What is reflected in the credit of account 96. Accounting for reserves for future expenses
In accounting, all enterprises, with the exception of simplified ones, must create reserves for expenses for future periods. To account for the amounts transferred to replenish the reserves, account 96 "Reserves for future expenses" is used. The types of generated cash reserves and methods of their calculation are fixed in accounting policies... For tax accounting reserving funds is optional.
Account 96 in accounting: general information
The reserve account is necessary to account for funds deferred for the future, in order to ensure their even spending during the reporting period. For example, most of the employees strive to take a vacation in the summer, which is a large one-time financial burden for an enterprise. Reserving funds will allow you to pass the peak months for the payment of holidays without prejudice to the organization's current assets.
In relation to balance sheets, is the account 96 active or passive? He is passive. Receipt of payments to replenish the reserve is reflected in the loan, the amount of expenses from the reserves - in debit. Analytics are conducted for each type of reserve separately. For this, sub-accounts are used:
- 96.1 when forming a stock of funds for payments to vacationers;
- 96.2 when creating a reserve of funds intended for the payment of the seniority allowance;
- 96.3 concerning the performance of repairs and the costs of the implementation of warranty service;
- 96.4 is provided for all other reserves.
Account 96 in accounting, when creating a reserve for payments to vacationers, involves the inclusion of the calculated amounts for vacations and insurance premiums for these payments. Algorithm of actions:
- Payment total amount funds required to reserve for the payment of vacation pay. To do this, you need information about the number of employees, the amount of their vacation time, including extra days, and the average earnings.
- Calculation of insurance premiums at established rates in relation to the total value for the amount of vacation pay.
- Formation of the reserve by monthly or quarterly installments.
When creating a reserve aimed at covering the costs of repairing fixed assets, account. 96, the amount is accumulated within the framework of the actual cost of the repair services performed over the last 3 years in arithmetic mean. If there are more funds in the reserve than was necessary, then they can be transferred to the next year or canceled. With a shortage reserve assets additional expenses are written off as recurrent costs.
96 account - transactions
Postings confirming the creation of a provision:
- D08 - K96 indicates the formed reserve for the implementation of investments in non-current assets.
- D20, 23, 25, 26, 29 - K96 when reserving funds for production needs.
- D44 - K96 when creating a stock of funds for the implementation of implementation measures.
- D84 - K96, if there is a need to create a fund for material incentives for employees.
When spending funds from reserves, records are drawn up:
- D96 - K28 when eliminating the marriage at the expense of reserve funds.
- D96 - K51, 52 when transferring funds from the reserve.
- D96 - K69 in confirmation of the fact of accrual of insurance premiums from the amount of reserved vacation pay.
- D96 - K76 when repairing fixed assets by the efforts of third-party organizations.
- On debit account 96 - K91.1 for inclusion in other income of the amount of the unused part of the reserve.
Example
LLC "Elef" manufactures and sells goods with a warranty period after the sale of 12 months. The analytics of the reporting period showed that
- 15% of the goods are in need of repair, the cost of which per unit of the product is 400 rubles;
- 5% of the goods need to be replaced, the cost of which per unit of the product is 5200 rubles.
The production of 6,000 items is planned for the next year.
Calculation example annual amount reserve:
(6000 x 15% x 400) + (6000 x 5% x 5200) = RUB 1,920,000.
Each month 160,000 rubles must be deducted into the reserve. (1 920 000/12) and carry out this by recording D20, 23, 26, 44 - K96.
Account 96 in the balance sheet
In the balance sheet, the amount of reserves is reflected as estimated liabilities. For their recognition, several conditions must be met:
- the amount of liabilities can be estimated;
- the occurrence of a specific obligation was a consequence of the company's past activities;
- a decrease in the economic benefit in meeting the obligation is likely
96 account in the balance sheet is reflected in the part of the credit balance. The balance must be justified, no overstatement of the amount of the reserve is allowed. The term for fulfilling obligations must be less than 12 months. The account in the balance sheet transfers its balance 96 to line 1540.
Accounting for distribution costs
It is customary to understand distribution costs as the costs of material, labor and financial resources in the process of product promotion. In organizations carrying out production activities, distribution costs include:
- packaging of products in the warehouses of the state enterprise;
- delivery of GP to the station of departure;
- loading of GP in vehicle;
- commission fees paid to sales and other intermediary organizations;
- the costs of maintaining premises for storing SOE at the points of sale;
- expenses for representation (4% of payroll), advertising (1% of turnover without indirect) and other similar expenses.
Sales expenses are recorded in the active costing account 44 Sales expenses. The debit balance shows the selling expenses related to the balance of goods at the beginning (end) of the reporting period.
