5. The error of the reporting year, revealed before the end of this year, is corrected by entries in the relevant accounts accounting in the month of the reporting year in which the error was discovered.
6. An error in the reporting year, detected after the end of this year, but before the date of signing the financial statements for this year, is corrected by entries in the relevant accounting accounts for December of the reporting year (the year for which the annual financial statements are prepared).
7. A significant error of the previous reporting year, revealed after the date of signing the financial statements for this year, but before the date of submission of such statements to shareholders of a joint-stock company, participants in a limited liability company, a state authority, a local government body or another body authorized to exercise the rights of the owner, etc., is corrected in the manner prescribed by paragraph 6 of these Regulations. If the specified financial statements were submitted to any other users, then the financial statements in which the identified material error has been corrected (corrected financial statements) are subject to re-submission to these users.
8. Significant error of the previous reporting year, revealed after the submission of financial statements for this year to shareholders of a joint-stock company, participants in a limited liability company, a state authority, a local government body or another body authorized to exercise the rights of the owner, etc., but before the date of approval of such reporting in accordance with the established legislation Russian Federation order, corrected in the manner prescribed by paragraph 6 of these Regulations. At the same time, the corrected financial statements disclose information that these financial statements replace the originally presented financial statements, as well as the grounds for compiling the corrected financial statements.
(see text in previous edition)
The corrected financial statements are submitted to all addresses to which the original financial statements were submitted.
(see text in previous edition)
9. A significant error of the previous reporting year, identified after the approval of the financial statements for this year, is corrected:
1) entries on the relevant accounting accounts in the current reporting period. In this case, the corresponding account in the entries is the account of retained earnings (uncovered loss);
2) by recalculating the comparative indicators of the financial statements for the reporting periods reflected in the financial statements of the organization for the current reporting year, except when it is impossible to establish a connection between this error and a specific period or it is impossible to determine the impact of this error on a cumulative total in relation to all previous reporting periods.
The recalculation of the comparative indicators of the financial statements is carried out by correcting the indicators of the financial statements, as if the error of the previous reporting period had never been made (retrospective recalculation).
A retrospective recalculation is made in relation to comparative indicators starting from the previous reporting period presented in the financial statements for the current reporting year in which the corresponding error was made.
Organizations that have the right to apply simplified methods of accounting, including simplified accounting (financial) statements, may correct a significant error of the previous reporting year, identified after the approval of the accounting statements for this year, in the manner prescribed by clause 14 of this Regulation, without a retrospective recalculation.
(see text in previous edition)
10. In case of correction of a significant error of the previous reporting year, identified after the approval of the financial statements, the approved financial statements for the previous reporting periods are not subject to correction and re-submission to users of the financial statements.
(see text in previous edition)
11. If a significant error was made before the beginning of the earliest of the previous reporting periods presented in the financial statements for the current reporting year, the opening balances for the relevant items of assets, liabilities and equity at the beginning of the earliest of the reporting periods presented are subject to adjustment.
12. If it is not possible to determine the effect of a material error on one or more of the prior reporting periods presented in the financial statements, the entity shall adjust the opening balance of the relevant asset, liability and equity items at the beginning of the earliest period for which restatement is possible.
13. Impact of a material error on the previous reporting period it is impossible to determine if complex and (or) numerous calculations are required, during which it is impossible to isolate information that indicates the circumstances that existed on the date of the error, or it is necessary to use information obtained after the date of approval of the financial statements for such a previous reporting period.
14. An error of the previous reporting year, which is not significant, detected after the date of signing the financial statements for this year, is corrected by entries in the relevant accounting accounts in the month of the reporting year in which the error was discovered. Profit or loss resulting from the correction of this error is included in other income or expenses of the current reporting period.
In order for the financial analysis ratios to accurately reflect the state of the company, it may be necessary to adjust the financial statements. This applies primarily to companies that take into account the property received under a leasing agreement on an off-balance sheet account or have long-term receivables. We will review the purpose and nature of the required adjustments. The material will be useful to those who are interested in international standards financial reporting.
Ratio analysis makes it possible to obtain important characteristics financial condition companies, including:
Return on Assets = Net Income / Total Assets;
Total liquidity ratio = ;
Coefficient financial stability= Equity / Total assets.
In order for financial ratios to reflect the real state of affairs, it is necessary:
Russian accounting rules make it possible to reflect objects received under a financial lease (leasing) agreement off the balance sheet, to include in the composition of current assets some elements that are not such in their economic essence - they do not provide economic benefits in the short term. This concerns, first of all, receivables with a maturity of more than 12 months, software, the exclusive rights to which do not belong to the organization, and some other expenses reflected in the deferred expense account. The coefficients calculated according to the data of such a balance are distorted.
To assess the value of the total assets involved in the business, and an objective assessment of the company's profitability, it makes sense:
The procedure for the necessary calculations is presented below (see also Tables 3 and 6).
This adjustment is in line with economic logic and the requirements of International Financial Reporting Standards. IFRS (IAS) 17 "Lease" obliges to recognize property received under finance lease agreements (financial leasing) on the lessee's (lessee's) balance sheet along with its own fixed assets.
The lessor is required to recognize the disposal of property transferred under a finance lease. The position of the standard on this issue is unambiguous and cannot be changed by agreement or otherwise; recognition of property in an off-balance account is not allowed.
The fact that the lessee does not have ownership of the asset during the term of the finance lease cannot prevent it from being recognized on the balance sheet. The basic principles of IFRS stipulate that a company recognizes in its balance sheet assets that it controls and uses to obtain economic benefits, regardless of ownership.
It makes sense to classify assets into non-current or current, focusing on the definitions accepted in international practice: an asset is short-term (current) if it is sold, sold, used within 12 months from reporting date or the company's normal operating cycle.
