Financial investments
is the placement of free Money organizations in other enterprises through the acquisition valuable papers, issuing long-term loans, making contributions to authorized capital... Distinguish between long-term and short-term financial investments. Short-term assets are those assets whose circulation or maturity does not exceed 12 months, long-term assets are financial investments with a maturity of more than one year. When accounting for financial investments, one should be guided by the Accounting Regulations "Accounting for Financial Investments" PBU 19/02 (approved by Order of the Ministry of Finance of Russia dated December 10, 2002 N 126n; hereinafter - PBU 19/02).
According to clause 3 of PBU 19/02, financial investments include:
- securities (government, municipal, other organizations), including debt securities, in which the date and value of redemption are determined (bonds, promissory notes);
- contributions to the authorized (pooled) capital of other organizations (including subsidiaries and affiliates);
- loans granted to other organizations;
- deposits of deposits v credit institutions;
- contributions of a partner organization under a simple partnership agreement.
To summarize information on the availability and movement of the organization's investments in government securities, shares, bonds and other securities of other organizations, authorized (share) capitals of other organizations, as well as loans granted to other organizations, account 58 "Financial investments" is intended.
TO account 58 sub-accounts can be opened:
- "Shares and Shares";
- "Debt securities";
- "Loans granted";
- "Contributions under a simple partnership agreement".
Are not considered financial investments of the organization:
- own shares, redeemed joint stock company from shareholders for subsequent resale or cancellation;
- promissory notes issued by the issuing organization to the selling organization when paying for goods sold, products, work performed, services rendered;
- investments of the organization in real estate and other property that has a tangible form, provided by the organization for a fee for temporary use (temporary possession and use) in order to generate income;
- precious metals, jewelry, works of art and other similar values, acquired not for implementation common types activities.
It is important to emphasize that assets, tangible such as fixed assets, inventories, and intangible assets are not financial investments, but when they are made as a contribution to authorized capital or under a simple partnership agreement they will be counted as financial investments.
Requirements for assets to be recognized as financial investments:
- the organization must have documents confirming its right to a financial investment (for loans provided - an agreement; for bills issued by third-party organizations - a bill of exchange; for shares or bonds - the shares themselves, bonds or a certificate for them, an extract from the register; for deposits in banks - an agreement; for contributions to authorized capital - the charter of the company that received this contribution);
- transition to organization financial risks associated with these attachments;
- the ability to generate income in the future (interest, dividends, the difference between purchase and sale prices).
on original cost, which consists of the amount of the organization's actual costs for their acquisition, excluding value added tax and other reimbursable taxes (except as otherwise provided by law Russian Federation on taxes and fees).
According to clause 9 of PBU 19/02, such expenses include:
- amounts paid in accordance with the contract to the seller;
- amounts paid to organizations and other persons for information and consulting services related to the acquisition of these assets (if such information or consulting services are provided, but the organization does not make a decision on such an acquisition, the cost of services is attributed to financial results commercial organization as part of other expenses or to increase expenses non-profit organization the reporting period when it was decided not to purchase financial investments);
- remuneration paid to intermediaries through which the investments were purchased;
- other costs directly related to the acquisition of assets as financial investments.
If additional costs for the purchase of securities are insignificant compared to the amount paid to the seller, then they can be accounted for as other expenses, including reporting period when the securities were capitalized.
Since PBU 19/02 does not contain a definition of the materiality of the costs of purchasing securities, the basis can be taken general rule, for which an indicator of less than 5% of a particular amount is not considered significant, but this must be reflected in accounting policy enterprises.
Shares, as one of the types of financial investments, can be purchased by an organization in the following ways:
- for a fee;
- received as a contribution to the authorized capital;
- free of charge;
- on a barter transaction.
A share is an equity security securing the rights of its owner (shareholder) to receive part of the profit of the joint-stock company in the form of dividends, to participate in the management of the joint-stock company and to a part of the property remaining after its liquidation. Usually a share is a registered security.
Upon receipt of securities for a fee, their value consists of all purchase costs. The contractual value of securities can be expressed not only in rubles, but also in foreign currency, which is recalculated into rubles on the day the costs of their purchase are recognized. Positive exchange rate differences arising after payment are reflected in other income, negative - in other expenses. They do not affect the initial value of the shares.
Recalculation of the value of banknotes at the cash desk of the organization, funds in bank accounts (bank deposits), monetary and payment documents, securities (excluding shares), funds in settlements, including debt obligations with legal entities and individuals (except for the funds received and issued advances and advance payments, deposits), expressed in foreign currency, in rubles must be made on the date of the transaction in foreign currency, as well as on the reporting date.
The initial cost of financial investments made as a contribution to the authorized (pooled) capital of the organization is recognized as their monetary value agreed by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation. In some cases, an independent appraiser should be involved in assessing the value of financial investments. In limited liability companies, this is necessary if the value of the shares contributed to the authorized capital exceeds 20,000 rubles. (Art. 15 Federal law from 08.02.1998 N 14-FZ "On limited liability companies").
Accounting loans as one of the types of financial investments has its own characteristics. Let's dwell on some of them.
The organization has the right to issue a loan to another enterprise or individual. Such transactions are formalized in writing - a loan agreement. The interest that the recipient must pay for the right to use the loan is usually specified in the contract. If there is no such condition in it, then they are calculated based on the refinancing rate in effect at the time the loan is repaid.
If the organization issues interest-free loan, then it is not taken into account in the composition of financial investments, since one of the criteria for recognizing financial investments is the receipt of income (in the form of interest on a loan). For such loans, lines 230 (long-term receivables) or 240 (short-term receivables).
The loan can be issued both in non-cash and in cash... When carrying out an operation to issue or return cash loans, cash registers do not need to be used, since in this case the sale of goods, works or services does not occur. When issuing cash loans, one should be guided by the Letter of the Bank of Russia dated December 4, 2007 N 190-T, which explains that legal entities and individual entrepreneurs is not entitled to spend the cash received in their cash offices for goods sold by them, work performed by them, services rendered by them, as well as insurance premiums for the provision of loans. Cash arriving at the cash desks of enterprises are subject to delivery to the institutions of banks for subsequent crediting to the accounts of these enterprises.
Example 1
... The organization issued a loan to its employee in the amount of 500,000 rubles. In order to ensure the return of the loan issued, a car pledge agreement was concluded (the value of the pledged property by agreement of the parties is 1,000,000 rubles) and a surety agreement, under which the guarantor undertakes to be jointly and severally liable with the borrower to the lender. The question arises, how much should be reflected on the off-balance sheet account 008 "Security for obligations and payments received" for each of the contracts.
This account is intended to summarize information on the availability and movement of guarantees received in order to ensure the fulfillment of obligations and payments, as well as guarantees received for goods transferred to other organizations (persons).
According to Art. 329 Civil Code RF (Civil Code of the RF), the fulfillment of obligations may be secured by a forfeit, pledge, retention of the debtor's property, surety, bank guarantee, a deposit and in other ways provided by law or contract.
Analytical accounting for account 008 maintained for each security received.
Since until the repayment of the loan agreement, the car is pledged by the organization, the contractual value this car must be reflected on account 008 in the amount of 1,000,000 rubles.
