charged to Account 76 (Settlements with various debtors and creditors and Account 58 (Financial placements)].

In the event of additional accrual of surplus of the face value of the bonds and other debt securities acquired by the organisation over their purchase value entries shall be made under the debit of accounts 76 "Settlement of Accounts with Miscellaneous Debtors and Creditors" (with the amount of income receivable on the securities) and 58 "Financial Investments" (with a portion of the difference between the purchase and face values) and the credit of account 91 "Miscellaneous Incomes and Expenses" (with the sum total posted to accounts 76 "Settlement of Accounts with Miscellaneous Debtors and Creditors" and58 "Financial Investments")

The redemption and sale of securities recorded on Account 58 (Financial placements) shall be reflected in debit of Account 91(Other incomes and expenses) and in credit of Account 58 (Financial placements) [ except for the organisations which reflect these transactions on Account 90 (Sales)].

On Subaccount 58-3 (Granted loans) it is necessary to record the movement of pecuniary and other loans granted by the respective organisation to juridical and natural persons (except for the organisation's workers). Loans secured by bills and granted by the organisation to juridical and natural persons (save the organisation's workers) shall be accounted for on this subaccount separately.

Loans granted shall be reflected in debit of Account 58 (Financial placements) in correspondence with Account 51 (Settlement accounts) or other relevant accounts. The repayment of a loan shall be reflected in debit of Account 51 (Settlement accounts) or other relevant accounts and in credit of Account 58 (Financial placements).

The presence and movement of contributions to common assets under a contract of special partnership shall be recorded on Subaccount 58-4 (Contributions under a contract of special partnership).

The extension of a contribution shall be reflected in debit of Account 58 (Financial placements) in correspondence with Account51 (Settlement accounts) and with other relevant accounts recording the assets set aside.

Upon the termination of a contract of special partnership the return of property shall be reflected in credit of Account 58 (Financial placements) in correspondence with the accounts recording assets.

Analytical accounting in Account 58 (Financial placements) shall be kept according to the types of financial placements and facilities in which these placements were made (for organisations selling securities; other organisations in which the given organisation participates; borrowing organisations, etc.). The building up of analytical accounting shall make possible the reception of data on short-term and long-term assets. In this case the accounting of financial placements within the framework of a group of interrelated organisations, on whose activity consolidated accounting is maintained, shall be kept on Account 58 (Financial placements) separately.

 

Account 58 (Financial placements) corresponds
with the accounts:

 

               in debit                                        in credit

 

50   Cash in hand                                51   Settlement accounts

51   Settlement accounts                     52   Foreign currency accounts

52   Foreign currency accounts           76   Settlements    with     various

75   Settlements with founders                     debtors and creditors

76   Settlements  with  various             80   Authorised capital

     debtors and creditors                     90   Sales

80   Authorised capital                         91   Other incomes and expenses

91   Other incomes and expenses       99   Profits and losses

98   Deferred incomes

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 reworded the characteristics of account 59 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 59 "Reserves for Devaluation of Financial Investments"

 

Account 59 "Reserves for Devaluation of Financial Investments" is intended for summing up information on the availability and movement of reserves for devaluation of the organisation's financial investments.

An entry shall be made for the amount of reserve maintained under the debit of account 91 "Miscellaneous Incomes and Expenses" and the credit of account 59 "Reserves for Devaluation of Financial Investments". A similar entry shall be made when an increase occurs in the amount of the said reserves.

In the event of a decrease in the amount of reserves maintained and also retirement of financial investments for which appropriate reserves have been maintained an entry shall be made under the debit of account 59 "Reserves for Devaluation of Financial Investments" and the credit of account 91 "Miscellaneous Incomes and Expenses".

Analytical records on account 59 "Reserves for Devaluation of Financial Investments" shall be kept for each reserve.

 

 

Section VI
Settlements

 

The accounts of this Section are designed to generalise information about all types of settlements of the organisation with different juridical and natural persons, and also of intra-economic settlements.

Settlements in foreign currencies shall be accounted in the accounts of this Section in roubles, in amounts determined by the conversion of foreign currency in the established order. At the same time these settlements shall be reflected in the currency of settlements and payments.

Settlements in foreign currencies shall be recorded in the accounts of this Section separately, that is, in separate subaccounts.

 

Account 60 (Settlements with suppliers and contractors)

 

Account 60 (Settlements with suppliers and contractors) is designed to generalise information about settlements with suppliers and contractors for the following material assets:

material assets received, accepted performed work and consumed services, including the provision of electric power, gas, steam, water, etc., and also the supply and processing of material values, accounting documents on which they are accepted and are subject to payment through a bank;

the material assets, works and services, on which accounting documents have not arrived from suppliers or contractors (the so-called uninvoiced deliveries);

surpluses of material assets revealed during their acceptance;

carriage services received, including calculations of arrears and surcharges of the rate (freight), and also communication services of all types and so on.

Organisations discharging the functions of a general contractor during the fulfilment of a building contract, a contract for performance of research and development and technological works and any other contract shall also reflect settlements with their subcontractors in Account 60 (Settlements with suppliers and contractors).

All transactions connected with payments for acquired material values, accepted work or consumed services shall be reflected in Account 60 (Settlements with suppliers and contractors) regardless of the time of payment.

Account 60 (Settlements with suppliers and contractors) shall be credited for the value of material assets, works and services accepted for accounting in correspondence with the accounts of the accounting of these values or of Account 15 (Procurement and acquisition of material values) or of the accounts of accounting appropriate costs. Records in credit of Account 60 (Settlements with suppliers and contractors) shall be made for services for the delivery of material values (goods), and also for the processing of materials elsewhere in correspondence with the accounts recording productive supplies and goods, production costs, etc.

Regardless of the appraisal of material assets in analytical accounting Account 60 (Settlements with suppliers and contractors) shall be credited in synthetic accounting as per the supplier's accounting documents. When the account of suppliers was accepted and paid before the receipt of cargo and upon the receipt of material assets by the warehouse its workers reveal shortage over and above the contract stipulated magnitudes against the invoiced quantity, and also upon the checking of the account of the supplier or the contractor (after the account was accepted) the inspectors discover inconsistency of the prices stipulated by the respective contract, or arithmetical errors, Account 60 (Settlements with suppliers and contractors) shall be credited with the corresponding sum in correspondence with Account 76 (Settlements with various debtors and creditors [Subaccount (Payments for claims)].

For non-invoiced deliveries Account 60 (Settlements with suppliers and contractors) shall be credited for the cost of received values, determined on the basis of the price and terms stipulated by contracts.

Account 60 (Settlements with suppliers and contractors) shall be debited for the sums of the fulfilment of obligations (payment of accounts), including advances and preliminary payment, in correspondence with the accounts recording monetary funds, etc. The sums of issued advances and of preliminary payment shall be accounted separately. Amounts of debts to suppliers and contractors, secured by the organisation's bills, shall not be written off Account 60 (Settlements with suppliers and contractors), but shall be accounted separately in analytical accounting.

Analytical accounting in Account 60 (Settlements with suppliers and contractors) shall be kept by each presented account and in settlements by way of planned payments - by each supplier and contractor. The building up of analytical accounting shall make possible the reception of necessary data on the following suppliers: suppliers according to accepted and other accounting documents whose date of payment has not fallen due; suppliers according to the accounting document which were not paid in due course; suppliers according to non-invoiced deliveries; issued advances; suppliers according to issued bills whose date of payment has not fallen due; suppliers according to overdue bills; the suppliers according to received commercial credit, and so on.

Accounting of settlements with suppliers and contractors within the framework of a group of interrelated organisations, on the activity of which consolidated accounting is maintained, shall be kept on Account 60 (Settlements with suppliers and contractors) separately.

 

Account 60 (Settlements with suppliers and contractors)
corresponds with the accounts:

 

               in debit                                    in credit

 

50   Cash in hand                           07   Equipment for installation

51   Settlement accounts                08   Investments in  non-current

52   Foreign currency accounts             assets

55   Special   accounts    with         10   Materials

     banks                                         11   Domestic animals  for   rearing

60   Settlements with suppliers               and fattening

     and contractors                          15   Procurement and acquisition  of

62   Settlements  with   buyers                material assets

     and customers                            19   Value-added     tax     on

66   Payments  for   short-term                acquired values

     credits and loans                        20   Main production

67   Payments   for   long-term        23   Auxiliary services

     credits and loans                        25   General production expenses

76   Settlements  with  various         26   General household expenses

     debtors and creditors                 28   Spoilage in production

79   Intra-economic settlements       29   Service     production      and

91   Other incomes and expenses          household units

99   Profits and losses                     41   Goods

                                                        44   Expenses on sales

                                                        50   Cash in hand

                                                        51   Settlement accounts

                                                        52   Foreign currency accounts

                                                        55   Special accounts with banks

                                                        60   Settlements with suppliers  and

                                                               contractors

                                                        76   Settlements    with     various

                                                               debtors and creditors

                                                        79   Intra-economic settlements

                                                        91   Other incomes and expenses

                                                        94   Shortages   and   losses   from

                                                               damage to values

                                                        97   Deferred expenses

 

Account 62 (Settlements with buyers and customers)

 

Account 62 (Settlements with buyers and customers) is designed to generalise information about settlements with buyers and customers.

Account 62 (Settlements with buyers and customers) shall be debited in correspondence with Account 90 (Sales), Account 91(Other incomes and expenses) to the amounts to which accounting documents are presented.

Account 62 (Settlements with buyers and customers) shall be credited in correspondence with the accounts of accounting monetary funds, settlements to the sums of received payments including amounts of received advances), and so on. The amounts of received advances and preliminary payment shall be recorded separately.

If interest is provided under the received bill that secures the debts of the buyer (customer), then to the extent of repayment of this indebtedness it is necessary to make a record in debit of Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts) and in credit of Account 62 (Settlements with buyers and customers) (to the amount of repayment of debts) and Account 91 (Other incomes and expenses) (to the amounts of interest).

Analytical accounting of Account 62 (Settlements with buyers and customers) shall be kept for each account presented to buyers or customers and of settlements with planned payments - for each buyer and customer. The building up of analytical accounting shall ensure the possibility of receiving necessary data on: buyers and customers according to the accounting documents, the term of payment for which payment has not fallen due; buyers and customers according to the accounting documents which are not paid in due course; received advances; bills for which the date of receipt of money has not fallen due; bills discounted by banks; bills on which money has not arrived on time.

Accounting of settlements with buyers and customers within the framework of a group of interrelated organisations, on whose activity consolidated accounting is maintained, shall be kept on Account 62 (Settlements with buyers and customers) separately.

 

Account 62 (Settlements with buyers and customers)
corresponds with the accounts:

 

               in debit                                      in credit

 

46   Fulfilled    stages     in               50   Cash in hand

     incomplete works                        51   Settlement accounts

50   Cash in hand                            52   Foreign currency accounts

51   Settlement accounts                 55   Special accounts with banks

52   Foreign currency accounts       57   Transfer in transit

55   Special   accounts    with           60   Settlements with suppliers  and

     banks                                                  contractors

57   Transfer in transit                      62   Settlements  with  buyers   and

62   Settlements  with   buyers                 customers

     and customers                             63   Reserves for doubtful debts

76   Settlements  with  various          66   Payments for short-term credits

     debtors and creditors                         and loans

79   Intra-economic settlements        67   Payments for long-term  credits

90   Sales                                                and loans

91   Other incomes and expenses     73   Settlements with  personnel

                                                                 for other operations

                                                          75   Settlements with founded

                                                          76   Settlements    with     various

                                                                 debtors and creditors

                                                          79   Intra-economic settlements

 

Account 63 (Reserves for doubtful debts)

 

Account 63 (Reserves for doubtful debts) is designed to generalise information about reserves for doubtful debts.

Records in debit of Account 91 (Other incomes and expenses) and in credit of Account 63 (Reserves for doubtful debts) shall be made to the amount of reserves being created. When uncalled debts, earlier recognised by the organisation concerned as doubtful, are written off, records shall be made in debit of Account 63 (Reserves for doubtful debts) in correspondence with the relevant accounts of accounting settlements with debtors. The addition of the unused amounts of reserves for doubtful debts to the profit of the reporting period that succeeds the period of their creation shall be reflected in debit of Account 63 (Reserves for doubtful debts) and in credit of Account 91 (Other incomes and expenses).

Analytical accounting of Account 63 (Reserves for doubtful debts) shall be kept for each created reserve.

 

Account 63 (Reserves for doubtful debts)
corresponds with the accounts:

 

               in debit                                   in credit

 

62   Settlements  with   buyers     91   Other incomes and expenses

     and customers

76   Settlements  with  various

     debtors and creditors

91   Other incomes and expenses

 

Account 66 (Payments for short-term credits and loans)

 

Account 66 (Payments for short-term credits and loans) is designed to generalise information about the state of short-term (up to 12 months) credits and loans received by the respective organisation.

Amounts of short-term credits and loans received by the organisation shall be reflected in credit of Account 66 (Payments for short-term credits and loans) and in debit of Account 50 (Cash in hand), Account 51 (Settlement accounts), Account 52 (Foreign currency accounts), Account 55 (Special accounts with banks), Account 60 (Settlements with suppliers and contractors), etc.