2. To determine the amount of assets that in the short term are able to bring economic benefits to the company, and to obtain the correct value of the liquidity ratio, — exclude from current assets and transfer to non-current assets:
Detailed comments are presented in Table. one.
IFRS obliges to reflect accounts receivable with a maturity of more than 12 months. included in non-current assets. We will see such a line in the statements of large Russian issuers, compiled according to international standards and posted on the official websites of companies (for example, OAO Gazprom).
The software, the rights to which remain with the seller, includes accounting programs, electronic services, regulatory frameworks, anti-virus protection programs and similar software. It is logical to recognize any software products, as well as rights and licenses for certain types of activities, as part of intangible assets- they provide the work of the company, but are not directly involved in the production process. This requirement established in IAS 38 (IAS) "Intangible Assets", which introduces neither legal nor cost restrictions for classifying software products, rights and licenses as intangible assets.
3. Exclude from the composition of assets illiquid reserves (which in the foreseeable future will not be used in the company's activities or will not be sold), bad or doubtful receivables, that is, "clear" the balance of illiquid assets. This will affect all financial indicators.
The amount by which the assets of the balance sheet will decrease must be deducted from the capital in liabilities.
A decrease in capital (section "Capital and reserves", equity) due to the exclusion of illiquid assets will balance the balance - it will ensure the equality of assets and liabilities. His economic sense- lost income.
Table 1
Information for adjusting current assets of the balance sheet
|
Adjustment element |
The source of information |
Balance line from which values are excluded |
Balance line in which values are included |
|
Appendix to the balance sheet 5.1 "The presence and movement of receivables" |
Enter a separate line in section I "Non-current assets" |
||
|
The cost of the software, the exclusive rights to which remained with the seller, the costs under the construction contract associated with the forthcoming work, and similar costs recognized on account 97 “Deferred expenses”. |
Appendix to the balance sheet "Explanation of individual indicators of the balance sheet, line 1260", account information 97 "Deferred expenses" |
Line 1260 "Other current assets" (PO), line 1210 "Stocks (other)" |
Enter a separate line in section I or add to line 1190 "Other non-current assets". The cost of software can be added to intangible assets. |
|
Illiquid stocks. Hopeless accounts receivable |
Expert assessment of the company's specialists, management information |
Line 1210 "Stocks". Line 1230 "Accounts receivable" |
Reduce "Capital and reserves" in line 1370 "Retained earnings" or show in a separate line with negative values |
|
Adjust totals by balance sheet sections |
|||
You can prepare adjusted reports, but you can make adjustments directly to the calculation formulas, for example:
Total liquidity ratio = ( current assets- DZ 12 - RBP vneob - Nel OA) / Short-term liabilities,
where DZ 12 - receivables with a maturity of more than 12 months. from the reporting date, den. units .;
RBP vneob - the amount of deferred expenses that it is advisable to transfer to non-current assets, including the cost of software, the exclusive rights to which remained with the seller, etc., den. units;
Nel OA - the cost of illiquid current assets, den. units
Note
The amendments make sense if the components under discussion (accounts receivable with a maturity of 12 months, illiquid assets) are material in magnitude. Each company sets its own criteria for materiality. For example, it can be equal to 10% (or more) of the asset value.
An example of making the adjustments listed above is presented in Table 6.
Amendments related to off-balance sheet property received under financial lease agreements (financial leasing) also make sense if their value is significant in relation to total amount company assets. Information on the value of the leased property can be found in the contracts, as well as in the appendix to the balance sheet 2.4 “Other use of fixed assets”. In the example (Table 2), the value of the leased and off-balance-sheet facilities is significant - comparable to the value of the total assets of the balance sheet. Thus, the amount of assets involved in the work of the company is noticeably higher than shown in the balance sheet. The figures calculated without adjusting the financial statements would be materially distorted.
table 2
Extract from the financial statements of JSC AK Transaero (reporting in the public domain)
Consider a methodology that meets the requirements of IFRS 17 “Leases”, as well as the economic essence of a financial lease (financial leasing) transaction - the acquisition of an asset at market value with full financing of the purchase through a loan from the lessor. In terms of economic content, leasing payments are the payment of a loan and interest on it.
Calculations require information on the schedule of lease payments (taking into account the cost of the asset upon redemption), more precisely, on the amounts recognized as expenses in accounting, since in certain periods, lease payments differ from the amounts recognized as expenses in the income statement. The advance payment under the contract is included in the costs (credited) not at a time when paying, but throughout the entire duration of the contract.
For example, under a leasing agreement for a period of 36 months. the lessee pays an advance payment of 800 thousand rubles, while the costs are not recognized in his income statement. Further, regular payments are paid under the contract, for example, 60 thousand rubles each. per month, but expenses in the amount of 82 thousand rubles are recognized in the income statement. (60 + 80 / 36). This amount will be indicated in the invoices issued by the lessor, which are the basis for the recognition of expenses in the financial statements.
Note
The amounts of the advance payment are not necessarily distributed evenly - it is necessary to study the schedule of lease payments under the contract.
Let's consider the adjustment algorithm using an example, combining methodological explanations with specific calculations.
In October 2013, the company entered into a financial leasing (financial lease) agreement for equipment for a period of 36 months.
The total amount of payments under the agreement is 240,720 thousand rubles. with VAT (204,000 thousand rubles without VAT). At the end of the contract, the company transfers ownership of the leased object.
The cost of purchasing equipment by the lessor ( market price acquisition of assets) - 186,440 thousand rubles. with VAT (158,000 thousand rubles without VAT).
The actual transfer of assets to the lessee occurred in January 2014.
Prior to the actual receipt of assets, an advance payment of 55,342 thousand rubles was paid to the lessor. with VAT (46,900 thousand rubles without VAT).
The terms of the contract are presented in Table. 3.
