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?
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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 information accounting 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, this is reporting 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. Users can also include tax office.
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 revealed |
| 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.
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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 to provide 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 records 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.
If, as a result of the non-application of regulatory legal acts on accounting, an organization made an incorrect reflection (non-reflection) of the facts of economic life in accounting and financial statements, then this is an error that must be corrected in the manner established by the Regulations on Accounting ", approved by order of the Ministry of Finance of Russia dated June 28 .10 g. N 63n (clauses 2, 4 PBU 22/2010).
Reporting users are potential investors and counterparties (customers, lessors and creditors) who need to know:
whether to buy securities issued by the organization (whether it will be able to make a profit from which dividends will be distributed, whether it will pay off its bill); whether to entrust it with the execution of orders, whether to lease property, whether to provide loans (whether the organization will be able to fulfill its contractual obligations).
Thus, significant errors are significant distortions of reporting indicators, due to which the user may draw an incorrect conclusion about the organization's ability to make a profit and fulfill obligations on time.
Specific materiality criteria are not established in PBU 22/2010. Therefore, the organization determines the materiality of the error independently, based on both the size and nature of the relevant article (articles) of the financial statements (clause 3 PBU 22/2010). At the same time, it should be borne in mind that an indicator can be considered significant if its non-disclosure affects the economic decisions of users made on the basis of financial statements.
Whether an indicator is significant depends on its assessment, nature, specific circumstances of occurrence.
Thus, in the formation of financial statements, the materiality of the indicator is determined by a combination of qualitative and quantitative factors.
The criterion for the materiality of the error, determined by the organization, must be reflected in the accounting policy for the purposes of accounting.
Example 1The organization mistakenly wrote off the cost of unsold goods in the amount of 100 rubles. The same mistake was made in tax accounting. According to the accounting policy, errors that distort the value of any reporting line by 5% or more are considered significant. The corresponding calculation is presented in the table.
Determination of the materiality level of the error
Reporting line name
The value of the string before the error was detected, rub.
Line value after error correction, rub.
Distortion of the value of the reporting line in percent
1210 "Stocks" 0.2 (50,100 rubles - 50,000 rubles) / 50,100 rubles) x 100%) 2120 "Cost of sales" 0.5 (20,000 RUB - 19,900 RUB) / 19,900 RUB) x 100%) 2200 "Profit (loss) from sales" 1.96 (5,100 RUB - 5,000 RUB) / 5,100 RUB) x 100%) 2300 "Profit (loss) before tax" 9.09 (1,100 RUB - 1,000 RUB) / 1,100 RUB) x 100%) 2410 "Current income tax" 9.09 (220 RUB - 200 RUB) / 220 RUB) x 100%) 2400 "Net profit (loss)" 9.09 (880 RUB - 800 RUB) / 880 RUB) x 100%) Percentage distortion of the value of lines 2300, 2410 and 2400 of the report on financial results amounted to 9.09%, i.e. more than 5%. The error is significant.
Example 2In accordance with accounting policy the error materiality level is calculated as 5% of the average value of five reporting indicators for reporting year in which the error was made. The values of these indicators for 2016 were:
1. Balance:
line 1150 "Fixed assets" - 5 million rubles; on line 1230 "Accounts receivable" - 3 million rubles; line 1370 "Retained earnings (uncovered loss)" - 2 million rubles;
2. Statement of financial results:
line 2110 "Revenue" - 24 million rubles; on line 2400 "Net profit (loss)" - 1 million rubles.
Total: 35 million rubles. (5 million rubles + 3 million rubles + 2 million rubles + 24 million rubles + 1 million rubles).
The materiality level for an error made in the reporting for 2015 is 350 thousand rubles. (35 million rubles / 5×5%).
Errors within 350 thousand rubles. are considered insignificant, and those exceeding 350 thousand rubles are considered significant.
Correction of an error is made out by an accounting statement, in which it is necessary to indicate:
when and what kind of mistake was made; which reporting lines were affected by the error, in what amount and why it was recognized as significant; when the error is discovered; what accounting records Fixed bug; which reporting lines are adjusted, including retrospectively.
if an error was discovered before December 31 of the reporting year - by entries as of the date the error was discovered, i.e. in the month of the reporting year in which the error was detected (clause 5 PBU 22/2010); if it was detected on December 31 of the reporting year or later - by entries as of December 31 of the reporting year (clause 6 of PBU 22/2010).