As for the contract of order, the following should be noted. The essence of the legal mechanism for securing the fulfillment of obligations is to endow the creditor, in addition to the basic rights under the secured obligation, additional rights that he can use in the event of a breach by the debtor of the obligation. Agreement on the establishment of a certain method of ensuring the fulfillment of obligations under general rule generates an additional obligation designed to ensure the fulfillment of the main obligation. In the example under consideration, the surety agreement was concluded in order to ensure the return of the issued loan in the amount of 500,000 rubles. This means that account 008 should reflect the amount corresponding to the amount of obligations under the loan agreement. As a result, on this off-balance sheet account under the pledge agreement, it is necessary to reflect the contractual value of the pledged car in the amount of 1,000,000 rubles, and under the contract of order - in the amount of 500,000 rubles.
In other words, all calculations are carried out on balance sheet accounts, and the entries on account 008 are purely of a control nature and are written off as the debt is repaid.
In addition to accounting, the company maintains tax accounting. In accordance with paragraphs. 10 p. 1 art. 251 Tax Code RF (Tax Code) when determining tax base
incomes in the form of funds or other property that are received under credit or loan agreements (other similar funds or other property regardless of the method of borrowing, including debt securities), as well as funds or other property received as repayment are not taken into account these borrowings. That is, income in the form of funds received in repayment of loans issued earlier should not be taken into account by the lender organization in income for the purposes of taxation of the profits of organizations.
However, it should be borne in mind that according to paragraph 6 of Art. 250 of the Tax Code of the Russian Federation income in the form of interest received under loan agreements, credit, bank account, bank deposit, as well as for securities and other debt obligations, are recognized as non-operating income of the taxpayer (the specifics of determining the income of banks in the form of interest are established by Article 290 of the Tax Code of the Russian Federation). Thus, income in the form of interest received on loans issued earlier to the borrowing organization is recognized as income of the lender organization for the purposes of taxation of the organizations' profits.
As mentioned above, the loan can be issued in non-cash or cash form, as well as in kind (for example, goods or materials). First of all, it is necessary to reflect the disposal of this type of loan, since Art. 39 of the Tax Code of the Russian Federation, it is established that the sale of goods is the transfer on a reimbursable basis of ownership rights to them by one person to another, i.e. ownership is transferred from the lender to the borrower. In this regard, it is logical to assume that the transfer of things to the borrower in the ownership of the lender should be subject to income tax and VAT as a sale operation. After the loan is repaid, operations are carried out to capitalize the property received. The organization can deduct the amount of "input" VAT in the usual manner.
Under a commodity loan agreement, the lender transfers to the borrower the ownership of things defined by generic characteristics, and the borrower undertakes to return to the lender an equal amount of other things of the same kind and quality and pay interest. In this case, interest can be expressed both in cash and in kind. In order to avoid claims from regulatory authorities regarding payment for services rendered, we recommend that the procedure for calculating and paying interest be prescribed in the contract, since this follows from Art. Art. 819 and 822 of the Civil Code of the Russian Federation. In the absence of such information, the interest on the loan is calculated based on the refinancing rate of the Bank of Russia in effect on the day the debtor returned the commodity loan or its corresponding part.
Example 2
... The organization issued a long-term loan to another organization with goods worth 4,720,000 rubles in accordance with the contract. (including VAT - 720,000 rubles). The cost of goods is 4,000,000 rubles. The loan was issued at 20% per annum. Interest is calculated for each day of using the loan. They are paid no later than the end of each quarter.
Loan issuance transactions are recorded by:
Debit 76 "Settlements with different debtors and creditors" Credit 90 "Sales", subaccount 1 "Revenue" - reflected the proceeds from the sale of goods - 4,720,000 rubles;
Debit 90, subaccount 2 "Cost of sales", Credit 68 "Calculations of taxes and fees" - VAT charged - 720,000 rubles;
Debit 90, subaccount 3 "Value added tax", Credit 41 "Goods" - the cost of goods transferred on loan is written off - 4,000,000 rubles;
Debit 58 Credit 76 - the loan amount is reflected - 4,720,000 rubles;
Debit 76 Credit 91 "Other income and expenses", subaccount 1 "Other income", - accrued interest for January - 80,175 rubles. (4,720,000 x 20%: 365 days x 31 days);
Debit 76 Credit 91, subaccount 1 "Other income" - accrued interest for February - 72,416 rubles. (4,720,000 x 20%: 365 days x 281 days);
Debit 76 Credit 91, subaccount 1 "Other income" - accrued interest for March - 80 175 rubles. (4,720,000 x 20%: 365 days x 31 days);
Debit 51 "Settlement accounts" Credit 76, - interest for the I quarter is listed - 232,766 rubles. (80 175 + 72 416 + 80 175).
Further interest is accrued in a similar manner. When repaying a loan, you need to make the following entries:
Debit 19 "Value added tax on acquired values" Credit 76, - VAT on returned goods included - 720,000 rubles;
Debit 41 Credit 76, - the returned goods are capitalized - 4,000,000 rubles. (4,720,000 - 720,000);
Debit 68 Credit 19, - accepted for deduction of VAT on returned goods - 720,000 rubles;
Debit 76 Credit 58, - the amount of the repaid loan was written off - 4,720,000 rubles.
The company's funds credited to banks' deposits are reflected in financial investments.
Bank deposit means cash or securities deposited in a bank for a specific period on behalf of a physical or legal entity, which is charged a certain percentage for this.
Under a bank deposit (deposit) agreement, one party (bank), which has accepted the money received from the other party (depositor) or received for it (deposit), undertakes to return the deposit amount and pay interest on it on the terms and in the manner prescribed by the agreement (p. . 1 article 834 of the Civil Code of the Russian Federation).
The company accrues interest on the deposit on the day when it has the right to receive them, based on the terms of the agreement, i.e. in accounting, interest is charged regardless of whether the bank has transferred the interest to the organization's account or not.
In practice, a situation is possible when an organization deposited funds on a bank deposit in November 2010. According to the agreement, the accrual and payment of income (interest) will be made at the end of the term of the deposit in 2011.
According to paragraph 6 of Art. 271 of the Tax Code of the Russian Federation, under loan agreements and other similar agreements, the validity of which falls on more than one reporting period, income is recognized as received and is included in income at the end of the corresponding reporting period. Thus, if a bank deposit agreement is concluded for a period of more than one reporting period, the depositor organization is obliged to accrue interest at the end of each reporting period, regardless of the actual receipt of money and conditions deposit agreement(if the organization keeps records of income and expenses for tax purposes on an accrual basis). Therefore, taxable income (interest on bank deposit) will also arise in 2010 based on the amounts to be received, calculated by the actual number of days the deposit was placed in a given period.
Recall that incomes are recognized in the reporting (tax) period in which they occurred, regardless of the actual receipt of funds, other property (works, services) and (or) property rights (accrual method). For income related to several reporting (tax) periods, and if the relationship between income and expenses cannot be clearly determined or established indirectly, income is distributed by the taxpayer independently, taking into account the principle of uniformity of recognition of income and expenses.
The structure of financial investments reflects the value of bills received by the organization from other persons. Promissory note is a valuable paper and can be used as financial instrument for the purpose of obtaining interest or discount income.
In accounting, a promissory note purchased for a fee is accounted for as part of financial investments at initial cost in the amount of actual acquisition costs (clauses 8, 9 of PBU 19/02). Income on bills can be interest or discount. Discount income is the difference between the purchase price of the bill and the amount received upon redemption (par).