The reporting of a lessee that recognizes property received under a financial leasing agreement (hereinafter referred to as leasing) on an off-balance sheet account is adjusted as follows:
Step 1. We recognize the asset and liabilities under the lease agreement.
At the time of actual receipt of the object, the lessee must recognize in its balance sheet an asset and a liability of the same amount, equal to the cost of acquiring this asset by the lessor (excluding VAT) . The cost of acquiring the asset by the lessor can be found in the lease agreement or its appendices.
This gives rise to the cost of the asset and the liability under the contract. The resulting liability represents the principal debt on a loan taken from the lessor.
Calculation
The cost of acquiring assets by the lessor is 158,000 thousand rubles. excluding VAT - the initial cost of assets and liabilities under the leasing agreement (pages 4 and 8 of Table 3, date - 01/01/2014).
The total lease payments under the agreement (204,000 thousand rubles) consist of:
1) the main loan debt - 158,000 thousand rubles;
2) interest expenses - 46,000 thousand rubles. (204,000 thousand rubles - 158,000 thousand rubles).
Note!
The value of an asset is recognized not as equal to the amount of lease payments under the agreement (as is often the case in Russian practice when accounting for a leased asset on the balance sheet of the lessee), but to its initial purchase price (market price). This approach is economically justified: financial leasing, in fact, is the purchase of an asset on credit from a lessor, and when an asset is purchased on credit, its value is recognized in the balance sheet at the market purchase price, excluding interest.
Step 2. Calculate depreciation.
From the moment of commissioning, depreciation is accrued on the leased object over the period of its beneficial use. The useful life is determined by the company, for example, using the classifier of fixed assets.
In each reporting period, depreciation is included in the income statement expenses, and also reduced by its amount. residual value asset on the balance sheet.
Calculation
The remaining life of the assets is 5 years. This corresponds to a depreciation rate of 20%.
Annual depreciation — 31,600 thousand rubles. (158,000 × 20%) - must be included in the income statement and reduce the residual value of assets in the balance sheet (pp. 5, 123 and 4 of Table 3).
Step 3. We determine the cost of the loan implied in the lease (leasing) agreement.
The cost of a loan is calculated as the internal rate of return ( IRR) at which the discounted lease expense under the contract is equal to the cost of the asset recognized in step 1. This task is easily solved using Excel, manual calculation is difficult.
Note
You can download the calculation file thanks to our Form Service service.
Calculation
Cost of credit implied in the contract = 15.998%. We check:
87 100 / (1 + 0,15998) 1 + 78 200 / (1+0,15998) 2 + 38 700 / (1 + 0,1599) 3 = 158 000,
where the values in the numerator are the data from page 3 of the table. 3;
degree 1, 2, 3 - number of the year from the beginning of the contract
Step 4 We divide the lease payments of each period into economic components - interest expenses and the repayable principal on the loan.
The interest expense of each period is determined as the product of the liability under the lease agreement at the previous reporting date and the cost of the loan determined in the previous step. The repayable principal of each period is calculated as the lease payment minus interest expense.
In each reporting period, interest expenses are included in the income statement, and the repayable principal is deducted from the balance of the liability in the balance sheet. With a correct calculation, at the end of the contract, the balance of the obligation should become equal to zero.
Calculation(lines 6, 7, 8 of Table 3)
1 year from the start of the contract
Leasing payments RUB 87,100 thousand include:
The balance of the obligation at the end of 1 year: 158,000 - 61,823 = 96,177 thousand rubles.
2 years from the start of the contract
Leasing payments RUB 78,200 thousand include:
The balance of the obligation at the end of 2 years: 96,177 - 62,814 = 33,363 thousand rubles.
3 years from the start of the contract
Leasing payments 38,700 thousand rubles. include:
The balance of the obligation at the end of 3 years: 33,363 - 33,363 = 0 thousand rubles.
Step 5 We divide the liability into short-term and long-term components.
The leasing contract is concluded, as a rule, for a period of more than a year. At the same time, in each reporting period, a part of the obligation is repaid at the expense of leasing payments. The total liability to the lessor should be reflected in the balance sheet with a division into short-term and long-term components. The division is not difficult to make: the short-term component is equal to the sum of the repayable principal debt in lease payments for the next 12 months. from the reporting date.
Calculation
As of January 1, 2014, the total liability is 158,000 thousand rubles. We include it in the balance of two components:
As of December 31, 2014, the balance of the total liability is 96,177 thousand rubles. We include it in the balance sheet:
Step 6. We exclude from the statement of financial results leasing expenses recognized in accordance with RAS.
Calculation
As a result of the exclusion of leasing expenses from the report (line 14 of Table 3), a cumulative adjustment of net profit occurs (line 15 of Table 3).
Step 7. We adjust equity.
The inclusion of an asset and a liability under a lease agreement in the balance sheet will lead to a violation of the equality of assets and liabilities. To restore the balance at each reporting date, it is necessary to adjust equity by an amount equal to (the value of the asset included in the balance sheet - the balance of the total liability).
Calculation
The result of the calculation is in page 11 of the table. 3.
If the calculation is correct, the adjustments to equity will match the cumulative adjustments to net income accumulated from contract inception to the reporting date in question.
In our example, at the end of 2014, the equity adjustment of 30,223 is the same as the cumulative net income adjustment for the previous year. As of the end of 2015, the capital adjustment was RUB 61,437 thousand. coincides with the amount of adjustments to net profit for the past two years (30,223 thousand rubles + 31,214 thousand rubles). At the end of 2016, the equity adjustment is equal to the sum of net income adjustments for all three years, which confirms the correctness of the calculations made.
