The credit of account 08 is reflected. Contract OS construction
Account 08 "Investments in non-current assets" is intended to summarize information on the organization’s expenses in objects, which will subsequently be taken into account as fixed assets, land and nature management objects, intangible assets, as well as on the organization’s costs for the formation of the main herd of productive and livestock (except for poultry, fur animals, rabbits, bee families, service dogs, experimental animals, which are included in the turnover).
Subaccounts may be opened to account 08 "Investments in non-current assets":
08-01 "Acquisition of land";
08-02 "Acquisition of natural resources";
08-03 "Construction of fixed assets";
08-04 "Acquisition of fixed assets";
08-05 "Acquisition of intangible assets";
08-06 "Transfer of young animals to the main herd";
08-07 "The acquisition of adult animals";
08-08 "Gratuitous receipt of objects";
08-09 "Operated facilities that have not passed state registration";
08-10 "Implementation of research, development and technological
08-80 "Other".
On subaccount 08-01 "Acquisition of land" takes into account the costs of the acquisition of land by the organization.
On subaccount 08-02 "Acquisition of natural resources" takes into account the costs of the organization's acquisition of natural resources.
On subaccount 08-03 "Construction of fixed assets" takes into account the costs of the construction of buildings and structures, installation of equipment, the cost of equipment transferred to the installation and other expenses provided for in the estimates, cost estimates and title lists for capital construction (regardless of whether it is construction by contract or by economic means).
On subaccount 08-03 "Construction of fixed assets" reflects the cost of the erection of title buildings, structures, fixtures and devices. The costs of the construction of temporary non-title structures, as well as the costs of work in progress for other (repair) work are recorded on account 23 "Auxiliary production". Temporary title and non-title constructions by developer organizations are accepted for accounting as fixed assets (as measured at historical cost) to the corresponding sub-accounts of account 1
"Fixed assets" or as inventory and household supplies to the corresponding sub-accounts of account 10 "Materials". Depreciation on temporary title and non-title structures accepted for accounting on account 01 "Fixed assets" is carried out in the prescribed manner.
On subaccount 08-04 "Acquisition of fixed assets" costs are taken into account for the acquisition of equipment, machinery, tools, equipment and other fixed assets that do not require installation.
On sub-account 08-05 “Acquisition of intangible assets” the costs of acquiring intangible assets are taken into account.
On subaccount 08-06 "Transfer of young animals to the main herd", the costs of raising productive and working livestock in the organization of young animals transferred to the main herd are taken into account.
On the sub-account 08-07 "Acquisition of adult animals" the cost of adult and livestock purchased for the main herd or received free of charge, including the cost of its delivery, is taken into account.
On subaccount 08-08 "Gratuitous receipt of objects" the market value of gratuitously received non-current assets is taken into account in correspondence with the credit of account 98 "Deferred income" (subaccount 02 "Gratuitous receipts"), as well as the actual costs of the organization for the delivery of gratuitously received objects and bringing them usable condition.
Subaccount 08-09 "Operated objects that have not passed state registration" takes into account capital construction objects that are in temporary operation until they are put into permanent operation, as well as exploited fixed assets, rights to which
subject to state registration in accordance with the legislation of the Russian Federation.
On the sub-account 08-10 "Implementation of research, development and technological work" takes into account the costs associated with the implementation of research, development and technological work.
Expenses for research, development and technological work, the results of which are to be used in the production of goods (performance of work, rendering of services) or for the administrative needs of the organization, are debited from the credit of account 08 "Investments in non-current assets" in the debit of account 04 "Intangible assets".
Expenses for research, development and technological work, the results of which are not to be used in the production of products (performance of work, rendering of services), or for managerial needs, or for which positive results are not obtained, are deducted from the credit of account 08 "Investments in non-current assets "in the debit of account 91" Other income and expenses ".
On sub-account 08-80 "Other" other investments in non-current assets are taken into account.
The debit of account 08 "Investments in non-current assets" reflects the actual costs included in the initial cost of fixed assets, intangible assets and other related assets.
Depreciation of fixed assets and intangible assets used in making capital investments is reflected in the debit of account 08 “Investments in non-current assets” and the credit of accounts 02 “Depreciation of fixed assets”, 04 “Intangible assets”, 05 “Depreciation of intangible assets”.
Equipment for installation, commissioned for installation, is reflected in the debit of subaccount 08-03 "Construction of fixed assets" and the credit of account 07 "Equipment for installation".
Material costs when making capital investments are debited to account 08 "Investments in non-current assets" from the credit of account 10 "Materials".
Young animals of all kinds of productive and working livestock, transferred to the main herd, are debited during the year from account 11 "Animals on growing and fattening" to the debit of account 08-06 "Transfer of young animals to the main herd" at the cost at the beginning of the reporting year, with the addition of the planned cost of gain or growth for the period from the beginning of the reporting year until the transfer of animals to the main herd.