Short-term loans attracted by the issue and floating of bonds shall be accounted on Account 66 (Payments for short-term credits and loans) separately. If bonds are floated at a price exceeding their nominal value, records shall be made in debit of Account51 (Settlement accounts) and other accounts in correspondence with Account 66 (Payments for short-term credit and loans) (at nominal value of bonds) and Account 98 (Deferred incomes) to the amount of the excess of the price of the flotation of bonds over their nominal value. The amounts charged to Account 98 (Deferred incomes) shall be written off evenly during the period of bond circulation to Account 91 (Other incomes and expenses). If bonds are floated at a price below their nominal value, the difference between the price of flotation and the nominal value of bonds shall be charged evenly during the period of bond flotation from credit of Account 66 (Payments for short-term credits and loans) in debit of Account 91 (Other incomes and expenses).

Interest payable under the received credits and loans shall be reflected in credit of Account 66 (Payments for short-term credits and loans) in correspondence with debit of Account 91 (Other incomes and expenses). The accrued amounts of interest shall be accounted for separately.

Account 66 (Payments for short-term credits and loans) shall be debited to the amounts of repaid credits and loans in correspondence with the accounts of accounting monetary funds. Credits and loans unpaid on time shall be accounted separately.

Analytical accounting of short-term credits and loans shall be kept by type of credits and loans, by credit organisation and other lenders that granted these credits and loans.

It is necessary to account settlements with credit organisations in the transaction of discounting bills and other debt obligations with a period of repayment of 12 months On a separate subaccount to Account 66 (Payments for short-term credits and loans).

The transaction of discounting bills and other debt obligations shall be reflected by the bill-holding organisation in credit of Account 66 (Payments for short-term credits and loans) (nominal value of a bill) and in debit of Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts) (the amount of money actually received) and Account 91 (Other incomes and expenses) (discount rate paid to a credit organisation).

The transaction of discounting bills and other debt obligations shall be closed on the basis of the notice of a credit organisation about payment by reflecting the amount of a bill in debit of Account 66 (Payments for short-term credits and loans) and in credit of the relevant accounts of accounting debtor indebtedness.

When the bill-holding organisation returns monetary funds, received from a credit organisation as a result of discounting bills and other debt obligations, due to the default on their obligations in the fixed time by the drawer of a bill or any other payer for a bill, it is necessary to make a record in debit of Account 66 (Payments for short-term credits and loans) in correspondence with the accounts of accounting monetary funds. The indebtedness for settlements with buyers, customers and other debtors, secured by overdue bills continues to be accounted for in accounts of accounting debtor indebtedness.

Analytical accounting of discounted bills shall be kept per credit organisation, which discounted the bills and any other debt obligations and per drawer of bills and separate bills.

The accounting of settlements with credit organisations, lenders and drawers of bills within the framework of a group of interrelated organisations, on which activities consolidated accounting is maintained, shall be kept on Account 66 (Payments for short-term credits and loans) separately.

 

Account 66 (Payments for short-term credits and loans)
corresponds with the accounts:

 

               in debit                                   in credit

 

50   Cash in hand                           07   Equipment for installation

51   Settlement accounts                08   Investments in   non-current

52   Foreign currency accounts              assets

55   Special   accounts    with          10   Materials

     banks                                          11   Domestic animals  for   rearing

62   Settlements  with   buyers                and fattening

     and customers                             41   Goods

66   Payments  for   short-term         50   Cash in hand

     credits and loans                          51   Settlement accounts

76   Settlements  with  various           52   Foreign currency accounts

     debtors and creditors                   55   Special accounts with banks

91   Other incomes and expenses     60   Settlements with suppliers  and

                                                                 contractors

                                                          66   Payments for short-term credits

                                                                 and loans

                                                          68   Payments of taxes and fees

                                                          76   Settlements    with     various

                                                                 debtors and creditors

                                                          82   Reserve capital

                                                          91   Other incomes and expenses

 

Account 67 (Payments for long-term credits and loans)

 

Account 67 (Payments for long-term credits and loans) is designed to generalise information about the state of long-term (for a period of over 12 months) credits and loans received by the organisation.

Amounts of long-term credits and loans received by the organisation shall be reflected in credit of Account 67 (Payments for long-term credits and loans) and in debit of Account 51 (Settlement accounts), Account 52 (Foreign currency accounts), Account55 (Special accounts with banks) and Account 60 (Settlements with suppliers and contractors) etc.

Long-term loans attracted by the issue and flotation of bonds shall be recorded on Account 67 (Payments for long-term credits and loans) separately. If bonds are floated at a price that exceeds their nominal value records shall be made in debit of Account51 (Settlement accounts) and other accounts in correspondence with Account 67 (Payments for long-term credits and loans) (at nominal value of bonds) and Account 98 (Deferred incomes) (to the amount of the excess of the price of the flotation of bond over their nominal value). The amount charged to Account 98 (Deferred incomes) shall be written off evenly during the period of bonds flotation to Account 91 (Other incomes and expenses). If bonds are floated at a price below their nominal value, the difference between the price of flotation and the nominal value of bonds shall be charged evenly during the period of bond flotation from credit of Account 67 (Payments for long-term credits and loans) and debit of Account 91 (Other incomes and expenses).

Interest receivable from the received credits and loans shall be reflected in credit of Account 67 (Payments for long-term credits and loans) in correspondence with debit of Account 91 (Other incomes and expenses). The accrued amounts of interest shall be accounted separately.

Account 67 (Payments for long-term credits and loans) shall be debited to the amounts of repaid credits and loans in correspondence with the accounts of accounting monetary funds. Credits and loans unpaid on time shall be recorded separately.

Analytical accounting of long-term credits and loans shall be kept per type of credits and loans and per other lenders which granted them and per separate credits and loans.

Settlements with banks in the transaction of discounting bills and other debt obligations with a maturity date of over 12 months shall be accounted on a separate subaccount to Account 67 (Payments for long-term credits and loans).

The transaction of discounting bills and other debt obligations shall be reflected by the bill-holding organisation in credit of Account 67 (Payments for long-term credits and loans) (the nominal value of a bill) and in debit of Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts) (the actually received amount of monetary funds) and Account 91 (Other incomes and expenses) (the discount rate paid to the credit organisation).

The transaction of discounting bills and other debt obligations shall be closed on the basis of the credit organisation's notice about payment by means of reflecting the amount of a bill in debit of Account 67 (Payments for long-term credits and loans) and in credit of the relevant accounts of accounting debtor indebtedness.

When the bill-holding organisation returns the monetary funds received from the credit organisation concerned as a result of discounting bills or other debt obligations due to the non-fulfilment in the fixed time by the bill-holder or any other payer of a bill of their obligations for payment, it is necessary to make a record in debit of Account 67 (Payments for long-term credits and loans) in correspondence with the accounts of accounting monetary funds. The indebtedness for settlements with buyers, customs and other debtors, secured by an overdue bill, shall continue to be accounted on the relevant accounts of accounting debtor indebtedness.

Analytical accounting of discounted bills shall be kept per credit organisation which discounted bills or any other debt obligations, per drawer of bills and individual bills.

The accounting of settlements with credit organisations, lenders and drawers of bills within the framework of a group of interrelated organisations, on the activity of which consolidated accounting is maintained, shall be kept in Account 67 (Payments for long-term credits and loans) separately.

 

Account 67 (Payments for long-term credits and loans)
corresponds with the accounts:

 

               in debit                                     in credit

 

51   Settlement accounts                     07   Equipment for installation

52   Foreign currency accounts           08   Investments in non-current

55   Special   accounts    with                       assets

     banks                                              10   Materials

62   Settlements  with   buyers             11   Domestic animals  for   rearing

     and customers                                       and fattening

67   Payments   for   long-term             41   Goods

     credits and loans                             50   Cash in hand

76   Settlements  with  various              51   Settlement accounts

     debtors and creditors                      52   Foreign currency accounts

91   Other incomes and expenses        55   Special accounts with banks

                                                             60   Settlements with suppliers  and

                                                                    contractors

                                                             67   Payments for long-term  credits

                                                                    and loans

                                                              68   Payments of taxes and fees

                                                              76   Settlements    with     various

                                                                     debtors and creditors

                                                              82   Reserve capital

                                                              91   Other incomes and expenses

 

Account 68 (Payments of taxes and fees)

 

Account 68 (Payments of taxes and fees) is designed to generalise information about the settlements with budgets in taxes and fees paid by the organisation and in taxes with the workers of the organisation.

Account 68 (Payments of taxes and fees) shall be credited to the amounts due under tax declarations (calculations) to contributions to budgets [in correspondence with Account 99 (Profits and losses) - to the amount of profit tax, with Account 70(Payroll settlements with personnel) - to the amount of income tax, etc].

Amounts of money actually remitted to the budget, and also the amounts of value-added tax, written off from Account 19(Value-added tax on acquired values) shall be reflected in debit of Account 68 (Payments of taxes and fees).

Analytical accounting in Account 68 (Payments of taxes and fees) shall be kept by type of tax.

 

See Regulations for Accounting Records "The Record-keeping of Payments of the Profit Tax (RKP 18/02) approved by Order of the Ministry of Finance of the Russian Federation No. 114n of November 19, 2002

 

Account 68 (Payments of taxes and fees)
corresponds with the accounts:

 

               in debit                                    in credit

 

19   Value-added     tax     on           08   Investments in non-current

     acquired values                                 assets

50   Cash in hand                            10   Materials

51   Settlement accounts                 11   Domestic animals  for   rearing

52   Foreign currency accounts             and fattening

55   Special   accounts    with          15   Procurement and acquisition  of

     banks                                                material assets

66   Payments  for   short-term        20   Main production

     credits and loans                        23   Auxiliary services

67   Payments   for   long-term         26   General household expenses

     credits and loans                         29   Service     production      and

                                                                household units

                                                          41   Goods

                                                          44   Expenses on sales

                                                          51   Settlement accounts

                                                          52   Foreign currency accounts

                                                          55   Special accounts with banks

                                                          70   Payroll  settlements

                                                                  with personnel

                                                          75   Settlements with promoters

                                                          90   Sales

                                                          91   Other incomes and expenses

                                                          98   Deferred incomes

                                                          99   Profits and losses

 

 

Account 69 (Payments for social insurance and social security)

 

Account 69 (Payments for social insurance and social security) is designed to generalise information about payments for social insurance, pensions and obligatory medical insurance of the organisation's workers.

The following subaccounts may be opened for Account 69 (Payments for social insurance and social security):

69-1 (Payments for social insurance),

69-2 (Payments for pensions),

69-3 (Payments for obligatory medical insurance).

Payments for the social insurance of the organisation's workers shall be accounted for on Subaccount 69-1 (Payments for social insurance).

Payments for the retirement persons of the organisation's workers shall be accounted for on Account 69-2 (Payments for the retirement persons of workers).

Payments for the obligatory medical insurance of the organisation's workers shall be accounted for in Subaccount 69-3 (Payments for obligatory medical insurance).

Additional subaccounts may be opened for Account 69 (Payments for social insurance and social security), if the organisation has payments for other types of social insurance and social security.

Account 69 (Payments for social insurance and social security) shall be credited to the amounts of payments on the social insurance and social security of workers, and also on their obligatory medical insurance, these amounts being transferred to the relevant funds. In this case records shall be made in correspondence with:

the accounts which reflect the payroll charges - in respect of deductions made at the expense of the organisation;

Account 70 (Payroll settlements with personnel) - in respect of deductions made at the expense of the organisation's workers.

Furthermore, in credit of Account 69 (Payments for social insurance and social security) in correspondence with the profit and loss account or with settlements with workers in other transactions (in respect of settlements with guilty persons) it is necessary to reflect the accrued amount of penalty fees for the untimely contribution of payments and in correspondence with Account 51(Settlement accounts) it is necessary to reflect the amounts received in cases of the excess of relevant expenses over payments.

In debit of Account 69 (Payments for social insurance and social security) it is necessary to reflect the transferred amounts of payments, and also the amounts paid at the expense of payments for social insurance, pensions and obligatory medical insurance.

 

Account 69 (Payments for social insurance and social security)
corresponds with the accounts:

 

               in debit                                      in credit

 

50   Cash in hand                            08   Investments in   non-current

51   Settlement accounts                         assets

52   Foreign currency accounts       20   Main production

55   Special   accounts    with           23   Auxiliary services

     banks                                          25   General production expenses

70   Payroll settlements                    26   General household expenses

     with personnel                             28   Spoilage in production

                                                         29   Service     production      and

                                                                household units

                                                         44   Expenses on sales

                                                         51   Settlement accounts

                                                         52   Foreign currency accounts

                                                         70   Payroll settlements

                                                                 with personnel

                                                          73   Settlements with      personnel

                                                                 for other operations

                                                          91   Other incomes and expenses

                                                          96   Reserves    for     forthcoming

                                                                 expenses

                                                          97   Deferred expenses

                                                          99   Profits and losses

 

Account 70 (Payroll settlements with personnel)

 

Account 78 (Payroll settlements with personnel) is designed to generalise information about payroll settlements with the organisation's workers (for all types of labour remuneration, social benefits and pensions for working pensioners and by other payments), and also about payments of incomes from shares and other securities of this organisation.