Table 3
Initial data and calculations under the financial leasing agreement required to adjust the lessee's reporting
|
No. p / p |
Indicators, thousand rubles |
Reporting dates |
Total |
||||
|
31.12.2013 |
01.01.2014 |
31.12.2014 |
31.12.2015 |
31.12.2016 |
|||
|
Pay period |
|||||||
|
Leasing payments under the agreement without VAT |
|||||||
|
Lease payments recognized as expenses under RAS |
|||||||
|
Asset Accounting |
|||||||
|
The value of assets to include in the balance sheet |
|||||||
|
Depreciation of assets |
|||||||
|
Accounting for the total liability to the lessor |
|||||||
|
Interest expense as part of the lease payment |
|||||||
|
Repayable principal debt as part of the lease payment (line 3 - line 7) |
|||||||
|
Balance of the total liability in the balance sheet (data as of the previous date - page 7) |
|||||||
|
Separation of the balance of the total liability to the lessor into short-term and long-term for recognition in the balance sheet |
|||||||
|
Short term liability |
|||||||
|
long term commitment (page 8 - page 9) |
|||||||
|
Equity adjustments on the balance sheet |
|||||||
|
Retained earnings (line 4 - line 8) |
|||||||
|
Adjustments to the income statement (+) exclusion of expenses (-) recognition of expenses |
|||||||
|
Recognize depreciation (p. 5) |
etc. within 5 years |
||||||
|
Recognize interest expense (p. 6) |
|||||||
|
Exclude lease expenses under RAS (p. 3) |
|||||||
|
Cumulative net income adjustment (para. 12 + paragraph 13 + paragraph 14) |
|||||||
It makes sense to reflect the asset, long-term and short-term liabilities under a leasing agreement in the balance sheet in separate lines. In accordance with IFRS, assets received under a finance lease are recognized in the balance sheet in the line “Property, plant and equipment” along with the company's own assets, but can be separated into a separate line of non-current assets (at the request of the company). The same applies to liabilities: they can be shown together with other long-term and short-term liabilities, but it is more convenient to separate them into separate liability lines.
Adjustments to the income statement can be carried out in a simplified way - to adjust the value of net profit, since for management purposes the final value is more important than its distribution over individual lines of the report. If desired, the components of the cumulative adjustment can be entered in the corresponding lines of the income statement:
In view of the foregoing, the company's financial statements should be adjusted as follows (Table 4).
Table 4
Financial statements company and financial ratios determined on its basis
|
Balance (statement of financial position), thousand rubles |
Row codes |
31.12.2014 |
01.01.2014 |
|
Total non-current assets |
|||
|
Total current assets |
|||
|
Balance (asset) |
|||
|
Total equity and reserves (equity) |
|||
|
Balance (passive) |
|||
|
For 2014 |
|||
|
Net profit |
|||
|
Financial ratios: |
|||
|
Total liquidity ratio: Current assets / Current liabilities |
|||
|
Return on assets: Net profit / Total assets |
|||
For changes in reporting in connection with a financial lease agreement, table data are used. 3 on 01/01/2014 and 12/31/2014.
Disclosure of explanations to balance sheet showed that in the composition of current assets there is a long-term debt with a maturity of more than 12 months. It was also revealed the presence of illiquid assets - buyers' debt, assessed as bad. Data about it are presented in table. 5.
Table 5
Additional data on receivables as part of current assets
|
No. p / p |
Elements, thousand rubles |
Notes |
31.12.2014 |
01.01.2014 |
|
Accounts receivable with a maturity of more than 12 months. from the reporting date |
Factual data |
|||
|
Estimation of the amount of illiquid assets: |
||||
|
Long-term receivables assessed as uncollectible (approximately 3%) |
Company valuation |
|||
|
Short-term receivables assessed as uncollectible |
||||
|
Change in the amount of uncollectible receivables for the period |
||||
The corrected reporting of the company and the financial ratios determined on its basis are presented in Table. 6.
Table 6
Adjusted company reportingand financial ratios determined on its basis
|
Balance, thousand rubles |
Notes |
31.12.2014 |
01.01.2014 |
|
Non-current assets in the balance sheet |
|||
|
Assets received under a financial lease agreement |
Page 4 tab. 3 |
||
|
Long-term accounts receivable less bad debts |
Page 1, 2 tab. 5 |
||
|
Total non-current assets |
|||
|
Current assets in the balance sheet |
|||
|
Transfer of long-term receivables to non-current assets |
Page 1 tab. 5 |
||
|
Exclusion of illiquid current assets: bad short-term receivables |
Page 3 tab. 5 |
||
|
Total current assets |
|||
|
Balance (asset) |
|||
|
Equity and reserves on the balance sheet |
|||
|
Page 11 tab. 3 |
|||
|
Adjustments for excluded illiquid assets |
Page 2, 3 tab. 5 |
||
|
Total capital and reserves |
|||
|
Long-term liabilities on the balance sheet |
|||
|
Long-term liability under a finance lease |
Page 10 tab. 3 |
||
|
Total non-current liabilities |
|||
|
Short-term liabilities on the balance sheet |
|||
|
Current liability under a finance lease |
Page 9 tab. 3 |
||
|
Total current liabilities |
|||
|
Balance (passive) |
|||
|
Statement of financial results, million rubles |
For 2014 |
||
|
Net income in the income statement |
|||
|
Adjustment in connection with the lease agreement |
Page 15 tab. 3 |
||
|
Adjustment for changes in the value of illiquid assets: growth (-), reduction (+) |
Page 4 tab. 5 |
||
|
Adjusted net income |
|||
|
Financial ratios: |
|||
|
Total liquidity ratio Current assets / Current liabilities |
|||
|
Coefficient financial independence: Equity and reserves / Total assets |
|||
|
Return on assets: Adjusted Net Income / Total Assets |
|||
For adjustments to reporting for 2015, the data in Table. 3 as of December 31, 2014 and December 31, 2015, as well as data on the amount of long-term debts and illiquid assets.
Management balance, presented in table. 6 is formed on the basis of the available financial statements.
__________________________
Note!