Acquired adult animals are accounted for by debit of account 08 “Investments in non-current assets” at the actual cost of their acquisition, including delivery costs. Adult animals received free of charge are accepted for accounting at market value, to which the actual costs of their delivery to the organization are added.
The costs of completed operations of the formation of the main herd are debited from account 08 "Investments in non-current assets" in the debit of account 01 "Fixed assets".
Deviations in the cost of equipment, materials used for making capital investments, young cattle transferred to the main herd transferred to the installation are reflected in the accounting records for the debit of the corresponding sub-accounts of account 08 "Investments in non-current assets" and the credit of account 16 "Deviations in the cost of material values. " Positive deviations are written off by an additional record, negative deviations are written off.
In cases where the legislation of the Russian Federation provides for the inclusion of the amount (part of the amount) of the value added tax paid by the seller in the value of the object, the debit of account 08 “Investments in non-current assets” and the credit of account 19 “Value added tax on acquired values” are recorded.
The write-offs of auxiliary production services rendered by them in the course of making capital investments are reflected in the debit of account 08 “Investments in non-current assets” and the credit of account 23 “Auxiliary production” in the share attributable to this object.
Part of general business expenses directly related to the implementation of capital investments is reflected in the debit of account 08 "Investments in non-current assets" and the credit of account 26 "General business expenses" in the share attributable to this object.
The accounts of suppliers and contractors when making capital investments are accepted on the debit of account 08 "Investments in non-current assets" and the credit of subaccount 60-01 "Settlements with suppliers and contractors on accepted and other settlement documents".
When obtaining loans and loans for capital investments before putting the objects into operation, interest on borrowed funds is accrued on the debit of account 08 "Investments in non-current assets" and credit of accounts 66 "Settlements on short-term loans and borrowings", 67 "Calculations on long-term loans and borrowings "
The value added tax on capital investments carried out in an economic way that is not deductible when the facility is commissioned is reflected in the debit of account 08 “Investments in non-current assets” and the credit of account 19 “Value added tax on acquired values”.
Calculation of payment to employees engaged in work related to capital investments and related deductions for social insurance and security is made on the debit of account 08 "Investments in non-current assets" in correspondence with accounts 69 "Settlements for social insurance and security" and 70 "Settlements with payroll staff. "
Costs of capital investments made by an accountable person are reflected in the debit of account 08 "Investments in non-current assets" and the credit of account 71 "Settlements with accountable persons".
The value of non-current assets received from the founder as a contribution to the charter capital is taken into account as a part of capital investments in correspondence with account 75 "Settlements with founders", subaccount 01 "Settlements for contributions to the authorized (joint-stock) capital".
Unsatisfied claims for amounts related to capital investments are written off on the debit of account 08 “Investments in non-current assets” and the credit of account 76 “Settlements with various debtors and creditors”, subaccount 02 “Settlements on claims”.
Additional costs for the acquisition, construction or manufacture of fixed assets (including total differences) incurred after the adoption of the fixed assets for accounting (transfer costs from the credit of account 08 "Investments in non-current assets" to the debit of account 01 "Fixed assets") initial the cost of fixed assets is not increased, but referred to account 91 "Other income and expenses".
Objects of non-current assets not put into operation, when transferred to units allocated to a separate balance sheet, are reflected in the receiving unit on the debit of account 08 "Investments in non-current assets" and the credit of account 79 "Intra-company settlements".
When carrying out activities under a simple partnership agreement, the objects of capital investments made by the partners are credited to the separate balance sheet of the partnership on the debit of account 08 “Investments in non-current assets” and on the credit of account 80 “Deposits of partners”.
Upon receipt of targeted financing in the form of non-current assets, account 08 "Investments in non-current assets" is debited in correspondence with account 86 "Target financing".
When putting non-current assets into operation, earmarked financing is recognized as deferred income with subsequent allocation over the useful life of non-current assets in the amount of depreciation charged to the organization’s financial results as non-operating income.
Capitalization of previously unaccounted capital investment objects identified during the inventory process is made using the debit of account 08 “Investments in non-current assets” and the credit of subaccount 91-01 “Other income”. The allocation to the capital construction costs of the amounts of missing and damaged values \u200b\u200bwithin the limits is reflected in the debit of account 08 “Investments in non-current assets” and the credit of account 94 “Losses and losses from damage to values”.
The reservation of certain amounts against future payments related to capital investments is carried out on the debit of account 08 "Investments in non-current assets" in correspondence with account 96 "Reserves for future expenses and payments".
The write-off for capital investments of a part of deferred expenses is reflected in the debit of account 08 "Investments in non-current assets" and the credit of account 97 "Deferred expenses".
Gratuitous receipt of non-current assets in accounting is recorded at the debit of subaccount 08-08 "Gratuitous receipt of objects" in correspondence with account 98 "Deferred income", subaccount 02 "Gratuitous receipts".