To distribute the distribution costs between the goods sold and stock balances at the end of the month, the following calculations are made:
1. The average% of distribution costs is determined:
K = (In + Ip) / (Tn + Tkop)
And - distribution costs at the beginning and for reporting period;
Т - goods sold during the reporting period and balances at the end of the period.
2. The distribution costs for the remainder of the goods are calculated:
Iot = K (average distribution costs) * Tkop / 100
3. The amount of distribution costs written off to the financial result is determined:
Irop = It + Iop - Iot
Accounting records for account 44:
1. The write-off of inventories is reflected on distribution costs: D44 K10
2. Accrued depreciation on fixed assets and intangible assets: D44 K02 (05)
4. Allocated VAT: D19-3 K76
5. Taxes related to distribution costs are assessed: D44 K68
6. Accrued salary to employees engaged in the sale of products: D44 K70
7. Assessed insurance premiums: D44 K69
8. The write-off of the reporting amounts is reflected: D44 K71
9. Deductions are made to reserves for future expenses: D44 K96
10. The costs of distribution for s / s sales are written off: D90-2 K44
BPO - these are costs that relate to future periods and which cannot be fully attributed to current costs (from / to the output). Οʜᴎ are included in s / s with certain (equal) shares for several months or years (maximum period up to 2 years).
For accounting for BPM, an active account 97 is used, on which the following types of costs are taken into account:
- contributions rent(lease payments) for subsequent periods;
- for the development of new products;
- for OS repair;
- to pay for a subscription, purchase of technical literature;
- for research and development work, for a period not exceeding 2 years;
- insurance costs;
BPOs are realized at the expense of the free working capital of the enterprise.
At the time the costs are incurred, account 97 is debited in correspondence with the credit of the respective settlement accounts. These costs are reimbursed to the enterprise through their uniform inclusion in the s / s during the period determined accounting policy enterprises.
Accounting records for account 97:
1. Attributed the costs of BP: D97 K10 (02, 05, 60, 70, 69, 76 ...)
2. BPOs are evenly included in operating costs: D20 (26) K97
3. Reflected the services of an intermediary organization for the work performed: D97 K76
4. Reflected VAT: D19-3 K76
Formation and use accounting reserve fund kept on passive account 96 "Reserve for future expenses". The credit balance on account 96 reflects the amount of unused reserves at the beginning (end) of the reporting period. The debit turnover shows the use of funds for the intended purpose, for the loan - the source of the formation of the reserve at the expense of monthly deductions for the s / s of manufactured products.
Accounting records for account 96:
1. The creation of a reserve for future expenses is reflected:
A) to pay for vacations: D20 (23, 25, 26, 44) K96-1
B) payments of remuneration at the end of the year: D20 (23, 25, 26, 44) K96-2
B) by overhaul OS: D20 (23, 25, 26, 44) K96-3
2. The closure of account 96 at the end of the reporting period is reflected:
A) if there is a credit balance (reserve balance): D96 K91-1
B) in the presence of a debit balance (overspending): D97 K96
Line 650 " Provisions for future expenses "
Main / Financial statements / Line 650
Line 650 accounting statements refers to balance sheet until 2011.
Line 650 "Provisions for future expenses"
This line of the balance sheet reflects the credit balance of account 96 "Reserves for future expenses". These are the reserves created by the organization for the upcoming vacation pay, for the payment of remuneration at the end of the year, for warranty repairs and maintenance, for the repair of fixed assets, etc. obligations, for the payment of severance pay, etc.).
Reservation of amounts is reflected in the credit of account 96 in correspondence with accounts for accounting for production costs (sales costs - for trade organizations). The expenditure of the amounts of the created reserve is reflected in the debit of account 96.
The decision on the formation of reserves and (or) on the refusal from the formation of reserves must be recorded in the accounting policy.
Please note: the amount of estimated reserves on line 650 of the balance sheet are not reflected.
Account 96 in accounting
Balance of accounting accounts of estimated reserves (14 "Provisions for depreciation material values", 59" Provisions for impairment of financial investments ", 63" Provisions for doubtful debts ") are not reflected in a separate amount in the balance sheet. The balances on them are taken to decrease the corresponding indicators of the balance sheet asset:
- the balance of account 14 reduces the indicators in lines 211 "Raw materials, materials and other similar values" and 214 " Finished products and goods for resale ”;
- the balance of account 59 reduces the indicators in lines 140 "Long-term financial investments"And 250" Short-term financial investments ";
- the balance of account 63 reduces the indicators in lines 230 and 240 "Accounts receivable".
The balance of account 82 "Reserve capital" is also not reflected in line 650. For it is line 430 Section III balance.
