Capital expenditures. What is capital investment
26. Accounting for capital investments.
Capital investment - these are investments in fixed assets, including the costs of new construction, expansion, reconstruction and technical re-equipment of existing organizations, the acquisition of machinery, equipment, tools, inventory, design and survey work, etc.
In accounting, capital investments accounted for separately from current production costs... This is stated in clause 6 of Article 8 of the Federal Law of November 21, 1996 No. 129-FZ "On Accounting".
To reflect information about the costs of objects, which will subsequently be taken into accounting as fixed assets and intangible assets, account 08 "Investments in non-current assets" is used. It reflects the actual costs of the buyer, which will subsequently amount to the initial cost of the fixed asset (intangible asset).
Subaccounts are opened to account 08 to account for the corresponding costs: "Acquisition of land plots", "Acquisition of natural resources", "Construction of fixed assets", "Acquisition of fixed assets", "Acquisition of intangible assets".
The result of the investment is the creation of a fixed asset, which is subject to accounting at historical cost. Therefore, when attributing costs to long-term investments, one should be guided by the Accounting Regulations “Accounting for Fixed Assets” (PBU 6/01).
According to clause 8 of PBU 6/01, the initial cost of fixed assets acquired for a fee is recognized as the amount of the organization's actual costs for their acquisition, construction and manufacture, excluding VAT and other reimbursable taxes (except as provided by the legislation of the Russian Federation)
Actual costs that will subsequently constitute the initial cost of the fixed asset are accounted for separately for each property under construction or acquired. In accounting, this is reflected in the record:
DEBIT 08 CREDIT 60 - reflected the actual costs of the acquisition (creation) of an item of fixed assets.
The procedure for determining the initial cost of a fixed asset manufactured by the organization itself is established by the Methodological Guidelines for the Accounting of Fixed Assets, approved by order of the Ministry of Finance of Russia dated 13.10.2003 No. 91n (hereinafter referred to as the Methodological Guidelines).
According to paragraph 26 of the Methodological Guidelines, the initial cost of fixed assets is determined based on the actual costs of producing these funds. The procedure for accounting and forming the costs of production of fixed assets is the same as for accounting for the costs of the corresponding types of products manufactured by the organization.
An organization that creates a fixed asset on its own reflects the actual costs in accounting as follows:
DEBIT 08 CREDIT 10 (02, 69, 70 ...) - reflects the actual costs of creating an item of fixed assets.
The organization for the creation or acquisition of fixed assets can attract loans and borrowings. In this case, it should be guided by the Accounting Regulations "Accounting for loans and credits and their servicing costs" (PBU 15/01).
According to clause 13 of PBU 15/01, investment assets include fixed assets, property complexes and other similar assets, the acquisition and (or) construction of which requires a large amount of time and costs. The only exceptions are items purchased for resale.
The interest accrued on loans (borrowings) received for the acquisition and (or) construction of an investment asset is recognized as costs associated with obtaining and using loans and borrowings (clause 11 of PBU 15/01). Their amount is included in the cost of this asset and is repaid through depreciation. The exception is cases when depreciation is not provided for an item of fixed assets (clause 23 PBU 15/01).
note
Clause 8 of PBU 6/01 also provides for the inclusion of interest on loans (borrowings) in the initial cost of fixed assets. But only those that were accrued before the object was accepted for accounting. Interest on a loan (loan), accrued after the object is accepted for accounting, refers to the operating expenses of the organization (clause 11 of PBU 10/99 "Organization's expenses").
If loans (borrowings) in foreign currency are attracted to acquire or create an investment asset, exchange rate differences arise in interest payable. If interest is paid in rubles in an amount equivalent to the amount in foreign currency (in conventional monetary units), amount differences arise. Exchange rate and amount differences on interest are recognized as costs associated with obtaining and using loans and borrowings (clause 11 of PBU 15/01) and are included in the cost of an investment asset (clause 23 of PBU 15/01). They are formed from the beginning of the accrual of interest and until the moment of their actual repayment (transfer).
The initial cost of investment assets does not change after they are included in fixed assets and put into operation. Therefore, exchange rate and amount differences arising after this moment are recorded as other income (expenses) of the organization.
note
According to clause 33 of the Methodological Recommendations, the difference arising between the valuation of fixed assets reflected in the fixed assets account and the valuation recorded in the account of investments in non-current assets is written off to the profit and loss account as operating income (expenses). This difference is not included in the exchange rate differences.
All actual costs for the acquisition (creation) of fixed assets, which are accounted for on account 08 "Investments in non-current assets", are transferred to account 01 "Fixed assets". Such an accounting entry is made at the time the facility is put into operation and included in the fixed assets of the organization.
For the convenience of studying the material, we divide the article into topics:
Capital investments can be used for the creation of new facilities or for the reconstruction of their existing facilities.
There is an objective tendency, according to which the dynamics, i.e. over time, the proportion of capital investments that are directed to reconstruction, including technical re-equipment of production, in the total amount of capital investments is constantly increasing.
In this regard, the share of capital investments allocated for the construction of new objects of fixed assets decreases accordingly. The fact is that reconstruction is economically more efficient than new construction, since it requires much lower costs and is carried out in a shorter time frame than the construction of new objects of fixed assets.
Financing capital investments
These include those accumulated in trust funds, on the accounts of enterprises and directed to capital investments: during the construction of facilities - to pay for design and survey, construction and installation works, purchase of equipment; when buying objects to pay for their prices.Funding for capital investments is made from:
1) own financial resources and on-farm reserves of the investor (profit, amortization of accumulated funds and savings of citizens, legal entities, means of compensation for losses from fires, natural disasters, etc.);
2) borrowed finance of the investor or his funds (loans, etc.);
3) attracted financial resources of investors (sale of shares, share contributions of members of labor collectives, citizens, legal entities);
4) financial resources provided by organizations, namely unions of enterprises;
Financing methods:
1) centralized;
2) decentralized.
The centralized method - the source of financing for capital investments are the budgets of the subjects of the Federation, centralized off-budget investment funds, etc.
Decentralized method - sources of enterprises and individual developers are the source.
At the enterprise, the main sources of financing are: profit remaining at the disposal of the enterprise; ; funds received from the issue and sale of shares; loans; sources of parent organizations; funds of foreign investors, etc. But the main sources of financing for capital investments are profit for accumulation and.
Major changes have now taken place in the field of capital investment financing. The ratio between centralized and decentralized sources of financing capital investments has changed: the share of centralized ones has greatly decreased, while the share of decentralized ones has increased. In the transition to market relations, this phenomenon is considered natural.
Capital investment accounting
reflected on account 08 "Investments in non-current assets".According to clause 52 of the Methodological Guidelines for the accounting of fixed assets, for real estate objects for which capital investments have been completed, primary accounting documents for acceptance and transfer have been drawn up, the documents have been submitted for state registration of the changes made and actually operated, depreciation is charged in a general manner from the first day month following the month of putting the facility into operation.
When the initial cost of an item of fixed assets increases as a result of modernization and reconstruction, the annual amount of depreciation deductions is recalculated based on the residual value of the item, increased by the cost of modernization and reconstruction, and the remaining useful life, including the revised useful life of the reconstructed item in accordance with cl. 20 PBU 6/01.
The object of fixed assets was reconstructed. The cost of the fixed asset is 100 thousand rubles, the useful life is 5 years, at the time of reconstruction it was in operation for 3 years, the cost of reconstruction is 50 thousand rubles. The useful life has increased by 2 years.
Residual value:
100 thousand rubles - (100 thousand rubles x 3/5) + 50 thousand rubles. \u003d 90 thousand rubles.
New useful life:
4 years
Annual amount of depreciation charges:
90 thousand rubles / 4 \u003d 22.5 thousand rubles.