In credit of Account 70 (Payroll settlements with personnel) it is necessary to reflect the amounts of:

labour remuneration due to workers - in correspondence with the accounts of accounting production costs or sale costs and other sources;

labour remuneration, charged at the expense of the duly formed reserve for the payment of the workers' holiday leave and the reserve for seniority awards paid once in a year in correspondence with Account 96 (Reserves for forthcoming expenses);

charged social insurance benefits, pensions and other similar amounts - in correspondence with Account 69 (Payments for social insurance and social security);

charged income from participation in the organisation's capital, etc. - in correspondence with Account 84 (Retained profit or uncovered loss).

In debit of Account 70 (Payroll settlements with personnel) it is necessary to reflect the paid amounts of labour remuneration, bonuses, social benefits, pensions, etc. incomes from participation in the capital of the organisation, and also amounts of accrued taxes, payments under executive documents and of other deductions.

Amounts charged but not paid out within the fixed period of time (due to the absence of recipients) shall be reflected in debit of Account 70 (Payroll settlements with personnel) and in credit of Account 76 (Settlements with various debtors and creditors, subaccount (Payments from deposited amounts).

Analytical accounting in Account 70 (Payroll settlements with personnel) shall be kept for each worker of the organisation.

 

Account 70 (Payroll settlements with personnel)
corresponds with the accounts:

 

               in debit                                     in credit

 

50   Cash in hand                            08   Investments in non-current

51   Settlement accounts                        assets

52   Foreign currency accounts       20   Main production

55   Special   accounts    with          23   Auxiliary services

     banks                                         25   General production expenses

68   Payments of  taxes and fees    26   General household expenses

69   Payments    for     social           28   Spoilage in production

     insurance    and    social            29   Service     production      and

     security                                             household units

71   Settlements           with             44   Expenses on sales

     accountable persons                 69   Payments for  social  insurance

73   Settlements    with                           and social security

     personnel    for     other             76   Settlements    with     various

     operations                                         debtors and creditors

76   Settlements  with  various         79   Intra-economic settlements

     debtors and creditors                 84   Retained   profit    (uncovered

79   Intra-economic settlements               loss)

94   Shortages and losses  from     91   Other incomes and expenses

     damage to values                      96   Reserves    for     forthcoming

                                                              expenses

                                                       97   Deferred expenses

                                                       99   Profits and losses

 

Account 71 (Settlements with accountable persons)

 

Account 71 (Settlements with accountable persons) is designed to generalise information about settlements with workers in amounts given to them on account for administrative, economic and operating expenses.

Account 71 (Settlements with accountable persons) shall be debited to the amounts issued on account in correspondence with the accounts recording monetary funds. This account shall be credited for the spending of amounts by accountable persons in correspondence with the accounts, on which it is necessary to account expenses and acquired values, or with other accounts depending on the character of the expense.

Imprests, which are not returned by workers in fixed time shall be reflected in credit of Account 71 (Settlements with accountable persons) and in debit of Account 94 (Shortages and losses due to damage to values). Subsequently these amounts shall be written off Account 94 (Shortages and losses due to damage to value) in debit of Account 70 (Payroll settlements with personnel) (if they may be withheld from the wage or salary of a worker) or Account 73 (Settlements with personnel for other transactions) (when they may not be withheld from the wage or salary of a worker).

Analytical accounting in Account 71 (Settlements with accountable persons) shall be kept for each amount given on account.

 

Account 71 (Settlements with accountable persons)
corresponds with the accounts:

 

               in debit                                      in credit

 

50   Cash in hand                           07   Equipment for installation

51   Settlement accounts                08   Investments in  non-current

52   Foreign currency accounts             assets

55   Special   accounts    with         10   Materials

     banks                                         11   Domestic animals  for   rearing

76   Settlements  with  various               and fattening

     debtors and creditors                 15   Procurement and acquisition  of

79   Intra-economic settlements              material assets

91   Other incomes and expenses   20   Main production

                                                        23   Auxiliary services

                                                        25   General production expenses

                                                        26   General household expenses

                                                        28   Spoilage in production

                                                        29   Service     production      and

                                                              household units

                                                        41   Goods

                                                        44   Expenses on sales

                                                        45   Shipped goods

                                                        50   Cash in hand

                                                        51   Settlement accounts

                                                        52   Foreign currency accounts

                                                        55   Special accounts with banks

                                                        70    Payroll  settlements with

                                                               personnel

                                                        73   Settlements with  the personnel

                                                                for other operations

                                                        76   Settlements    with     various

                                                               debtors and creditors

                                                        79   Intra-economic settlements

                                                        91   Other incomes and expenses

                                                        94   Shortages   and   losses   from

                                                              damage to values

                                                        97   Deferred expenses

                                                        99   Profits and losses

 

Account 73 (Settlements with personnel for other operations)

 

Account 73 (Settlements with personnel for other operations) is designed to generalise information about all types of settlements with the organisation's workers, save settlements in labour remuneration and settlements with accountable persons.

The following subaccounts may be opened for Account 73 (Settlements with personnel for other operations):

73-1 (Payments for granted loans);

73-2 (Payments for the compensation for material damage), etc.

In Subaccount 73-1 (Payments for granted loans) it is necessary to reflect settlements with the organisation's workers under the loans granted to them (e.g. loans for individual and cooperative house-building, the acquisition on building of country houses, the improvement of garden plots and setting up house, etc.).

In debit of Account 73 (Settlements with personnel for other operations) it is necessary to reflect the amount of the loan granted to the organisation's worker in correspondence with Account 50 (Cash in hand) or Account 51 (Settlement accounts).

Account 73 (Settlements with personnel for other operations) shall be credited to the amount of payments, received from the worker-borrower, in correspondence with Account 50 (Cash office), Account 51 (Settlement accounts) and Account 70 (Payroll settlements with personnel) (depending on the accepted method of payment).

On Subaccount 73-2 (Payments for the compensation of material damage) it is necessary to record payments for the compensation of material damage caused by a worker of the organisation as a result of shortages and the misappropriation of monetary and material assets, spoilage, and also payments for the compensation of damage of other kinds.

Amounts subject to recovery from guilty persons shall be charged in debit of Account 73 (Settlements with personnel for other operations) from credit of Account 94 (Shortages and losses from damage to values), Account 98 (Deferred incomes) for missing material assets and Account 28 (Spoilage in production) for losses from rejects in production, and so on.

In credit of Account 73 (Settlements with personnel for other operations) records shall be made in correspondence with the accounts of: accounting monetary funds

- to the sums of payments made; Account 70 (Payroll settlements with personnel);

- to the sums of deductions from the sums for labour remuneration; Account 94 (Shortages and losses from damage to values)

- to the sums of written off shortages in case of the refusal to recover money due to the groundlessness of a suit.

Analytical accounting in Account 73 (Settlements with personnel for other operations) shall be kept for each worker of the organisation.

 

Account 73 (Settlements with personnel for other operations)
corresponds with the accounts:

 

               in debit                                   in credit

 

23   Auxiliary services                      41   Goods

28   Spoilage in production              50   Cash in hand

29   Service   production   and        51   Settlement accounts

     household units                          52   Foreign currency accounts

50   Cash in hand                            70   Payroll settlements with

51   Settlement accounts                        personnel

52   Foreign currency accounts       76   Settlements    with     various

57   Transfers in transit                          debtors and creditors

62   Settlements  with   buyers          91   Other incomes and expenses

     and customers                             94   Shortages   and   losses   from

69   Payments    for     social                   damage to values

     insurance    and    social              99   Profits and losses

     security

71   Settlements           with

     accountable persons

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

81   Own shares (stakes)

84   Retained profit (uncovered

     loss)

91   Other incomes and expenses

94   Shortages and losses  from

     damage to values

98   Deferred incomes

99   Profits and losses

 

Account 75 (Settlements with founders)

 

Account 75 (Settlements with founders) is designed to generalise information about all settlements with founders (participants) of the organisation (shareholders of a joint-stock company, participants in a general partnership, cooperative members, etc.): contributions to the organisations's authorised (pooled) capital, payment of incomes (dividends), etc. State and municipal unitary enterprises shall use this account to register all kinds of settlements with state bodies and local self-government bodies authorised to set them up.

The following subaccounts may be opened for Account 75 (Settlements with founders):

75-1 (Settlements in contributions to authorised or pooled capital),

75-2 (Settlements in payment of incomes), etc.

On Subaccount 75-1 (Settlements in contributions to authorised or pooled capital) it is necessary to account for settlements with the organisation's founders (participants) in contributions to its authorised (pooled) capital.

When a joint-stock company is set up in debit of Account 75 (Settlements with founders) in correspondence with Account 80(Authorised capital), it is necessary to take account of the sum of indebtedness for the payment for shares.

When the sums of contributions by promoters in the shape of money are actually received, it is necessary to make records in credit of Account 75 (Settlements with founders) in correspondence with accounts recording monetary funds.

The contributions in the form of material and other values (except for monetary funds) shall be completed by records in credit of Account 75 (Settlements with founders) in correspondence with Account 08 (Investments in non-current assets), Account 10(Materials), Account 15 (Procurement and acquisition of material values), etc.

Settlements in contributions to authorised (pooled) capital shall be reflected in a similar way in accounting with the founders (participants) of the organisations of other organisational and legal forms. In this case a record in debit of Account 75 (Settlements with founders) and in credit of Account 80 (Authorised capital) shall be made to the entire size of the authorised (pooled) capital, declared in constituent documents.

When the shares of an organisation set up in the form of a joint-stock company are sold at a price exceeding their nominal value, the received amount of the difference between the sale value and the nominal value shall be credited to Account 83(Additional capital).

Unitary enterprises shall use Subaccount 75-1 (Settlements in contributions to authorised or pooled capital) to account for settlements with a governmental body or a local self-government body on assets transferred to the balance by right of economic operation or operational management (in case of setting up an enterprise, of replenishing its current assets and of withdrawing assets). These enterprises call this subaccount "Settlements in allocated assets". Accounting records on this subaccount shall be made in a procedure similar to the procedure for accounting settlements in contributions to authorised (pooled) capital.

On Subaccount 75-2 (Settlements in payment of incomes) it is necessary to account for settlements with the founders (participants) of the organisation in payment of incomes to them. The charge of incomes from participation in the organisation shall be reflected in a record in debit of Account 84 (Retained profit "uncovered loss") and credit of account 75 (Settlements with founders). The charge and payment of incomes to the organisation's workers who are among its founders (participants) shall be accounted on Account 70 (Payroll settlements with personnel).

Payment of the charged amounts of incomes shall be reflected in debit of Account 75 (Settlements with founders) in correspondence with the accounts of recording monetary funds. When incomes are paid out from the participation in the organisation in the form of its products (works, services) or securities, it is necessary to make entries in accounting in debit of Account 75 (Settlements with founders) in correspondence with the accounts of accounting the sale of relevant values.

Amounts of the tax on incomes from participation in the organisation, which are subject to withholding at source of payment shall be accounted for in debit of Account 75 (Settlements with founders) and in credit of Account 68 (Payments for taxes and fees).

Subaccount 75-2 (Settlements in payment of incomes) shall also be used to reflect settlements in the distribution of profit, loss and other results and a contract of special partnership. Accounting records of these transactions shall be made in a similar way.

Analytical accounting in Account 75 (Settlements with founders) shall kept for each founder (participant) with the exception of accounting settlements with shareholders who own shares to bearer in joint-stock companies.

Accounting of settlements with founders (participants) within the framework of a group of interrelated organisations, on the activity of which consolidated accounting is made out, shall be kept on Account 75 (Settlements with founders) separately.

 

Account 75 (Settlements with founders)
corresponds with the accounts:

 

               in debit                                        in credit

 

50   Cash in hand                              07   Equipment for installation

51   Settlement accounts                   08   Investments in  non-current

52   Foreign currency accounts                assets

55   Special   accounts    with            10   Materials

     banks                                            11   Domestic animals  for   rearing

62   Settlements  with   buyers                  and fattening

     and customers                              15   Procurement and acquisition  of

68   Payments of  taxes and fees              material assets

80   Authorised capital                       20   Main production

83   Additional capital                        41   Goods

84   Retained profit (uncovered        50   Cash in hand

     loss)                                             51   Settlement accounts

91   Other incomes and expenses    52   Foreign currency accounts

                                                         55   Special accounts with banks

                                                         58   Financial placements

                                                         80   Authorised capital

                                                         83   Additional capital

                                                         84   Retained   profit    (uncovered

                                                                  loss)

 

Order of the Ministry of Finance of the Russian Federation No. 115n of September 18, 2006 amended description of Account 76 of these Instructions. The amendments shall enter into force beginning with the annual accounting for 2006

See text of Item in previous wording

 

Account 76 (Settlements with various debtors and creditors)

 

Account 76 (Settlements with various debtors and creditors) is designed to generalise information about settlements in transactions in debtors and creditors which are not mentioned in explanations to Accounts 60-75: on property and personal insurance; on claims; on amounts withheld from wages and salaries of the organisation's workers in favour of other organisations and individuals on the basis of executive documents or court decisions, etc.