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Account 96 "Reserves for future expenses"
Account 96 "Reserves for future expenses" is designed to summarize information on the state and movement of amounts reserved for the purpose of even inclusion of expenses in production costs and sales costs. In particular, this account may reflect the following amounts:
- the upcoming payment of vacations (including payments for social insurance and security) to employees of the organization;
- for the payment of annual remuneration for seniority;
- production costs for preparatory work due to the seasonal nature of production;
- for the repair of fixed assets;
- forthcoming costs for land reclamation and other environmental protection measures;
- for warranty repair and warranty service.
Reservation of certain amounts is reflected in the credit of account 96 "Reserves for future expenses" in correspondence with accounts for accounting for production costs and sales costs.
The actual expenses for which the reserve was previously formed are debit to account 96 "Provisions for future expenses" in correspondence, in particular, with accounts: 70 "Payments with staff for wages" - for the amount of remuneration to employees during the vacation and annual remuneration for the length of service; - for the cost of repairing fixed assets made by a division of the organization, etc.
The correctness of the formation and use of amounts for one or another reserve is periodically (and at the end of the year) checked according to the data of estimates, calculations, etc.
and corrected if necessary.
Analytical accounting on account 96 "Reserves for future expenses" is kept under separate reserves.
Account 96 "Reserves for Future Expenses" corresponds to the following accounts of the Plan:
by debit
- 23 "Auxiliary production"
- 28 "Defect in production"
- 51 "Settlement accounts"
- 52 "Currency accounts"
- 69 "Calculations for social insurance and providing "
- 70 "Payments to staff on remuneration"
- 76 "Settlements with by different debtors and creditors "
- 91 "Other income and expenses"
- 97 "Prepaid expenses"
- 99 "Profit and Loss"
on a loan
- 08 "Investments in non-current assets"
- 20 "Main production"
- 23 "Auxiliary production"
- 25 "General production costs"
- 29 "Service industries and farms"
- 44 "Selling expenses"
- 97 "Prepaid expenses"
In this material, which continues the series of publications devoted to the new chart of accounts, the analysis of account 96 "Reserves of pending payments" of the new chart of accounts is carried out. This commentary was prepared by Ya.V. Sokolov, Doctor of Economics, Deputy. Chairman of the Interdepartmental Commission on Reform accounting and reporting, a member of the Methodological Council on Accounting under the Ministry of Finance of Russia, the first President of the Institute professional accountants Russia, V.V. Patrov, professor of St. Petersburg state university and N.N. Karzayeva, Ph.D., Deputy. Director of the Audit Service of Balt-Audit-Expert LLC.
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Reserve is a French word and literally means reserve. It has been used in accounting since the middle of the 19th century in the sense of:
- The part of the asset written off as an expense, i.e. the reserve must always be filled with funds presented in the balance sheet asset, if the asset does not have the corresponding filling, then it comes not about the reserve, but only about the counter account.
It is the inalienable right of the owner of the organization to form a reserve. Of course, this perfectly fair provision should not affect the interests of the budget.
Article 120 of the Tax Code of the Russian Federation is actively used by tax authorities in order to fine organizations for allegedly incorrect accounting. And many tax authorities believe that the correct accounting is one in which the accountant fulfills the requirements of regulatory and instructive documents word for word. But the norms of these documents often contradict each other, and this always allows organizations to be fined "fairly". The list of reserves that organizations have the right to create is specified in clause 72 of the Regulation on accounting and financial reporting.
The reserves are created in order to evenly include expenses in the costs of production and circulation of the reporting period, before they are actually made. The actual spending of the corresponding funds in the future is carried out at the expense of the formed reserves.
The size of each of the reserved amounts must be justified by an appropriate calculation.
The creation of reserves is reflected in the credit of account 96 "Provisions for future expenses" in correspondence with accounts for recording expenses.
Actual expenses for which a reserve was previously created are debit to account 96 "Provisions for future expenses" in correspondence with different accounts (70 "Payments with personnel for wages", 69 "Payments for social insurance and security", 76 "Payments with different debtors and creditors ", etc.).
Provision for the forthcoming payment of vacations to employees
Employees go on vacation unevenly. Usually they talk about the holiday season (summer, golden autumn). Naturally, it is during these months that the bulk of the company's expenses for the payment of vacation pay falls. From here, from the beginning of the year, the accountant, having determined the annual amount of vacation pay, divides it by twelve and every month, forming a reserve, makes an entry:
If a employee goes on vacation, the accountant draws up the entry:
Debit 96 "Provisions for future expenses"
Credit 70 "Payments to staff on remuneration"
Credit 69 "Settlements for social insurance and security"
Hence the need for a very clear approach to determining monthly amounts to be reserved.
