The leadership of our company decided to conduct technical re-equipment. Large batch of new equipment will be purchased. Do I need to reduce the balance of 84 in accounting to reflect such an operation Undestributed profits (uncovered loss) "for the amount of expenditure?
There is no need. The fact is that the class attitude of any expenses of the company, including the acquisition of fixed assets, due to the profit remaining at the disposal of the organization, or retained earnings of past years was allowed until 2001 with the entry into force of the account plan (currently at present ) The costs that were previously made through retained earnings are now either included in the cost of production, or are related to other expenses or are capitalized.
Financing costs due to retained earnings are unacceptable
Retained earnings - the component of the equity equity (paragraph 66 of the Regulations on accounting and accounting reporting in Russian Federation, approved by the Order of the Ministry of Finance of Russia from 29.07.98 No. 34N). Information about it is generalized on account 84 and is reflected in section III "Capital and reserves" of accounting balance.
The account 84 accumulates retained earnings, which remains in the turnover from the organization as an internal source of financing a long-term nature. The use of retained earnings as a financial support for the production development of the organization and other similar activities for the acquisition (creation) of the new property is not regulated by regulatory legal acts. This is confirmed by the Ministry of Finance of Russia in the letter dated 19.06.2006 No. 07-05-06 / 147. It should be borne in mind that when using retained earnings on financing any activities, its funds are not spent irrevocably. They constantly turn to the organization by changing their shape from cash in commodity and vice versa.
According to the account plan, analytical accounting on account 84 is organized in such a way as to ensure the formation of information on the use of funds. At the same time, in analytical accounting, the funds of retained earnings used as financial support for the production development of the organization and other similar activities for the acquisition (creation) of the new property and not yet used can be divided.
The organization is entitled to account 84 to open, for example, subaccount "Retained earnings in circulation" on which will be taken into account total amount Retained earnings, and subaccount "Retained earnings used", which will be used to summarize information on which part of the funds of retained earnings are transformed from the monetary form to the commodity, that is, how much new property has been acquired. So, when acquiring the object of fixed assets as the debt 01 Credit 08, internal wiring will be issued on account 84: the debit of the subaccount "retained earnings in circulation" and the credit of the subaccount "retained earnings used". As you can see, analytical records in the account 84 do not affect the balance on this account.
What you can spend
Retained earnings at the end of the reporting year can be sent:
to create (replenishment) of the Company's Reserve Fund - in correspondence with a score of 82 "Reserve capital";
the payment of dividends to the founders - in correspondence with the account of 75 "Calculations with the founders" (70 "Calculations with the staff on labor payment");
covering losses of past years - internal account on account 84.
As a result of these operations, the retained earnings of the reporting year is really reduced. After the reflection of the above-mentioned operations, the balance of the account 84 shows the amount of retained earnings, which remains unchanged to the relevant decision of the founders.
Reducing the balance of 84 in the future may occur:
in the direction of the funds of the retained earnings of the past years on the payment of dividends to the founders of the organization (letters of the Ministry of Finance of Russia of 05/18/2007 No. 03-08-05, UFNS of Russia in Moscow of 21.02.2007 No. 21-18 / 157, Resolutions of the Volga District .2005 No. A55-9560 / 2004-43, East Siberian District of 11.08.2005 No. A33-26614 / 04-C3-F02-3800 / 05-C1 and Moscow District from 06.06.2001 No. Ka-A40 / 2603-01 );
revaluation of fixed assets and intangible assets (p. 15 PBU 6/01 "Accounting for fixed assets", p. 21 PBU 14/2007 "Accounting for intangible assets");
the implementation of accounting adjustments (in particular, in the case of correction of significant errors (p. 9 PBU 22/2010 "Correction of errors in accounting and reporting"));
the direction of retained earnings to increase authorized capital Organizations.
In other ways to reduce actually belonging to the founders of the organization, legislation on accounting is not provided.
Accounting account 84 is used to reflect and analyze generalized information on retained earnings (uncovered loss), the amount of which is determined by the results of the reporting fiscal year. Via typical wiring and visual examples, we will help you to understand the specifics of the use of account 84 and in the peculiarities of reflecting operations with unallocated profits.