The bill of exchange must contain the following mandatory details:
- the name "bill" included in the text of the document and expressed in the language in which this document is drawn up;
- a simple and unconditional offer (promise) to pay a certain amount;
- the name of the payer (only in a bill of exchange);
- payment term;
- the place where the payment is to be made;
- the name of the person to whom or by order of whom the payment should be made;
- the date and place of drawing up the bill;
- the signature of the drawer.
In the absence of the listed details in the text of a bill of exchange, it loses its bill of exchange and can be recognized as a document of a different legal form - a bill of exchange.
The exercise of property rights under a bill, like any other security, is possible only by presenting it.
As a rule, income on a bill of exchange is recognized at the time of its maturity.
But at the same time, Clause 22 of PBU 19/02 explains that for debt securities for which the current market value is not calculated, the organization is allowed the difference between the initial value and the par value during the period of their circulation evenly as due to them in accordance with with the terms of the release of income, refer to the financial results of a commercial organization (as part of other income or expenses) or a decrease or increase in expenses of a non-commercial organization. A similar procedure for reflecting income is consolidated as an element of the accounting reporting policy.
Example 3
... The enterprise acquired a promissory note for 1,000,000 rubles. Its nominal value is 1,300,000 rubles, the circulation period of the bill is 24 months. If accounting policy the organization provides for the reflection of income on bills at the time of their redemption, the following records are drawn up in the accounting:
Debit 91, subaccount 2 "Other expenses", Credit 58 - promissory note presented for repayment - 1,000,000 rubles;
Debit 76 Credit 91, subaccount 1 "Other income" - reflected the debt on the redemption of the promissory note - 1,300,000 rubles;
Debit 91, subaccount 9 "Profit / loss from sales", Credit 99 "Profits and losses", - reflected income (discount) on the promissory note - 300,000 rubles. (1,300,000 - 1,000,000);
Debit 51 Credit 76 - funds were received to repay the promissory note - 1,300,000 rubles.
If the accounting policy provides for the reflection of income on bills evenly during the period of their circulation, then the following entries are made:
Debit 58 Credit 51 - a financial bill purchased - 1,000,000 rubles;
Debit 76 Credit 91, subaccount 1 "Other income", - accrued income for the 1st month of circulation of the bill - 12,500 rubles. [(1,300,000 - 1,000,000): 24 months];
Debit 76 Credit 91, subaccount 1 "Other income" - accrued income for the 2nd month of circulation of the bill - 12,500 rubles. [(1,300,000 - 1,000,000): 24 months];
Debit 76 Credit 91, subaccount 1 "Other income" - accrued income for the 3rd month of circulation of the bill - 12,500 rubles. [(1,300,000 - 1,000,000): 24 months] etc.
The redemption of a bill is made out with the following entries:
Debit 91, subaccount 2 "Other expenses", Credit 58 - the initial value of the promissory note was written off - 1,000,000 rubles;
Debit 76 Credit 91, subaccount 1 "Other income" - reflects the value of the bill presented for redemption - 1,000,000 rubles;
Debit 51 Credit 76 - reflected income received (discount) on the promissory note - 300,000 rubles.
The transfer of ownership of the bill of exchange is confirmed by an act of acceptance and transfer, which must contain the mandatory details listed in paragraph 2 of Art. 9 of the Federal Law of 21.11.1996 N 129-FZ "On Accounting". In addition, it must indicate: the details of the bill (series, number, date of issue, type (simple or transferable), face value, due date, etc.); details of the agreement under which the bill of exchange was transferred. It makes sense to attach a copy of the bill to the act.
To account for financial investments, they are divided into two categories:
- for which the current market value is not determined (in this case, financial investments are indicated in the balance sheet at their original cost);
- by which the current market value is determined, i.e. listed on the organized securities market.
In the second category, they are reflected in the balance sheet at the market price, which was formed at the end of the reporting period. The difference between the original and current estimate is included in other income or expense. The organization has the right to adjust the value of securities on a monthly or quarterly basis (clause 20 PBU 19/02). It is advisable to reflect the selected period in the accounting policy of the organization for accounting.
According to paragraph 3 of Art. 280 of the Tax Code of the Russian Federation, securities are recognized as circulating on the organized securities market only if the following conditions are met:
- if they are admitted to circulation by at least one trade organizer who has the right to do so in accordance with national legislation;
- if information about their prices (quotes) is published in the mass media (including electronic) or can be provided by the trade organizer or other authorized person to any interested person within three years after the date of transactions with securities;
- if the market quotation was calculated for them during the last three months preceding the date of the transaction with these securities by the taxpayer, when it is stipulated by the legislation.
Example 4
... In May, the investor company acquired securities for which in established order you can determine their market value, in the amount of 1,000,000 rubles. In the accounting policy of the organization it is written that the adjustment of such financial investments should be carried out on a quarterly basis.
According to officially published data (quotes stock exchange) the value of these securities was: as of May 31 - 990,000 rubles; as of December 31 - 1,008,000 rubles.
In accounting, the above operations must be reflected in the records:
Debit 60 "Settlements with suppliers and contractors" Credit 51 - payment for the securities to the seller was made - 1,000,000 rubles;
Debit 58 Credit 60 - capitalized (in May) securities - 1,000,000 rubles;
Debit 91, subaccount 2 "Other expenses", Credit 58 - the adjustment (revaluation) of securities as of May 31 - 10,000 rubles is reflected. (1,000,000 - 990,000);
Debit 58 Credit 91, subaccount 1 "Other income" - reflects the adjustment (revaluation) of securities as of December 31 - 18,000 rubles. (1,008,000 - 990,000).
Thus, in accounting statements at the end of the year, the value of the securities will be fixed at 1,008,000 rubles. (1,000,000 - 10,000 + 18,000).
In the event that the current value of an object of financial investments previously estimated at the current market value is not determined at the reporting date (for example, these shares are no longer quoted on the stock exchange), this object of financial investments is reflected in the financial statements at the cost of its last valuation. (Clause 24 PBU 19/02). In the future, its value is not adjusted either, since it automatically falls into the first category of financial investments.
Simple partnership agreement(joint venture agreement) is increasingly being used in the field of entrepreneurial activity. It allows you to combine the activities of several business entities, as well as individuals to engage in one general type of activity without forming a legal entity.
The concept, content of a simple partnership agreement, the rights, obligations and responsibilities of the parties to this agreement determined by Ch. 55 of the Civil Code of the Russian Federation. Under this agreement, the comrades combine their contributions in order to act together to make a profit or achieve another goal that does not contradict the law.
In the agreement, the partners must indicate what activities they will jointly engage in, since the hallmark of a joint activity agreement is that all participants have a common goal, for the sake of which the partnership is created. If the goal is commercial, then only organizations and individual entrepreneurs can participate in the partnership. And here individuals, not registered as unregistered legal entities, cannot become comrades.
A friend's contribution is recognized as everything that he brings to the common cause, including money, other property, professional and other knowledge, skills and abilities, as well as business reputation and business ties (Article 1042 of the Civil Code of the Russian Federation). Thus, the parties have the right to independently assess the professional skills and business ties of a comrade, allowing him, for example, to receive a large loan for joint purposes. Professional and other skills, abilities, etc. it is difficult to document it. In this, a simple partnership agreement differs significantly from all other contributions.
The contributions of the partners are assumed to be equal in value, unless otherwise follows from the simple partnership agreement or actual circumstances. The monetary assessment of the partner's contribution is made by agreement between the partners.