The following subaccounts may be opened for Account 76 (Settlements with various debtors and creditors):

76-1 (Settlements for property and personal insurance),

76-2 (Settlements of claims),

76-3 (Settlements for due dividends and other incomes),

76-4 (Settlements for deposited amounts) and so on.

In Account 76-1 (Settlements for property and personal insurance) it is necessary to reflect settlements for the organisation's insurance of property and personnel (except for settlements for social insurance and obligatory medical insurance), in which the organisation acts as an insurant.

The calculated amounts of insurance payments shall be reflected in credit of Account 76 (Settlements with various debtors and creditors) in correspondence with the accounts of accounting production costs (sale costs) or of other sources of insurance payments.

The transfer of the amounts of insurance payments to insurance organisations shall be reflected in debit of Account 76 (Settlements with various debtors and creditors) in correspondence with the accounts of accounting monetary funds.

In debit of Account 76 (Settlements with various debtors and creditors) it is necessary to write off losses in insured accidents (the destruction of, and damage to, productive supplies, finished articles and other material values, etc.) from credit of the accounts of accounting productive supplies, fixed assets, etc. In debit of Account 76 (Settlements with various debtors and creditors) it is also necessary to reflect the amount of insurance indemnity due under the contract of insurance of the organisation's workers in correspondence with Account 73 (Settlements with various debtors and creditors). The amounts of insurance compensation received by the organisation from insurance companies in accordance with insurance contracts shall be reflected in debit of Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts) and in credit of Account 76 (Settlements with various debtors and creditors). The losses from insured accidents, which are not compensated by insurance indemnities shall be written off credit of Account 76 (Settlements with various debtors and creditors) to Account 99 (Other Incomes and Expenses).

Analytical accounting in Subaccount 76-1 (Settlements for property and personal insurance) shall be kept per insurants and individual insurance contracts.

In Subaccount 76-2 (Settlements of claims) it is necessary to reflect payments for claims presented to suppliers, contractors, transport and other organisations, and also for presented and recognised (or adjudged) fines, penalty fees and penalties.

In debit of Account 76 (Settlements with various debtors and creditors) it is necessary to reflect, in particular, the settlements on claims:

to suppliers, contractors and transport organisations, upon verification of their accounts (after the acceptance of the latter), for revealed inconsistency of prices and tariffs stipulated by contracts, and also upon the disclosure of arithmetical errors - in correspondence with Account 60 (Settlements with suppliers and contractors) or with the accounts of accounting for production supplies, goods and relevant costs, when the overstatement of prices or arithmetical errors in the bills presented by suppliers and contractors were discovered after the records in the accounts of recording material assets or costs had been made (on the basis of the prices and computations invoices by suppliers and contractors);

to suppliers of materials, goods, as well as to organisations processing the organisation's materials for discovered inconsistencies between standards and specifications, on the hand, and orders, on the other, - in correspondence with Account60 (Settlement with suppliers and contractors);

to suppliers, transport and other organisations for shortages of cargo en route over and above the magnitudes provided for by contracts - in correspondence with Account 60 (Settlements with suppliers and customers);

for rejects and downtime, appearing through the fault of suppliers or contractors, in amounts recognised by payers or adjudged by a court of law - in correspondence with the accounts of accounting production costs;

to credit organisations for amounts mistakenly written off or transferred to the organisation's accounts - in correspondence with the accounts of accounting monetary funds and credits;

and also for fines, penalty fees and penalties received from suppliers, contractors, buyers, customers and consumers of transport and other services for the non-observance of contractual obligations in amounts recognised by payers or adjudged by courts of law (amounts of presented claims that are not recognised by payers shall not be accepted for accounting) - in correspondence with Account 91 (Other incomes and expenses).

Account 76 (Settlements with various debtors and creditors) shall be credited to the amounts of received payments in correspondence with the accounts of accounting monetary funds. Amounts of money which, as it transpired later, are not subject to recovery shall be charged, as a rule, to those accounts from which they were taken for accounting in debit of Account 76 (Settlements with various debtors and creditors).

Analytical accounting in Subaccount 76-2 (Settlements for claims) shall be kept for each debtor and individual claims.

On Subaccount 76-3 (Settlements for due dividends and other incomes) it is necessary to record settlements for dividends and other incomes due to the organisation, including for profits, losses and other results under a contract of general partnership.

Incomes subject to reception or distribution shall be reflected in debit of Account 76 (Settlements with various debtors and creditors) and in credit of Account 91 (Other incomes and expenses). Assets received by the organisation on account of incomes shall be booked as received in debit of the accounts of accounting assets [Account 51 (Settlement accounts), etc.] and in credit of Account 76 (Settlements with various debtors and creditors).

On Subaccount 76-4 (Settlements for deposited amounts) it is necessary to account for settlements with the organisation's workers for the amounts charged but not paid out within the fixed time (due to the absence of recipients).

Deposited amounts shall be reflected in credit of Account 76 (Settlements with various debtors and creditors) and in debit of Account 70 (Payroll settlements with personnel). When these amounts of money are paid out to a recipient, it is necessary to make a record in debit of Account 76 (Settlements with various debtors and creditors) and in credit of the accounts accounting monetary funds.

The accounting of settlements with various debtors and creditors within the framework of a group of interrelated organisations, on whose activity consolidated accounting is maintained, shall be kept on Account 76 (Settlements with various debtors and creditors) separately.

 

Account 76 (Settlements with various debtors and creditors)
corresponds with the accounts:

 

               in debit                                     in credit

 

01   Fixed assets                             01   Fixed assets

03   Profitable  placements  in         03   Profitable    placements     in

     material values                                  material values

04   Intangible assets                      04   Intangible assets

07   Equipment for installation         07   Equipment for installation

08   Investments in                          08   Investments in   non-current

     non-current    assets                          assets

10   Materials                                  10   Materials

11   Domestic    animals    for          11   Domestic animals  for   rearing

     rearing and fattening                        and fattening

15   Procurement  and                    15   Procurement and acquisition  of

     acquisition  of   material                    material assets

     assets                                        19   Value-added  tax  on   acquired

20   Main production                              values

21   Semi-finished products  of       20   Main production

     own manufacture                       23   Auxiliary services

23   Auxiliary services                     25   General production expenses

25   General         production         26   General household expenses

     expenses                                   28   Spoilage in production

26   General household expenses  29   Service     production      and

28   Spoilage in production                     household units

29   Service   production   and        41   Goods

     household units                         44   Expenses on sales

41   Goods                                     45   Shipped goods

43   Finished products                   50   Cash in hand

44   Expenses on sales                  51   Settlement accounts

45   Shipped goods                       52   Foreign currency accounts

50   Cash in hand                          55   Special accounts with banks

51   Settlement accounts               57   Transfer in transit

52   Foreign currency accounts     58   Financial placements

55   Special   accounts    with        60   Settlements with suppliers  and

     banks                                              contractors

58   Financial placements             62   Settlements  with  buyers   and

60   Settlements with suppliers              customers

     and contractors                       63   Reserves for doubtful debts

62   Settlements  with   buyers      66   Payments for short-term credits

     and customers                                and loans

66   Payments  for   short-term     67   Payments for long-term  credits

     credits and loans                             and loans

67   Payments   for   long-term     70   Payroll  for  social  insurance

     credits and loans                             and social security

70   Payroll settlements                71   Settlements  with   accountable

     with personnel                                 persons

                                                     73   Settlements with      personnel

71   Settlements           with                  for other operations

     accountable persons               76   Settlements    with     various

73   Settlements    with                         debtors and creditors

     personnel    for     other           79   Intra-economic settlements

     operations                                91   Other incomes and expenses

76   Settlements  with  various       94   Shortages   and   losses   from

     debtors and creditors                       damage to values

79   Intra-economic settlements     96   Reserves    for     forthcoming

86   Target-oriented financing               expenses

90   Sales                                       97   Deferred expenses

91   Other incomes and expenses  99   Profits and losses

97   Deferred expenses

98   Deferred incomes

99   Profits and losses

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 supplemented these Instructions with the characteristics of account 77

The amendments shall come into force beginning from financial reporting as of the Year 2003

 

Account 77 "Deferred Tax Liabilities"

 

Account 77 "Deferred Tax Liabilities" is intended for summing up information on the availability and movement of deferred tax liabilities.

Deferred tax liabilities shall be recognised for bookkeeping purposes in the amount calculated as the taxable temporary differences occurring in the accounting period times the profit tax rate effective as of the accounting date.

The deferred tax reducing the amount of conditional expense (income) of the accounting period shall be recorded under the credit of account 77 "Deferred Tax Liabilities" in correspondence with the debit of account 68 "Settlement of Accounts for Taxes and Fees".

A decrease or complete repayment of deferred tax obligations shall be recorded under the debit of account 77 "Deferred Tax Liabilities" in correspondence with the credit of account 68 "Settlement of Accounts for Taxes and Fees" as offsetting the profit tax accruals of the accounting period.

A deferred tax liability, in the event of retirement of the asset item or the type of liability for which it has been accrued shall be written off the debit of account 77 "Deferred Tax Liabilities" to the credit of account 99 "Profits and Losses".

The analytical accounting of deferred tax liabilities shall be kept by the type of the asset or liability in the assessment of which a taxable temporary difference has occurred.

 

Account 77 "Deferred Tax Liabilities"

 

     Under the Debit                             Under the Credit

 

  68 "Settlement of Accounts       68 "Settlement of Accounts

     for Taxes and Fees"                     for Taxes and Fees"

   99 "Profits and Losses"

 

 

 

Account 79 (Intra-economic settlements)

 

Account 79 (Intra-economic settlements) is designed to generalise information about settlements of all types with the organisation's branches, representative offices, divisions and other separate subdivisions placed on separate balances (intra-balance settlements), in particular, about settlements for allotted property, the mutual release of material values, for the sale of products, works, services, for the transfer of expenses on general management, for the payment of the work of the subdivision workers, etc.

The following subaccounts may be opened for Account 79 (Intra-economic settlements):

79-1 (Settlements for allotted property),

79-2 (Settlements for current transactions),

79-3 (Settlements for a contract of trustee management of property), etc.

On Subaccount 79-1 (Settlements for allotted property) it is necessary to account for settlements with the organisation's branches, representative offices, divisions and other separate subdivisions of the organisation, placed on separate balances, and settlements for non-current and current assets transferred to them.

Assets allotted for said subdivisions shall be written off by the organisation from Account 01 (Fixed assets) and other accounts in debit of Account 79 (Intra-economic settlements).

Assets allotted by the organisation to said subdivisions shall be taken for accounting by those units from credit of Account 79 (Intra-economic settlements) in debit of Account 01 (Fixed assets) and other accounts.

On Subaccount 79-2 (Settlements for current transactions) it is necessary to record the condition of all other settlements of the organisation with branches, representative offices, divisions and other separate units placed on separate balances.

On Subaccount 79-3 (Settlements for a contract of trustee management of property) it is necessary to account for the condition of settlements connected with the execution of contracts of trustee management of property. This subaccount shall be used to account for the settlements of the originator of management and the trustee, and also settlements for assets transferred in trustee management and accounted for on a separate balance.

Assets transferred for trustee management shall be written off by the originator of management from Account 01 (Fixed assets), Account 04 (Intangible assets), Account 58 (Financial placements) and other accounts in debit of Account 79 (Intra-economic settlements) [simultaneously a record shall be made to the amounts of accrued depreciation in debit of Account 02(Depreciation of fixed assets), and of Account 05 (Depreciation of intangible assets) and in credit of Account 79 (Intra-economic settlements)]. The assets accepted by the trustee for a separate balance shall be reflected in debit of Account 01 (Fixed assets), Account 04 (Intangible assets), Account 58 (Financial placements) and other accounts and in credit of Account 79 (Intra-economic settlements) (at the same time a record shall be made to the amounts of accrued depreciation in credit of Account 02(Depreciation of fixed assets), Account 05 (Depreciation of intangible assets) and in credit of Account 79 (Intra-economic settlements).

Reversing entries shall be made upon the termination of a contract of trustee management of assets and the return of such to the originator of management. If the contract of trustee management of assets provides for other operations in assets transferred in trust, the accounting of these operations shall be kept in the general order.

The transfer of monetary funds on account of profit (income) due to the originator of management in a separate balance shall be reflected in credit of the accounts accounting monetary funds and in debit of Account 79 (Intra-economic settlements). Monetary funds received by the originator of management on account of this profit (income) shall be booked as received in debit of accounts accounting monetary funds in correspondence with Account 79 (Intra-economic settlements).

The originator of management shall reflect the amounts of compensation for the losses, caused by the loss of, or damage to, property given in trust, and also the amounts of missed profit, in debit of Account 76 (Settlements with various debtors and creditors) in correspondence with credit of Account 91 (Other incomes and expenses). When the originator of management receives these funds, it is necessary to debit the accounts of accounting monetary funds and to credit Account 76 (Settlements with various debtors and creditors).

Analytical accounting in Account 79 (Intra-economic settlements) shall be kept for each branch, representative office, division or any other separate unit of the organisation, placed on a separate balance, while analytical accounting under contracts of trustee management of property shall be kept per each contract.