Expenses for completion, re-equipment, reconstruction, modernization and technical re-equipment of fixed assets increase the initial value of the fixed assets item and are subject to write-off for tax purposes through the depreciation mechanism in accordance with Articles 256-259 of the Tax Code of the Russian Federation.
Completion, retrofitting, modernization work includes work caused by a change in the technological or service purpose of equipment, buildings, structures or other object of depreciable fixed assets, increased loads and (or) other new qualities.
Reconstruction includes the reorganization of existing objects of fixed assets associated with the improvement of production and an increase in its technical and economic indicators and carried out under the project for the reconstruction of fixed assets in order to increase production capacity, improve quality and change the product range (clause 2).
Technical re-equipment includes a set of measures to improve the technical and economic indicators of fixed assets or their individual parts based on the introduction of advanced equipment and technology, mechanization and automation of production, modernization and replacement of obsolete and physically worn out equipment with new, more productive ones.
Regulations on the Preventive Maintenance of Industrial Buildings and Structures MDS 13-14.2000, approved by Resolution of the USSR State Construction Committee No. 279;
Departmental building standards (VSN) No. 58-88 (R) "Regulations on the organization and implementation of the reconstruction, repair and maintenance of buildings, communal and socio-cultural facilities", approved by order of the State Committee for Architecture under the USSR State Construction Committee No. 312;
Letter of the Ministry of Finance of the USSR No. 80 "On the definition of the concepts of new construction, expansion, reconstruction and technical re-equipment of operating enterprises."
It is necessary to distinguish between the sources of capital investment at the macroeconomic and microeconomic levels.
The entire aggregate of investments by sources of education at the macroeconomic level is divided into two groups - internal sources of capital investments and external sources of capital investments.
Internal (national) sources of capital investment financing, in turn, are divided into centralized and decentralized sources. At the same time, the centralized sources include state budget funds, municipal budget funds and funds from extra-budgetary funds.
State budget funds are allocated to finance capital investments annually in accordance with the adopted laws on the federal budget, the budgets of the subjects of the federation, municipal budget funds - in accordance with the legal acts of local government bodies.
Extra-budgetary centralized appropriations for capital investments are made from extra-budgetary funds operating in accordance with the current legislation.
Decentralized sources of capital investments at the macroeconomic level include accumulations of commercial and non-profit organizations, private savings of citizens.
External sources of financing capital investments include in their composition funds coming into the country from abroad. They can also be classified in two ways.
Repatriated capital - funds of residents transferred from abroad.
Foreign investments - investments entering the country:
From international organizations;
- from foreign states;
- from legal entities and individuals - non-residents.
To characterize the sources of financing capital investments at the microeconomic level, let us use the provisions of the Law of the RSFSR dated 26.06.1991, No. 1488-1 (as amended on 10.01.2003, No. 15-FZ) "On investment activities in the RSFSR." In Article 8 of the said law, the composition of sources is presented as follows:
1. own financial resources and on-farm reserves of the investor, which include:
Profit;
- depreciation deductions;
- monetary savings and savings of citizens and legal entities;
- amounts paid by insurance authorities in the form of compensation for losses from accidents, natural disasters;
2. borrowed funds of investors, this group of sources is represented by:
Bank loans;
- budget loans;
- bonded loans;
3. attracted financial resources of the investor, this group of sources includes:
Funds received from the sale of shares;
- funds received from the sale of shares and other contributions;
4. monetary funds centralized by associations (unions) of enterprises in the prescribed manner;
5. appropriations from federal, regional and and corresponding off-budget funds;
6. foreign investment.
All funds, except those referred to the group of borrowed funds, form an entity.
Borrowed funds are subject to return on predetermined conditions. The entities that provided these funds in the income from the implementation of the investment project, as a rule, do not participate.
Each source of financing has its own growth factors, methods of making capital investments and managing the investment process.
The most reliable source of financing for investment activities is the investor's own funds.
Profit is the main form of the company's net income, and is also a generalizing indicator of the company's performance. In fact, it is the main source of expanded reproduction.
The decision to use the profits remaining at the disposal of the enterprise depends on its organizational and legal form:
Joint-stock company - based on the decision of the general meeting of shareholders on the recommendation of the board of directors;
- limited liability company - based on the decision of the general meeting of participants;
- state unitary enterprise - on the basis of the decision of the authorized state executive body;
- a municipal unitary enterprise - on the basis of a decision of the authorized municipal authority.
The possibility of using profit for investment purposes depends on the amount of profit, the procedure for determining taxable profit, the rate and a number of other factors.
Currently, the procedure for determining taxable profit is regulated by the 25th chapter of the Russian Federation.
Another source of financing capital investments from own funds is depreciation charges. They are formed as a result of the peculiarities of the transfer of the value of fixed assets to the value: they function for a long time, wear out gradually, and gradually transfer their value.
In each production cycle, no reimbursement of fixed assets in kind is required. Compensation occurs only after the expiration of the service life of buildings, structures, machines, mechanisms, transmission devices. Accordingly, the funds accumulated in the depreciation fund can be used for investment purposes.
Depreciation deductions at the enterprise are directly intended to finance simple reproduction (for renovation). But under certain conditions it can become a factor of expanded reproduction at the enterprise level. If this expansion is carried out on the previous technical basis, then we get extensively expanded reproduction. If more perfect means of production are used, we get intensively expanded reproduction.
The amount of the depreciation fund depends on a number of factors:
1. the book value of the company's fixed assets;
2. ;
3. useful life of fixed assets;
4. the depreciation method used.
The accounting regulation "Accounting for fixed assets" (PBU 6/01) dated March 30, 2001 defines four methods of depreciation: the linear method, the diminishing balance method, the method of writing off the value of fixed assets by the sum of the number of their useful years, the method of writing off the value in proportion to the volume of products (works) produced. The use of the diminishing balance method, the method of writing off the value of fixed assets according to the sum of the number of years of their useful use, allows increasing depreciation charges at the first stages, which makes it possible to more fully realize the investment purpose of the depreciation fund.
Chapter 25 of the Tax Code of the Russian Federation defines the composition of depreciable property, the procedure for determining its value, the distribution of property by depreciation groups, methods of calculating depreciation used for tax purposes, and the procedure for calculating depreciation.
With the straight-line depreciation method, the depreciation fund is formed in equal shares over the useful life of fixed assets. With the non-linear method, the main part of their value is accrued in the first half of the useful life of fixed assets, which gives advantages when using funds for investment purposes.
In addition to profit and depreciation deductions, sources of financing capital investments at their own expense include:
Part of fixed assets reinvested through sale;
- the immobilized part;
- insurance compensation for losses caused by the loss of property.
Additional volumes of own funds to finance capital investments can be found in the process of increasing the efficiency of management.
In accordance with the legislation, subjects of foreign investment are foreign legal entities, foreign organizations that are not legal entities, foreign citizens, international organizations, foreign states, as well as a stateless person permanently residing outside the Russian Federation, whose civil and legal capacity is determined in accordance with the rules country of residence.
The implementation of foreign investments largely depends on the investment climate, which is understood as a set of political, social, economic, organizational conditions that determine the feasibility and attractiveness of the country as an investment object.
Forms of capital investments
Investments are the main resources for creating production capabilities and a solid foundation for the development of any enterprise. Investments in fixed assets of organizations, construction, purchase of mechanisms and equipment are especially active.All fixed assets and organizations are considered capital investments from the moment of their purchase and commissioning. That is, the investment represents all the costs associated with construction and installation work; lease or creation of new technological areas; acquisition and development of equipment, machines, inventory; execution of design, survey and experimental work.
The main source of financing for capital investments are depreciation charges, profits, loans, securities issues, sponsorship contributions, etc. When the organization is founded, initial capital investments are required, for its expansion and the functioning of production - extensive, and with the release of reinvestment funds, they are directed to the purchase of modern equipment to increase.