The formed initial cost of fixed assets, intangible assets accepted for operation and executed in accordance with the established procedure is debited from account 08 "Investments in non-current assets" in the debit of accounts: 01 "Fixed assets", 03 "Profitable investments in tangible assets", 04 " Intangible assets ", etc.
When transferring young animals to the main herd, sub-account 01-08 "Working cattle" or sub-account 01-09 "Productive and pedigree cattle" is debited and sub-account 08-06 "Transfer of young animals to the main herd" is credited. At the end of the reporting year, after the preparation of the reporting calculation, the difference between the indicated value of the young livestock transferred during the reporting year and its actual cost is deducted additionally or reversed from account 11 "Animals for growing and fattening" to sub-account 08-06 "Transfer of young animals to the main herd" while updating the livestock score on sub-accounts of account 01 "Fixed assets".
Claims to suppliers or contractors for capital investments are recorded on the credit of account 08 “Investments in non-current assets” in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount 02 “Settlements for claims”.
When transferring objects of incomplete capital investments to partners upon termination
W.W.W ... I.n.e.t.L.i.b: Ru. -
a simple partnership agreement, on the separate balance sheet of the partnership, an entry is made on the credit of account 08 “Investments in non-current assets” in correspondence with the debit of account 80 “Deposits of partners”.
Incomplete capital investments upon their disposal (sale, write-off, etc.) are debited from account 08 "Investments in non-current assets" in the debit of subaccount 91-02 "Other expenses".
The identified shortage of objects of incomplete capital investments as a result of the inventory is recorded on the credit of account 08 "Investments in non-current assets" in correspondence with account 94 "Shortages and losses from damage to property". Further distribution of the amount of shortages and losses is given in the comments to account 94 "Shortages and losses from damage to values".
Losses on capital investments resulting from natural disasters and other emergencies are reflected in the credit of account 08 "Investments in non-current assets" and debit of account 99 "Profits and losses", subaccount 03 "Losses, incomes and expenses in connection with emergency situations activities. "
The balance of account 08 "Investments in non-current assets" reflects the amount of the organization’s investments in construction in progress, unfinished operations for the acquisition of fixed assets, intangible and other non-current assets, as well as the formation of the main herd.
Analytical accounting of account 08 "Investments in non-current assets" is carried out: -
for the costs associated with the construction and acquisition of fixed assets - for each fixed asset under construction or acquired. At the same time, the construction of analytical accounting should provide the opportunity to obtain data on the costs of: construction work and reconstruction; drilling operations; installation of equipment; equipment requiring installation; equipment that does not require installation, as well as tools and equipment stipulated by the estimates for capital construction; design and survey work; other expenses on capital investments; -
for costs associated with the acquisition of intangible assets - for each acquired facility; -
according to the costs associated with the formation of the main herd, by type of animal (cattle, pig, sheep, horse, etc.).
Table 1.7.
Account 08 "Investments in non-current assets" corresponds with accounts On debit On credit 02 "Depreciation of fixed assets" 01 "Fixed assets" 05 "Depreciation of intangible assets" 03 "Profitable investments in tangible assets" 07 "Equipment for installation" 04 "Intangible assets "10" Materials "7 6" Settlements with various debtors and creditors "11" Animals for growing and fattening "7 9" On-farm settlements "16" Deviation in value "8 0" Authorized capital "19" Value added tax on acquired values "91" Other income and expense S "23" Auxiliary production "94" Losses and losses from damage to property "2 6" General expenses "99" Profit and loss "60" Settlements with suppliers and contractors "66" Settlements for short-term loans and borrowings "68" Settlements for taxes and fees "69" Settlements for social insurance and security "7 0" Settlements with personnel for remuneration "71" Settlements with accountable persons "75" Settlements with founders "7 6" Settlements with different debtors and creditors "7 9" Intra-company settlements "8 0" Share capital "86" Target financing "94" Shortages and losses from damage to values \u200b\u200b"96" Reserves for future expenses "97" Expenses for future periods "9 8" Incomes for future periods "Example
Account 08 Investments in non-current assets. Characteristics, sub-accounts, correspondence.
Account 08 "Investments in non-current assets" is intended to summarize information about the organization’s costs in objects, which will subsequently be taken into account as fixed assets, land and nature management objects, intangible assets, as well as the organization’s costs for the formation of the main herd of productive and working livestock (except for poultry, fur-bearing animals, rabbits, bee families, service dogs, experimental animals, which are accounted for in the turnover).
Subaccounts may be opened to account 08 "Investments in non-current assets":
- 08.1 "Acquisition of land" - the costs of the acquisition of land by the organization are taken into account.
- 08.2 "Acquisition of natural resources" - take into account the costs of the organization's acquisition of natural resources.
- 08.3 "Construction of fixed assets" - the costs of the construction of buildings and structures, equipment installation, the cost of equipment transferred to the installation and other expenses provided for in the estimates, cost estimates and title lists for capital construction are taken into account (regardless of whether this construction is carried out on a contractual or economic basis).