Provision for the payment of annual remuneration for seniority
Usually these payments are made once a year. Consequently, one twelfth of a month is charged, and after December, payments to employees of the organization are accrued at the expense of the created reserve. In this case, the essence of the reserve is well understood: every month the organization incurs expenses related to the payment of seniority, but the money itself will be paid after twelve months, and during the year the organization will dispose of these funds as their own. However, for the amount of this reserve, a certain part of the asset is, as it were, "reserved" and according to by and large, in this case we are not talking about a reserve, but about accounts payable organizations in front of veterans.
Provision for preparatory work costs due to the seasonal nature of production
Organizations with a seasonal nature of production have a number of preparatory work costs that arise during periods when they are not actually carried out. economic activity... For a more even inclusion of these costs in the cost of production, a reserve is created for them in advance, i.e. expenses are shown that do not exist in this month, these expenses are created artificially, as if at the expense of forthcoming real expenses, some of which should fall for this month, although in fact they will arise in another month. And in this month they form a reserve. But, since there really were no expenses, the asset will always have values that fill the reserve.
Provision for the repair of fixed assets
The old French word is repair, which means bringing an object into serviceable condition, the work of which, for some reason, has become completely or partially unproductive. Every thing, and even the human body, needs repair from time to time. The requirement of continuous operation of the enterprise assumes that the repair costs arising at some point t (repair period) should be evenly distributed over the reporting months of the overhaul period. Suppose that such a period is three years, i.e. 36 months and the estimated cost of the expected repair will be 360,000 rubles.
Consequently, the accountant must create a reserve for the upcoming repairs every month by recording:
Debit 20 "Primary production" (other cost accounts)
Credit 96 "Reserve for future expenses"
It is assumed that all 36 months will be shown, in fact, fictitious costs, or rather quasi-costs, because in fact there is no repair, there are no costs, but these costs are still shown. In this case, of course, the reserve included in the liability is filled in the asset with real values, which, according to the accounting, have already been written off as expenses.
But now, suppose, two years later (24 months), repairs had to be carried out, and it cost 400,000 rubles. In this case, the accountant will make the following entries:
Debit 96 "Reserves for future expenses" - 240,000 rubles. Debit 97 "Deferred expenses" - 160,000 rubles. Credit 51 "Settlement accounts" - 400,000 rubles.
Let us consider how the content of these amounts is justified.
RUB 240,000 - this is the amount of the already accrued reserve intended for the repair of fixed assets. This means that immediately during the repair, all previously accrued quasi-costs are written off, and they turn into real costs, which, in our case, amounted to 400,000 rubles. Since more was spent than the reserve was;
RUB 160,000 - this is "overspending", more precisely the difference between the accumulated funds for repairs and its actual cost. According to the same requirement of a permanently operating enterprise, these expenses cannot be attributed to the period when they were incurred, but they should be attributed to future reporting periods. From here comes the account 97 "Deferred expenses".
So, future expenses for repairs are reserved, and expenses already incurred in future periods are rolled over, when a reservation is made, values remain in the asset, filling the reserve, when rolling over, a "hole" is formed in the asset: capitalized costs are shown that are included in current assets ( funds), but in fact there is no real content behind this prolonged capitalization.
The easiest way to understand what has been said is from the experience of the remarkable Russian man Akaki Akakievich Bashmachkin. He had to repair his main asset - a greatcoat. And he conscientiously put money into a jar from each payday, saved it, i.e. reserved. In the language of an accountant, he debited the untouchable cash fund and credited the reserve for the repair of fixed assets. If Bashmachkin were a German, he would have invested this cash in some kind of business, but he was a simple man and saved up reserves in an asset called a "stocking". Since the second half of the 19th century, the Russian people have learned, no worse than the Germans, to invest in such a way that they make a profit.
Reserve for land reclamation and other environmental protection measures
From a purely accounting point of view, this reserve resembles and even repeats the previous one.
The most significant difference should be recognized that the implementation of environmental measures is a much longer process than repairs, because it is more difficult to "repair" nature than to repair machines and machines.
Until environmental protection measures are taken, the accountant calculates a reserve. Expenses that actually do not exist are shown in the same way - quasi-expenses, and in the same way, if such work is carried out, and the reserve for them is not enough, then the accountant uses account 97 "Deferred expenses". And here we are faced with the same problems as when creating a reserve for repairs.