Investments made in the form of capital investments are divided into the following types:
Defensive - help to reduce risk in the purchase of products, price stability and reduce production costs;
offensive - increase competitiveness and, as well as contribute to the renewal of its range, thanks to new developments and technologies;
social - serve for the optimal organization of labor protection and improving the working conditions of employees;
mandatory - necessary in connection with the requirements for various production criteria (safety, environmental friendliness, waste reduction);
representative - contribute to maintaining the image and positive reputation of the company.
It is considered very effective to invest in the re-equipment, reconstruction and expansion of its own production, the search for new markets for products, the introduction of modern technologies of the production process, since there is a significant reduction in investment and profit. Thus, by investing in, a stable base is created, which directly affects the achievement of a high level of production and obtaining the maximum amount of profit.
Capital investment structure
Each enterprise planning capital investments must study the feasibility of directing them to the development of certain funds. And we are talking not only about the profitability of future fixed assets, but also about the harmonious development of the entire enterprise (if we are talking about enterprise funds) or the entire national economic complex (if we are talking about state HF). This assessment is made by analyzing the structure of the CV.There are the following types of KB structures:
By funding sources;
-reproduction;
-technological;
-branch;
-territorial, etc.
The distribution of CV by funding sources largely determines the financial stability of the enterprise in the future. For example, a high share of borrowed funds in HF dramatically increases the cost of construction (taking into account the payment of interest on a loan, etc.).
When analyzing the reproductive structure, the share of costs for:
Technical re-equipment and reconstruction;
-expansion of existing enterprises;
-New construction;
- maintenance of existing facilities (overhaul).
It should be said that the distribution of funds in these areas is a rather difficult optimization problem, but its solution pays off handsomely.
The technological structure characterizes the relationship between funds aimed at:
CMP;
-equipment, machines, inventory, etc.
It is clear that an excessive increase in the proportion of actual construction costs in the construction and installation work reduces the proportion of the active part of fixed assets; the opposite tendency can create a lack of buildings and structures necessary for the functioning of machinery and equipment.
The specific weight of construction and installation costs is:
England - 9%;
USA - 21.9%;
France-32.8%;
RF (1992) - 63%.
From the above data, it can be seen that our buildings are unnecessarily expensive.
The sectoral structure characterizes the ratio of CV for individual sectors. For an enterprise, this is the main production, storage facilities, administrative premises, buildings and structures for non-production purposes, etc.
It is clear that a decrease in the specific weight of the costs of reproducing the assets of the main production will sooner or later lead to; the diversion of funds for non-production needs (for example, for the construction of the owner's villa) should be clearly justified. For the state, the analysis of the technological structure ensures the regulation of the development of industries, the solution of specified social goals, etc.
The territorial structure is characterized by the ratio of funds allocated to individual regions. For an enterprise, such an analysis is a tool for a calculated economic capture of new zones of influence; for the state, this calculation is necessary to control and regulate the development of individual regions of the country.
Economic efficiency of capital investments
The efficiency of capital investments is formed at four stages: when planning capital investments, designing capital construction, in construction production, in the process of developing the newly commissioned design capacities. Accordingly, at each stage of the investment process, special ways of increasing the efficiency of capital investments can be identified:The planning stage is the improvement of the sectoral structure of capital investments, their primary direction in the development of progressive industries; increasing the share of capital investments in the technical re-equipment of the industry, reconstruction and expansion; concentration of capital investments at launch facilities to be put into operation in the planned period, rational distribution of productive forces;
the design stage of industrial production - the widespread use of advanced achievements of science and technology; maximum use of standard projects; adherence to the principle of design complexity; wide unification of building elements of structures;
industrial construction stage - all-round construction production; improvement of the organization and technology of construction and installation works; increasing the level of specialization and cooperation in construction; improving the quality of construction; improvement of planning, management and systems of economic incentives for construction production;
the stage of operation of newly commissioned industrial enterprises and facilities - ensuring the integrated commissioning of fixed assets and related industries, advance training of personnel and the necessary elements of working capital (raw materials, materials, fuel) for newly built enterprises; organization of the timely development of the designed technology for the production of products.
Many areas of increasing the efficiency of capital investments and fixed assets are common to all sectors of the national economy. However, the specific manifestation of certain patterns depends on the specifics of production, the purpose of the product and the means and objects of labor used.
Capital investments are expressed primarily in the economic result that is achieved as a result of their implementation. Therefore, the economic efficiency of capital investments is measured on the basis of comparing their value with the economic effect that resulted from the increase.
For the purpose of a comprehensive analysis of the economic efficiency of capital investments, indicators such as specific capital investments, capital intensity, capital productivity, labor productivity, etc. are taken into account.
Capital investment assessment
Investments are funds (cash, securities, other property, including property rights that have a monetary value), invested in objects of entrepreneurial and (or) other activities in order to generate profit and (or) achieve another useful effect.Investment is an integral part of the modern economy. Investments differ from loans in the degree of risk for the investor (lender) - the loan and interest must be repaid within the agreed period, regardless of the profitability of the project, investments are returned and generate income only in profitable projects. If the project is unprofitable, investments may be lost.
The main direction of the preliminary assessment of investments is to determine indicators of the possible economic efficiency of investments, i.e. return on capital investments, which are provided for the project. As a rule, the calculations take into account the time aspect of the value of money. Quite often, an enterprise is faced with a situation where there is a number of alternative (mutually exclusive) investment projects.
A special case of investment appraisal is the appraisal of an investment project.
The basis for assessing the effectiveness of investments is based on the following basic principles:
Consideration of a project throughout its entire life cycle - from conducting pre-investment studies to terminating the project; - modeling taking into account the possibility of using different currencies;
- comparability of the conditions for comparing different projects (project options);
- the principle of positiveness and maximum effect (preference is given to the project or the variant of the project with the highest positive assessment of the effect);
- taking into account the time factor (dynamism of the parameters of the project and its economic environment; gaps in time between the production of products or the receipt of resources and their payment; the cost of money in time);
- taking into account only forthcoming costs and receipts (Previously created resources used in the project are estimated not by the costs of their creation, but by the opportunity cost, reflecting the maximum value of the lost profit associated with their best possible alternative use. Past, already incurred costs that do not provide opportunities obtaining alternative income in the future (sunk costs), are not taken into account in cash flows and do not affect the value of performance indicators);
- an assessment of the effectiveness of an investment project should be made by comparing the situations "without a project" and "with a project";
- taking into account all the most significant consequences of the project (both economic and non-economic, the assessment of which is carried out quantitatively or expertly);
- taking into account the presence of different project participants, the discrepancy between their interests and various assessments, expressed in individual values \u200b\u200bof the discount rate;
- multi-stage assessment (at various stages of the development and implementation of the project, its effectiveness is determined anew, with different depth of study);
- taking into account the impact on the efficiency of the investment project of the need for working capital necessary for the functioning of the production assets created during the implementation of the project;
- taking into account the influence of inflation and the possibility of using several currencies in the implementation of the project;
- taking into account the influence of uncertainties and risks accompanying the implementation of the project.
In practice, a fairly wide range of performance indicators is used, each of which has its own characteristics. They can be conditionally divided into two groups:
Indicators on an undiscounted basis;
- indicators on a discounted basis,
Although some of them can use both the one and the other mechanism.
In addition, there are absolute and relative indicators. The latter are defined as the ratio of the values \u200b\u200bcharacteristic of the project.
The basic set of such indicators:
1. Net present value (NPV).
2. Index (PI).
3. rate of return (IRR).