The initial value of financial investments contributed to the contribution of a partner organization under a simple partnership agreement is their monetary value agreed by the partners in the agreement (clause 15 PBU 19/02).
Financial investments are taken into account by a partner who is entrusted with the responsibility of conducting common affairs.
For example, by a simple partnership agreement, the management of common affairs is entrusted to the organization. As a contribution to the charter capital of the partnership, it accepts shares circulating on the organized securities market, the value of which under the agreement is 1,000,000 rubles.
In the separate accounting of a simple partnership, this operation is reflected by the entry:
Debit 58 Credit 80 "Authorized capital" - shares received in the assessment under a simple partnership agreement - 1,000,000 rubles.
PBU 19/02 introduced the concept of " depreciation of financial investments". It applies only to financial investments for which the market value is not determined. Impairment is understood as a sustained decrease in value below the value of the economic benefits that the organization expects to receive from these financial investments in the normal conditions of its activities (clause 37 PBU 19/02).
In order to recognize that investments are depreciating, the following conditions must be simultaneously present:
- at the reporting date and at the previous reporting date, the book value is significantly higher than their estimated value;
- during the reporting year, the estimated value of financial investments changed significantly only in the direction of its decrease;
- as of the reporting date, there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.
Depreciation of financial investments can occur in the following situations:
- the appearance of the organization-issuer of securities owned by the organization, or its debtor under the loan agreement signs of bankruptcy, or declaring it bankrupt;
- execution on the securities market of a significant number of transactions with similar securities at a price significantly lower than their book value;
- the absence or a significant decrease in income from financial investments in the form of interest or dividends with a high probability of a further decrease in these receipts in the future, etc.
In the event of such tendencies, the organization should conduct an audit to establish the existence of conditions for a sustainable decline in the cost of financial investments. If the check confirms a decrease in value, the organization creates a reserve for impairment of financial investments (account 59). A commercial organization forms a reserve at the expense of financial results (as part of operating expenses), and a non-commercial organization forms a reserve at the expense of an increase in expenses.
Financial investments are tested for impairment at least once a year as of December 31 of the reporting year if there are signs of impairment. The organization has the right to carry out the specified check on the reporting dates of the interim financial statements.
By to account 59 the creation of reserves is reflected, in debit - its use. The balance shows the balance of reserves at the end of the reporting period. This account acts as a regulator to account 58 and serves financial source covering losses due to the possible sale of unquoted financial investments at a price lower than their book value.
The reserve is created on December 31 of each reporting year (or by the decision of the organization on a quarterly basis at the reporting dates of the interim financial statements), which is reflected by the entry:
Debit 91, subaccount 2 "Other expenses", Credit 59 - provisions have been created for the depreciation of investments in unquoted financial investments.
A change in the amount of the provision (adjustment) for the depreciation of investments in unquoted financial investments occurs in the event of a further change in their estimated value at the end of the reporting period:
Debit 91, subaccount 2 "Other expenses", Credit 59 - the amount of the reserve for impairment of investments in unquoted financial investments has been increased;
Debit 59 Credit 91, subaccount 1 "Other income" - the amount of the provision for impairment of investments in unquoted financial investments has been reduced.
Example 5. The organization purchased 3000 shares at a price of 500 rubles. a piece. The accounting policy stipulates that the decline in the value of financial investments is recognized as significant if the difference between the book value and the estimated value of securities exceeds 5%.
An entry is made in accounting:
Debit 58 Credit 60 - capitalized securities - 1,500,000 rubles. (500 rubles x 3000 pcs.).
According to an independent appraiser, the estimated value of the securities is 430 rubles. a piece. The reduction is 14%.
The impairment is significant and the entity creates a provision for impairment of shares. The amount of the reserve will be 210,000 rubles. [(500 rubles - 430 rubles) x 3000 pcs.].
This operation is reflected by the entry:
Debit 91, subaccount 2 "Other expenses", Credit 59 - a reserve was created for the depreciation of shares - 210,000 rubles.
At the end of the reporting period, shares in the balance sheet are accounted for at historical cost less reserves. Their cost will be 1,290,000 rubles. (1,500,000 - 210,000).
The provision is written off to financial results (to operating income) in two cases:
- upon sale or other disposal of financial investments for which the reserve was created;
- if there is no further sustainable significant reduction in the value of these investments.
The reserve is written off at the end of the year or the reporting period in which the disposal of these financial investments took place:
Debit 59 Credit 91, subaccount 1 "Other income" - a provision has been written off for the depreciation of financial investments in connection with their disposal.
For non-professional participants in the securities market, the amounts of deductions to the reserve for the depreciation of investments in securities are not included in expenses when determining the tax base for income tax (clause 10 of article 270 of the Tax Code of the Russian Federation). In this case, the amounts of restored reserves are also not taken into account (subparagraph 25 of paragraph 1 of article 251 of the Tax Code of the Russian Federation).
Data on reserves for impairment of financial investments, indicating the type of financial investments, the amount of the reserve created in the reporting year, the amount of the reserve recognized as operating income for the reporting period; the amounts of the reserve used in the reporting year should be set out in explanatory note to the balance sheet of the organization, based on the requirement of materiality.
Over time, financial investments may be retired. Disposal of securities takes place in cases of redemption, sale, gratuitous transfer, transfer in the form of a contribution to the authorized (pooled) capital of other organizations, transfer to a deposit account under a simple partnership agreement, etc. (clause 25 of PBU 19/02). The date of disposal of investments is determined at the moment when ownership is transferred to the new owner of financial investments, financial risks associated with financial investments (risk of price changes, risk of insolvency of the debtor, liquidity risk, etc.).
In such situations, they are written off in one of the ways regulated by PBU 19/02:
1) at the initial cost of each unit;
2) at the average initial cost;
3) at the initial cost of the first at the time of acquisition (FIFO).
The first method, as a rule, is applied to contributions to authorized capital, loans, deposits in banks, receivables acquired on the basis of assignment of claims. For securities (stocks, bonds, bills), the second or third method can be used.
The procedure for determining the value of retired financial investments differs for "quoted" financial investments and "unquoted" ones. If financial investments are retired, for which the current market value is calculated, then their value is calculated by the organization based on the latest assessment (clause 30 of PBU 19/02).
The choice of one of these methods is allowed for each group (type) of financial investments and must be enshrined in the accounting policy as its element (clause 26 of PBU 19/02).
When using the second method (provided that it is impossible to determine the current market value of securities), the average value of a security is calculated by the formula:
Average cost of a security = (Cost of securities at the beginning of the month + Cost of securities received during the month) / (Number of securities at the beginning of the month + Number of securities received at the end of the month).
The value of the retired securities subject to write-off:
Value of securities disposed of = Average value of a security x Number of securities disposed of during the month.
The value of the balance of securities at the end of the month:
Cost of Securities Remaining = Average Price of a Security x Number of Securities Remaining at the End of the Month
The cost of the remaining securities = The cost of the securities at the beginning of the month + The cost of the securities received in the month - The cost of the retired securities.
Similar calculations are made at the end of each month. It is allowed to conduct them within a month on each date of disposal of financial investments (method of moving average initial cost).
Rolling valuation makes it possible to use it for each transaction date, which is very convenient for computer processing information in accounting programs.
It should be borne in mind that the average initial cost of securities is determined in relation to the same type (shares, bonds, promissory notes).