Reserve for warranty repairs and warranty service
Even when the valuables are just bought and it is assumed that they must be operated (machines work, you can live in the room, etc.), the seller, who has not yet sold these valuables, already promises future potential buyers either free repairs or free maintenance during the agreed period. And, therefore, having not yet sold a single unit of goods, the seller promises and guarantees the future, still anonymous buyer, repairs. But in order to carry out such repairs later, the seller begins to immediately create a reserve for warranty service. It is quite obvious that by doing in this case the entry:
Debit of cost accounting accounts
Credit 96 "Provisions for future expenses"
And when the "hour of reckoning" comes and buyers demand to repair watches, cars, summer cottages, etc., then you have to spend money and, above all, money. And the meaning of the entries will be like this:
Debit 96 "Reserve for future expenses"
Credit 51 "Settlement accounts", etc.
In the West and in a number of official documents, we have received a tendency to understand accounts payable not as attracted capital, but as the upcoming expected mandatory outflow of assets, as a rule, Money... In this regard, the reserve for warranty repairs is not treated as an account own funds as well as a monetary accounts payable account. And, no matter in which section of the balance sheet the balance of this account appears, when analyzing financial condition its balance should be included in the section of attracted (accounts payable) debt. Although, legally, this is undoubtedly the funds owned by the organization.
Until 2002, for profit tax purposes, the amount of deductions to the reserve for warranty repairs and warranty services was not taken into account. Taxable profit could be reduced only by the amount of actual costs for the above purposes.
From January 1, 2002, according to article 267 of the Tax Code of the Russian Federation tax base decreases by the amount of expenses for the formation of a reserve for warranty repair and warranty service. This reserve is created in relation to those goods (works) for which, in accordance with the terms of the concluded agreement with the buyer, maintenance and repair of the product are provided during the warranty period.
Expenses are the amounts of deductions to the reserve as of the date of sale of the specified goods (works). At the same time, the amount of the created reserve cannot exceed the maximum amount determined as the share of actual expenses for warranty repair and maintenance in the amount of proceeds from the sale of the specified goods (works) for the previous three years.
An organization that has not previously carried out the sale of goods (works) with the condition of warranty repair and maintenance is entitled to create a reserve in an amount not exceeding the expected costs of these costs. Expected costs are the costs of the warranty plan based on the duration of the warranty.
At the end of the year, the organization must adjust the amount of the created reserve based on the share of actually incurred expenses in the amount of proceeds from the sale of these goods for the past year.
For goods (works) for which the period of warranty service and repair has expired, the amounts of the reserve not spent as intended are included in the non-operating income of the corresponding period.
The procedure for forming a reserve for warranty repair and warranty service is regulated by Article 267 of the Tax Code of the Russian Federation, which provides for the mandatory fulfillment of the following conditions:
- the contract with the buyer provides for maintenance and repairs during the warranty period;
- the accounting policy of the enterprise should provide for the procedure for determining the maximum amount of deductions to the reserve
Provision for payment of remuneration based on performance for the year
Some organizations, in addition to monthly wages, to increase the interest of employees in the final results of activities, practice the payment of remuneration based on the results of work for the year. These benefits are included in the cost of production, but since they are issued once a year, an appropriate reserve is created to evenly distribute these costs.
Provision for future costs of repairing items intended for renting under a rental agreement
A rental agreement is a type of rental agreement. Under this agreement, the lessor undertakes to provide the tenant movable property for a fee for temporary possession and use.
The repair of this property (items) is the responsibility of the landlord and, as a rule, it is carried out unevenly over the months. Therefore, for an even distribution of costs on it, the organization engaged in the delivery of items for rent, create a reserve for repair costs.
We have considered those types of reserves, which are listed in paragraph 72 of the Regulations for the maintenance of accounting records and financial statements. However, this paragraph states that reserves may still be created to "cover foreseen costs and other purposes provided for by law Russian Federation, regulations Of the Ministry of Finance of the Russian Federation. "As an example of such reserves, we can name the reserve for writing off the natural loss of goods. The creation of this reserve is provided for in paragraph 2.13 of the Methodological Recommendations for the accounting of costs included in the costs of circulation and production, and financial results at trade and public catering enterprises, approved by the letter of Roskomtorg of Russia on April 20, 1995 No. 1-550- / 32-2 (this document has been agreed with the Ministry of Finance of Russia).
Natural loss is the loss of goods due to their physical and chemical properties, i.e. the ability to shrink, shrink, spray, leak, etc.). This mainly applies to food products.
Due to their objective nature, the above losses are normalized, i.e. their limiting sizes (norms) are established.
Losses of goods during storage and sale due to natural loss are revealed only after the inventory and are written off in the month of the inventory.