4. Modified rate of return (MIRR).
5. Rate of return (FMIRR).
6. Payback period (PP).
7. Investment efficiency ratio (ARR).
Investment appraisal typically raises the following key questions:
Return on investment in this project;
payback periods of investments;
the degree and risk factors that have a decisive influence on the result.
The specialists of the Yurlov Appraisal Bureau will answer you these questions. Qualified specialists of our Bureau will analyze the investment project using professional assessment methods. This will allow you to get an objective idea of \u200b\u200bvarious aspects of the effectiveness of this project and ultimately make an informed decision about the prospects for its payback. Our Bureau will help you avoid the costs associated with the search and analysis of information when deciding whether to participate in an investment project.
Return on capital investment
Return on capital investments, one of the indicators of the efficiency of capital investments, the ratio of capital investments to the economic effect obtained through these investments.The purpose of capital investments directed to the creation of new, expansion and reconstruction of existing production facilities and enterprises is to increase the volume of production and increase the productivity of social labor, which determine the pace of communist construction. "The party attaches paramount importance to increasing the efficiency of capital investments, choosing the most profitable and economical areas of capital work, ensuring the greatest increase in production for each ruble of capital investments spent, and reducing the payback period of these investments." On the scale of the entire national economy, the economic effect of capital investments is measured by the growth of net production -. The ratio of capital investments to the average annual increase in national income caused by these investments is equal to their payback period, expressed in years. Thus, the general formula for payback in the national economy is K: DD \u003d t, where K is capital investments; DD is the increase in national income caused by these investments; t is the payback period. O. K. in. can be relatively accurately calculated for the national economy as a whole, provided that the part of the national income, which is the result of these capital investments, is established.
O.'s calculation to. Century. for the branches of the national economy gives a less accurate result, since the existing prices deviate from value, therefore, the calculated national income for the branches of the national economy deviates from its actual value. For branches of industry, for individual enterprises, the national income is not calculated at all, and in these cases the income of the capital is not calculated. for industries and individual enterprises is conventionally determined by comparing capital investments with an increase in annual profit (or with annual savings on production costs) obtained as a result of capital investments: K: DP \u003d t, where DP is an increase in profit equal to cost savings. Since the increase in profit is usually less than the increase in net production, then the payback period due to the increase in profit is shorter.
T. o., O. K. v. calculated on the basis of the magnitude of the absolute effect in the form of an increase in income (net production), as well as an increase in profit and a decrease in operating costs. O. K. in. can be used as an indicator of the comparative efficiency of capital investments when choosing their optimal option. Different options for solving this economic problem - the development of the industry, enterprise, etc. - usually require various capital investments and operating costs, and options requiring large investments have a lower cost (if an option with large capital investments also has a higher cost, then it is clearly unprofitable). To select the best option, a pairwise comparison of options is carried out for capital investments and current costs. The best option, which gives a shorter payback period, is determined by an arbitrarily chosen pair. Then, by the "chain" method, this best option is compared with any next one, the best of the two is determined again, and so on, until the best option of all considered is found. As a result of such a comparison, the comparative efficiency of the options is established by the ratio of the difference in capital investments and the difference in current costs by the expression where t is the payback period in years; K1, K2 - capital investments for a pair of compared options; C1 and C2 are operating costs. If the resulting payback period is below the standard t0, then option K1 is recognized as more effective than option K2. With a large number of options, the calculation is usually done not according to the return on demand, but at the minimum of the reduced costs, and the value that is inverse to the payback period is used as the standard. If we are talking about replacing existing equipment, then its indicators are considered as one of the compared options.
Capital expenditures include the following costs:
1) the cost of construction and installation work. During the construction of industrial facilities, water management, construction of housing and communal and cultural facilities, the establishment and cultivation of perennial plantings
2) the cost of purchasing machinery and equipment for production and non-production purposes, not included in the construction estimate
3) other capital work and costs (costs of improving land, allocation of land for construction, etc.).
4) the costs of forming a herd of productive and working livestock
Capital investments are classified according to the following criteria
1) Technological structure of capital investments - determine the ratio of costs for active and passive elements of fixed capital. Passive includes: buildings, structures. They are not directly involved in the production process, but create the necessary conditions for it.
2) by designation, capital investments are divided into production and non-production
3) by the method of making capital investments: they are carried out by an economic method or by a contract
4) by sources of financing, capital investments are divided into own sources (deductions from profit for investment needs, depreciation deductions, funds raised as a result of the issue and sale of shares, charitable contributions. Funds paid by insurance organizations in compensation for damage from natural disasters, mobilization of internal resources) and borrowed or external (bank and budget loans, funds received from the issue of bonds, accounts payable); centralized sources (allocations from budgets, from various funds to support entrepreneurship, provided free of charge); foreign investments - can participate in the authorized capital or direct investments.
40. Planning capital investments and sources of their financing
For the implementation of capital investments, the following project and financial documentation is drawn up:
1) The title of newly started construction projects or the title list of capital construction is a list of objects under construction and proposed for construction in the planned period. Objects in the title list are subdivided into:
Backordered, i.e., newly started being built (1st time)
Carrying over, i.e. those started in the previous period and do not end in the planned
Launchers - commissioned in the planned year.
The document indicates when and by whom the project documentation was approved; volume, timing, estimated cost and method of construction.
2) Conclusions on the construction of architectural, land management and environmental protection services
3) The plan of state centralized capital investments - make up if financing is carried out at the expense of appropriations from the budget
4) Consolidated estimate and financial calculation - determines the amount of funds required to perform work at a separate facility; used for planning, accounting for the amount of work performed, settlements between the customer and the contractor, determining the funding limit
5) Intra-building title list - contains a specific annual construction program, according to which design estimates have been approved; includes the estimated cost of each object, including construction and installation works, commissioning of production facilities
6) Calculation of sources of financing for capital investments. Includes: determination of the amount of depreciation charges for fixed assets; determining the need for long-term loans; drawing up a consolidated plan for financing capital construction. The plan is drawn up by the company annually on the basis of estimates and construction contracts. Sources of funding are shown by their types and sizes. The sums of returnable materials and parts obtained during the dismantling of buildings and structures are excluded, if they can be used or sold; book value of equipment dismantled in the shops of an existing enterprise and transferred to a newly built one; equity participation of another company in construction.
"Russian tax courier", N 9, 2004
Capital investment accounting always raises many questions. How to reflect these investments in tax accounting? At what point are VAT and property tax charged? You will find the answers to these questions in the article.
The definition of "capital investments" is given in article 1 of the Federal Law of February 25, 1999 N 39-FZ "On investment activities in the Russian Federation carried out in the form of capital investments". Capital investments are investments in fixed assets, including the costs of new construction, expansion, reconstruction and technical re-equipment of existing organizations, the acquisition of machinery, equipment, tools, inventory, design and survey work, etc.
What is long term investment
The concept of long-term investments is disclosed in the Regulations on the accounting of long-term investments, approved by Letter of the Ministry of Finance of Russia dated December 30, 1993 N 160 (hereinafter - the Regulations on accounting for long-term investments).
Long-term investments are the costs of creating, increasing the size, as well as the acquisition of non-current assets of durable use (over one year). However, such assets should not be held for sale. Long-term investments do not include long-term financial investments in government securities, securities and authorized capital of other enterprises.
One of the main criteria by which an object can be classified as fixed assets is its use for more than 12 months. This is stated in clause 4 of the Accounting Regulations "Accounting for fixed assets" PBU 6/01. Therefore, capital investments in fixed assets are recognized as long-term investments of the organization. They are formed by organizations both during construction and during the acquisition of individual items of fixed assets and should be accounted for at actual costs.
If the organization is building an item of fixed assets, it is recommended to keep records of the actual costs for it according to the following structure:
- for construction work;
- for equipment installation work;
- for the purchase of equipment handed over for installation;
- for the purchase of equipment that does not require installation; tools and equipment; equipment requiring installation, but intended for permanent stock;
- for other capital costs.