Consequently, all errors of the current reporting period, identified before the date of signing by the head of the organization of the annual financial statements for this year, are taken into account when compiling the current reporting of this year.
There are several ways to correct accounting data.
Corrections can be made by write-back, redemption or by accruing any amounts that were not previously taken into account.
To fix the error, you should:
Example 3In December 2016, the following significant error was identified: for the period from January to November 2016, depreciation in the amount of 100,000 rubles was not charged on the fixed asset.
In this case, in December 2016, the month the error was discovered, additional depreciation amounts are charged, which is reflected in the accounting entries on the credit of account 02 “Depreciation of fixed assets” in correspondence with the production cost accounts (clause 5 PBU 22/2010, Instructions for using the Chart of Accounts).
Example 4In March 2016, the organization accrued property tax for the first quarter of 2016 in the wrong amount - 60,000 rubles. instead of 40,000 rubles. This error was discovered in February 2017 before signing the financial statements for 2016.
To correct the error, the following entries were made on 12/31/16:
STORNO Debit 26 - Credit 68 - 60,000 rubles. - the entire amount of incorrectly assessed property tax for the 1st quarter of 2016 was reversed. Debit 26 - Credit 68 - 40,000 rubles. - property tax was assessed for the first quarter of 2016.
The error of the previous reporting year was detected after the date of signing the financial statements for this year, but before the date of submission of the statements to its users
According to paragraph 7 of PBU 22/2010, a significant error of the previous reporting year, identified after the date of signing the financial statements for this year, but before the date of submission of such statements to shareholders joint stock company, participants of 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 by entries in the relevant accounting accounts for December of the reporting year (the year for which the annual financial statements are prepared) .
If the specified financial statements were presented to any other users, then they must be replaced with statements in which the identified material error has been corrected (revised financial statements).
The fact that users are presented with a corrected copy can be reflected in title page, for which the column "Adjustment number" is provided. For example, if the reporting is corrected for the first time, then “1” is indicated in this column.
Example 5The error of the previous reporting year was revealed after the reporting was submitted to its users, but before the date of its approval by the ownersThe bonuses to the workers of the production shop in 2016 were accrued in the correct amount, but an incorrect entry was made - Debit 26 "General expenses", Credit 70 "Settlements with personnel for wages", although it should have been written: Debit 20 "Main production" , Credit 70. As a result, the amount of premiums is incorrectly reflected in the statement of financial results for 2016 (instead of line 2120 "Cost of sales" is indicated in line 2220 "Administrative expenses").
The error was discovered in March 2017 after reporting was submitted to the organization's members for approval. To correct the error, the following entries were made on 12/31/16:
REVERSE Debit 26 - Credit 70 - an incorrect entry for the accrual of premiums was reversed; Debit 20 - Credit 70 - the correct entry was made for the accrual of premiums.
In the corrected version of the statement of financial results, signed by the head and submitted to the organization's participants, the amounts of bonuses are reflected in line 2120 "Cost of sales".
In accordance with paragraph 8 of PBU 22/2010, a significant error of the previous reporting year, identified 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 legislation Russian Federation order (eg. general meeting shareholders) is also corrected by entries in the relevant accounting accounts for December of the reporting year (the year for which the annual financial statements are prepared). At the same time, the revised financial statements disclose information that these financial statements replace the originally presented financial statements, as well as the grounds for compiling the revised financial statements.
The revised financial statements are sent to all addresses to which the original financial statements were submitted.
Error of the previous reporting year, revealed after the approval of the financial statements for this year
Based on paragraph 9 of PBU 22/2010, 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, while the corresponding account in the entries is account 84 “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).
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.
According to paragraph 10 of PBU 22/2010, in the event that a material error of the previous reporting year, identified after the approval of the financial statements, is corrected, the approved financial statements for previous reporting periods are not subject to revision, replacement and re-submission to users of the financial statements.
As established in paragraph 11 of PBU 22/2010, if a material 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 corresponding items of assets, liabilities and capital at the beginning of the earliest of reporting periods (usually three years).
If it is impossible to determine the impact of a material error on one or more previous reporting periods presented in the financial statements, the organization must adjust the opening balance for the relevant items of assets, liabilities and equity at the beginning of the earliest of the periods for which recalculation is possible (paragraph 12 of PBU 22 /2010).