- 08.4 "Acquisition of fixed assets" - the costs of the acquisition of equipment, machinery, tools, equipment and other fixed assets that do not require installation are taken into account.
- 08.5 "Acquisition of intangible assets" - the costs of acquiring intangible assets are taken into account. On the debit of account 08 “Investments in non-current assets”, the actual costs of the developer are included in the initial cost of fixed assets, intangible assets and other related assets. The formed initial cost of fixed assets, intangible assets, etc., accepted for operation and executed in accordance with the established procedure, is debited from account 08 "Investments in non-current assets" in the debit of accounts "Fixed assets", "Profitable investments in tangible assets", "Intangible assets "and others.
- 08.6 "Transfer of young animals to the main herd" - take into account the costs of growing in the organization of young stocks of productive and working cattle, transferred to the main herd.
- 08.7 "Acquisition of adult animals" - The cost of adult and working cattle purchased for the main herd or received free of charge, including the cost of its delivery, is taken into account.
Young animals transferred to the main herd are valued at actual cost. Young animals of all types of productive and working livestock, transferred to the main herd, are debited during the year from the "Animals in raising and fattening" account to the debit of account 08 "Investments in non-current assets" at the cost at the beginning of the reporting year, with the addition of the planned cost of gain or growth for the period from the beginning of the reporting year to the moment of transfer of animals to the main herd. When young stocks are transferred to the main herd, the account "Fixed assets" is debited and account 08 "Investments in non-current assets" is credited. At the end of the reporting year, after the preparation of the reporting calculation, the difference between the indicated value of the young livestock transferred during the reporting year and its actual cost is deducted additionally or canceled from the account “Animals for growing and fattening” to account 08 “Investments in non-current assets” while updating the estimate of livestock on the account "Fixed assets".
Acquired adult animals are accounted for by debit of account 08 “Investments in non-current assets” at the actual cost of their acquisition, including delivery costs. Adult animals received free of charge are accepted for accounting at market value, to which the actual costs of their delivery to the organization are added.
The costs of completed operations of the formation of the main herd are debited from account 08 "Investments in non-current assets" in the debit of the account "Fixed assets". - 08.8 "Implementation of research, development and technological work" - the costs associated with the implementation of research, development and technological work are taken into account.
Expenses for research, development and technological work, the results of which are to be used in the production of goods (performance of work, rendering of services) or for the administrative needs of the organization, are debited from the credit of account 08 "Investments in non-current assets" in the debit of the account "Intangible assets "
Expenses for research, development and technological work, the results of which are not subject to application in the production of goods (performance of work, rendering of services), or for managerial needs, or for which positive results are not obtained, are deducted from the credit of account 08 "Investments in non-current assets "in the debit of the account" other income and expenses ".
The balance of account 08 "Investments in non-current assets" reflects the amount of the organization’s investments in construction in progress, unfinished operations for the acquisition of fixed assets, intangible and other non-current assets, as well as the formation of the main herd.
When selling, transferring free of charge and other investments recorded on account 08 "Investments in non-current assets", their value is debited to the account "Other income and expenses".
Analytical accounting account 08 "Investments in non-current assets" is conducted:
- for the costs associated with the construction and acquisition of fixed assets - for each fixed asset under construction or acquired. At the same time, the construction of analytical accounting should provide the opportunity to obtain data on the costs of: construction work and reconstruction; drilling operations; installation of equipment; equipment requiring installation; equipment that does not require installation, as well as tools and equipment stipulated by the estimates for capital construction; design and survey work; other expenses on capital investments;
- for costs associated with the acquisition of intangible assets - for each acquired facility;
- at the costs associated with the formation of the main herd, - by type of animal (cattle, pig, sheep, horse, etc.);
- expenses related to the implementation of research, development and technological work - by type of work, contracts (orders).
Account 08 "Investments in non-current assets" corresponds with the following accounts of the Plan:
debit
- "Depreciation of fixed assets"
- "Depreciation of intangible assets"
- "Equipment for installation"
- "Materials"
- "Animals for growing and fattening"
- "Deviation in the value of material assets"
- "Value added tax on acquired values"
- "Auxiliary production"
- "General running costs"
- "Settlements with suppliers and contractors"
- "Calculations on short-term loans and borrowings"
- "Settlements for long-term loans and borrowings"
- "Calculations on taxes and fees"
The purpose of the 08 account is to generalization of indicators property funds, financial costs used for property with unformed value, as well as not ready for operation. This also includes the transfer of domestic cattle to the rest of their representatives, which are part of the main herd.
Definition and characterization
On account 08, investments are recorded relative to non-current resources of long periods. Its purpose is to enter the final information on the costs of the enterprise on property, land area, natural objects, property of an intangible nature, the formation of domestic animals in a herd, excluding birds, rabbits, bees, dogs included in working capital.
Non-current property costs are incurred at reasons: main, new construction, restoration work, development and equipping the existing assets in the company with appropriate equipment. These measures, excluding the construction of new facilities, make it possible to change the goals for which they are being carried out.