Until the completion of construction work, the total amount of these costs is the cost of construction in progress.
If the organization acquires separate items of fixed assets, capital investments are equal to the amount of the actual costs of their acquisition.
Thus, a characteristic feature of capital investments is their focus on the acquisition (creation) of an investment object with a period of use over 12 months. Therefore, capital investments are not included in current expenses, but are included in the initial cost of fixed assets. This rule applies to both tax and accounting.
Tax accounting of capital investments
Tax legislation does not define the concept of "capital investments", just like the accounting procedure. For tax purposes, accounting for capital investments is reduced to the correct formation of the initial cost of fixed assets.
The Tax Code establishes a special procedure for determining the initial cost of fixed assets, which is different from the one adopted in accounting. In tax accounting, the initial cost of a fixed asset is determined as the sum of the costs of its acquisition, construction, manufacture, delivery and bringing to a state in which it is suitable for use. These expenses do not include the amounts of taxes that are deductible or included in expenses (clause 1 of article 257 of the Tax Code of the Russian Federation).
An organization that constructs, manufactures, delivers and brings an object to a state in which it is suitable for operation can use any material values \u200b\u200bor works (services) of its own production. In this case, it should evaluate these values \u200b\u200b(work, services) as a finished product. That is, for direct costs in accordance with the rules provided for in paragraph 2 of Article 319 of the Code. In the same order, the initial cost of the fixed asset of its own production is determined, if the organization has manufactured it as its product and uses it in the future for production activities.
If an organization manufactures (creates) an item of fixed assets on its own, but not as its own product (economic method), its initial cost is determined as the sum of all actual costs associated with the creation and bringing it to a state in which it is suitable for use.
The initial cost of an item of fixed assets does not include expenses for which a special procedure has been established for the purpose of calculating profit. Such an explanation is given in Section 5.3 of the Methodological Recommendations on the Application of Chapter 25 "Corporate Profit Tax" of Part Two of the Tax Code of the Russian Federation, approved by Order of the Ministry of Taxes and Duties of Russia dated 20.12.2002 N BG-3-02 / 729. Organizations that use the accrual method to account for income and expenses recognize such expenses, taking into account the provisions of Article 272 of the Tax Code of the Russian Federation. For organizations using the cash method, there is one more condition. They recognize all expenses after their actual payment (clause 3 of article 273 of the Tax Code of the Russian Federation).
For what expenses is there a special tax accounting procedure? These are, for example, property insurance costs and interest on borrowed funds.
Expenses for compulsory and voluntary insurance are included in other expenses related to production and sales, in accordance with the procedure established by Article 263 of the Tax Code of the Russian Federation. These expenses are recognized in the accounting in the period when the organization actually transferred (issued from the cash desk) money in payment of insurance premiums. But only if the insurance contract provides for several payments. If, in accordance with the agreement, the organization makes a one-time payment of the insurance premium, then the expenses are recognized evenly during the term of the agreement concluded for more than one reporting period (clause 6 of article 272 of the Tax Code of the Russian Federation).
Expenses in the form of interest on debt obligations of any kind are included in non-operating expenses (clause 2 of clause 1 of article 265 of the Tax Code of the Russian Federation). The specifics of classifying interest on debt obligations as expenses are established by Article 269 of the Code. They are included in non-operating expenses at the end of the relevant reporting period. True, provided that the term of the loan agreement falls on more than one reporting period. What if the debt is repaid before the end of the reporting period? In this case, the expense in the form of interest is recognized as incurred and is included in non-operating expenses as of the date of the debt liability maturity. This is stated in clause 8 of article 272 of the Tax Code of the Russian Federation.
A special procedure is also provided for accounting for positive and negative exchange rate differences. According to Articles 250 and 265 of the Tax Code of the Russian Federation, they are recognized as non-operating income and expenses, respectively.
Exchange rate differences appear in tax accounting if the value of fixed assets is denominated in foreign currency and their payment is also made in foreign currency. They arise at the moment when the reassessment of claims (liabilities) is made.
Example 1... The entity purchased a property, plant and equipment for a value of USD 10,000 but did not make payment. Consequently, the entity has a liability denominated in a foreign currency. The cost of fixed assets is recorded at the rate of the Bank of Russia as of the date of receipt - 30 rubles. for 1 USD - and is 30,000 rubles.
At the time of payment, the liability was revalued due to changes in foreign exchange rates.
The organization paid the seller of the fixed asset USD 10,000 (exchange rate of RUB 29 per USD 1). Consequently, in tax accounting there was a positive exchange rate difference of 10,000 rubles. (USD 10,000 x (RUB 30 / USD - RUB 29 / USD)). It is included in non-operating income.
Do exchange rate differences arise if the fixed asset is fully paid for and at the same time the foreign exchange rate at the date of commissioning of the facility has changed compared to the rate in force on the day of the purchase of the fixed asset?
In clause 11 of article 250 and clause 5 of article 265 of the Tax Code of the Russian Federation, it is said that exchange rate differences arise only when revaluating claims and (or) obligations. An asset is an asset, not a claim or liability. Its initial cost is fixed in rubles at the date of acquisition and does not change in the future, regardless of fluctuations in the exchange rate of foreign currency. Therefore, answering the question posed, let's say: exchange rate differences do not arise.
Differences in amounts arising from the creation and acquisition of fixed assets are taken into account in a special manner. They are included in the structure of non-operating income or expenses (clause 11.1 of article 250 and clause 5.1 of clause 1 of article 265 of the Tax Code of the Russian Federation).
Please note: payments for registration of rights to real estate and land, transactions with such objects for tax purposes are included in the initial cost of fixed assets. In the same way (in the cost of fixed assets), the amount of commission fees and other expenses in the form of payment to third-party organizations for the work performed (services provided) are taken into account.
These costs can be included in the cost of fixed assets only if they were incurred before the fixed asset was put into operation. Costs incurred after the specified moment are accounted for in accordance with clauses 3 and 40 of clause 1 of article 264 of the Tax Code of the Russian Federation. They are included in other costs associated with production and sales. For tax purposes, these expenses are recognized either on the settlement date, or on the date the organization presents the settlement documents, or on the last day of the reporting (tax) period (clause 3, clause 7, article 272 of the Tax Code of the Russian Federation).
Transactions related to capital investments can be recorded in a separate analytical tax ledger. Such a register must have all the necessary details provided for by Article 313 of the Tax Code of the Russian Federation. Namely: name, period (date) of compilation, measuring instruments of the operation in kind (if possible) and in monetary terms, name of business transactions, signature (decryption of signature) of the person responsible for compiling the register.
In such a tax register, for each object, in chronological order, all expenses should be reflected, which subsequently constitute the initial cost of the object of fixed assets for tax accounting purposes. This is important for the correct formation of the tax base in subsequent periods, when depreciation charges for this fixed asset will be included in the organization's expenses.
Please note: if an organization acquires or creates an object of fixed assets, the rights to which are subject to state registration in accordance with the current legislation, such an object must be included in the appropriate depreciation group from the moment of documentary confirmation of the fact of filing documents for registration of these rights. This is the requirement of clause 8 of article 258 of the Tax Code of the Russian Federation.
Value added tax
As already noted, an organization can build an item of fixed assets itself or purchase from another organization.
According to subparagraph 3 of clause 1 of article 146 of the Tax Code of the Russian Federation, the performance of construction and installation work for own consumption is subject to taxation. The date of completion of construction and installation work is the day of registration of the corresponding object completed by capital construction (clause 10 of article 167 of the Tax Code of the Russian Federation).