Example 6
... One of the non-core activities of the organization is the purchase and sale of securities. According to the accounting policy, shares are written off at their average original cost.
At the beginning of the month, there were 100 shares of one issuer on the balance sheet. The share price was 900 rubles. a piece. Within a month, the company acquired shares of the same issuer. They were purchased in three lots:
1st lot - 150 pcs. at the price of 1000 rubles / piece;
2nd batch - 130 pcs. at the price of 1100 rubles / piece;
3rd batch - 250 pcs. at the price of 1200 rubles / piece.
Transactions on their acquisition are reflected
thus:
Debit 58 Credit 60 - purchased the 1st batch of shares - 150,000 rubles. (1000 rubles x 150 pcs.);
Debit 58 Credit 60 - purchased the 2nd batch of shares - 143,000 rubles. (1100 rubles x 130 pcs.);
Debit 58 Credit 60 - purchased the 3rd batch of shares - 300,000 rubles. (1200 rubles x 250 pcs.).
In the same month, 500 shares were sold. The average initial cost of a share, calculated at the end of the month, will be:
(900 rubles x 100 pieces + 1000 rubles x 150 pieces + 1100 rubles x 130 pieces + 1200 rubles x 250 pieces) / (100 + 150 + 130 + 250) = 1084.13 rubles.
The value of shares retired within a month is equal to:
RUB 1084.13 x 500 = 542,065 rubles.
The write-off of securities is made out by the entry:
Debit 91, subaccount 2 "Other expenses", Credit 58 - the cost of the sold shares was written off - 542,065 rubles.
At the end of the month, the company has the number of shares:
100 + 150 + 130 + 250 - 500 = 130 pcs.;
share price:
(900 rubles x 100 pcs. + 1000 rubles x 150 pcs. + 1100 rubles x 130 pcs. + 1200 rubles x 250 pcs.) - 542,065 rubles. = RUB 140,935
Valuation of securities with the method FIFO is based on the assumption that securities are sold within a month in the sequence of their receipt (acquisition), i.e. the securities that were the first to go on sale should be valued at the initial value of the first ones at the time of acquisition, taking into account the value of the securities registered at the beginning of the month. When this method is applied, securities held in balance at the end of the month are valued at the actual value of the most recent ones at the time of acquisition, and the cost of sale (disposal) of securities takes into account the value of the earliest ones at the time of acquisition. This means that when using the third method, those securities that are listed in the balances are first written off, then those that entered the organization first. If there are not enough of them - those who entered the second, if they are not enough - the third, etc.
According to the conditions of the above example, if the company uses the FIFO method, then in this case, the following are written off:
- all shares that are listed at the beginning of the month (100 pcs.);
- all shares received in the 1st batch (150 pcs.);
- all shares received in the 2nd batch (130 pcs.);
- part of the shares received in the 3rd lot (120 pcs.).
A total of 500 shares (100 +150 +130 + 120).
At the end of the month, the company will retain 130 shares from the 3rd batch. (250 - 120) at the price of 1200 rubles. a piece.
The value of the shares to be written off is RUB 527,000. (RUB 900 x 100 pcs. + RUB 1000 x 150 pcs. + RUB 1100 x 130 pcs. + RUB 1200 x 120 pcs.).
Their write-off is reflected by the entry:
Debit 91, subaccount 2 "Other expenses", Credit 58 - the cost of the sold shares was written off - 527,000 rubles.
The cost of the shares remaining at the end of the month will be equal to 156,000 rubles. (1200 rubles x 130 pcs.).
In clause 9 of Art. 280 of the Tax Code of the Russian Federation explains that when selling or otherwise disposing of securities, the taxpayer independently, in accordance with the accounting policy adopted for tax purposes, chooses one of the following methods of writing off the cost of the retired securities to expenses:
- at the cost of the first acquisitions (FIFO);
- at unit cost.
These methods apply to securities, both traded and not traded on an organized securities market.
The FIFO method is applied to securities comparable in type, terms of circulation and type of income, i.e. they are subject to one market quote (weighted average price of securities).
Write-off method in tax expenses the unit value of securities disposed of is applied if the entity can accurately identify the securities being traded, or if they have individually defined characteristics, or the accounting system and the terms of the transaction allow the entity to establish which of its existing securities are traded, and it can determine the value of these particular securities.
The chosen method is fixed in tax accounting policy.
Financial investments represent investments in securities and authorized capital of other organizations, as well as loans granted to other organizations.
It should be noted that it is necessary to distinguish between the concept of "financial" and "capital" investments, the existing Russian and foreign practice has shown that "capital investments" are a set of expenditures of material, labor and monetary resources aimed at the expanded reproduction of fixed assets of all sectors of the national economy, and "financial investments" - investments by the organization of its monetary funds and other free resources in assets not associated with the production of goods (works, services) and with the creation of durable objects.
A part of financial investments diverted from circulation for a long (more than one year) period of time in order to influence or gain control over the activities of other organizations is financial investments.
By their structure, financial investments are divided into:
contributions to the authorized capital of other organizations, including subsidiaries and dependent companies;
purchase of securities of other issuers;
providing loans to other legal entities and individuals;
transfer of funds to deposits in the bank.
According to the urgency, financial investments are divided into long-term investments - investments with a period of more than one year, and short-term investments- diversion of funds for a period of less than one year.
The term for the diversion of resources into financial investments is determined by the organization itself if this does not follow from the relevant documents (constituent agreements; documents that determine the terms of functioning of securities, etc.).
Own sources of financial investments include reserve capital funds; additional capital; funds of retained (net) profit, as well as unused depreciation charges for the full restoration of fixed assets and intangible assets.
A special type of financial investment is securities.
Securities, monetary or commodity documents, united by a common feature - the need to present the assets expressed in them, the rights to receive a certain sum of money, share of profit, goods, etc.
A share is an equity security that secures the rights of its owner (shareholder) to receive part of the profit of a joint-stock company in the form of dividends, to participate in the management of the joint-stock company and to a part of the property remaining after its liquidation.
Debt securities represent obligations placed by issuers on stock market, for borrowing money. Tax securities primarily include bonds.
A bond is an issue-grade security securing the right of its holder to receive a bond from the issuer within the period stipulated by it of its par value and the percentage of this value or other property equivalent fixed in it.
There are bonds: coupon and zero-coupon, with interest (income) payment when bonds are redeemed or on time during their circulation, documentary and non-documentary, registered and bearer. Coupons, in turn, can be with fixed and variable coupon yield.
Debt securities also include certificates of deposit and savings certificates, bills of exchange, treasury bonds.
Deposit and savings certificates are a written certificate of the issuer's bank about the deposit of funds, certifying the depositor's right to receive the deposit amount and interest on it after a specified period.
A treasury bond is a security that is accepted as payment for goods sold and services provided, as well as as a pledge.
Derivative securities are securities that certify the right of their owner to buy or sell securities (stocks, bonds, government bonds). These include options and futures.
Option - a security that certifies a certain property right - the right of its holder to buy or sell securities on predetermined conditions. There are two types of options: a put option - the right to sell a security and a buy option - the right to buy a security. Depending on the exercise period, options are classified into so-called "American" and "European" options. An option is a separate type of security and can be resold.
Futures – a security that certifies the right to buy or sell securities on a specified day at the price set when concluding a futures contract.