 

Account 79 (Intra-economic settlements)
corresponds with the accounts:

 

               in debit                                      in credit

 

01   Fixed assets                              01   Fixed assets

02   Depreciation   of    fixed            02   Depreciation of fixed assets

     assets                                         04   Intangible assets

04   Intangible assets                       05   Depreciation   of    intangible

05   Depreciation of intangible                assets

     assets                                          07   Equipment for installation

07   Equipment for installation          08   Investments in   non-current

08   Investments             in                       assets

     non-current    assets                   10   Materials

10   Materials                                    11   Domestic animals  for   rearing

11   Domestic    animals    for                   and fattening

     rearing and fattening                   15   Procurement and acquisition  of

15   Procurement            and                    material assets

     acquisition  of   material               16   Deviation  in  the   value   of

     assets                                                 material assets

16   Deviation in the value  of           20   Main production

     material assets                            21   Semi-finished products  of  own

20   Main production                                manufacture

21   Semi-finished products  of         23   Auxiliary services

     own manufacture                         25   General production expenses

23   Auxiliary services                       26   General household expenses

25   General production                   29   Service     production      and

     expenses                                            household units

26   General household expenses    40   Output  of   products   (works,

29   Service   production   and                  services)

     household units                           41   Goods

40   Output of products (works,        43   Finished products

     services)                                     44   Expenses on sales

41   Goods                                       45   Shipped goods

43   Finished products                     50   Cash in hand

44   Expenses on sales                    51   Settlement accounts

45   Shipped goods                          52   Foreign currency accounts

50   Cash in hand                             55   Special accounts with banks

51   Settlement accounts                  57   Transfers in transit

52   Foreign currency accounts        60   Settlements with suppliers  and

55   Special   accounts    with                   contractors

     banks                                           62   Settlements  with  buyers   and

60   Settlements with suppliers                 customers

     and contractors                            70   Payroll settlements

62   Settlements  with   buyers                  with personnel

     and customers                              71   Settlements  with   accountable

70   Payroll settlements                             persons

     with personnel                                73   Settlements with  the personnel

                                                                  for other operations

71   Settlements with                          76   Settlements with various

     accountable persons                           debtors and creditors

76   Settlements  with  various            84   Retained   profit    (uncovered

     debtors and creditors                            loss)

84   Retained profit (uncovered          90   Sales

     loss)                                               91   Other incomes and expenses

90   Sales                                           97   Deferred expenses

91   Other incomes and expenses      99   Profits and losses

97   Deferred expenses

99   Profits and losses

 

Section VII
Capital

 

The accounts of this Section are intended for the generalisation of information about the state and movement of the organisation's capital.

 

Account 80 (Authorised capital)

 

Account 80 (Authorised capital) is designed to generalise information about the state and movement of authorised capital (pooled capital and chartered fund) of the organisation.

The balance amount in Account 80 (Authorised capital) shall correspond to the amount of authorised capital fixed in the organisation's constituent documents. Entries in Account 80 (Authorised capital) shall be made during the formation of authorised capital only after the introduction of appropriate amendments to the organisation's constituent documents.

After the state registration of the organisation its authorised capital in the amount of contributions by founders (participants), provided for by its constituent documents, shall be reflected in credit of Account 80 (Authorised capital) in correspondence with Account 75 (Settlements with founders). The contributions of promoters shall be actually received in credit of Account 75(Settlements with founders) in correspondence with the accounts of accounting monetary funds and other values.

Analytical accounting in Account 80 (Authorised capital) shall be organised in such a ways as to ensure the formation of information per the founders of the organisation, per the stages of the formation of capital and types of shares.

Account 80 shall also be used to generalise information about the state and movement of contributions to common property under a contract of general partnership. In this case Account 80 shall be named "Contributions by special partners".

Assets contributed by special partners to the general partnership on account of their contributions shall be booked as received in debit of the accounts of accounting assets [Account 51 (Settlements accounts), Account 01 (Fixed assets), Account 41 (Goods), etc.] and in credit of Account 80 (Contributions by special partners). When assets are returned to special partners upon the termination of the contract of general partnership, it is necessary to make reversing entries in accounting.

Analytical accounting in Account 80 (Contributions by special partners) shall be kept for each contract of general partnership and each participant in the contract.

 

Account 80 (Authorised capital) corresponds
with the accounts:

 

               in debit                                  in credit

 

01   Fixed assets                             01   Fixed assets

03   Profitable  placements  in         03   Profitable    placements     in

     material values                                  material values

04   Intangible assets                      04   Intangible assets

07   Equipment for installation         07   Equipment for installation

08   Investments in                          08   Investments in   non-current

     non-current    assets                        assets

10   Materials                                  10   Materials

11   Domestic    animals    for          11   Domestic animals  for   rearing

     rearing and fattening                        and fattening

15   Procurement            and          15   Procurement and acquisition  of

     acquisition  of   material                    material assets

     assets                                        16   Deviation  in  the   value   of

16   Deviation in the value  of                 material assets

     material assets                           20   Main production

20   Main production                        21   Semi-finished products  of  own

21   Semi-finished products  of               manufacture

     own manufacture                        23   Auxiliary services

23   Auxiliary services                      29   Service     production      and

29   Service   production   and                household units

     household units                          41   Goods

41   Goods                                      43   Finished products

43   Finished products                    50   Cash in hand

50   Cash in hand                           51   Settlement accounts

51   Settlement accounts                52   Foreign currency accounts

52   Foreign currency accounts      55   Special accounts with banks

55   Special   accounts    with         58   Financial placements

     banks                                        75   Settlements with founders

58   Financial placements              83   Additional capital

75   Settlements with founders       84   Retained   profit    (uncovered

81   Own shares (stakes)                     loss)

84   Retained profit (uncovered

     loss)

 

Account 81 (Own shares or stakes)

 

Account 81 (Own shares or stakes) is designed to generalise information about the presence and movement of own shares bought out by the respective joint-stock company from its shareholders for subsequent resale or annulment. Other economic societies and partnerships shall use this account for accounting for the stake of a participant, acquired by the society or partnership for transfer to other participants or third persons.

When the joint-stock company or any other society (partnership) buys out from a participant or a shareholder the shares or stakes that belong to him, it is necessary to made an entry in accounting to the amount of actual costs in debit of Account 81 (Own shares or stakes) and in credit of the accounts of accounting monetary funds.

The own shares bought out by a joint-stock company shall be cancelled in credit of Account 81 (Own shares or stakes) and in debit of Account 80 (Own shares or stakes) after the fulfilment by this company of all stipulated procedures. The difference between the actual costs of the redemption of shares or stakes and their nominal value, which arises in Account 81 (Own shares or stakes) shall be charged to Account 91 (Other incomes and expenses).

 

Account 81 (Own shares (stakes))
corresponds with the accounts:

 

               in debit                               in credit

 

50   Cash in hand                        73   Settlements with      personnel

51   Settlement accounts                     for other operations

52   Foreign currency accounts   80   Authorised capital

55   Special   accounts    with       91   Other incomes and expenses

     banks

91   Other incomes and expenses

 

Account 82 (Reserve capital)

 

Account 82 (Reserve capital) is designed to generalise information about the state and movement of reserve capital.

Deductions to reserve capital from profit shall be reflected in credit of Account 82 (Reserve capital) in correspondence with Account 84 (Retained profit or uncovered loss).

The use of the resources of reserve capital shall be accounted in debit of Account 82 (Reserve capital) in correspondence with the following accounts: Account 84 (Retained profit or uncovered loss) - in respect of the amounts of the reserve fund used to cover the organisation's losses over the reporting year; Account 66 (Payments for short-term credits and loans) or Account 67(Payments for long-tern credits and loans) - in respect of the amounts used to retire the bonds of a joint-stock company.

 

Account 82 (Reserve capital) corresponds
with the accounts:

 

               in debit                                    in credit

 

66  Payments  for   short-term            84   Retained   profit  (uncovered

    credits and loans                                    loss)

67  Payments   for   long-term

    credits and loans

84  Retained profit (uncovered

    loss)

 

Account 83 (Additional capital)

 

Account 83 (Additional capital) is intended for the generalisation of information about the organisation's additional capital.

The following amounts shall be reflected in credit of Account 83 (Additional capital):

the increment of the value of extra-floating assets, revealed according to the results of their revaluation - in correspondence with the accounts of accounting assets, by which the increment of value was determined;

the amount of the difference between the sale value and the nominal value of shares, received in the process of formation of the authorised capital of a joint-stock company (during the establishment of a company and in case of the subsequent growth of authorised capital) at the expense of the sale of shares at a price that exceeds their nominal value - in correspondence with Account 75 (Settlements with founders).

Amounts credited to Account 83 (Additional capital) shall not be written off, as a rule. Debit entries may take place in the cases of:

the repayment of the amounts of the reduction of the value of extra-floating assets coming to light as a result of revaluation - in correspondence with the accounts of accounting the assets, on which the reduction of the value was determined;

- the use of funds for the increase of authorised capital - in correspondence with Account 75 (Settlements with founders) or with Account 80 (Authorised capital);

- the distribution of amounts of money between the promoters of the respective organisation - in correspondence with Account75 (Settlements with founders), etc.

Analytical accounting in Account 83 (Additional capital) shall be organised in a way to ensure the formation of information from the sources of its establishment and the use of monetary funds.

 

Account 83 (Additional capital) corresponds
with the accounts:

 

               in debit                               in credit

 

01   Fixed assets                          01   Fixed assets

02   Depreciation   of    fixed        02   Depreciation of fixed assets

     assets                                     75   Settlements with founders

75   Settlements with founders     84   Retained   profit    (uncovered

80   Authorised capital                         loss)

84   Retained profit (uncovered   86   Target-oriented financing

     loss)

 

Account 84 (Retained profit or uncovered loss)

 

Account 84 (Retained profit or uncovered loss) is designed to generalise information about the presence and movement of the amounts of the undistributed profit or uncovered loss of the respective organisation.

The amount of the net profit of the reporting year shall be written off by concluding turnover of December in credit of Account 84 (Retained profit or uncovered loss) in correspondence with Account 99 (profits and losses). The amount of the net loss of the reporting year shall be written off by concluding turnover of December in debit of Account 84 (Retained profit or uncovered loss) in correspondence with Account 99 (Profits and losses).

The use of a part of the profit of the reporting year for the payment of income to the founders (participants) of the organisation according to the results of the approval of annual accounting shall be reflected in debit of Account 84 (Retained profit or uncovered loss) and in credit of Account 75 (Settlements with founders) and Account 70 (Payroll settlements with personnel). A similar entry shall be made when interim incomes are paid out.

The write-off of the balance-sheet of the loss of the reporting year shall be reflected in credit of Account 84 (Retained profit or uncovered loss) in correspondence with Account 80 (Authorised capital), when the size of authorised capital is brought to the size of the organisation's net assets; Account 82 (Reserve capital), when the resources of reserve capital are used to repay the loss; Account 75 (Settlements with founders), when the loss of a general partnership is repaid at the expense of contributions by its participants and so on.

Analytical accounting in Account 84 (Retained profit or uncovered loss) shall be organised in a way to ensure the formation of information on the trends of the use of monetary funds. The resources of undistributed profit, which are used as financial security for the productive development of the organisation and other similar measures of acquiring or creating new assets and which are not as yet used, may be divided in analytical accounting.

 

Account 84 (Retained profit or uncovered loss)
corresponds with the accounts:

 

               in debit                                  in credit

 

51   Settlement accounts              73   Settlements with      personnel

52   Foreign currency accounts           for other operations

55   Special   accounts    with       75   Settlements with founders

     banks                                      79   Intra-economic settlements

70   Payroll settlements                80   Authorised capital

     with personnel                         82   Reserve capital

                                                     83   Additional capital

75   Settlements with founders     84   Retained   profit    (uncovered

79   Intra-economic settlements          loss)

80   Authorised capital                  99   Profits and losses

82   Reserve capital

83   Additional capital

84   Retained profit (uncovered

     loss)

99   Profits and losses

 

 

Account 86 (Target-oriented financing)

 

Account 86 (Target-oriented financing) is designed to generalise information about the flow of funds intended for the realisation of measures with designated purpose and of funds received from other organisations and persons, budget resources, etc.

Funds of designated purpose, received as sources of financing various measures, shall be reflected in credit of Account 86 (Target-oriented financing) in correspondence with Account 76 (Settlements with various debtors and creditors).

The use of targeted financing shall be reflected in debit of Account 86 (Targeted financing) in correspondence with Account 20(Main production) or Account 26 (General economic costs), when the funds of target-oriented financing are used to upkeep a non-profit organisation;

Account 83 (Additional capital), when funds of target-oriented financing in the form of investments are used;

Account 98 (Deferred incomes), when a profit-making organisation uses budget resources to finance expenses, etc.

Analytical accounting in Account 86 (Target-oriented financing) shall be kept according to the designated purpose of targeted funds and according to their source.