In international accounting standards, leasing payments are divided directly into interest expenses and the repaid principal debt. At the same time, it is considered that advance payment does not contain interest and in full is the repayment of the principal debt. Nothing has to be excluded from the income statement (there is no recognition of expenses based on invoices), any finance lease agreement is initially recognized according to the methodology discussed above.
Since the balance sheet is adjusted for management purposes, finance lease settlements can be made directly from the lease payment schedule information, sacrificing some accuracy for the sake of convenience.
In order to get an idea of the real situation of the company on the basis of financial statements, one more nuance should be borne in mind: the reporting of a separate company of the group that performs work mainly for the companies of the group may be indicative
Quite a few Russian companies at one time were separated into separate legal entities. For example, transport and marketing services of companies turned into separate transport enterprises and sales houses, repair services of mining companies became independent enterprises.
It is not uncommon for enterprises created in this way to continue to work only (or predominantly) for their parent company. A possible consequence of this is non-market pricing. As a result, the income of the company providing services becomes underestimated, and the costs of the company receiving these services are overstated (or vice versa, depending on the goals, including tax management). The financial analysis it makes sense to produce such companies on the basis of consolidated financial statements, but not on the basis of data from individual enterprises, which are, in fact, part of a single technological process.
Making adjustments to the asset structure and excluding illiquid assets is not difficult. The algorithm for accounting for assets received under a financial lease agreement on the balance sheet of the lessee may seem difficult to understand and apply, but two arguments can be made in favor of studying it:
1) it allows you to fairly reflect the financial consequences of the decision to lease assets;
2) when switching to IFRS application the above approaches to accounting will become mandatory.
The procedure for making corrections to the accounting will depend on the materiality of the error made, as well as on the period of its discovery.
Errors in accounting revealed later than the reporting deadline can become a real headache even for a very experienced accountant, since they involve additional labor and time costs for recalculating financial statements. Consider the question of what errors significantly affect accounting and how to correct them?
PBU 22/2010 has a division accounting errors into essential and non-essential. A material error is an error that (individually or together with others) affects economic decisions accepted on the basis of financial statements in a given period.
AT accounting regulations there is no certain threshold, after which the concept of significant can be assigned to an error. Identification of errors is an independent process for any taxpayer, and the expression of errors can be determined by them both in absolute numbers and in percentage terms. In any case, the level after which the error becomes material should be specified in the provisions accounting policy companies.
Whenever and how you identify errors in accounting, the Bukhsoft online system for accounting electronic reporting will allow you to quickly resolve the issue and transfer necessary information in supervisory authorities.
For significant errors in accounting in 2017, there are a number of requirements for correction. To begin with, let's analyze the methods of correction, they depend on in which documents the error was made - directly in the reporting or in primary documentation, on the timing of detection and on the aforementioned materiality of the error.
There are the following ways to correct the primary and registers:
An important point, in a number of documents, this method of correction is unacceptable - this is banking and cash documentation.
The procedure for making corrections will again depend on the significance of the error made, as well as on the period of its discovery. Namely:
An important point: the new reporting with the correction of the error is submitted to all instances where the previous information was previously sent.
Of course, in the middle of the year there is no need to talk about this method of correcting errors, but this option will also be valid for accounting for 2017.
Significant errors of previous reporting periods, corrected in the current period, in without fail indicated in explanatory note to the 2017 annual financial statements.
It should be noted that the Ministry of Finance, in its letter dated January 22, 2016 No. 07-01-09 / 2235, indicated that companies themselves can develop an algorithm for correcting errors in accounting, guided by the provisions of the current Russian legislation. Any chosen order must be fixed by the provisions in the accounting policy of the organization.
Often, primary documents relating to business operations of the reporting year are received belatedly. What to do in this case with ready-made reports? Do I need to correct inaccuracies in accounting reports?
Dear readers! The article talks about typical solutions legal issues but each case is individual. If you want to know how solve exactly your problem- contact a consultant:
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The preparation of financial statements must be treated with the utmost care. But this does not guarantee a 100% absence of errors.
Sometimes inaccuracies occur due to late receipt primary documents related to the reporting operation of the reporting year.
Is it necessary to correct the financial statements in such a situation? Can I submit an amended balance sheet?
In the issue of correcting errors in accounting documentation, it is appropriate to follow PBU 22/2010 “Correction of errors in accounting and reporting”.
This standard has been ratified. in accordance with it, interim accounting reports are not subject to adjustment.
But when compiling reports for the year, it is necessary to recalculate.
However, other regulations speak of the possibility of making changes to the annual financial statements if an error is discovered in the period between the date of signing the statement and the date of its approval.
Only significant errors are subject to correction, provided that users of the reporting are informed. The form of informing the addressee about the clarification of accounting is chosen by the organization independently.
You can submit updated reports to the inspection bodies and attach a written explanation of the reasons for the correction to it.
Accounting reporting is a set of information about the financial and property condition of the organization and the final consequences of its management.
Reporting is formed on the basis of accounting information using established forms.
The purpose of accounting is to summarize all accounting data for a certain period of time and submit them to interested parties in a visual format.
The preparation of financial statements is the final stage of the accounting process. Reporting reflects the growing result in the property and financial condition of the company for a certain time.
The need for financial statements is due to the fact that it can be used to solve a number of significant tasks. In particular:
But, despite the numerous options for the use of financial statements, first of all, it is prepared for controlling structures.
In particular, mandatory reporting to the Federal Tax Service and Rosstat is required. Based on the data obtained, the activities of the economic entity are checked.
The tax authority verifies the compliance of the data with the accounting and tax reporting. Refined financial statements, as the name implies, are statements with amendments or changes.
It practically does not differ from ordinary financial statements. The content and form remain the same.
The only difference is in some corrections in the document and the appendix of an explanation explaining the reason for the corrections.
It is allowed not to correct the reporting, but to submit a new one. It is compiled in the usual manner, but a note is made that the reporting is clarified and an explanatory note is attached.