Securities can be valued by:
1. Nominal value;
2. Book value (or the value of securities based on the amount of net assets;
3. Emission;
4. Exchange rate (market) value;
5. Resale value;
6. Redemption value;
7. Book value.
The par value can be used as accounting for certain types of securities. This type of valuation is used for debt securities.
If they are purchased at a price different from their par value, the investor organization may decide to bring the actual value of these securities to their par value. Bringing the purchase value to the par value is carried out evenly (monthly) during the circulation period of the securities, referring the difference between these values to the financial results.
Organizations can also use the market valuation of part of their investments in shares of other organizations quoted on the stock exchange or special auctions, the quotes of which are regularly published, if, as of December 31 of the reporting year, their actual cost above the market (quoted) value. This change in the valuation of listed shares is not made directly, but indirectly, by creating a reserve for the depreciation of investments in securities.
Upon disposal (sale, exchange) of securities, the following valuation methods may be applied:
At the unit cost of each security (or one type);
Average cost;
At the cost of the first in time purchases (FIFO).
Legal regulation
In the Russian Federation, accounting is carried out in accordance with regulatory documents that have different statuses. Some of them are mandatory, others are advisory in nature.
There is a four-tier regulatory system in the Russian Federation:
1st level: legislative acts, decrees of the President of the Russian Federation and decrees of the Government, directly or indirectly regulating the organization and maintenance of accounting in the organization;
2nd level: standards (regulations on accounting and reporting);
4th level: working documents on the accounting of the enterprise itself.
Federal Law "On Accounting" dated November 21, 1996, No. 129 FZ. This law defines the legal basis of accounting, its content, principles, organization, main areas of accounting and reporting, the composition of economic entities obliged to maintain accounting records and provide financial statements. The Accounting Law consists of three sections and 19 articles.
Chart of accounts for accounting of financial and economic activities of the organization and Instructions for its use. Approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n.
Resolution of the Federal Commission for the Securities Market of November 27, 1997 N 40 "On Approval of the Rules for Reflecting Certain Operations with Securities by Professional Participants of the Securities Market and Investment Funds in Accounting", these Rules came into force on January 1, 1998.
Order of the Ministry of Finance of the Russian Federation of January 15, 1997 No. 2 "On the Procedure for Reflecting Operations with Securities in Accounting".
It defines the accounting accounts that are used when purchasing securities, creating reserves, accounts that reflect the profit (loss) from operations with securities and the need to maintain a securities accounting book, in which all securities stored in the organization must be described. ... The securities accounting book must have the following mandatory details: name of the issuer; the par value of the security; purchase value; number, series, etc .; total amount; date of purchase, date of sale. The book of accounting of securities must be bound, sealed with the seal of the organization and the signatures of the head and the chief accountant, the pages are numbered.
Corrections in the Book of Securities should be made only with the permission of the manager and the chief accountant, indicating the date of the correction.
Regulation "On the procedure for maintaining accounting records of transactions for the purchase and sale of foreign currency, precious metals and securities in credit institutions "(as amended and supplemented).
This Regulation defines the principles of accounting for purchase and sale transactions of various financial assets(foreign currency, precious metals, securities, etc.) from the date of the transaction until the value date (the date of delivery of funds to the counterparty's accounts agreed by the parties), if the date of the transaction and the value date do not coincide.
Federal Law of April 22, 1996 N 39-FZ "On the Securities Market" (as amended and supplemented).
This Federal Law regulates relations arising from the issue and circulation of equity securities regardless of the type of issuer, as well as the specifics of the creation and activities of professional participants in the securities market.
Establishes the forms (and their samples) of interim and annual reports included in the Balance Sheet, and approves instructions on the volume of accounting forms and instructions on the procedure for preparing financial statements.
Tax Code of the Russian Federation - part one of July 31, 1998 N 146-FZ (as amended and supplemented on March 30, July 9, 1999, January 2, August 5, 2000, March 24, 2001, etc.) ) and part two of August 5, 2000 N 117-FZ (as amended and supplemented from December 29, 2000, May 30, August 6, 7, 8, 2001, etc.).
This is the main legislative act regulating issues related to taxation, improving the mechanism of legal regulation of taxation in a market economy, establishing more and more clear conditions for the collection of taxes and other mandatory payments.
Also, when working with financial investments, an accountant needs to pay attention to the following regulatory documents:
Regulation on accounting "Income of the organization" PBU 9/99. Approved by order of the Ministry of Finance of the Russian Federation dated 06.05.99 No. 32n;
Regulation on accounting "Organization's expenses" PBU 10/99. Approved by order of the Ministry of Finance of the Russian Federation dated 06.05.99 No. 33n
The adoption of PBU 9/99 and PBU 10/99 in accounting gave the right to active investors, regardless of the presence of a license of a professional participant in the securities market, as a normal activity to recognize transactions with securities and, accordingly, apply the accounting procedure for general business expenses related to these activities.
ACCOUNTING OF FINANCIAL INVESTMENTS LLC "SOLARIS"
Documentation of transactions for accounting for financial investments
The documents confirming financial investments are: received certificates of shares, extracts from the register of shareholders, extracts from depot accounts, bonds; certificates for the amount of deposits made, agreements for the provision of loans.
Documents confirming the sale of securities are acts of purchase and sale, extracts from the register of shareholders, extracts from depot accounts, transfer orders.
Payment orders and bank statements confirm the redemption of bonds and the return of loans provided.
Solaris LLC holds such securities as stocks, bonds, bills of exchange, savings certificates. All securities stored in the organization, in accordance with the law, are described in the Securities Accounting Book, with the filling in of the mandatory details: name of the security, par price, purchase price, number, series, date of purchase, date of sale, total quantity.
Forms (certificates) of securities stored in the depository continue to be registered in the accounting department of Solaris LLC, indicating the details of the depository in the analytical accounting. The basis for the receipt of stock forms are receipt documents: waybills, consignment notes, invoices.
Upon receipt or disposal of securities, the accountant carefully checks the accuracy and correctness of filling out the documents. They must be signed by the head and the chief accountant.
Solaris LLC has developed a document flow schedule for transactions related to the movement of securities. This schedule takes into account the deadlines established by law for transactions with securities in relation to: payment of dividends, settlements with the budget for taxes on securities transactions, settlements with the budget for income from securities, and the provision of financial statements.
Primary documents reflect information on the movement of securities and related settlements, which are then recorded in accounting registers.
For accounting of transactions reflected on account 58 "Financial investments" in LLC "Solaris" there is a journal - order No. 5 and a statement of analytical accounting No. 28. In the journal - order of form No. 5, synthetic accounting of transactions on financial investments is kept, it is used throughout the year. Records on the credit of account 58 are given for the corresponding accounts on the basis of the summary data of the statement of form No. 28 on credit turnovers, and the turnovers on the debit of account 58 are recorded in general totals.
Entries in the statement are made in chronological order as the individual types of funds are invested. On the credit of these accounts, in the context of the corresponding accounts, the amounts written off to reduce financial investments are reflected. After reconciliation with the data of other registers, the credit turnovers of account 58 as a whole and with a breakdown by the corresponding accounts of their journal - orders No. 5 are transferred to the general ledger.
Topic 10. Accounting for financial investments
The concept and types of financial investments.
Assessment of financial investments in accounting.
Accounting for equity investments.
Accounting for debt financial investments.
Accounting for loans granted.