 

Account 86 (Target-oriented financing)
corresponds with the accounts:

 

               in debit                                    in credit

 

20   Main production                          07   Equipment for installation

26   General household expenses     08   Investments in   non-current

83   Additional capital                               assets

98   Deferred incomes                       10   Materials

                                                          11   Domestic animals  for   rearing

                                                                 and fattening

                                                          15   Procurement and acquisition  of

                                                                 material assets

                                                          20   Main production

                                                          41   Goods

                                                          50   Cash in hand

                                                          51   Settlement accounts

                                                          52   Foreign currency accounts

                                                          55   Special accounts with banks

                                                          76   Settlements    with     various

                                                                 debtors and creditors

 

Section VIII
Financial Results

 

The accounts of this Section are designed to generalise information about the organisation's incomes and expenses, and also to reveal the end financial result of its activity over the reporting period.

 

Account 90 (Sales)

 

Account 90 (Sales) is intended for the generalisation of information about incomes and expenses connected with the common types of activity of the organisation, and also for the determination of their financial results. In particular, it is necessary to reflect in this account the receipts and prime cost of:

finished products and semi-finished products of own manufacture;

industrial works and services;

non-industrial works and services;

bought items (acquired for completeness);

building, assembly, design and survey, geological prospecting, scientific-research and other works;

goods;

services for the carriage of cargoes and passengers;

forwarding and cargo handling operations;

communication services;

the granting of assets for a change in temporary use (temporary possession and utilisation) under a lease contract, when this is the object of the organisation's activity;

the granting for a charge of rights following from patents for inventions, industrial designs and other types of intellectual property, when this is the object of the organisation's activity;

the participation in the charter capitals of other organisations, when this is the object of the organisation's activity, etc.

When recognised in accounting, the amount of proceeds from the sale of goods, products, the performance of works and the provision of services, etc. shall be reflected in credit of Account 90 (Sales) and in debit of Account 62 (Settlements with buyers and customers). At the same time the prime cost of sold goods, products, works, services, etc. shall be written off credit of Account 43 (Finished products), Account 41 (Goods), Account 44 (Expenses on sales), Account 20 (Main production), etc. in debit of Account 90 (Sales).

In organisations engaged in the production of farm products, it is necessary to reflect in credit of Account 90 (Sales) the proceeds from the sale of products [in correspondence with Account 62 (Settlements with buyers and customers)], and in debit it is necessary to reflect the planned prime cost of products (during the year when the actual prime cost is not revealed) and the difference between the planned and the actual prime cost of sold products (at the end of a year). The planned prime cost of sold products, and also the amounts of difference shall be debited to Account 90 (Sales) or reversed in correspondence with those accounts on which these products were accounted.

In organisations carrying out retail trade and accounting goods at sale prices it is necessary to reflect the sale value of sold goods in credit of Account 90 (Sales) (in correspondence with the accounts of accounting monetary funds and payments), and to reflect their accounting value [in correspondence with Account 41 (Goods)] with the simultaneous reversal in the amounts of discounts or surcharges relating to sold goods [in correspondence with Account 42 (Markup)].

The following subaccounts may be opened for Account 90 (Sales):

90-1 (Proceeds);

90-2 (Prime cost of sales);

90-3 (Value-added tax);

90-4 (Excises);

90-9 (Profit or loss from sales)

On Subaccount 90-1 (Proceeds) it is necessary to account for the receipts of assets recognised as proceeds.

On Subaccount 90-2 (Prime cost of sales) it is necessary to account for the prime cost of sales, for which on Subaccount 90-1 receipts were recognised.

On Subaccount 90-3 (Value-added tax) it is necessary to account for the sums of the value-added tax receivable from a buyer or customer.

On Subaccount 90-4 (Excises) it is necessary to account for the sums of excises included in the price of sold products or goods.

Organisations paying export duties may open Subaccount 90-5 (Exports duties) for Account 90 (Sales) in order to account for the sums of export duties.

Subaccount 90-9 (Profit or loss from sales) is designed to reveal financing result (profit or loss) from the sales during the reporting month.

Entries in Subaccounts 90-1 (Proceeds), 90-2 (Prime cost of sales), 90-3 (Value-added tax) and 90-4 (Excises) shall be made by accumulation during the reporting year. Every month it is necessary to determine the financial results (profit or loss) from sales over the reporting month by comparing the overall debit turnover in Subaccounts 90-2 (Prime cost of sales), 90-3 (Value-added tax), 90-4 (Excises) and the credit turnover in Subaccount 90-1 (Proceeds). These financial results shall be written off every month by concluding turnovers from Subaccount 90-9 (Profit or loss from sales) to Account 99 (Profits and losses). Thus, synthetic Account 90 (Sales) does not have a balance amount on the reporting date.

When the reporting year is over, all subaccounts opened from Account 90 (Sales, [except for Subaccount 90-9) (Profit or loss from sales)], shall be closed by internal entries to Subaccount 90-9 (Profit or loss from sales).

Analytical accounting in Account 90 (Sales) shall be kept for each type of goods or products sold, works performed, services rendered, etc. Moreover, analytical accounting in this account may be kept by region of sales and other trends needed for the management of the organisation.

 

Account 90 (Sales) corresponds with the accounts:

 

               in debit                                          in credit

 

11   Domestic    animals    for                 46   Fulfilled stages in  incomplete

     rearing and fattening                               works

20   Main production                              50   Cash in hand

21   Semi-finished products  of              51   Settlement accounts

     own manufacture                              52   Foreign currency accounts

23   Auxiliary services                            57   Transfer in transit

26   General household expenses         62   Settlements  with  buyers   and

29   Service   production   and                      customers

     household units                                76   Settlements    with     various

40   Output of products (works,                    debtors and creditors

     services)                                          79   Intra-economic settlements

41   Goods                                            98   Deferred incomes

42   Markup                                          99   Profits and losses

43   Finished products

44   Expenses on sales

45   Shipped goods

58   Financial placements

68   Payments of taxes and fees

79   Intra-economic settlements

99   Profits and losses

 

 

Order of the Ministry of Finance of the Russian Federation No. 115n of September 18, 2006 amended description of Account 91 of these Instructions. The amendments shall enter into force beginning with the annual accounting for 2006

See text of Item in previous wording

 

Account 91 (Other incomes and expenses)

 

Account 91 (Other incomes and expenses) is designed to generalise information about miscellaneous incomes and expenses of the reporting period.

The following receipts shall find reflection in credit of Account 91 (Other incomes and expenses) during the reporting period:

receipts connected with the granting of assets to the organisation for a charge, in temporary use (temporary possession and use) - in correspondence with the accounts of accounting payments or monetary funds;

receipts connected with the granting for a charge of the rights following from patents for inventions, industrial designs and other types of intellectual property - in correspondence with the accounts of accounting payments or monetary funds;

receipts from the participation in the authorised capitals of other organisations, and also interest and other incomes from securities - in correspondence with the accounts of accounting payments;

profit received by the organisation under a contract of general partnership - in correspondence with Account 76 (Settlements with various debtors and creditors), subaccount (Payments of due dividends and other incomes);

receipts from the sale and other write-offs of fixed assets and other assets other than monetary funds in Russian currency, products, and goods - in correspondence with the accounts of accounting payments or monetary funds;

receipts from operations with containers - in correspondence with the accounts of accounting containers and payments;

interest received (receivable) for the granting to the organisation of monetary funds in use, and also interest for the use by the credit organisation of monetary funds to be formed on the organisation's account with this credit institution - in correspondence with the accounts of accounting financial placements or monetary funds;

fines, penalty fees and penalties for breaking the terms of contracts, received or recognised as receivable - in correspondence with the accounts of accounting payments or monetary funds.

receipts connected with the gratuitous reception of assets - in correspondence with the account of accounting deferred incomes;

receipts in compensation for losses inflicted on the organisation - in correspondence with the accounts of accounting payments;

profit of past years, revealed in the reporting year - in correspondence with the accounts of accounting payments;

amounts of creditor indebtedness, whose period of limitation has expired - in correspondence with the accounts of accounting creditor indebtedness;

differences of exchange rate - in correspondence with the accounts of accounting monetary funds, financial placements, payments, etc.;

miscellaneous incomes.

The following expenses shall find reflection in debit of Account 91 (Other incomes and expenses):

expenses connected with the granting to the organisation for a charge in temporary use (temporary possession and use) of assets, of rights following from patents for inventions, industrial designs and other types of intellectual property, and also expenses connected with the participation in the authorised capital of other organisations - in correspondence with the accounts of accounting costs;

the residual cost of assets, to which depreciation is charged, and the actual prime cost of other assets written off by the organisation - in correspondence with the accounts of accounting relevant assets;

expenses connected with the sale, retirement and other write-offs of fixed assets and other assets other than monetary funds in Russian currency, goods, products - in correspondence with the accounts of accounting costs;

expenses on operations with containers - in correspondence with the accounts of accounting costs;

interest paid by the organisation for the monetary funds (credits, loans) granted to it in use - in correspondence with the accounts of accounting payments or monetary funds;

expenses on the payment for the services rendered by credit organisations - in correspondence with the accounts of accounting payments;

fines, penalty fees and penalties for breaking the terms of contracts, paid or recognised as payable - in correspondence with the accounts of accounting payments or monetary funds;

expenses on the maintenance of productive capacities and projects in reserve - in correspondence with the accounts of accounting costs;

compensation for losses caused by the organisation - in correspondence with the accounts of accounting payments;

the losses of past years, recognised in the reporting year - in correspondence with the accounts of accounting payments, charges of depreciation, etc.;

deductions for reserves against the depreciation of placements in securities, against the reduction of the cost of material assets and for doubtful debts - in correspondence with the accounts of accounting these reserves;

amounts of debtor indebtedness, for which the period of limitation has expired, amounts of other debts unfeasible to recover - in correspondence with the accounts of accounting debtor indebtedness;

differences of exchange rate - in correspondence with the accounts of accounting monetary funds, financial placements, payments, etc.;

expenses involved in the examination of cases in courts of law - in correspondence with the accounts of accounting payments, etc.;

miscellaneous expenses.

The following subaccounts may be opened for Account 91 (Other incomes and expenses):

91-1 (Other incomes);

91-2 (Other expenses);

91-9 (Amounts of balance of other incomes and expenses).

On Subaccount 91-1 (Other incomes) it is necessary to account for the receipts of assets, recognised as other incomes.

On Subaccount 91-2 (Other expenses) it is necessary to account other expenses.

Subaccount 91-9 (Amounts of balance of other incomes and expenses) is designed to reveal the amount of the balance of other incomes and expenses over the reporting month.

Entries in Subaccount 91-1 (Other incomes) and Subaccount 91-2 (Other expenses) shall be made by accumulation during the reporting year. Every month it is necessary to determine the amount of balance of other incomes and expenses over the reporting month by comparing the debit turnover in Subaccount 91-2 (Other expenses) and the credit turnover in Subaccount 91-2 (Other expenses) and the credit turnover in Subaccount 91-1 (Other incomes). These amounts of balances shall be written off every month (by concluding turnovers) from Subaccount 91-9 (Amounts of balance of other incomes and expenses) to Account 99 (Profits and losses). Thus, synthetic Account 91 (Other incomes and expenses) has no balance amount on the reporting date.

When the reporting year is over, all subaccounts opened for Account 91 (Other incomes and expenses), except for Subaccount 91-9 (Amounts of balance of other incomes and expenses) shall be closed by internal entries in Subaccount 91-9 (Amounts of balance of other incomes and expenses).

Analytical accounting in Account 91 (Other incomes and expenses) shall be kept for each type of other income and expense. The building up of analytical accounting of other incomes and expenses relating to one and the same financial or economic operation shall make it possible to reveal financial results for each operation.

 

Account 91 (Other incomes and expenses)
corresponds with the accounts:

 

               in debit                                      in credit

 

01   Fixed assets                               07   Equipment for installation

02   Depreciation    of   fixed             08   Investments in   non-current

     assets                                                 assets

03   Profitable  placements  in          10   Materials

     material values                            11   Domestic animals  for   rearing

04   Intangible assets                             and fattening

07   Equipment for installation          14   Reserves for the decline in the

08   Investments             in                      value of material values

     non-current    assets                   15   Procurement and acquisition  of

10   Materials                                           material assets

11   Domestic    animals    for            20   Main production

     rearing and fattening                   21   Semi-finished products  of  own

14   Reserves for  the  decline                 manufacture

     in the value  of  material              23   Auxiliary services

     values                                         28   Spoilage in production

15   Procurement and                      29   Service     production      and

     acquisition  of   material                     household units

     assets                                         41   Goods

16   Deviation in the value  of          43   Finished products

     material assets                           45   Shipped goods

19   Value-added     tax     on          50   Cash in hand

     acquired values                         51   Settlement accounts

20   Main production                       52   Foreign currency accounts

21   Semi-finished products  of       55   Special accounts with banks

     own manufacture                       57   Transfer in transit

23   Auxiliary services                     58   Financial placements

28   Spoilage in production             59   Reserves      against       the

29   Service   production   and              depreciation of investments  in

     household units                               securities

58   Financial placements               60   Settlements with suppliers  and

59   Reserves    against    the                 contractors

     depreciation  of                         62   Settlements  with  buyers   and

     investments in securities                  customers

60   Settlements with suppliers       63   Reserves for doubtful debts

     and contractors                         66   Payments for short-term credits

63   Reserves for doubtful debts            and loans

66   Payments  for   short-term       67   Payments for long-term  credits

     credits and loans                              and loans

67   Payments   for   long-term       71   Settlements  with   accountable

     credits and loans                              persons

68   Payments of  taxes and fees   73   Settlements with      personnel

69   Payments    for     social                 for other operations

     insurance    and    social           75   Settlements with founders

     security                                     76   Settlements    with     various

70   Payroll settlements                        debtors and creditors

     with personnel                           79   Intra-economic settlements

                                                       81   Own shares (stakes)

71   Settlements           with            96   Reserves    for     forthcoming

     accountable persons                        expenses

73   Settlements    with                   98   Deferred incomes

     personnel    for     other            99   Profits and losses

     operations

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

81   Own shares (stakes)

94   Shortages and losses  from

     damage to values

98   Deferred incomes

99   Profits and losses

 

Order of the Ministry of Finance of the Russian Federation No. 38n of May 7, 2003 amended the characteristics of account 94 of these Instructions

The amendments shall come into force beginning from financial reporting as of the Year 2003

See the previous text of the characteristics

 

Account 94 (Shortages and losses from damage to values)

 

Account 94 (Shortages and losses from damage to values) is designed to generalise information about the amounts of shortages and losses from damage to material and other values (including monetary funds) revealed in the process of the procurement, storage and sale, regardless of the fact whether they are subject to charging to the accounts of accounting expenses on production (expenses on sale) or the accounts of guilty persons. In this case the losses of values, which arose as a result of disasters shall be charged to Account 99 (Profits and losses) as losses of the reporting year (unrequited losses from disasters).