In the vast majority of cases, the inventory of goods is not carried out monthly, and therefore it would be wrong to attribute the entire amount of losses incurred during the inter-inventory period to the expenses of one month. Since the loss of goods due to natural loss is formed for the entire period between inventories (for several months), then they should be distributed among all months this period... For a more even distribution of losses from natural loss between all months of the inter-inventory period, the planned amount of these losses is written off monthly to expenses by calculating a reserve for natural loss. After the inventory, the shortage of goods resulting from natural loss is written off at the expense of the previously accrued reserve. Since the actual amount of shortage of goods due to natural loss and the accrued reserve, as a rule, are not equal, then the difference between these indicators is recorded for adjusting the reserve: the excessively accrued reserve is canceled, and if it is insufficient, it is charged additionally.
The reserve for writing off natural loss is envisaged to be charged only "on refrigerators, cold storage plants, bases of vegetable and food products, trade enterprises with warehouses ...".
It follows that this reserve can practically not be created in most stores, since they do not have warehouses as such. This position of Roskomtorg of Russia and the Ministry of Finance of Russia is surprising, since stores have to write off losses of goods during storage and sale due to natural loss, formed over several months, as expenses of one month (in which the inventory was carried out).
All over the world, the sale of goods by the self-service method is widely used. This progressive trading method has one drawback - the possibility of shoppers stealing goods. Trading firms use various forms of control over the actions of buyers, however, the value of the stolen goods is still measured in astronomical amounts. Since these losses of goods are objective, then, in our opinion, their certain amount should be written off to current expenses and taken into account when taxing profits. At one time, the USSR Ministry of Trade approved the norms of such losses and provided for their reservation. Unfortunately, the current regulations do not provide for these obvious objective cost losses in order to reduce taxable profit.
Methodological guidelines for inventory of property and financial commitments, approved by the order of the Ministry of Finance of Russia dated 13.06.1995 No. 49, it is envisaged to check the correctness and validity of their creation when making an inventory of reserves for future expenses. In particular, the reserve for the upcoming vacation pay should be adjusted based on the number of days unused vacation, the average daily amount of expenses for wages of employees and payments of a single social tax... It also clarifies the reserves created for the payment of annual bonuses for length of service and based on the results of work for the year. In case of excess of the actually accrued reserve over the amount, confirmed by the inventory of the calculation in December of the reporting year, a reversal entry of production and distribution costs is made, and in case of undercharging, a record is made on the inclusion of additional deductions in production and distribution costs.
Unnecessarily reserved amounts the provision for the repair of property, plant and equipment at the end of the year is reversed. In cases stipulated by industry-specific features of cost accounting, when the completion of work on objects with a long production period occurs in the next year after the reporting year, the balance of the reserve is not reversed. Upon completion of the repair, the excess accrued amount of the reserve is charged to financial results reporting period.
If in an organization with a seasonal nature of production, the amount of expenses for maintaining and managing production included in actual cost of manufactured products according to the standards established in the organization, exceeds the actual costs, the resulting difference is reserved as future costs. There should be no balance at the end of the year for this reserve. Accordingly, the correctness and validity of the creation of other reserves is checked.
In connection with the problem under consideration, I would like to draw the attention of readers to one sentence of clause 2.17 of the Methodological Recommendations for accounting for distribution costs in trade and public catering: "At the end of the reporting year, if the actual accrued reserve exceeds the amount of the calculation, confirmed by the inventory, a reversal record of distribution and production costs is made." This instruction arose due to the requirements of many employees tax inspectorates adjust at the end of the year the amount of all accrued reserves. Such a requirement indicates a lack of understanding of one of the most important accounting principles - the accrual principle, in accordance with which all expenses related to a given reporting period should be written off to distribution costs of this period. Cancellation at the end of the year of the balance of the unused reserve for natural loss without taking an inventory of goods is a violation of the above accounting principle, and it is practically impossible to carry out an inventory of goods at the end of the year (exactly on January 1) in all trade organizations. The reserve for natural loss should be rolling over to the next year and should be adjusted only at the time of the inventory.
Due to the requirements current legislation(local regulations, court decisions, agreements) in the course of the actions of the company, the latter may encounter obligations in relation to which the amount and term are not determined.
We are talking about liabilities of an estimated nature, which are reflected in PBU 8/2010. For accounting used account 96 "Reserves for future expenses".
What it is
The account is used in in order to create a reserve of planned costs... Thus, they provide an even distribution of expenses in order to pay income tax and other areas. There are sub-accounts regarding staff wages, seasonal work, equipment preparation activities, repair work with fixed assets, etc.
With the correct management of account 96, the company is endowed with the opportunity to avoid problems with legislation and rationally plan its own budget.
The word "reserve" has French roots and is translated as reserve. Within the current accounting practice it has been in operation since the 19th century and assumes a share of the asset that is written off as an expense, that is, it must always be filled with the funds presented in the asset of the balance sheet.