Costs may be related to:
- acquired buildings, equipment, vehicles, agricultural technical equipment;
- purchased land, natural resources;
- purchase or production of intangible property;
- acquisition of domestic animals for exploitation or breeding, which are part of the main herd;
- the direction of the grown young cattle in the herd;
- planting, care of vegetation of a perennial type.
Accounting for investments relating to property not participating in the turnover serves to:
- timely, complete, accurate display of various types of property carried out for construction work;
- measures to control the construction process, the introduction of capital goods, fixed assets;
- correct calculation, as well as the display of price indicators for introduction into use, acquired assets of property reserves, land, natural resources, intangible property.
Types of postings and features of correspondence
According to the plan of correspondent accounts of the balance sheet a series of the following sub-accounts:
- 08.01 - general data on deposits in land;
- 08.02 - accounting of used natural resources;
- 08.03 - re-formed property funds;
- 08.04 - about fixed assets acquired by the company;
- 08.05 - purchase of intangible assets from third-party companies;
- 08.06 - direction of young cattle to the composition of the main herd;
- 08.07 - registration of adult animals included in the main herd;
- 08.08 - on the results of the work of the scientific field.
When an organization acquires property, it must in fact reflect its price, taking account of the account in debit line 08 and 60 in the credit field. We must not forget about the value added tax reflected in posting debit 19 credit 60.
Registration of the refund of this tax is made by recording: in debit write operations on, in credit - on. Debit 08 together with 23 accounts indicate the cost of additional workshops for the independent creation of an asset.
The costs associated with materials, together with wages, are fixed by posting: the debit will again be 08 account, and credit -, or.
Gratuitous acquisition of property dt 08, ct 76 and 98.02 (on accounting for the results of the inventory). The tariff is set in accordance with the average cost in the market. The contribution of assets to the authorized capital in the balance sheet is reflected by the transaction, where the accounts are indicated: in debit 08 and credit 75.
With the necessary installation or adjustment of the equipment received, the costs associated with them are fixed by the mark in which the accounts are marked: in the debit line - 08, and in the credit line - 07.
Livestock transactions are generated in following order:
- if it is necessary to take into account the price index of the grown cattle transferred to the rest of the herd, then 08.06, denoting the transfer of young stock, is recorded in the debit area, and 11 on credit (for animals that are raised and fed);
- the price increase of all animals in the main herd is reflected by write-off according to the record, where 07 is entered in the debit line, where credit is noted on 08.06.
The accounting for fixed assets introduced into use must be indicated by the transaction, in which accounts 01, 03, 04 are recorded in the debit line, 08 in the credit.
This record allows you to avoid claims from tax authorities related to the reduction of the tax on property accepted for use.
Asset or liability
Investments in long-term non-current funds when reflected in the balance sheet are considered active operationstaking into account the general indicator of the financial costs of the company associated with fixed assets.
Its task is to register movements, changes in property objects in accordance with their types. It denotes the data on the financial capital held by the enterprise. The analytical system of accounting records related to account 08 is maintained at costs of finished property under construction.
Formed analytical accounting allows you to get information on the costs of the restoration, formation of fixed assets. These expenses may relate to:
- drilling, installation, tools, equipment, which are taken into account in the estimated calculation of the main construction;
- acquisition of intangible property;
- the creation of a herd of working, productive livestock, which may consist of horses, representatives of the cattle family, sheep, pigs, and so on;
- the costs of the implementation of research, technological, experimental - design work.
Reflection of the balance sheet
Schematic reflection of 08 account has no ending and opening balance, except for facilities requiring long-term production or installation work. It is best that during the reporting period, each amount reflected in the debit of account 08 should be closed.
Primary tariffs for property and intangible funds already used are drawn up in accordance with accepted standards: debit 01 or 04 (about the present property or assets of an intangible nature), credit 03 (about payment for raw materials, including materials).
As for the tariffs for young animals sent to the rest of the herd, their size is compiled upon. When transferring to a herd of any individuals young representatives of the animal world, for production and exploitation, write-off for 12 months on the 11th account - about keeping cattle on feeding and breeding.
The price amount is taken into account accordingly to the indicators at the beginning of the current year, including the planned cost of growth, from the first stage of the past year, ending with the period in which young livestock representatives are sent to the herd. This process is accompanied by the wiring: in the debit line indicate account 01, reflecting the main property, and for credit - account 08.
At the end of the past year, when the accounting calculation was made, accountants write off the difference formed between the set price of young livestock that were transferred during the current year and the real price. The write-off is carried out from account 11 on the grown, fattened representatives of the fauna using account 08 on non-current assets, along with this, the cost indicators of livestock are specified with the help relating to the main property.
The purchase by an organization of adult animals is fixed by debit of account 08 at a real price that coincides with the initial price along with payment for delivery. Gratuitous receipt of already raised livestock accounted for in accordance with market cost, including additional actual investments for delivery to the enterprise.