In the account of Megapolis JSC, the following entries were made:
| DT | Kt. | Description | Sum | Document |
| 08 | 60 | Purchased conveyor machine (175.300 rubles. - .741 rubles.) | 148.559 rub. | Packing list |
| 19.1 | 60 | Considered the amount of incoming VAT on the acquired machine | .741 rub. | Invoice |
| 01 | 08 | Accepted to account purchased conveyor machine | 148.559 rub. | Act of commissioning OS |
| 68 VAT | 19.1 | Adopted to deduct the amount of incoming VAT | .741 rub. | Invoice |
| It takes into account the target financing of the cost of the acquired machine (due to the use of pure profits) | 148.559 rub. | Commodity invoice, certificate of commissioning, profit and loss statement |
Covering losses 84 accounts due to founders
According to the results of 2015, Fiesta JSC received losses in the amount of 841.800 rubles. The founders of JSC "Fiesta" are Savelyev R.N. (58% of the share in the authorized capital) and Markov K.L. (42% shares in the authorized capital). By the decision of the Board, it was found that the losses of 2015 will be carried out at the expense of the founders:
- at the expense of Savelyev - 488.244 rubles. (841.800 rub. * 58%);
- at the expense of Markov - 353.556 rubles. (841.800 rub. * 42%).
The protocol of the decisions of the Board was signed in February 2016. In the same month, the Savelieva and Markov received funds and the current account of Fiesta JSC.
To reflect the loss coverage operations due to own funds Founders, in the balance of Fiesta JSC, the following subaccounts were opened:
- 75.1 - Savelian tools aimed at repayment of a loss;
- 75.2 - Markov means aimed at repayment loss.
In the account of JSC "Fiesta" such entries were made:
| DT | Kt. | Description | Sum | Document |
| 75.1 | 84 | Reflects the debt of Savelyev on repayment of the loss by its own means | 488.244 rub. | Protocol decision of the Board |
| 75.2 | 84 | Markov's debt is reflected on repayment of loss to own funds | 353.556 rub. | Protocol decision of the Board |
| 75.1 | 488.244 rub. | Bank statement | ||
| 75.2 | Cases are credited from Savelian to repayment of the loss of 2015 | 353.556 rub. | Bank statement | |
| 99 PNO | 68 Profit Tax | Considered the amount of permanent tax obligations (488.244 rub. * 20%) | 97.649 rub. | Protocol decision of the Board |
Retained Earnings, RetaNeNes is the share of net profit of the company, which remains after paying taxes and distributing dividends between shareholders used for reinvestment purposes, for development needs. Retained can be invested in the main, can be stored in the form of cash balances or suitable for circulation valuable papersused to finance the absorption of other firms to prolong loans to customers, for payments on loans or to increase liquid assets. Compared with the mobilization of new capital by borrowing or issuing stocks, the deduction of the profits is an alternative and simpler financing method.
From retained profits, a reserve, which is a significant part of the capital of many companies can be formed. In the balance sheet of the balance, the sum of all retained earnings for the entire existence of the Company is reflected in a separate account "Retained earnings (uncovered loss)". The debit of the account records a unattached loss and spending of retained earnings on dividends, as well as deducting it into reserve and other funds. Before making recordings in accounting, the accountant is obliged to check how many decisions reflected in the protocol of the General Meeting of Shareholders correspond to the procedure for the distribution of net profit, which is recorded in the Company's Charter.
If this account went into minus, this situation is called accumulated deficiency.
how economic indicator Retained earnings characterizes the dynamics of the organization's growth on its own basis, due to internal savings.
Retained earnings and policy of investors
So that the company grew and developing, it must invest its retained earnings. In case of success in the long run, will lead to an increase in the company's profitability and an increase in its prices, that is, investors will earn more moneyThan if they initially demanded large dividends.
If the company generates a profit and maintains a significant part of its income, but does not grow, investors begin to demand large dividends, because they should not just be stored in the company, they must profit.
The company that has no profit is or not paying dividends, there is no chance of interested investors. Therefore, the purpose of financial management is to ensure the accumulation of retained earnings.
Distribution of profits and losses joint Stock Company Located in the exclusive competence of the General Meeting of Shareholders.
Factors affecting the size of retained earnings
Retained earnings may vary from one reporting period to another, but it is not necessarily the result of a change in the company's income. The balance of retained earnings may affect:
1. Changing net profit
2. Resize moneypaid as dividends to investors
3. Changing the cost of commodity capital
4. Changing administrative expenses
5. Change taxes
- Purpose of Article: Reflection of information about the unallocated financial result of the current year and past years.