The concept and types of financial investments.
Accounting for financial investments is regulated by the Regulation on accounting "Accounting for financial investments" (PBU 19/02) dated 10.12.02, No. 126n. Financial investments can be made by an organization:
1) in securities (shares, government bonds, corporate bonds, deposits, financial and commodity bills, checks and other derivative securities);
2) in the form of contributions to authorized capital;
3) in the form of loans of a long-term and short-term nature.
Financial investments of the second and third groups can be made in monetary and material forms.
Financial investments are accepted for accounting if the following conditions are met at the same time:
availability of duly executed documents confirming the ownership of the organization;
transition to the organization of financial risks (risk of insolvency, risk of price changes, etc.);
the ability to bring economic benefits to the organization.
Financial investments do not include:
own shares repurchased from shareholders for subsequent sale or cancellation;
promissory notes issued by the issuing organization to the selling organization when paying for goods sold, products, work performed, services rendered;
investments in movable and real estate that has a material and material form, provided by the organization for a fee for temporary use;
precious metals, jewelry, works of art and other similar values, acquired not for the purpose of carrying out ordinary activities.
Accounting for financial investments is carried out on active account 58 "Financial investments", to which the following sub-accounts can be opened:
58-1 "Shares and Shares";
58-2 "Debt securities";
58-3 "Loans granted";
58-4 "Contributions under a simple partnership agreement", etc.
Assessment of financial investments in accounting.
Financial investments are accepted for accounting at their initial cost, which is understood as the amount of actual acquisition costs. The initial cost of financial investments includes:
the cost of acquiring financial investments in accordance with the contract;
the cost of information and consulting services;
the cost of the intermediary's commission;
other costs associated with the acquisition of financial investments.
For financial investments, for which the valuation in accounting at the current market value is provided, an additional valuation or markdown may be carried out during the reporting period:
Debit 58, credit 91.1 - revaluation due to an increase in the current market value of the financial investment;
Debit, 91.2, credit 58 - markdown due to a decrease in the current market value of the financial investment.
If there are signs of impairment of financial investments, for which the current market value is not determined, the organization must check the existence of conditions for a sustainable decrease in the value of these financial investments. If the impairment test confirms a sustained significant decrease in the value of financial investments, the organization creates a reserve for the impairment of financial investments. due to the formation of other expenses. The accounting of the reserve is carried out on account 59 “Provisions for the depreciation of financial investments”. The creation of the reserve is reflected by the posting: debit 91-2, credit 59.
In the financial statements, the value of such financial investments is shown net of the amount of the formed allowance for impairment. If, according to the results of the check for the depreciation of financial investments, an increase in their estimated value is revealed, then the amount of the previously created reserve for the depreciation of financial investments is adjusted towards its decrease and increase in the financial result (as part of other income): debit 59, credit 91-1.
Outgoing financial investments are assessed in one of the following ways:
1) at the initial cost of each unit of financial investments;
2) at the average initial cost;
3) at the initial cost of the first in the time of acquisition of financial investments (FIFO method).
The use of one of the methods is provided for by the organization's accounting policy for a certain group or type of financial investments.
If financial investments have the current market value reflected in the accounting, then they are disposed of based on the last assessment.
Accounting for equity investments.
Equity financial investments are investments of third-party organizations in shares in order to participate in the management of the organization or to obtain speculative income, as well as the acquisition of a share in the authorized capital of third-party organizations in order to participate in the management of the organization.
Example 1.
Organization "Vega" acquired 10 shares for 12,000 rubles. The par value of one share is 1000 rubles. The cost of consulting services provided by a third-party organization amounted to RUB 118, incl. VAT RUB 18
Reflected the cost of acquired shares:
Debit 58-1 "Shares and Shares", Credit 51 "Settlement Accounts" -12,000 rubles.
Included in the initial value of the shares are consulting costs:
Debit 58-1 "Shares and Shares", Credit 51 "Current Accounts" -100 rubles.
Reflected VAT on consulting services:
Debit 19 "VAT on purchased valuables", credit 51 "Settlement accounts" - 18 rubles.
Thus, the initial value of the share will be:
(12,000 rubles + 100 rubles): 10 shares = 1210 rubles.
Accounting for debt financial investments.
Debt financial investments mean financial investments in debt securities (government bonds, corporate bonds, checks, deposits, financial bills and commercial bills of exchange). Typically, bonds are sold at a discount that, at maturity, is paid to the holder in excess of the amount paid. In addition, bonds can also provide for an annual interest payment.
Example 2.
The organization purchases a package of bonds with a maturity of 4 years. The par value of the bond package is 18,000 rubles. Actual acquisition costs amounted to RUB 12,000. Bonds are accepted for accounting. At the end of the reporting year, income on bonds was accrued in the amount of 2,000 rubles.
The actual value of the purchased bonds is reflected:
Debit 58.2, credit 76 - 12,000 rubles.
2. Accrued income on bonds:
Debit 76, credit 91.1 - 2000 rubles.
3. Received income on bonds:
Debit 51, credit 76 - 2000 rubles.
4. The difference between the nominal and actual value of the purchased bonds has been written off as income is accrued in proportion to the circulation period of the bonds:
Debit 58-2, credit 91-1 "Other income" - 1500 rubles.
((18,000 rubles - 12,000 rubles): 4 years).
Accounting entries 2-4 are made over the next 3 years, which makes it possible by the end of the fourth year to form their par value on the debit of account 58-2, at which they will be redeemed by the issuer to the holder. At redemption, a register is made:
Debit 51, credit 58-2 - 18,000 rubles.
5. Accounting for loans provided.
The loans provided are debentures on the provision of funds (other property) by one legal entity or individual to another legal entity (individual) without the participation of the bank. According to clause 7 of PBU 9/99 "Income of the organization", the amount of interest on the loan provided in the account of the investor must be included in other income.
Example 3.
The organization provided a cash loan to a legal entity for a period of 6 months in the amount of 100,000 rubles. at 30% per annum. According to the agreement, interest is calculated and paid monthly. After the specified period, funds were received to repay the loan.
Short-term loan provided:
Debit 58-3, credit 51 - 100,000 rubles.
2. Accrued monthly interest on the loan provided:
Debit 76, credit 91.1 - 2500 rubles.
(100,000 rubles * 30%: 12 months)
3. Interest received under the loan agreement:
Debit 51, credit 76 - 2500 rubles.
4. Returned short-term loan:
Debit 51, credit 58-3 - 100,000 rubles.
In the reporting of domestic enterprises and organizations, various financial investments are taken into account: issued loans, deposits, etc. They are united by the concept of "attachments". Financial investments are reflected in the balance sheet and the explanatory note to the statements.
What is included in financial investments in the balance sheet
The concept of "financial investments in balance sheet" includes:
- various securities with deadlines and the cost of repayment;
- contributions to the capital of other enterprises and organizations;
- issued loans (excluding interest-free) and deposits;
- acquired receivables, etc.
Such investments and assets are included in the concept under consideration if they meet the following criteria:
- documentary confirmation;
- whether the respective investor has financial risks associated with such investments;
- the likelihood that these investments will subsequently give economic effect in the form of benefits in its various forms (dividends, increase in value, etc.) This conclusion follows from clauses 2, 3 of PBU 19/02.