To calculate VAT when performing construction and installation work for your own consumption, you need to determine the tax base. The tax base is the cost of construction and installation work, calculated on the basis of all actual expenses for their implementation (clause 2 of article 159 of the Tax Code of the Russian Federation).
What expenses, which are capital investments, are included in the cost of construction and installation work performed for own consumption?
An exhaustive list of expenses included in the cost of construction and installation work, which are included in the technological structure of capital investments, is given in clauses 4.2 and 4.3 of the Instructions for filling out the forms of federal state statistical observation on capital construction, approved by the Resolution of the State Statistics Committee of Russia dated 03.10.1996 N 123. Namely these costs are included in the VAT tax base when performing construction and installation work for own consumption.
VAT calculated on the cost of construction and installation works can be deducted by the organization. But only if the cost of these works is included in expenses (including through depreciation deductions) when calculating income tax. This is stated in clause 6 of article 171 of the Tax Code of the Russian Federation. An organization can deduct VAT as tax is paid to the budget (clause 5 of article 172 of the Tax Code of the Russian Federation).
The organization - the customer of the construction has the right to deduct the amount of tax presented by contractors during capital construction, during the assembly (installation) of fixed assets, as well as for goods (works, services) purchased for the performance of construction and installation works. The same applies to the amounts of VAT charged upon the acquisition of objects of unfinished capital construction. The deduction is made either from the month following the month when the object was put into operation, or when the object of construction in progress is sold (clause 6 of article 171 and clause 5 of article 172 of the Tax Code of the Russian Federation).
By purchasing an item of fixed assets, an organization has the right to deduct the VAT paid to the seller, after taking this item into account. Provided that the object was acquired for the implementation of transactions subject to VAT. This is the requirement of Articles 171 and 172 of the Tax Code of the Russian Federation.
Capital investment accounting
In accounting, capital investments are accounted for separately from the current production costs. This is stated in clause 6 of article 8 of the Federal Law of 21.11.1996 N 129-FZ "On accounting".
The chart of accounts for accounting of financial and economic activities of organizations and the Instructions for its application provide for the following. To reflect information on the costs of objects, which will subsequently be taken into accounting as fixed assets and intangible assets, account 08 "Investments in non-current assets" is used. It reflects the actual costs of the buyer, which will subsequently amount to the initial cost of the fixed asset (intangible asset).
Subaccounts are opened to account 08 to account for the corresponding costs: "Acquisition of land plots", "Acquisition of natural resources", "Construction of fixed assets", "Acquisition of fixed assets", "Acquisition of intangible assets".
The result of the investment is the creation of a fixed asset, which is subject to accounting at historical cost. Therefore, when attributing costs to long-term investments, one should be guided by the Accounting Regulations "Accounting for Fixed Assets" PBU 6/01.
According to clause 8 of PBU 6/01, the initial cost of fixed assets acquired for a fee is recognized as the amount of the organization's actual costs for their acquisition, construction and manufacture, excluding VAT and other reimbursable taxes (except as provided by the legislation of the Russian Federation).
Actual costs that will subsequently constitute the initial cost of the fixed asset are accounted for separately for each facility under construction or acquired. In accounting, this is reflected in the record:
Debit 08 Credit 60
- reflects the actual costs of the acquisition (creation) of an item of fixed assets.
The procedure for determining the initial cost of a fixed asset manufactured by the organization itself is established by the Methodological Guidelines for accounting for fixed assets, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 N 91n (hereinafter referred to as the Methodological Guidelines).
According to clause 26 of the Methodological Guidelines, the initial cost of fixed assets is determined based on the actual costs of the production of these funds. The procedure for accounting and formation of costs for the production of fixed assets is the same as for accounting for the costs of the corresponding types of products manufactured by the organization.
An organization that creates a fixed asset on its own reflects the actual costs in accounting as follows:
Debit 08 Credit 10 (02, 69, 70 ...)
- reflected the actual costs of creating an item of fixed assets.
The organization for the creation or acquisition of fixed assets can attract loans and borrowings. In this case, it should be guided by the Accounting Regulations "Accounting for loans and credits and the costs of their servicing" (PBU 15/01).
According to clause 13 of PBU 15/01, investment assets include fixed assets, property complexes and other similar assets, the acquisition and (or) construction of which requires a lot of time and costs. The only exceptions are items purchased for resale.
The interest accrued on loans (borrowings) received for the acquisition and (or) construction of an investment asset is recognized as costs associated with obtaining and using loans and borrowings (clause 11 of PBU 15/01). Their amount is included in the cost of this asset and is repaid through depreciation. The exception is cases when depreciation is not provided for an item of fixed assets (clause 23 of PBU 15/01).
Please note: Clause 8 of PBU 6/01 also provides for the inclusion of interest on loans (borrowings) in the initial cost of the fixed asset. But only those that were accrued before the object was accepted for accounting. Interest on a loan (loan), accrued after the object is accepted for accounting, refers to the operating expenses of the organization (clause 11 of PBU 10/99 "Organization expenses").
If for the acquisition or creation of an investment asset loans (borrowings) in foreign currency are attracted, exchange rate differences arise on interest payable. If interest is paid in rubles in an amount equivalent to an amount in foreign currency (in conventional monetary units), amount differences arise. The exchange rate and amount differences in interest are recognized as costs associated with obtaining and using loans and borrowings (clause 11 of PBU 15/01) and are included in the cost of an investment asset (clause 23 of PBU 15/01). They are formed from the beginning of the accrual of interest and until the moment of their actual repayment (transfer).
The initial cost of investment assets does not change after their inclusion in fixed assets and commissioning. Therefore, exchange rate and amount differences arising after this moment are recorded as other income (expenses) of the organization.
According to clause 7 of PBU 3/2000 "Accounting for assets and liabilities, the value of which is expressed in foreign currency", the recalculation of liabilities and claims in rubles is made on the date of the transaction, as well as on the last reporting date. The resulting exchange rate differences refer to non-operating income or expenses (clause 13 of PBU 3/2000).
Please note: according to clause 33 of the Methodological Recommendations, the difference arising between the valuation of fixed assets reflected in the fixed assets account and the valuation reflected in the account of investments in non-current assets is written off to the profit and loss account as operating income (expenses). This difference is not included in the exchange rate differences.
All actual costs for the acquisition (creation) of fixed assets, which are recorded on account 08 "Investments in non-current assets", are transferred to account 01 "Fixed assets". Such an accounting entry is made at the time the facility is put into operation and included in the fixed assets of the organization.
Example 2... In accordance with the sale and purchase agreement, the organization in March 2004 acquired a warehouse for 1,180,000 rubles. (including VAT 18% - 180,000 rubles). For these purposes, in March she took out a bank loan in the amount of 500,000 rubles. at 15% per annum for a period of one month. After this period, the organization returned the loan to the bank and paid interest in the amount of 6250 rubles.
In April 2004, the organization paid 8,000 rubles for the registration of ownership of the property. and applied for registration. In the same month, the warehouse was put into operation.
For tax accounting purposes, an entity recognizes income and expenses on an accrual basis.
The following entries were made in accounting:
in March 2004
Debit 08 Credit 60
- RUB 1,000,000 - the cost of the warehouse is reflected in the structure of capital investments;
Debit 19 Credit 60
- RUB 180,000 - VAT charged by the seller is included;
Debit 51 Credit 66 subaccount "Loan debt"
- RUB 500,000 - received a loan from the bank;
Debit 60 Credit 51
- RUB 1,180,000 - the cost of the warehouse has been paid;
in April 2004
Debit 76 Credit 51
- RUB 8,000 - paid for the state registration of ownership of the building;
Debit 08 Credit 76
- RUB 8,000 - the registration fee is included in the actual costs of purchasing the fixed asset;
Debit 08 Credit 66 subaccount "Interest debt"
- 6250 RUB - accrued interest on the loan in accordance with the terms of the agreement;
Debit 66 subaccount "Loan debt" Credit 51
- RUB 500,000 - the loan was returned to the bank;
Debit 66 subaccount "Interest debt" Credit 51
- 6250 RUB - the interest on the loan is transferred to the bank;
Debit 01 subaccount "Fixed assets, which are on state registration" Credit 08
- RUB 1,014,250 (1,000,000 rubles + 8,000 rubles + 6,250 rubles) - the warehouse was put into operation<*>;
Debit 68 subaccount "Calculations for VAT" Credit 19
- RUB 180,000 - VAT is accepted for deduction.