- Row B. accounting balance: 1370.
- Account numbers included in the string: account balance (debit or credit).
After the year on general meeting Shareholders of the Company or founders of the Organization makes a decision on the distribution of net profit of the company. Part financial resultswhich was not distributed among the participants, recognized as retained profit of the current year. With a negative financial result, information appears on the uncovered loss of the company.
In the company's accounting, retained earnings or uncovered loss is fixed on Sch.84. It displays the unallocated financial result of the current year and past periods to different subaccounts.
Note from the author! Sch.84 is active, therefore, there may be a debit balance (amount of an outstanding loss) and credit balance (the amount of retained earnings), depending on the results of the company's activities.
The balance of 1370 balance sheet of accounting refers to the section Capital and reserves of the passive part of the balance: it is reflected here equity Firms in terms of retained earnings. Information for all years is summed up and displayed by one string. Also in this line records information on uncovered by the relevant sources of financing of losses of the current year and past periods.
Undestributed profits
Row 1370 - part of net profit, not consumed for the needs of the organization.
Note from the author! Under net profit in accounting is understood as the final positive financial result of the company, which remains after the repayment of all obligations in terms of payment of mandatory taxes, fees, insurance deductions to the budget.
According to the accounting rules, the financial result of the enterprise is displayed in KT99. At the end of the year, the procedure of the balance sheet is carried out (the closure of all major accounting accounts). One of the results of this procedure is the transfer of the residue with CT99 in DT84 in a portion of unallocated incomes of this period.
Retained earnings can be spent on the following needs:
- payment of dividends to shareholders or founders of the company;
- an increase in the size of the Company's authorized fund (after the official registration of changes in the constituent documentation);
- creating reserves: the translation of a part of retained earnings in the reserve capital of the company;
- repayment of losses of past years.
Note! During the year of movements on DT84, without the decision of the founders of the company can not be.
Uncoated loss
Losses as a result of the organization's activities can be formed in the following cases:
- the costs of the firm exceed the received income in both the main activity and on operations not related to the main financial and economic activities;
- revealed significant mistakes of past reporting periods;
- adopted adjustments B. accounting policies firms.
Row of 1370 accounting balance - reflection of losses that were not covered by possible sources of financing. Data over past periods and current year are summed up.
Sources of loss coverage:
- funds of the authorized capital: bringing the magnitude of the authorized capital to pure assets firms. The decrease in the authorized capital should be carried out within the limits established by the legislation (the minimum threshold for public JSC - 100 thousand rubles, for non-public JSC and LLC - 10 thousand rubles).
- funds of the company's reserve fund;
- target investment by the founders of the Organization (deposits of owners of the company that do not affect the distribution of the share and the amount of authorized capital);
- retained earnings of past years.
Regulatory regulation
Using 84 accounts for the formation of information on the presence of the company retained by the results of the year (emergent loss) is carried out in accordance with the plan of accounting accounts and other regulatory documents.
Practical examples of accounting for unallocated profits (uncovered loss)
Example 1.
In 2017, revenue from the sale of goods LLC "Solnyshko" amounted to 2 million rubles (without VAT). The cost of goods that were implemented was 1 million rubles (purchased from suppliers, transportation, etc.). Other costs of the company - 70 thousand rubles.
930 thousand rubles - net profit of LLC.
From the final financial result of the company was paid income tax in the budget.
186 thousand rubles - settlements with the Federal Tax Service of Russia.
After the procedure for the balance of the balance was made the following wiring
744 thousand rubles - Disposable profits of society.
In the balance sheet LLC "Sunshyshko", according to the results of 2017, there will be a sum of 744 thousand rubles in the line 1370.
Example 2.
As a result of the analysis of the financial and economic activities of the company "Yar", a loss was identified on the basis of activities in 2017. The loss as of 01.01.2018 amounted to 40 thousand rubles. The founders of the company decided to cover a loss at the expense of its own target financing.
Economic operations
15 thousand rubles - depositing cash by the founders.
25 thousand rubles - transfer by the founders of funds to the company's current account.
40 thousand rubles - covered loss by the target contributions of the founders.
Common wiring for retained earnings (uncovered loss)
- Balance Reformation Procedure
- Write off a loss
DT84 KT84 - due to the income of past periods.
DT82 KT84 - means of authorized capital.
DT75 kt84 - target financing founders.
Dt80 KT84 - bringing the authorized capital to the amount of net assets.