The costs of completed operations for the formation of a herd of pets are debited from debit 01 of the account for fixed assets. Subaccount 08-8 on the implementation of work regarding science, research, engineering, structures and technologies helps to take into account the costs of the work.
Research and development activities related to technological processes require costs, because in accordance with their results they produce products or manage the organization.
Expenses are deducted by the transaction in which loan indicate 08 account on the transfer of capital to funds not participating in the turnover, and debit will be the value of account 04 on property of an intangible nature. Costs of modern technological equipment, scientific research, design services, the results of which will not bring benefits for the release of the product and the implementation of certain types of work, services, enterprise management, in the balance sheet must be written off.
The results of the listed activities may also be negative. In both cases, the costs are written off as a record in which credit is account 08, debit - account 91, characterizing the additional profit, including costs.
Balance on account 08 expresses the payment of the enterprise for the necessary unfinished construction, incomplete operations on acquired intangible and non-current assets, including a herd of livestock. Realization, free provision of property or other expenses are reflected in account 08, deducted by debit, disclosing other expenses together with profit.
Account 08 for accounting has important value, because it provides information about the possible ownership of the enterprise, which it possesses. Fixed assets are essential for successful operations, including production cycles.
Additional information is presented in this video.
Account 08 of accounting is the active account "Investments in non-current assets", which takes into account all the costs of the enterprise in the facilities. Using standard transactions and practical examples, we will understand the specifics of using account 08 in accounting. We study the features of reflection of construction operations by the economic and contracting method according to subaccount 08.03.
Non-current assets are subsequently taken to accounting and tax accounting as a fixed asset, land, natural resource facility or intangible asset.
Account 08 “Investments in non-current assets” has the following sub-accounts:
The main aspect of using subaccount 08.03 “Construction of fixed assets” is that the subaccount reflects:
- All costs for the construction of buildings and structures;
- Equipment installation costs;
- Other expenses indicated in the financial estimates for capital construction on a contractual or economic basis:
Contracting method of construction - This is construction work and installation work performed in accordance with the concluded construction contract (Articles 740, 743, 746 of the Civil Code of the Russian Federation).
Economic construction method - This is construction work and installation work performed by employees of the organization.
Formation of the initial cost of the OS:
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Basic postings on the account “Construction of fixed assets”
Debit account | Credit account | Operation description |
Reflection in the accounting of construction by contract | ||
08.03 | 60 (76) | The cost of contract work on the construction of fixed assets |
19 | 60 (76) | Contractor VAT included |
Reflection in the accounting of construction in an economic way | ||
08.03 | 10 (23; 25; 26; 60; 70; 76) | All costs of construction of a fixed asset suitable for use are taken into account |
19 | 60 (76) | VAT included for all construction costs of a fixed asset suitable for use |
Account posting examples 08
Let us consider in more detail, with examples, the reflection of operations on subaccount 08.03.
Example 1. Accounting for the construction of fixed assets in an economic way on account 08.03
Suppose VESNA LLC in March 2016 began the construction of an industrial warehouse in an economic way. The organization completed the construction in April 2016. The production warehouse was commissioned in April 2016.
Moreover, according to the conditions of the example:
- In March, building materials were purchased - 472,000 rubles, including VAT - 72,000 rubles .;
- In March, construction materials were spent - 250,000 rubles .;
- In April, construction materials were spent - 150,000 rubles .;
- The salary of employees involved in the construction of the facility, taking into account social contributions, in March amounted to 105,000 rubles, and in April - 95,000.00 rubles.
Postings to account 08 on the construction accounting contract:
Dt accounts | Ct bills | Amount of transaction, rub. | Wiring description | A document base |
10.08 | 60 | 400 000 | Reflected the cost of purchased building materials | Consignment note (TORG-12) of the supplier |
19 | 60 | 72 000 | Reflected VAT on purchased building materials | Invoice received |
68 | 19 | 72 000 | VAT deducted accepted | Book of purchases |
08.03 | 10.08 | 250 000 | Reflected in the capex the cost of building materials transferred to the construction of the warehouse in March | Overhead, payroll and social benefits |
08.03 | 70 (69) | 105 000 | Reflected in the capital investment salary (including insurance premiums) of employees employed in the construction of the warehouse in March | |
08.03 | 10.08 | 150 000 | Reflected in the cap. investments the cost of building materials transferred to the construction of the warehouse in April | |
08.03 | 70 (69) | 95 000 | Reflected in the capital investments salary (including insurance premiums) of employees employed in the construction of the warehouse in April | |
01 | 08.03 | 600 000 | The production warehouse built in an economic way (250,000.00 + 105,000.00 + 150,000.00 + 95,000.00) was built and put into operation | Acceptance Certificate (OS-1), Inventory Accounting Card (OS-6) |
19 | 68 | 108 000 | The accrued VAT on construction works performed in an economic way is reflected ((250,000.00 + 105,000.00 + 150,000.00 + 95,000.00) * 18%) | Invoice received. Book of purchases |
68 | 19 | 108 000 | Accepted VAT deduction for construction works carried out in an economic way |
Example 2. Accounting for the construction of fixed assets in a contract way on account 08
Suppose VESNA LLC has entered into an agreement with a contractor for the construction of an industrial warehouse facility. According to the estimated financial calculations of the contractor, the cost of building a production warehouse amounted to:
- The cost of costing services is 59,000 rubles, incl. VAT - 9,000 rubles .;
- The construction cost is 826,000 rubles, incl. VAT - 126,000 rubles.