Is there an obligation to submit revised financial statements? No legislative document or normative act does not include submission to tax service revised financial statements.
But you need to pay attention to PBU 7/98, which was supplemented by paragraph 12.
This paragraph defines the conditions for informing users about changes in reporting. The tax office can also be counted among the users.
According to the specified provision, if in the period from the date of signing the financial statements to the date of its approval, there were events that could significantly affect the results of the company's activities and its financial position, then it is necessary to notify the direct users to whom the financial statements were provided about these facts.
One of the facts that is recognized as distorting the reporting is the presence of a significant error in the content of accounting. But it does not disclose the definition of "materiality".
That is, the reporter must decide on the significance of the error directly. To do this, the degree of influence of the error on the final indicators is determined.
At the same time, it is necessary to proceed from the fact that not disclosing a certain indicator can lead to incorrect decisions.
Thus, the purpose of filing revised financial statements is to avoid misinterpretation of the statements by users.
If the error is not significant, then there is no need to refine the reporting.
According to section 2 of PBU 22/2010, if errors are found in the financial statements, the following correction options are possible:
| Does it give up if the error is discovered before the end of the reporting period? | According to paragraph 5 of PBU 22/2010, the inaccuracy should be corrected by an entry in the relevant accounting accounts in the month of the reporting year in which the inaccuracy was exposed |
| How to file when an oversight is discovered during the preparation of reports to the tax office? | Clause 6 PBU 22/2010 establishes the need for amendments in accounting registers reflecting an entry dated December 31 of the reporting year |
| What to do if a miscalculation is noticed after the submission of accounting reports to tax authority, but before its final approval by the founders? | According to paragraph 7 of PBU 22/2010, it is necessary to replace the reporting with a new one. At the same time, changes in the reporting are reflected in the accounting registers with an entry dated December 31 of the reporting year |
| Are they handed over when the presence of an error is discovered at the time of the founding meeting before approval? | Clause 8 PBU 22/2010 determines the need to create new reporting |
| What to do if a lapse is detected after reporting to the inspection bodies and after the founder's approval? | According to paragraph 10 of PBU 22/2010, such financial statements do not change |
Therefore, it is necessary to submit financial statements with clarifications only before they have been approved by the meeting of founders. After this point, the statement cannot be changed.
In the established forms for accounting reports, there are no fields for adjustment. So you need to draw up a new report, but on paper.
The fact of the error should be recorded in . A cover letter must be submitted along with the corrected statement.
It should explain in detail the reason for the correction and its implications for the perception of reporting.
It is required to submit corrected financial statements both to the tax authorities and to the statistics service. Provided that the reporting has not yet been approved.
Video: accounting and financial statements
It should indicate the presence of an error and ask to correct such and such a line with the correct data. According to experts, this will help avoid sanctions for misrepresenting reporting data.
According to these norms, all organizations using the simplified regime for taxation were exempted from mandatory bookkeeping, and, consequently, from the provision of financial statements.
And since there is no reporting, then there is nothing to clarify. In 2013, the revised .
From that moment on, the obligation to maintain accounting became applicable to any organizations, including those applying the simplified tax system.
Accounting has become the reason for the formation of financial statements as the final stage of the process.
But organizations do not provide annual financial statements only to statistical authorities. In this case, when an error is discovered, it is not required to notify the tax authorities.
As for Rosstat, the organization itself has the right to notify this body of an error and provide updated reporting.
Or you can not submit a “clarification” at all if the statistics authorities have not received a request for explanations for the identified error.
Article 34 of Federal Law No. 14 establishes that the meeting of the founders, at which the annual financial statements must be approved, must be held no earlier than two months after the end of the reporting period, but no later than four months.
That is, the time of the meeting is not earlier than the first of March and not later than the thirtieth of April.
At the same time, it determines the need to submit annual accounting reports to the tax service within ninety days after the end of the reporting year, that is, no later than March 30.
It follows from this that the day of approval of the accounting records may happen later than the date of its signing.
The organization has the right to make amendments to the annual financial statements before its final approval by means of entries in December of the reporting year.
If initially organizations submitted unapproved reports to the tax authority, then up to the date of approval, corrections can be made to the reports.
Commentary to Order of the Ministry of Finance of Russia No. 63n dated June 28, 2010 "On approval of the accounting regulation "Correction of errors in accounting and reporting" (PBU 22/2010)"
Financial statements should provide complete and reliable information about the financial position of the organization, the results of its activities and changes in the financial position. However, sometimes accountants make mistakes.
The procedure for correcting errors is currently regulated by several regulatory documents. The first of them - Instructions on the procedure for compiling and submitting financial statements(hereinafter referred to as the Instructions). In the last paragraph of clause 11 of the Instructions, it is specified in detail in which period the detected error should be corrected: current errors are corrected in the period of their discovery; the procedure for correcting the error of previous years depends on the fact that the statements for this period were approved. If the reporting has not yet been approved, the error is corrected by recording December of the reporting year. Corrections to the already approved reporting for the previous year are not made.
The second document is the Regulations on Accounting and Accounting in the Russian Federation (hereinafter referred to as PVBU).
Paragraph 39 of the ARBU states that changes in the financial statements relating both to the reporting year and to previous periods (after its approval) are made in the statements drawn up for the reporting period when misstatements of its data were discovered.
Pursuant to paragraph 80 of the SAR, the profit or loss identified in reporting year, but related to transactions of previous years, are included in financial results reporting year. Incomes and expenses of previous years discovered in the current year are reflected in other income and expenses on account 91 "Other income and expenses". This is a direct indication of the Instructions for the application of the Chart of Accounts, clause 7 of PBU 9/99 and clause 11 of PBU 10/99.