If the corresponding content is absent, then use the contract account. The formation of a reserve is an indisputable right belonging to the owner of the enterprise. But this direction should not imply affecting all interests of the budget.
What is it used for
Account 96 is intended for use and bringing in general form information related to the state and movement of amounts reserved for the purpose of including expenditure directions in certain categories of costs.
By credit certain amounts are reserved, and debit- regulation of the actual costs for which the reserve was previously formed.
The correctness of the formation and application is regularly checked on the basis of calculation data, estimates and rules.
Score 96 wears passive character... Formation is carried out by credit, write-off - by debit.
Accounting procedure
To recognize and reflect the estimated liabilities in accounting, take into account a number of conditions, mandatory for observance:
- in the course of past circumstances, the organization has an obligation that must be fulfilled urgently;
- high probability of decrease economic benefits that are required to fulfill this obligation;
- a reasonable estimate of the amount of the estimated liability.
If each position is met, the account reflects obligations for:
- payment of vacation pay to employees;
- repair costs related to property, plant and equipment;
- costs of warranty service of commodity items;
- litigation;
- restructuring of the firm.
The legislative framework
In the process of carrying out activities, the accountant is guided by norms and peculiarities:
- local regulations adopted within the enterprise;
- orders and orders from the authorities;
- government regulations;
- regional conclusions;
- accounting rules (PBU).
All laws are extensive and involve consideration of the situation from several perspectives.
Formation, write-off, typical accounting entries
Based on the nature of the estimated liabilities, the amount is expensed by type of activity, as well as other costs. With regard to maintaining analytical accounting on the account, it is carried out in the areas of obligations. The credit balance is reflected in the balance sheet liabilities at line 1430.
By debit
- Dt 96 Kt 23- write-off of expenses for completed current repairs, write-off of costs that are aimed at auxiliary production.
- Dt 96 Kt 28- displaying the write-off of expenses for the elimination of defects.
- Dt 96 Kt 29- the costs of service industries are written off due to preliminary formation.
- Dt 96 Kt 51- increase in the settlement account of the RPR on the basis of a bank statement.
- Dt 96 CT 52- an increase in the reserves of expenses at the expense of monetary funds.
- Dt 96 Kt 70- Calculation of payment for vacation pay to workers.
- Dt 96 Kt 97- write-off of expenses for repair work.
- Dt 96 Kt 99- accrual excess amount for the repair of fixed assets.
- Dt 96 Kt 10-1- write-off of the cost of used materials.
- Dt 96 Kt 69-3- calculation and payment of tax contributions.
- Dt 96 Kt 91-1- referring to the financial results of the amounts that are accrued in the current year.
On a loan
In the credit direction, the account includes a large number of postings.
- Dt 20 (23) CT 96- reflection of deductions to the reserve intended for the repair of fixed assets.
- Dt 20 Kt 96- accrual sums of money, the formation of reserves for payment of vacation pay and the reflection of the amounts of deductions for the subsequent repair of fixed assets.
- Dt 23 Kt 96- accrual has occurred.
- Dt 29 (44) CT 96- reflection of the amount of monthly deductions for repair operations on fixed assets.
- Dt 44 Kt 96- payments for repair work on the tenant's fixed assets are reflected.
- Dt 84 CT 96- the formation of a fund for material assistance within the enterprise.
- Dt 86 CT 96- contributions from the capital repair fund.
- Dt 97 CT 96- reflection of the fact that the actual costs of repair work exceeded the reserve that was created for the repair of fixed assets.
In practice, a large number of transactions are used that should be taken into account and taken into account in accounting activities.
Features of closing 96 accounts
The calculation of the amount of the reserve occurs not 100% accurate... It changes due to exposure a number of factors:
- dismissal of employees;
- changes in salaries and subsidiary deductions;
- changes in the actual vacation schedule;
- other prevailing circumstances.
When the reserve is exceeded, the “top” amount is written off through recurring expenses. If the expenditure did not occur in full, it is carried over to the next year or canceled.
What conclusion can be drawn
The score 96 plays an important role in the balance sheet and the activities of the organization as a whole. Has subaccounts that operate in different areas of expenditure, and is responsible for the stocks of the enterprise in order to correctly allocate the budget.
The account corresponds with a large number of other directions and is used in the formation of transactions. They characterize the principles of the enterprise and the accounting department.
Enterprises in the Russian Federation have the right to form reserves, and take into account expenses when setting up when determining income tax. In this article, we will consider account 96: its use, postings and offsetting accounts.
Account 96: using it
To summarize information that gives an idea of the future expenses of the organization, distributed during the year, account 96 "Reserves for future expenses" is intended. Its purpose is to evenly include costs for forthcoming production costs, sales costs.