Postings on account 08 for the construction accounting in an economic way:
Dt accounts | Ct bills | Amount of transaction, rub. | Wiring description | A document base |
08.03 | 60 (76) | 50 000 | The cost of the contractor's costing services is reflected. | Contract, Acts of work performed, Reports on the costs of construction materials |
19 | 60 (76) | 9 000 | Reflected VAT on services | |
08.03 | 60 (76) | 700 000 | Reflected the cost of building a production warehouse | |
19 | 60 (76) | 126 000 | Reflected VAT on construction | |
68 | 19 | 135 000 | Deducted VAT paid |
08 account is of particular importance. Using this account, enterprises keep track of the costs of fixed assets, intangible assets and profitable investments in tangible assets. Consider the nuances of accounting for the 08th account in more detail.
General accounting rules for the 08th account
The main documents that need to be guided by an accountant in working with the 08th account:
- order of the Ministry of Finance of the Russian Federation of October 31, 2000, No. 94n “On approval of the Chart of Accounts for Accounting of Financial and Economic Activities of Organizations and Instructions for its Application” (hereinafter referred to as Order No. 94n);
- “Instructions for the application of the Chart of Accounts for the Accounting of the Financial and Economic Activities of Organizations”, approved by order of the RF Ministry of Finance of October 31, 2000 No. 94n (hereinafter referred to as instruction 94n);
- PBU 6/01;
- PBU 17/02.
08 account it is intended for accumulation of data on investments of enterprises in tangible and intangible non-current assets, which in the future may be recorded on accounts 01, 03, 04 as fixed assets, intangible assets or profitable investments, respectively. Today, by order No. 94n, eight sub-accounts are set for account 08.
IMPORTANT! The company in the working chart of accounts can clarify the contents of the list of accounts of the second order (sub-accounts), excluding or combining them. If necessary, you can enter additional sub-accounts if this is required by the characteristics of the activity or such an introduction is dictated by the need to deepen its control and analysis. In this regard, the register of sub-accounts for the 08th account in the standard chart of accounts is recommendatory and methodological in nature. It is this circumstance that explains the need to approve the working chart of accounts for the enterprise (paragraph 5 of PBU 1/98).
According to the order No. 94n, sub-accounts 1, 2, 4, 5 and 7 to account 08 are intended for accounting for investments in finished objects of non-current assets. Account 08-1 is intended for the synthesis of data on capital investments of an enterprise for the acquisition of land. Investments in environmental management objects are recorded on subaccount 08-2. On the 4th subaccount, expenses for the purchase of individual OS objects that do not require installation are taken into account. The 5th subaccount accumulates data on investments in intangible assets, in this case these objects should also be completed. Subaccount 7 synthesizes the cost of buying adult animals.
Subaccount 3 is intended to accumulate information on the construction of OS facilities, and on the 6th take into account the costs of raising young animals before transferring them to the main herd. The 8th subaccount takes into account the costs associated with research, design work, development of new technological and managerial processes.
Analytical accounting for accounts 08-1, 08-2, 08-3, 08-4, 08-5 is carried out for each OS object (acquired or being built). According to the accounts 08-6 and 08-7 - for each type (group) of animals. On account 08-8 - for each type of work (service) or R&D.
You can clarify the order in which the balance of account 08 is reflected in the balance sheet in the material.
Intangible assets and 08th account
Intangible assets (intangible assets) - assets with a certain value, capable of generating income for the enterprise, but without a pronounced tangible form. Accounting rules for intangible assets are established by PBU 14/2000. PBU 17/2 establishes the rules for accounting for expenses on research, experimental, design and technological development.
On the 08th account, there are two sub-accounts on which information on intangible assets is accumulated. These are sub-accounts 08-5 “Acquisition of intangible assets” and 08-8 “Performance of research, development and technological works”.
Moreover, if the results of scientific research, experiments, design documentation and developed technologies find their application in the production process of products (works, services) or in the management of an enterprise, then the costs of their implementation upon completion of work are debited from loan 08-8 to debit 04 account “Intangible assets”.
If, as a result of research, experiments, design developments or testing of technologies, positive results are not obtained or if these results are not implemented in the production of products (works, services) or do not affect the management processes in the organization, then such expenses are written off from the loan 08-8 debit 91 “Other income and expenses”.