The profits of previous years, identified in the reporting year, and losses of previous years, recognized in the reporting year, mentioned in paragraph 7 of PBU 9/99 and paragraph 11 of PBU 10/99 as examples of other income and expenses, are not a correction of errors, but a consequence new facts of economic life or the receipt by the organization of new information (for example, changes in estimated values in accordance with RAS 21/2008, recognition of former contingent assets as assets, creation of a reserve for contingent liabilities that were not previously reserved in accordance with RAS 8/01, etc.).
However, neither the Directives nor the RCSP say how, in case of errors, corrections should be made to the accounting and reporting of the current period, which indicators should be corrected. Current regulations legal acts do not regulate the procedure for making corrections to accounting and reporting in connection with the discovery of errors in previous years.
Since in the current normative documents for accounting, this procedure is not prescribed, clause 7 of PBU 1/2008 prescribes, in the absence of special regulatory rules and similar requirements in PBU, to contact international standards financial statements (IFRS). In turn, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides for the retrospective correction of past errors.
Approaching Russian standards accounting to international rules financial statements, in particular to IFRS 8, the Ministry of Finance of Russia, by Order of June 28, 2010 N 63n, developed and approved PBU 22/2010 "Correction of errors in accounting and reporting".
The document was registered with the Ministry of Justice of Russia on July 30, 2010, registration N 18008, and comes into force from the annual financial statements for 2010.
PBU 22/2010 establishes the rules for correcting errors and the procedure for disclosing information about them in accounting and reporting. The changes are more aimed at ensuring the reliability and completeness of reporting.
Order is obligatory for all legal entities, Besides credit organizations and budget institutions.
In paragraph 2 of PBU 22/2010, for the first time, a definition of the concept of "error" is given - this is an incorrect reflection (non-reflection) of facts economic activity in accounting and reporting.
The following causes of errors were named: incorrect application of legislation or accounting policies of the organization, errors in calculations, incorrect classification or assessment of the facts of activity, misuse of information available at the date of signing the financial statements, dishonest actions of officials of the organization.
Inaccuracies or omissions in the reflection of the facts of economic activity, identified as a result of obtaining new information that is not available at the time of reflection (non-reflection) of such facts, are not errors.
All errors are divided into significant and insignificant (clause 3 PBU 22/2010). An error is recognized as significant when, individually or in combination with other errors for one reporting period, it can affect economic decisions made on the basis of financial statements compiled for this reporting period. This means that if several errors are found that slightly affect the balance sheet items, but distort the overall indicator, for example, net profit, the errors in the aggregate will be considered significant.
The generally accepted five percent criterion for the reliability of financial statements items (clause 1 of the Guidelines) is not mentioned in clause 3 of PBU 22/2010. The organization determines the materiality of the error independently, based on both the size and the nature of the relevant item (s) of the financial statements.
Corrections to accounting must be made with mandatory documentation. The main document in such a situation is a certificate drawn up by an accountant and having required details listed in paragraph 2 of Art. 9 of the Federal Law of November 21, 1996 N 129-FZ "On Accounting".
Errors identified by the organization and their consequences are subject to mandatory correction (clause 4 PBU 22/2010).
The procedure for correcting an error depends on the moment at which it is detected..
If an error is detected in the current year, it is corrected by entries in the relevant accounting accounts. Corrective entries must be made in the month in which the error was discovered (clause 5 PBU 22/2010).
If an error is detected at the end of the reporting year, but before the date of signing the financial statements for this year, it is corrected by making corrective entries in the relevant accounting accounts for December of the reporting year for which the annual financial statements are prepared (clause 6 PBU 22/2010).
Example
. In January 2010, distribution costs did not include prepaid rent for office space worth 2 million rubles.
1. The error was discovered in May 2010. It is necessary to make adjustments to the accounting for May. This error should be corrected in the month of its discovery, if the year has not yet ended.
2. An error was discovered in January 2011 when reconciling settlements with a counterparty. 2010 has already ended, but the reporting for it has not yet been submitted. Correctional entries are made on December 31, 2010.
If the error of the previous year is detected after the date of signing the financial statements for this year, its significance should be assessed.
An insignificant error is corrected in the current year by making corrective entries in the relevant accounting accounts. Corrections are made in the month of its discovery (clause 14 PBU 22/2010). Profit or loss resulting from the correction of this error is included in other income or expenses of the current reporting period.
A significant error of the previous reporting year, identified after the signing of the financial statements, but before the date of submission of these statements to its owners, is corrected by making corrective entries in the relevant accounting accounts in December of the previous year (clauses 6 and 7 PBU 22/2010). In this case, owners are understood to be shareholders of a joint-stock company, participants in a limited liability company, a state authority, a local self-government body or another body authorized to exercise the rights of the owner.
In addition to paragraph 7 of the PBU under consideration, the following rule is introduced: if prior to submission to the owners of the organization, the financial statements were submitted to other external users, they must be replaced with corrected statements and are called "revised financial statements".
Re-submission of annual accounts is quite common in practice. Tax authorities and statistics authorities annual reporting for the last year is submitted at the end of March. By this time, it has most often not yet been approved, especially in joint-stock companies, and not audited. After the issuance of an audit opinion, organizations are often forced to change their financial statements.
The revised financial statements must have a different date of signing by its responsible persons.
In fact, the auditor auditor's report under the revised financial statements should draw the attention of its users to this fact.
Example. Joint stock company, in accordance with paragraphs. 5 p. 1 art. 23 tax code RF, submitted financial statements to the tax authority on March 30.
AT federal law dated December 26, 1995 N 208-FZ "On Joint Stock Companies" provides that the annual general meeting shareholders is carried out within the time limits established by the charter of the company, but not earlier than two months and not later than six months after the end of fiscal year. Thus, the annual general meeting of shareholders can be held from March 1 to June 30 of the year following the reporting year. The general annual meeting of shareholders of the company is scheduled for May 25.
held in April auditing prepared financial statements and identified significant errors corrected by making additional entries in December of the reporting year.