Now consider what does not apply to long-term financial investments in line 1170 of the balance sheet. For example:
- own shares of the company repurchased for cancellation or subsequent sale;
- promissory notes issued in the legal relationship of purchase and sale and the provision of services;
- investment in property leased out for a fee;
- jewelry, paintings, etc., if their acquisition is not related to the usual activities of the enterprise;
- fixed assets, inventories and intangible assets.
Where and how financial investments are reflected in the accounting
Before getting into the balance sheet, current financial investments in accounting are formed on account 58 "Financial investments". Simultaneously, deposits are subject to accounting on subaccount 55-3 "Deposit accounts".
In analytical accounting for securities, information on:
- the name of the issuer;
- the name and details of the security;
- cost;
- total amount;
- date of acquisition and disposal;
- storage location.
Balance sheet cost long-term investment related to financial investments are reflected as of December 31 of the previous year and December 31 of the year that expired prior to this (previous) year.
Wherever the relevant information is formed in the accounting, long-term financial investments in the balance sheet are line 1170.
In accounting, assets corresponding to the balance sheet indicator under consideration are taken into account at their original cost.
The following are taken into account as expenses for financial investments:
- amounts paid under contracts;
- the cost of information and consulting services related to the corresponding investment;
- rewards for intermediaries;
- other costs of financial investments.
To determine the current market value of financial investments, all available sources of relevant information are used. If financial investments are not traded on the organized securities market and their current market value is not determined, they are accounted for at the reporting date at their original cost.
The initial cost of debt securities, the current market value of which is not determined, can be changed to their nominal values during the period of their circulation. This is done evenly, depending on the amount of income on such securities.
Disposal of financial investments is subject to accounting for:
- repayment;
- sale;
- gratuitous transfer, etc.
The disposal of the related asset for which the current market value is not determined is accounted for:
- either at initial cost;
- either at the average initial cost;
- or by the FIFO method.
In accordance with the regulation on accounting PBU 19/02, for the acceptance of assets as financial investments for accounting, the following conditions must be met at a time:
availability of duly executed documents confirming the existence of the organization's right to financial investments and to receive funds or other assets arising from this right;
transition to the organization of financial risks associated with financial investments (risk of price changes, risk of insolvency of the debtor, liquidity risk, etc.);
the ability to bring economic benefits (income) to the organization in the future in the form of interest, dividends or an increase in their value (in the form of the difference between the sale (redemption) price of a financial investment and its purchase value as a result of its exchange, use to repay the organization's obligations, increase in the current market value etc.).
The organization's financial investments include: government and municipal securities, securities of other organizations, including debt securities, in which the date and value of redemption is determined (bonds, bills of exchange); contributions to the authorized (pooled) capitals of other organizations (including subsidiaries and affiliates); loans granted to other organizations, deposits in credit institutions, accounts receivable acquired on the basis of assignment of the right of claim; contributions of a partner organization under a simple partnership agreement.
The financial investments of the organization do not include:
own shares redeemed by a joint-stock company from shareholders for subsequent resale or cancellation;
promissory notes issued by the issuing organization to the selling organization when paying for goods sold, products, work performed, services rendered;
investments of the organization in real estate and other property that has a tangible form, provided by the organization for a fee for temporary use (temporary possession and use) in order to generate income;
precious metals, jewelry, works of art and other similar values, acquired not for the purpose of carrying out ordinary activities.
Depending on the nature of financial investments, the order of their acquisition and use, the unit of financial investments can be a series, a batch, etc. a homogeneous set of financial investments.
For government securities and securities of other organizations accepted for accounting, the analytical accounting should contain at least the following information: the name of the issuer and the name of the security, number, series, etc., nominal price, purchase price, costs associated with purchase of securities, total quantity, date of purchase, date of sale or other disposal, place of storage.
Financial investments are accepted for accounting at their initial cost. The initial cost of financial investments purchased for a fee is the amount of the organization's actual costs for their acquisition, excluding value added tax and other reimbursable taxes (except for cases stipulated by the legislation of the Russian Federation on taxes and fees).
The actual costs of acquiring assets as financial investments are:
amounts paid in accordance with the agreement to the seller;
amounts paid to organizations and other persons for information and consulting services related to the acquisition of these assets. If the organization has been provided with information and consulting services related to making a decision on the acquisition of financial investments, and the organization does not make a decision on such an acquisition, the cost of these services is referred to the financial results of the commercial organization (as part of other expenses) or an increase in the costs of the non-profit organization of that the reporting period when it was decided not to purchase financial investments; (as amended by the Order of the Ministry of Finance of the Russian Federation of September 18, 2006 N 116n)
remuneration paid to the intermediary organization or another person through whom the assets were acquired as financial investments;
other costs directly related to the acquisition of assets as financial investments.
General business and other similar expenses are not included in the actual costs of acquiring financial investments, unless they are directly related to the acquisition of financial investments.
In case of insignificance of the amount of costs (except for the amounts paid in accordance with the agreement to the seller) for the purchase of such financial investments as securities in comparison with the amount paid in accordance with the agreement to the seller, the organization has the right to recognize such costs as other expenses of the organization in that reporting period , in which the specified securities were accepted for accounting. (as amended by the Order of the Ministry of Finance of the Russian Federation of September 18, 2006 N 116n)
The initial value of financial investments made as a contribution to the authorized (pooled) capital of an organization is recognized as their monetary value agreed upon by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation.
The initial value of financial investments received by the organization free of charge, such as securities, is:
their current market value as of the date of acceptance for accounting. For the purposes of this Regulation, under the current market value securities are understood as their market price, calculated in accordance with the established procedure by the organizer of trade on the securities market;
the amount of money that can be obtained as a result of the sale of the received securities as of the date of their acceptance for accounting - for securities for which the market price is not calculated by the organizer of trading on the securities market.
The initial cost of financial investments, at which they are accepted for accounting, may change in cases established by law
For the purposes of subsequent assessment, financial investments are divided into two groups: financial investments, which can be used to determine the current market value in the manner prescribed by PBU 19/02, and financial investments, for which their current market value is not determined.
Financial investments for which the current market value can be determined in accordance with the established procedure are reflected in the financial statements at the end of the reporting year at the current market value by adjusting their assessment as of the previous reporting date. The organization can make the specified adjustment on a monthly or quarterly basis.
The difference between the assessment of financial investments at the current market value as of the reporting date and the previous assessment of financial investments is referred to the financial results of a commercial organization (as part of other income or expenses) or an increase in income or expenses from a non-commercial organization in correspondence with the financial investment account. (as amended by the Order of the Ministry of Finance of the Russian Federation of September 18, 2006 N 116n)
Financial investments for which the current market value is not determined shall be reflected in the accounting records and in the financial statements as of the reporting date at their initial cost.
Income from financial investments is recognized as income from ordinary activities or other income in accordance with the Regulation on accounting"Income of the organization" PBU 9/99, approved by the Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 N 32n (registered with the Ministry of Justice of the Russian Federation on May 31, 1999, registration number 1791).
Expenses related to the provision of loans by the organization to other organizations are recognized as other expenses of the organization. (as amended by the Order of the Ministry of Finance of the Russian Federation of September 18, 2006 N 116n)
Expenses associated with servicing the organization's financial investments, such as payment for the services of a bank and / or a depository for keeping financial investments, providing an extract from a securities account, etc., are recognized as other expenses of the organization. (as amended by the Order of the Ministry of Finance of the Russian Federation of September 18, 2006 N 116n)