Subaccount 08-5 “Acquisition of intangible assets” is related to those intangible assets that are acquired in several stages, have associated costs. All these expenses until the completion of the process of obtaining rights to intangible assets are collected on sub-account 08-5. Upon completion of the acquisition process, upon receipt of documents confirming the right to ownership of intangible assets or the right to use them, expenses from loan 08-5 are debited to the 04th account.
Often the question arises: is the intangible asset design and construction documentation for the construction of fixed assets? For an organization that develops design documentation, these intellectual property objects are intangible assets and the costs of their creation are collected on subaccount 08-8 if such an asset does not have the signs of “goods” for such an organization and is not intended for sale / resale of it.
Organizations receiving this documentation as a result of a contractual relationship, and with it the right to use it, transfer it to third parties, such documentation should also be part of the intangible assets. But if in the contract for the creation of design documentation there is no indication that the rights to dispose of this intellectual property from the contractor to the customer are transferred along with the documents, then the costs of creating the project and the development of design documentation should be attributed to the costs of creating (erecting) that object OS about which such documentation was created.
The nuances of cost accounting for the construction of fixed assets
The construction of fixed assets begins with planning and design. Projects for buildings, structures, technical facilities, as we have already found out, can be both an intangible asset (and then the costs of design and estimate documentation are taken into account on sub-account 08-5), and part of the cost of creating a fixed asset.
The process of building the OS can be carried out by attracting contractors or carried out by a special unit of the enterprise. In the first case, contracts are concluded with contractors, and they are held responsible for the fact that the object in its finished form must comply with the project. In the second, the workflow process is governed by the internal rules of the enterprise. In both cases, expenses are accumulated in subaccount 08-3.
Even in the case of the construction of the OS by contractors, it can be made from customer materials. Accounting for materials used in construction is a laborious process. Writing off materials for construction is carried out on the basis of primary documents. Here it is necessary to recommend the development and application of such primary documents that will help implement the process of controlling the use of materials in the framework of estimated calculations. An example of such an initial document is a limit-fence card.
For more information on the procedure for warehouse accounting and the issuance of materials from the warehouse, as well as on the forms of warehouse documents, we recommend that you learn from the following materials:
The company has the right to develop its own form of primary document, convenient for monitoring and analysis of the construction process.
Initially, expenses for the purchase of materials for construction are recognized in the debit of the 10th account. As required, within the framework of standards, materials are delivered to the construction site. Accounting is written off to the construction by correspondence Dt 08.3 Ct 10. Thus, material costs for the construction of a particular object are accumulated at the debit of subaccount 08.3 until the asset is put into operation. The commissioning of the asset at the end of construction is reflected by the wiring Dt 01 Kt 08.3.
The nuances of accounting for investments in non-current assets in agriculture
For agricultural enterprises or organizations with livestock divisions, there are two special sub-accounts on account 08:
- 08-6 "Transfer of young animals to the main herd";
- 08-7 "The acquisition of adult animals."
The acquisition of sexually mature animals, as a rule, does not cause any problems in accounting. The actual cost of purchasing an adult animal is generated by synthesizing the acquisition cost of the OS object itself, the costs of its delivery, examination or evaluation, and other expenses associated with the fact of acquiring the animal. After the animal is put into operation, its value is transferred from account 08 to account 01 by standard wiring.
The moment of putting the animal into operation may be the date:
- his income in the main herd (including breeding);
- his admission to the unit where it is planned for its further maintenance (zoos, laboratories, service dog breeding departments).
If the animal was received by the enterprise free of charge, then its acceptance is made on the basis of the market value of animals with similar indicators (breed, age, constitution, color). Then the initial cost of such an asset is equal to the market value of the asset, increased by the cost of its delivery, examination, etc.
A large number of questions arise in accounting for the costs of rearing young animals. In the chart of accounts there is account 11 “Animals on rearing and feeding”. Accountants often have a question, why then do we need a sub-account 08-6?
Firstly, the instruction 94n does not imply direct wiring Dt 01 Kt 11.
Secondly, through the account 08.6, the planned cost of young stocks transferred to the main herd is debited from the cost of all animals that are fed and raised.
If the organization transfers the young to the main herd, typical postings are as follows:
Dt 08.6 Kt 11 — write-off of the value of young animals;
Dt 01 Kt 08.6 - increase in the cost of animals of the main herd due to the young stock.
During the year, young animals can be transferred to the herd several times. Its translation is carried out at the planned cost. At the end of the year, the farm is obliged to adjust the planned cost of the transferred young to the actual. In this case, the reversal or increase in the amounts is carried out similarly to the postings shown above.
Summary
Account 08 in accounting is used to synthesize information about the value of fixed assets acquired (or made independently) by an enterprise, intangible assets and profitable investments in tangible assets. The nuances of accounting for such investments are regulated by accounting legislation - PBU 6/01, PBU 17/02 and the chart of accounts.