Provisions for liabilities consist of:
- selling costs;
- one-time payments to employees;
- current repair of equipment, OS;
- development of new industries;
- other possible expenses of the organization.
When creating reserves, costs are attributed to the following accounts, depending on the ultimate purpose of destination:
Reserve name | purpose | Accounts used in accounting |
To pay for vacations | Funds are allocated to provide employees with vacations throughout the year | 70, 69 |
For the payment of employee benefits for years of service and other | Creation of reserves for lump-sum payments to employees, allocation of funds for salaries of seasonal workers | 70, 69 |
OS repair | Possible amounts required for routine maintenance (repair) of property and equipment are determined | 20,23 |
Land reclamation | Designed for environmental protection activities | 20, 23 |
Warranty repair and service | Reimbursement of expenses to buyers for the malfunction of the purchased product under warranty service | 51 |
Account 96: typical transactions
The figure below shows the account 96 "Provisions for future expenses" and its typical wiring... To enlarge the picture, click on it.
Account 96 “Reserves for future expenses”. Postings
Reflection of reserves in accounting
Recently, the formation of reserves has become mandatory for legal entities... An exception is made by organizations that have the right to keep simplified accounting (small businesses).
The procedure for the formation of reserves is not legally fixed. Organizations have the right to develop an algorithm themselves and write it down in accounting policies. If, for example, the number of employees is significant, it is allowed to create reserves for upcoming vacations on a quarterly or throughout the year.
If in accounting the creation of reserves has become mandatory, then in tax conduct procedures are determined at the discretion of management. The adoption of such a decision should also be reflected in the accounting policy. The reserve created in tax accounting allows you to reduce taxable base... You should decide on the maximum amount of deductions and the monthly percentage. A calculation is made that contains information on the planned amounts of monthly expenses based on data on the total annual costs of reserves of a certain type.
Leave and other allowances
The management has the right to take into account the forthcoming expenses intended for the repayment of arrears on the payment of vacation sums to its employees and their distribution evenly throughout the year.
When determining the annual amount of the vacation reserve, one should take into account all expected payments, including contributions to the Pension Fund and Social Insurance Fund, calculate the percentage of deductions to the reserve based on the possible vacation amounts and the annual wage fund.
Example... The annual payroll together with insurance payments in the organization is planned in the amount of 900,000 rubles. Estimated amounts of vacation and related contributions are equal to 80,000 rubles. You want to calculate the percentage of the provision.
The monthly amount for replenishment of the reserve is determined as the ratio of the vacation sums to the payroll for the year, divided by the number of months (12) - 80,000 / 900,000 / 12 * 100% = 0.74%.
The amount of monthly deductions is 900,000 rubles * 0.74% = 6,660 rubles - this amount must be transferred monthly to the reserve for upcoming vacation payments.
The following records will appear in the account:
Dt 20 - Kt 96 (6 660 rubles) - monthly formation of the reserve
When the employee is on vacation, the following transactions appear:
Kt 96 - Dt 70 - accrual of vacation amounts;
Kt 96 - Dt 69 - insurance premiums for vacations.
If it is necessary to allocate amounts for employee benefits for seniority, planned expenses are also reserved for 12 months.
At the end of the period, an inventory of the reserves is required. The procedure is necessary to compare the actual and planned costs. If unused reserved amounts are found, they should be included in the tax base. In case of insufficient funds, additional payments for holidays and insurance premiums are made to expenses.
Provisions for the repair of fixed assets (fixed assets)
Each equipment on the balance sheet of the enterprise may suddenly fail or require additional investments in the form of current repairs. For such unforeseen needs, reserves are created for OS repair. The period of validity of the equipment and the estimated amount are taken as a basis.
Factors affecting the estimated amount:
- the cost of spare parts;
- wages and insurance premiums for workers involved in repairs;
- costs of paying for services to third parties.
The maximum amount of deductions to the reserve cannot be higher than the funds spent on OS repair based on the data for the last 3 years. Deductions for expenses are written off on a straight-line basis throughout the reporting period.
If the actual amount of expenses turned out to be less than planned, then the previously made deductions to the reserve should be taken into account as part of income at the end of the year. If actual costs are exceeded, additional amounts are included in other costs.
The creation of a reserve for the repair of fixed assets in tax accounting is the right, not the obligation of the taxpayer. Beneficial for large organizations with a large amount of equipment.
Warranty reserves
It is typical for trade institutions to provide guarantees to buyers when purchasing goods. Trade organizations received the right to create reserves for possible upcoming warranty service.
The amount of the reserve should not exceed the amount of repair costs over the past 3 years. If at the end of the year the reserved amounts are not spent, then they are accounted for as extraordinary income organizations.