The tax register for the formation of the initial cost of the fixed asset reflects the costs associated with the payment of the cost of the premises under the contract - 1,000,000 rubles. (1,180,000 rubles - 180,000 rubles). In addition, the initial cost of the warehouse includes a fee for registration of ownership rights - 8,000 rubles.
Thus, the initial cost of the warehouse in tax accounting is 1,008,000 rubles. Depreciation for the facility will start from the next month after its commissioning and the transfer of documents for state registration, that is, in May.
Interest on a loan in the amount of RUB 6,250 are included in non-operating expenses in April.
Property tax
With the entry into force from January 1, 2004, chapter 30 "Tax on the property of organizations" of the Tax Code of the Russian Federation, the costs accounted for on account 08 "Investments in non-current assets" are no longer involved in the calculation of the tax base.
According to Article 374 of the Tax Code of the Russian Federation, the object of taxation is movable and immovable property recorded on the balance sheet as fixed assets in accordance with the established accounting procedure. According to the procedure established by PBU 6/01 and Methodological Instructions, property is accounted for as a fixed asset at the time of its value reflected on account 01 "Fixed Assets".
Please note: the Methodological Guidelines clarified some controversial situations related to the determination of the moment when fixed assets were registered. So, if capital investments have been completed for an actually operated real estate object, primary accounting documents for acceptance and transfer have been drawn up and all the necessary documents have been submitted for state registration, depreciation on it is charged in accordance with the generally established procedure (clause 52 of the Methodological Instructions).
In the opinion of the tax authorities, real estate objects for which depreciation began must be included in fixed assets and, therefore, in the taxable base for property tax.
According to the author, clause 52 of the Methodological Recommendations gives the organization the right to choose how such a property will be reflected before the completion of the state registration process - on a separate subaccount to account 01 "Fixed assets" or on account 08 "Investments in non-current assets". If the organization chooses the second option, the property will not be subject to property tax. Of course, this position will have to be defended in court.
Such a nuance should be noted. If the organization does not reflect the real estate object, which is on state registration, as part of fixed assets, it will not be able to deduct the "input" VAT. Therefore, the organization must decide what is more important for it: a VAT deduction or a temporary deferral to pay property tax.
O. Ya.Kilichenkova
consulting group "What to do Consult"
6 "Transfer of young animals to the main herd";
7 "Purchase of adult animals", etc.
The debit of account 08 reflects the actual costs of the developer included in the initial cost of fixed assets, intangible assets and other relevant assets.
The formed initial cost of fixed assets, intangible assets, etc., taken into operation and executed in the prescribed manner, 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.
The balance on account 08 reflects the amount of the organization's investments in construction in progress, unfinished transactions for the acquisition of fixed assets, intangible and other non-current assets, as well as the formation of the main herd.
In the event of sale, gratuitous transfer and other operations with investments recorded on account 08, their value is written off to the debit of account 91 "Other income and expenses".
Analytical accounting on account 08 is maintained:
For the costs associated with the construction and acquisition of fixed assets - for each item of fixed assets under construction or acquired; at the same time, the construction of analytical accounting should provide the ability to obtain data on costs for:
Organizations, business associations, public organizations and other legal entities of all forms of ownership;
International organizations, foreign legal entities;
Individuals - citizens of the Russian Federation and foreign citizens.
Customers (developers) can be investors, as well as other individuals and legal entities authorized by investors to implement investment construction projects.
Capital investments can be financed by:
Investor's own financial resources;
Borrowed funds of the investor or funds transferred to him (bond loans and other funds);
Attracted financial resources of investors (received from the sale of shares, share contributions of labor collectives, citizens, legal entities);
Funding for capital investments in construction projects and facilities can be carried out both at the expense of one and at the expense of several sources.
Depending on the type of financing for new construction, the customer (developer) may use various accounting options, there are (or not) grounds for applying tax incentives, different forms of statistical reporting and primary documents may be used.
Accounting for construction costs and funding sources at the customer-developer in the case of a contract method of work. According to the Regulation on accounting, the current costs of manufacturing products, performing work and rendering services and costs associated with capital and financial investments are accounted for separately.
Developers, when fulfilling construction contracts, must ensure the formation of information about accounting objects according to the following indicators:
Construction in progress;
Completed construction;
PBU 13/2000 does not apply to budgetary organizations that, in terms of accounting for budgetary funds, are guided by the Accounting Instruction in budgetary institutions, approved by order of the Ministry of Finance of Russia dated 01.01.01 N 107n, as well as to non-profit organizations.
In PBU 13/2000, an uncontested option was adopted: recognition of the received state aid as the income of the organization.
Clause 5 of this Regulation discusses the conditions for accepting budget funds for accounting, including in the form of resources other than monetary funds.
To do this, the organization needs to be confident that:
PBU 13/2000 applies to budgetary funds, which are subject to recognition in accounting, provided for certain purposes to commercial organizations (except for credit), after January 1, 2001. For previously received budgetary funds, this Regulation is valid in the part relating to periods after January 1, 2001 g .;
The organization will fulfill the conditions for the provision of these funds;
The indicated funds will be received.
The fulfillment of the listed conditions can be justified by the following documents: target program, decree, decision, agreement, contract, etc .; the approved budget schedule, notification of budget allocations, limits of budget obligations; an act (invoice) of acceptance and transfer (for example, fixed assets - form N OS-1, equipment - form N OS-14); a plan for the transfer of land and structures; other documents confirming the transfer of ownership, use and disposal of assets to the organization.
A procedure has been established for recognizing in accounting the received state aid as an organization's income on non-current assets erected at the expense of budgetary funds and subject to depreciation, in accordance with the current rules: recognition occurs at the time the depreciation deductions are accrued.
In accordance with clause 9 of PBU 9/99 "Income of the organization", the amounts recorded on account 86 "Target financing" are written off to increase the financial results of the organization, that is, to account 91 "Other income and expenses" as non-operating income.
During the useful life of objects of non-current assets, the amount on account 98 "Deferred income" shall be charged in the amount of accrued depreciation over the useful life of non-current assets, which are depreciated according to the current rules.
3. Accounting for construction in an economic way
Many organizations erect fixed assets on their own, without involving contractors. Accountants of such organizations have questions: how to take into account the costs of the construction of fixed assets, are "own" construction work taxed with value added tax or not? Let's try to answer these questions.
The peculiarities of accounting in organizations conducting construction in an economic way are due to the fact that, on the one hand, capital investments are made, the accounting of which is regulated by the Regulation on accounting for long-term investments, approved by the letter of the Ministry of Finance of Russia dated 01.01.01, N 160, and on the other hand, the cost of construction and installation work is formed directly in the organization making capital investments. Therefore, when accounting for the costs incurred, one should be guided by the Standard Methodological Recommendations for Planning and Accounting for the Cost of Construction Work, approved by the Ministry of Construction of Russia on December 4, 1995 N BE-11-260 / 7.
The prime cost is formed directly on account 08 "Investments in non-current assets" (and not on account 20 "Main production", as in specialized contractors).