It is necessary to adduce the following amounts in debit of Account 94 (Shortages and losses from damage to values):

the amount of missing or fully spoiled material assets - their actual prime cost;

the amount of missing or fully spoiled fixed assets - their residual value (original value minus amounts of charged depreciation);

the amount of partially spoiled material values - the sum of determined losses, etc.

Entries for shortages and losses from damage to values shall be made in debit of Account 94 (Shortages and losses from damage to values) from credit of the accounts of accounting the said values.

When during the acceptance of values received from suppliers the buyer reveals shortages or spoilage, he shall charge the amount of shortage within the limits of magnitudes stipulated by a contract at the time of receipt of values in debit of Account 94 (Shortages and losses from damage to values) from credit of Account 60 (Settlements with suppliers and contractors), while the amount of losses over and above the magnitudes specified in a contract, which is presented to suppliers or a transport organisation, shall be charged by him in debit of Account 76 (Settlements with various debtors and creditors), Subaccount (Payments of claims) from credit of Account 60 (Settlements with suppliers and contractors). When a court of law denies recovery of the amounts of losses from suppliers or transport organisations, the amount of money earlier debited to Account 76(Settlements with various debtors and creditors), Subaccount (Payments of claims) shall be written off to Account 94 (Shortages and losses from damage to values).

When a court of law passes a decision on the recovery of the amounts of losses from suppliers or transport organisations over and above the magnitudes provided for in a contract in the accounting record of the supplier, the amount of the sale reflected earlier in debit of Account 62 (Settlements with buyers and customers) or Account 51 (Settlements accounts), Account 52(Foreign currency accounts) and in credit of Account 90 (Sales) shall be reversed for the amount of shortages and losses, recovered by the buyer. At the same time the said amount shall be reflected by an ordinary entry in debit of Account 62(Settlements with buyers and customers) on Account 51 (Settlement accounts), Account 52 (Foreign currency accounts) and in credit of Account 76 (Settlements with various debtors and creditors). When amounts of money are transmitted to a buyer, Account 76 (Settlements with various debtors and creditors) shall be debited in correspondence with Account 51 (Settlements accounts). The supplier shall also reverse turnovers in debit of Account 90 (Sales) and in credit of Account 43 (Finished products). The amount of money, thus restored in Account 43 (Finished products) shall be debited to Account 94 (Shortages and losses from damage to values).

The write-off of the following shortages of values shall be reflected in credit of Account 94 (Shortages and losses from damage to values):

- the shortages and spoilage of values within the limits of the magnitudes stipulated in a contract - to the accounts of accounting material values (when they are revealed during their procurement) or within the norms of natural loss - to the accounts of accounting production costs and expenses on sales (when they are revealed during storage or sale);

the shortages of values over and above the norms of natural loss and losses from spoilage - in debit of Account 73(Settlements with personnel for other transactions), subaccount (Payments for the compensation for material damage);

the shortages of values over and above the norms of natural loss and losses from the spoilage of values in the absence of concrete guilty persons, and also the shortages of material assets, the recovery of which was denied by a court of law due to the groundlessness of suits - to Account 91 (Other incomes and expenses).

In credit of Account 94 (Shortages and losses from damage to values) it is necessary to reflect the amounts of money in amounts and sizes, taken on accounting in debit of the said account. In this case missing or spoiled material values shall be written off to the accounts of accounting production costs (expenses on sale) at their actual prime cost.

When the cost of missing values is recovered from guilty persons, the difference between the cost of missing values, charged to Account 73 (Settlements with personnel for other transactions), and their value reflected in Account 94 (Shortages and losses from damage to values) shall be credited to Account 98 (Deferred incomes). The said difference shall be written off Account 98(Deferred incomes) to the extent of the recovery of the sum of money from the guilty person in correspondence with Account 91(Other incomes and expenses).

Shortages of values, which are revealed in the reporting year but related to past reporting periods and recognised by materially liable persons and on which a court of law passed a decision on recovery from the guilty persons, shall be reflected in debit of Account 94 (Shortages and losses from damage to values) and in credit of Account 98 (Deferred incomes). At the same time it is necessary to debit to these amounts Account 73 (Settlements with personnel for other transactions), Subaccount (Payments for the compensation for material damage) and to credit Account 94 (Shortages and losses from damage to values). Account 91(Other incomes and expenses) shall be credited and Account 98 (Deferred incomes) shall be debited to the extent of the repayment of indebtedness.

 

Account 94 (Shortages and losses from damage to values)
corresponds with the accounts:

 

               in debit                                     in credit

 

01   Fixed assets                           08   Investments in   non-current

03   Profitable  placements  in              assets

     material values                         20   Main production

07   Equipment for installation       23   Auxiliary services

08   Investments in                        25   General production expenses

     non-current    assets               26   General household expenses

10   Materials                                29   Service     production      and

11   Domestic    animals    for              household units

     rearing and fattening               44   Expenses on sales

16   Deviation in the value  of      70   Payroll settlements

     material assets                              with personnel

19   Value-added     tax     on       73   Settlements with  the personnel

     acquired values                             for other operations

                                                     86 Target  Financing

20   Main production                     91   Other incomes and expenses

21   Semi-finished products  of     99 Profits and Losses

     own manufacture

23   Auxiliary services

29   Service   production   and

     household units

41   Goods

42   Markup

43   Finished products

44   Expenses on sales

45   Shipped goods

50   Cash in hand

60   Settlements with suppliers

     and contractors

71   Settlements           with

     accountable persons

73   Settlements    with

     personnel    for     other

     operations

86 Target  Financing

76   Settlements  with  various

     debtors and creditors

98   Deferred incomes

99   Profits and losses

 

Account 96 (Reserves for forthcoming expenses)

 

Account 96 (Reserves for forthcoming expenses) is designed to generalise information about the state and movement of the amounts of money, reversed for the purpose of the even inclusion of expenses in production costs and expenses on sale. In particular, the following sums of money may be reflected on this account:

the sums of money for the forthcoming payment of leave of absence (including payments for social insurance and social security) to the workers of the respective organisation;

the sums of money for the annual award for long service;

the amounts of production costs of preparatory works in connection with the seasonal character of production;

the amounts of money for the repair of fixed assets;

the amounts of forthcoming costs of the land reclamation and the realisation of other nature conservation measures;

the amounts of money for guarantee repairs and guarantee service.

The reservation of sums of money shall be reflected in credit of Account 96 (Reserves for forthcoming expenses) in correspondence with the accounts of accounting production cost and expenses on sales.

Actual expenses, for which reserves were formed earlier, shall be charged in debit of Account 96 (Reserves for forthcoming expenses) in correspondence, in particular, with Account 70 (Payroll settlements with personnel) to the amounts of labour remuneration for workers during their leaves of absence and of annual reward for long service, which Account 23 (Auxiliary services) to the value of the repairs of fixed assets made by the organisation's subdivision, etc.

The correct character of the formation and use of monetary funds for this or that reserve shall be periodically (and at the end of a year without fail) verified according to the data of estimates, calculations, etc. and in case of necessity shall be adjusted.

Analytical accounting in Account 96 (Reserves for forthcoming expenses) shall be kept for separate reserves.

 

Account 96 (Reserves for forthcoming expenses)
corresponds with the accounts:

 

             in debit                                        in credit

 

23   Auxiliary services                       08   Investments in   non-current

28   Spoilage in  production                     assets

29   Service   production   and         20   Main production

     household units                          23   Auxiliary services

51   Settlement accounts                 25   General production expenses

52   Foreign currency accounts       26   General household expenses

69   Payments    for     social           29   Service     production      and

     insurance    and    social                    household units

     security                                       44   Expenses on sales

70   Payroll settlement                     97   Deferred expenses

     with personnel

76   Settlements  with  various

     debtors and creditors

91   Other incomes and expenses

97   Deferred expenses

99   Profits and losses

 

Account 97 (Deferred expenses)

 

Account 97 (Deferred expenses) is designed to generalise information about the expenses made in the given reporting period but relating to future reporting periods. In particular, it is possible to reflect in this account the expenses involved in mining preparatory works; production preparatory works in connection with their seasonal natural new plant development; land reclamation and realisation of other nature conservation measures; uneven quarter repairs of fixed assets (when the organisation fails to set up appropriate reserves or funds), etc.

Expenses accounted on Account 97 (Deferred expenses) shall be debited in Account 20 (Main production), Account 23 (Auxiliary services), Account 25 (General production costs), Account 26 (General economic costs), Account 44 (Expenses on sales), etc.

Analytical accounting in Account 97 (Deferred expenses) shall be kept by type of expense.

 

Account 97 (Deferred expenses) corresponds
with the accounts:

 

               in  debit                                     in credit

 

02   Depreciation   of    fixed              08   Investments in   non-current

     assets                                                  assets

04   Intangible assets                       10   Materials

05   Depreciation of intangible         20   Main production

     assets                                         23   Auxiliary services

10   Materials                                   25   General production expenses

16   Deviation in the value  of          26   General household expenses

     material assets                           29   Service     production      and

23   Auxiliary services                             household units

25   General production                  44   Expenses on sales

     expenses                                   76   Settlements    with     various

26   General household expenses         debtors and creditors

29   Service   production   and       79   Intra-economic settlements

     household units                        96   Reserves    for     forthcoming

41   Goods                                            expenses

43   Finished products                   99   Profits and losses

60   Settlements with suppliers

     and contractors

69   Payments    for     social

     insurance    and    social

     security

70   Payroll settlements

     with personnel

71   Settlements           with

     accountable persons

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

96   Reserves  for  forthcoming

     expenses

 

Account 98 (Deferred incomes)

 

Account 98 (Deferred incomes) is designed to generalise information about incomes, received (charged) in the reporting period but relating to future reporting periods, and also about forthcoming receipts of indebtedness for shortages revealed in the reporting period for past years, and about the differences between the sum of money subject to recovery from guilty persons and the cost of values accepted for accounting upon revelation of shortage and spoilage.

The following subaccounts may be opened for Account 98 (Deferred incomes):

98-1 Incomes received on account of future periods;

98-2 Gratuitous receipts

98-3 Forthcoming receipts of indebtedness for shortages disclosed for past years;

98-4 The difference between the sum of money subject to recovery from guilty persons and the balance cost of shortages of values, etc.

On Subaccount 98-1 (Incomes received on account of future periods) it is necessary to record the movement of incomes received in the reporting period but relating to future reporting periods: rental fee and rent, payments for public utilities, receipts from cargo carriage and carriage of passengers for monthly and quarterly tickets, subscriber's rentals for communication facilities, etc.

In credit of Account 98 (Deferred incomes) in correspondence with the accounts of accounting monetary funds or of settlements with debtors and creditors it is necessary to reflect the amounts of incomes relating to future reporting periods, and in debit of this account it is necessary to reflect the amounts transferred to relevant accounts upon onset of the reporting period to which these incomes refer.

Analytical accounting in Subaccount 98-1 (Incomes received on account of future periods) shall be kept for each type of income.

On Subaccount 98-2 (Gratuitous receipts) it is necessary to account for the value of assets received by the respective organisation free of charge.

In credit of Account 98 (Deferred incomes) in correspondence with Account 08 (Investments in non-current assets) and other accounts it is necessary to reflect the market value of assets received gratis, while in correspondence with Account 86 (Target-oriented financing) it is necessary to reflect the amount of budget resources used by a profit-making organisation to finance expenses. Amounts accounted on Account 98 (Deferred incomes) shall be written off this account in credit of Account 91 (Other incomes and expenses):

of gratuitously received fixed assets - to the extent of depreciation charged;

of sundry gratuitously received material values to the extent of writing off to the accounts of accounting production costs (expenses on sales).

Analytical accounting in Subaccount 98-2 (Gratuitous receipts) shall be kept for each gratuitous receipt of values.