Based on the results of the corrections, the financial statements were revised and re-signed. Corrected statements must be resubmitted to the tax authority.
The Ministry of Finance of Russia calls the period for correcting a significant last year's error, identified before the date of approval of the reporting for this period, December. In practice, corrections are made by entries dated 31 December of the previous year.
Paragraph 8 of PBU 22/2010 describes the algorithm of behavior for a situation where statements with material errors, but not yet approved, were presented to owners. In this case, corrections are made by entries for December of the year for which the annual financial statements are being prepared for approval, i.e. it is reviewed and resubmitted to the owners for approval.
The revised financial statements disclose information on the replacement of the originally presented financial statements, as well as on the grounds for their preparation. The revised reporting (including accounting) is submitted to all addresses, to all users to whom the original was submitted.
After the statement is approved, significant errors identified in it are corrected by entries in the relevant accounting accounts in the current reporting period (clause 9 PBU 22/2010).
At the same time, the approved financial statements for previous reporting periods are not subject to revision, replacement and re-submission to its users.(clause 10 PBU 22/2010). This provision is consistent with the requirements of paragraph 39 of the PVBU.
When correcting errors in the reporting period, correspondence with the account of retained earnings (uncovered loss) is applied. Why, when correcting a mistake of the previous year in current reporting, account 84 "Retained earnings ( uncovered loss) "? The results of most facts of economic life are reflected in the profit of the current period and then transferred to this account and accumulated there. Therefore, correcting an error means a corresponding adjustment of the data on account 84.
The exception is errors in the reflection of transactions that did not affect the profit of the current period at one time. An example is the misclassification of deferred expenses instead of intangible assets, etc. In addition, an error may not ultimately affect retained earnings (for example, an incorrect determination in the past of the composition of the cost of inventories that were subsequently fully sold, etc.). Its correction does not require entries under account 84, since. it does not affect the balance of this account.
Adjustment of account 84 data due to retrospective correction of errors (as well as retrospective application of accounting policies) is not a use of the amounts reflected in this account, but is only the assignment of a different, more correct estimate for this indicator. Therefore, no rights of shareholders are violated in this case.
So, when making accounting adjustments related to the discovery of errors in previous years, account 84 should be used, unless the error did not affect the financial results of previous periods.
Example
. In 2010, after the approval of the reporting for the previous period, the organization revealed an error made in 2009. The error was recognized as significant and was associated with an overstatement of the write-off of the cost of goods to expenses. The error amounted to 2 million rubles.
The erroneous entry made last year was as follows:
Dt 90 "Sales" (subaccount "Cost of sales") Kt 41 "Goods" - 2,000,000 rubles. - written off the accounting cost of goods sold.
Corrective entry in 2010, according to PBU 22/2010, should be as follows:
Dt 41 Kt 84 - 2,000,000 rubles. - Fixed a bug with writing off the book value of last year's goods.
The next step - in the reporting submitted to the user for the reporting period, comparative indicators are recalculated (clause 9 of PBU 22/2010). An exception can only be cases where it is impossible to establish a connection between this error and a specific period or to determine its impact on a cumulative total in relation to all previous reporting periods.
The need to correct data for the previous period, if they are incomparable with the data for the reporting period, is stated in paragraph 35 of the PVBU. In addition, each significant adjustment must be disclosed in an explanatory note, along with an indication of its reasons. A similar rule is indicated in paragraph 10 of PBU 4/99: each significant adjustment must be disclosed in the notes to the balance sheet and income statement, along with an indication of the reasons that caused it.
An important rule: you need to recalculate the comparative indicators of the financial statements of all periods for which data are given in the current report, until the moment when this error was made (clause 9 PBU 22/2010). This means that accounting and reporting data must be corrected as if the error had never been made (retrospective restatement).
If the error was made before the beginning of the year, the data for which are presented as a comparison in the current financial statements, the opening balance for the corresponding items of assets, liabilities and capital at the beginning of the earliest of the presented reporting periods is corrected (clause 11 PBU 22/2010).
Example
. The statement of changes in equity shows relevant data for the last two years. In the current year, a mistake made three years ago, i.е. in an earlier period than the earliest comparable data provided in the current financial statements.
In this case, the capital figures are adjusted at the beginning of the second, earliest year, the data for which are presented in the current report.
It happens that an organization in practice cannot assess the impact of an error on one or more previous reporting periods presented in the financial statements. In this case, the opening balances are adjusted for the earliest possible period for which comparable information is provided (clause 12 PBU 22/2010).
In the explanatory note to the annual financial statements, the organization is obliged to disclose information about significant errors of previous years corrected in the reporting year (clause 15 PBU 22/2010).
Explanations should include:
- the nature of the error;
- the amount of the adjustment for each item of the financial statements (for each previous reporting period) to the extent that it is practically feasible;
- the amount of the adjustment for basic and diluted earnings (loss) per share (if the entity is required to disclose earnings per share);
- the amount of adjustment of the opening balance of the earliest of the reported reporting periods.
Note! From 2011 will apply reporting forms, approved Order of the Ministry of Finance of Russia dated July 2, 2010 N 66n "On the forms of financial statements of organizations".
In the statement of changes in equity, there is now a section. 2 "Adjustments due to changes in accounting policies and correction of errors".
Recalculation can be called impossible if complex and (or) numerous calculations are required for its implementation, when it is impossible to isolate information that indicates the circumstances that existed on the date of the error, or it is necessary to use information obtained after the date of approval of the financial statements for the corresponding previous reporting period ( 13 PBU 22/2010). If the recalculation of financial statements for previous periods is not possible, it is necessary to indicate the reason for this, as well as describe the method for correcting the error and indicate the period from which the corrections were made (clause 16 PBU 22/2010).