Structural divisions created to carry out construction and installation work in an economic way, as a rule, are not allocated to a separate balance sheet (although with large volumes of construction it is advisable to allocate an accountant specifically to account for the operations of this division). This means that the expenditure of material, monetary and the use of labor resources will be reflected in the same balance sheet as operations for the main activities of the organization.
As we have already said, the costs of building fixed assets in an economic way are formed on account 08. The following entries are made in the organization's accounting.
The question arises about the procedure for calculating VAT when accounting for construction operations in an economic way.
Until January 1, 1999, the Ministry of Finance of Russia and the Ministry of Taxation of Russia had a unanimous opinion on this issue - the tax should be charged on the entire volume of construction and installation work performed in an economic way, and included in the indicator of sales of products (works, services).
With the entry into force on January 1, 1999, of the first part of the Tax Code of the Russian Federation, the opinions of the Ministry of Finance of Russia and the Ministry of Taxes and Duties of Russia were divided.
The Ministry of Taxes and Duties of Russia is of the opposite opinion, guided by the provisions of Article 454 of the Civil Code of the Russian Federation and Article 39 of the Tax Code of the Russian Federation. According to this opinion, starting from January 1, 1999, construction and installation work performed in an economic way should not be included in the volume of sales of products and, therefore, there is no need to charge VAT and other taxes on the volume of sales of products, since there is no such. (This opinion is expressed by the Ministry of Taxes and Tax Collection of Russia when answering specific questions of organizations.)
Arbitration courts adhere to the same opinion, considering claims of taxpayers against tax authorities. At the same time, VAT charged on the volume of construction and installation work and paid to the budget is not refundable.
Since January 1, 2001, in connection with the entry into force of part two of the Tax Code of the Russian Federation, the following procedure for calculating VAT for construction by an economic method has been determined. Construction and installation works are subject to value added tax (Article 146 of the Tax Code of the Russian Federation) at the time the object is accepted for accounting, that is, if the object is not created as a result of the work, there is no need to charge VAT.
According to Article 159 of the Tax Code of the Russian Federation, value added tax is charged on the cost of construction and installation work performed for own consumption, calculated based on all actual expenses of the taxpayer for their implementation. By virtue of Article 171 of the Tax Code of the Russian Federation, the amounts of tax presented to the taxpayer for the goods (work, services) purchased by him for construction and installation work are subject to deductions.
Thus, when registering an object completed capital construction, an organization must charge VAT on the cost of construction and installation work performed on its own, and deduct this tax when filling out a tax return.
4. Documenting the movement of capital investments
According to the album of unified forms of primary accounting documentation, the main document for taking into account the costs of the developer for construction in progress is a certificate of the cost of work performed and costs (Form N KS-3).
Help in form No. KS-3 is also used for settlements with the customer for the work performed and is filled in in three copies: the first copy - for the contractor; the second copy - for the customer (developer, general contractor); the third copy is sent to the address of the financing organization, it is presented only at the request of this bank.
This certificate is prepared on a monthly basis by a specialist of the organization that performed construction and installation work, capital repairs of buildings and structures, and other contract work in the reporting period.
The cost of work and costs in the certificate in the form N KS-3 is indicated in the contractual prices at which the customer and the contractor are settling accounts.
The documents on the acceptance of the completed construction of the facility (buildings, structures, their queues, start-up complexes) when they are fully prepared in accordance with the approved project, the work contract (contract) are the act of acceptance of the completed construction of the facility (Form No. KS-11) and the act of acceptance of the completed construction the object by the acceptance committee (form N KS-14). These documents also serve as the basis for the final payment for all work performed by the contractor.
The aforementioned acts are drawn up in the required number of copies and signed by representatives of the work performer (general contractor) and the customer or other persons authorized by the investor for the work performer (general contractor) and the customer, respectively.
Acceptance of objects is drawn up by the customer and members of the acceptance committee on the basis of the results of examinations, inspections, control tests, measurements and documents of the contractor, confirming the compliance of the accepted object with the approved project, norms, rules and standards, as well as the conclusions of the supervisory authorities.
Only after these acts have been drawn up, construction objects are accepted for accounting as fixed assets.
CONCLUSION
To account for the costs of increasing non-current assets of durable use (for a period of more than 12 months), the active account 08 "Investments in non-current assets" is used. This account is intended to collect information on the developer's capital costs for fixed assets, as well as on the costs of forming the main herd of productive and working livestock (except for poultry, fur animals, rabbits, bee families, service dogs, experimental animals, which are accounted for as part of funds in turnover).
Thus, on account 08 "Investments in non-current assets" all expenses for the acquisition of fixed assets and construction and installation work carried out by economic or contractual means are taken into account.
Construction, as a form of capital investment, is carried out in two ways:
1) contracting, in which construction and installation work is carried out by a specialized contracting organization, and the functions of the customer are performed either directly by the investor or by a specialized organization;
2) economic, in which both the functions of the customer and the functions of the contractor are performed by the investor himself. At the same time, specialized structural divisions (capital construction departments) can be created in an organization making capital investments.
The construction of any object must be carried out with the permission of the owner of the land plot and (or) building, structure and in compliance with town planning, building codes and regulations.
Accounting for construction costs and funding sources at the customer-developer in the case of a contract method of work. According to the Regulation on accounting, the current costs of manufacturing products, performing work and rendering services and costs associated with capital and financial investments are accounted for separately.
The object of accounting for the developer is the costs of a construction object, incurred when performing certain types of work on objects erected under one project or construction contract.
Construction by an economic method differs from contract construction in that there is no separate economic entity performing construction under a contract with a developer. In this situation, the developer and the investor are one person.
Many organizations build fixed assets on their own, without engaging contractors. Accountants of such organizations have questions: how to take into account the costs of the construction of fixed assets, are "own" construction work taxed with value added tax or not? Let's try to answer these questions. According to the album of unified forms of primary accounting documentation, the main document for taking into account the costs of the developer for construction in progress is a certificate of the cost of work performed and costs (form N KS-3) Only after these acts are drawn up, construction objects are taken into account as part of fixed assets.
LIST OF USED LITERATURE
1. Rules (standards) of auditing activities - M: "Modern economics and law", p.
2. Baryshnikov and the audit methodology - M: UNITI-M, p.
3. Bychkova activity: theory and practice - SPB: Lan, p.
4. Gutsait –M: "Modern Economics and Law", p.
5. Terekhov - M: UNITY-M, p.
6. Kochinev –M: "Modern Economics and Law", p.
7., Goloshchapov - SPB: Lan, p.
8. Burtsev audit - M .: INFRA-M, p.
9. Sweets of Russian audit - M: UNITY-M, p.
10. Terekhov and audit - M: UNITI-M, p.
11., Zvezdin and Control: Textbook - M .: ID FBK-PRESS, 2003.
12. Fundamentals of audit: Per. from English - M .: Audit, UNITI, 1995.
13., Gazaryan in audit. - M .: Finance and Statistics, 2001.
14. Voropaev of internal control of the organization. Accounting. 2003. N 9.
15. Fundamentals of audit: Textbook. Ed. prof. ... - M .: Publishing house "Accounting", 2000.
16., Starovoitova: Textbook. - 2nd ed., Rev. and add. - M .: ID FBK-PRESS, 2002.
17. Kochinev. - SPb .: Peter, 2002.
18., Sotnikova. - M .: Masterstvo, 2002.
19., Suits. - M .: INFRA-M, 2000.
20. Robertson J. Audit. - M .: KPMG, Auditing firm "Contact", 2001.
- The Central Bank told about the new tariffs for the civil liability insurance What's new for the civil liability insurance from June 1
- What is sleep and who uses it What does sleep mean income
- Debit cards "Sberbank of Russia": what does this concept mean, how to use, an overview of the offered by the bank
- Simplified taxation system What does it mean in accounting usn