On Subaccount 98-3 (Forthcoming receipts of indebtedness for shortage revealed for past years) it is necessary to account for the movement of forthcoming receipts of indebtedness for shortages revealed in the reporting period for past years.

In credit of Account 98 (Deferred incomes) in correspondence with Account 94 (Shortages and losses from damage to values) it is necessary to reflect the amounts of shortages of values, revealed over past reporting periods (before the reporting year) and admitted by guilty persons, or the amounts of money, adjudicated for recovery of them by a court of law. At the same time it is necessary to credit to these amounts Account 94 (Shortages and losses from damage to values) in correspondence with Account73 (Settlements with personnel for other transactions), Subaccount (Payments for the compensation for material damage).

To the extent of the repayment of the indebtedness for shortages it is necessary to credit Account 73 (Settlements with personnel for other transactions) in correspondence with the accounts of accounting monetary funds upon the simultaneous reflection of received sums of money in credit of Account 91 (Other incomes and expenses) or (profits of past years revealed in the reporting year) and in debit of Account 98 (Deferred incomes).

On Subaccount 98-4 (Difference between the amount subject to recovery from guilty persons and the cost of shortages of values) it is necessary to record the difference between the amount of money, recovered from guilty persons for missing material and other values, and the value reckoned in the organisation's accounting.

In credit of Account 98 (Deferred incomes) in correspondence with Account 73 (Settlements with personnel for other transactions), Subaccount (Payments for the compensation of material damage) it is necessary to reflect the difference between the amount of money subject to recovery from guilty persons and the cost of shortages of values. To the extent of the repayment of the indebtedness taken for accounting in Account 73 (Settlements with personnel for other transactions) the appropriate amounts of the difference shall be written off Account 98 (Deferred incomes) in credit of Account 91 (Other incomes and expenses).

 

Account 98 (Deferred incomes) corresponds
with the accounts:

 

               in debit                                       in credit

 

68   Payments of  taxes and fees    08   Investments in   non-current

90   Sales                                               assets

91   Other incomes and expenses  50   Cash in hand

                                                       51   Settlement accounts

                                                       52   Foreign currency accounts

                                                       55   Special accounts with banks

                                                       58   Financial placements

                                                       73   Settlements with      personnel

                                                              for other operations

                                                       76   Settlements    with     various

                                                              debtors and creditors

                                                      86   Target-oriented financing

                                                      91   Other incomes and expenses

                                                      94   Shortages   and   losses   from

                                                             damage to values

 

Order of the Ministry of Finance of the Russian Federation No. 115n of September 18, 2006 amended description of Account 99 of these Instructions. The amendments shall enter into force beginning with the annual accounting for 2006

See text of Item in previous wording

 

Account 99 (Profits and losses)

 

See Regulations for Accounting Records "The Record-keeping of Payments of the Profit Tax (RKP 18/02) approved by Order of the Ministry of Finance of the Russian Federation No. 114n of November 19, 2002

 

Account 99 (Profits and losses) is designed to generalise information about the formation of the end financial result of the organisation's activity in the reporting year.

The end financial result (net profits or net loss) shall be formed from the financial result of common types of activity, and also from sundry incomes and expenses. In debit of Account 99 (Profits and losses) it is necessary to reflect losses (negative profits and expenses) and in credit of this account it is necessary to reflect the organisation's profit or incomes. The comparison of debit and credit turnovers over the reporting period shows the end financial result of the reporting period.

The following amounts shall be reflected in Account 99 (Profits and losses) during the reporting year:

profits or loss from common types of activity - in correspondence with Account 90 (Sales);

amount of balance of sundry incomes and expenses over the reporting period - in correspondence with Account 91 (Other incomes and expenses);

The amounts of accrued conditional profit tax expense, permanent liabilities and payments for revaluations of this tax from actual profit, and also amounts of due tax sanctions - in correspondence with Account 68 (Payments of taxes and fees).

When the reporting year is over upon the compilation of annual accounting records, Account 99 (Profits and losses) shall be closed. This being the case, the amount of net profit or loss of the reporting year shall be written off by the concluding entry of December from Account 99 (Profits and losses) in credit or debit of Account 84 (retained profit or uncovered loss).

The building up of analytical accounting in Account 99 (Profits and losses) shall ensure the formation of data necessary for making out a profit and loss report.

 

Account 99 (Profits and losses) corresponds
with the accounts:

 

               in debit                                  in credit

 

01   Fixed assets                             10   Materials

03   Profitable  placements  in         50   Cash in hand

     material values                           51   Settlement accounts

07   Equipment for installation         52   Foreign currency accounts

08   Investments in                          55   Special accounts with banks

     non-current    assets                  60   Settlements with suppliers  and

10   Materials                                          contractors

11   Domestic    animals    for          73   Settlements with      personnel

     rearing and fattening                          for other operations

16   Deviation in the value  of         76   Settlements    with     various

     material assets                                 debtors and creditors

19   Value-added     tax     on          79   Intra-economic settlements

     acquired values                         84   Retained   profit    (uncovered

20   Main production                              loss)

21   Semi-finished products  of       90   Sales

     own manufacture                       91   Other incomes and expenses

23   Auxiliary services                     94   Shortages   and   losses   from

25   General         production                damage to values

     expenses                                   96   Reserves    for     forthcoming

26   General household expenses          expenses

28   Spoilage in production

29   Service   production   and

     household units

41   Goods

43   Finished products

44   Expenses on sales

45   Shipped goods

50   Cash in hand

51   Settlement accounts

52   Foreign currency accounts

58   Financial placements

68   Payments of  taxes and fees

69   Payments settlements

     with personnel

     security

70   Payroll settlements

     with personnel

71   Settlements           with

     accountable persons

73   Settlements    with

     personnel    for     other

     operations

76   Settlements  with  various

     debtors and creditors

79   Intra-economic settlements

84   Retained profit (uncovered

     loss)

90   Sales

91   Other incomes and expenses

97   Deferred expenses

 

Accounts Not Booked in Balance Sheets

 

Below-line balance accounts are intended for the generalisation of information about the presence and movement of values temporarily used or disposed by the respective organisation (leased fixed assets, material values in safe custody and processing, etc.), of conditional rights and obligations, and also for the exercise of control over individual economic operations. The accounting records of said objects shall be kept according to a simple system.

 

Account 001 "Leased Fixed Assets"

 

Account 001 (Leased fixed assets) is designed to generalise information about the presence and movement of fixed assets leased by the respective organisation.

Leased fixed assets shall be accounted on Account 001 (Leased fixed assets) in the appraisal indicated in lease contracts.

Analytical accounting in Account 001 (Leased fixed assets) shall be kept per lessor, per each object of leased fixed assets (according to inventory numbers of the lessor). Leased fixed assets to be found beyond the borders of the Russian Federation shall be accounted on Account 001 (Leased fixed assets) separately.

 

Account 002 (Material assets taken into safe custody)

 

Account 002 (Material assets taken into safe custody) is designed to generalise information about the presence and movement of material assets taken into safe custody.

Organisations acting as buyers shall account in Account 002 (Material assets taken into safe custody), for safe-keeping the cases of:

the receipt from suppliers of material assets, on which the respective organisation repudiated on legal grounds the acceptance of the accounts of payment requests and their reimbursement;

the receipt from suppliers of unpaid material assets prohibited for use before their reimbursement under contract terms;

the acceptance of material assets for safe custody for other reasons.

Organisations acting as suppliers shall account on Account 002 (Material assets taken into safe custody), material assets paid by buyers and left in safe custody, legalised with deposit receipts, but not taken out for reasons beyond the control of organisations. Material assets shall be accounted on Account 002 (Material assets taken into safe custody) at prices provided for by acceptance certificates or by bills and payment requests.

Analytical accounting in Account 002 (Material assets taken into safe custody) shall be kept per organisation owning these assets, by type, sort and place of storage.

 

Account 003 (Materials accepted for processing)

 

Account 003 (Materials accepted for processing) is designed to generalise information about the presence and movement of the raw and auxiliary materials of a customer, accepted for processing (the customer's raw material) and not paid for by the organisation that produces these materials. The costs of the processing or finishing of raw and auxiliary materials shall be accounted for on the accounts of recording the outlays on production, which reflect the related costs (except for the value of the customer's raw and auxiliary materials). The raw and auxiliary materials of the customer, accepted for processing are reflected on account 003 (Material accepted for processing) at prices provided for by contracts.

Analytical accounting in Account 003 (Materials accepted for processing) shall be kept per customer, type, and sort of raw and auxiliary materials and place of their location.

 

Account 004 (Goods taken on commission)

 

Account 004 (Goods taken on commission) is designed to generalise information about the presence and movement of goods taken on commission in keeping with a contract. This account shall be used by organisations acting as merchandise agents.

Goods taken on commission shall be accounted on Account 004 (Goods taken on commission) at prices stipulated by acceptance certificates. Analytical accounting in Account 004 (Goods taken on commission) shall be kept per type of goods and per organisation (person) acting as principals.

 

Account 005 (Equipment taken for assembley)

 

Account 005 (Equipment taken for assembley) is designed to generalise information about the presence and movement of equipment of all types, received by the organisation from the customer for assembley. This account shall be used by contracting organisations.

Equipment shall be registered on Account 005 (Equipment taken for assembley) in prices indicated by the customer in accompanying documents.

Analytical accounting in Account 005 (Equipment taken for assembley) shall be kept by individual facilities and units.

 

Account 006 (Forms of strict accountancy)

 

Account 006 (Forms of strict accountancy) is designed to generalise information about the presence and movement of forms of strict accountancy kept in custody and issued on account - receipt books, slips of identity cards, diplomas, various subscriber's rents, coupons, tickets, slips of commodity accompanying documents, etc.

Forms of strict accountancy shall be accounted in Account 006 (Forms of strict accountancy) in conditional assessment.

Analytical accounting in Account 006 (Forms of strict accountancy) shall be kept for each type of form of strict accountancy and place of custody thereof.

 

Account 007 (Indebtedness of insolvent debtors written off into loss)

 

Account 007 (Indebtedness of insolvent debtors written off into loss) is designed to generalise information about the state of debtor indebtedness written off into loss due to the insolvency of debtors. This indebtedness shall be accounted off balance for five years from the time of write-off in order to observe the possibility of its recovery in case of a change in the property status of debtors.

It is necessary to debit Account 50 (Cash in hand), Account 51 (Settlement accounts) or Account 52 (Foreign currency accounts) in correspondence with Account 91 (Other incomes and expenses) to the sums received by way of recovery of the indebtedness earlier written off into loss. At the same time it is necessary to credit off-balance Account 007 (Indebtedness of insolvent debtors written off into loss) to the said sums of money.

Analytical accounting in Account 007 (Indebtedness of insolvent debts written off into loss) shall be kept per each debtor whose indebtedness has been written off into loss and per each debt written off into loss.

 

Account 008 (Received security for obligations and payments)

 

Account 008 (Received security for obligations and payments) is designed to generalise information about the presence and movement of received guarantees for the security of the fulfilment of obligations and payments, and also securities received against goods transferred to other organisations or persons.

If a guarantee does not indicate the sum of money, it shall be estimated for accounting on the basis of contract terms.

Amounts of securities accounted on Account 008 (Received security for obligations and payments) shall be written off to the extent of the repayment of debts.

Analytical accounting in Account 008 (Received security for obligations and payments) shall be kept per each received security.

 

Account 009 (Issued security for obligations and payments)

 

Account 009 (Issued security for obligations and payments) is designed to generalise information about the presence and movement of issued guarantees as security for the fulfilment of obligations and payments. If a guarantee does not indicate the sum of money, it shall be estimated for accounting on the basis of contract terms.

Amounts of securities reckoned on Account 009 (Issued security for obligations and payments) shall be written off to the extent of the repayment of debts.

Analytical accounting in Account 009 (Issued security for obligations and payments) shall be kept for each issued security.

 

Account 010 (Wear and tear of fixed assets)

 

Account 010 (Wear and tear of fixed assets) is designed to generalise information about the movement of the sums of the wear and tear of housing facilities, external improvement of services and utilities and of other similar objects (forestry, road-building facilities, specialised structures of shipping situation, etc.), and also of the objects of fixed assets of non-profit organisations. Depreciation of said facilities shall be carried out at the end of a year at fixed norms of depreciation deductions.

When individual facilities retire (including sale and gratuitous transfer, etc.) the amount of wear and tear shall be written off Account 010 (Wear and tear of fixed assets).

Analytical accounting in Account 010 (Wear and tear of fixed assets) shall be kept for each facility.

 

Amount 011 (Leased fixed assets)

 

Account 011 (Leased fixed assets) is designed to generalise information about the presence and movement of the leased objects of fixed assets, if under the terms of the lease contract the property shall be accounted on the balance-sheet of the lease-holder or hirer.

Leased fixed assets shall be accounted on Account 011 (Leased fixed assets) in the assessment indicated in lease contracts.

Analytical accounting in Account 011 (Leased fixed assets) shall be kept per leaseholder, per each facility of leased fixed assets. Leased fixed assets located beyond the borders of the Russian Federation shall be accounted on Account 011 (Leased fixed assets) separately.