Note that it is impossible to determine the impact of a material error on the previous reporting period if complex and (or) numerous calculations are required, during which it is impossible to isolate information that indicates circumstances that existed at the date of the error, or it is necessary to use information obtained after the date of approval of the accounting reporting for such a previous reporting period (clause 13 PBU 22/2010).
Example 6In January 2017, after the reformation of the balance sheet, signing and submission of financial statements to users, an error was discovered that was made in September 2016. The financial statements have not yet been approved by the owners of the organization. As a result of the error, the amount of office rental expenses was underestimated. The price of an error is 500,000 rubles. In addition, VAT was not reflected on the rent in the amount of 90,000 rubles.
This error is considered significant.
Debit 26 "General expenses", Credit 60 "Settlements with suppliers and contractors" - 500,000 rubles. — the amount of rent for September 2016 was additionally accrued; Debit 19 "Value added tax on acquired values", Credit 60 - 90,000 rubles. - reflected "input" VAT on rent for September 2016; Debit 68 “Settlements with the budget for taxes and fees”, subaccount “Calculations for VAT”, Credit 19 - 90,000 rubles. — accepted for VAT deduction from the budget on rent for September 2016; Debit 90 "Sales", subaccount "Cost of sales", Credit 26 - 500,000 rubles. — the amount of previously unaccounted rent for September 2016 was written off; Debit 90, subaccount "Profit / loss on sales", Credit 90, subaccount "Cost of sales" - 500,000 rubles. - the subaccount "Cost of sales" of account 90 is closed; Debit 99 "Profit and Loss", Credit 90, sub-account "Profit / loss from sales" - 500,000 rubles. — the sub-account “Profit/loss from sales” was closed; Debit 84 "Retained earnings (uncovered loss)", Credit 99 - 500,000 rubles. - Adjusted the amount of net profit.
In the Statement of Financial Results for 2016, the value in line 2120 "Cost of sales" must be increased by 500,000 rubles. and change other indicators of this report, for example, in lines 2100 " Gross profit(loss)”, 2220 “Profit (loss) from sales”, etc.
Example 7Let's use the conditions of the previous example. At the same time, let's assume that the error was detected in June 2017 after the signing, submission and approval of the reporting.
In this case, in June 2017, the error will need to be corrected as follows:
Debit 84, Credit 60 - 500,000 rubles. — the amount of rent for September 2016 was additionally accrued; Debit 19, Credit 60 - 90,000 rubles. — “input” VAT on rent for September 2016 is reflected; Debit 68, subaccount "VAT settlements", Credit 19 - 90,000 rubles. — accepted for VAT deduction from the budget on rent for September 2016;
In this situation, the statements for 2016 are not adjusted.
The indicator of net profit for 2017 (retrospective recalculation) will be recalculated (changed) in line 1370 “Retained earnings (uncovered loss)” of the balance sheet for 2017 and in line 2400 “Net profit (loss)” of the Statement of financial results for 2017 G.
So that the coefficients financial analysis reflect the state of the company, it may be necessary to adjust the accounting data. 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 financial reporting standards.
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 on 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 reporting 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 ensure the operation of the company, but are not directly involved in the production process. This requirement set out in IAS 38 (IAS) “ Intangible assets”, which does not introduce any legal or 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 transaction (financial leasing) - 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 often happens 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 equals 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 the 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 net income adjustments 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 made 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
Accounting statements of the 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 capital and reserves (equity) |
|||
|
Balance (passive) |
|||
|
For 2014 |
|||
|
Net profit |
|||
|
Financial ratios: |
|||
|
Total liquidity ratio: Current assets / Current liabilities |
|||
|
Return on assets: Net income / 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.
The disclosure of notes to the balance sheet showed that current assets include 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 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 profit |
|||
|
Financial ratios: |
|||
|
Total liquidity ratio Current assets / Current liabilities |
|||
|
Coefficient financial independence: Capital 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 leases can be settled 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
Many 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 the services becomes understated and the costs of the company receiving these services are overstated (or vice versa, depending on the goals, including tax administration). It makes sense to make a financial analysis of 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.
5. An error in the reporting year, detected before the end of this year, is corrected by entries in the relevant accounting accounts 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 procedure established by the legislation of the Russian Federation, is corrected in the manner established 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 offsetting account in the records is the accounting account 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).
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. The impact of a material error on the previous reporting period cannot be determined 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 prior 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.
