Where to get the explanatory note to the balance sheet. Explanatory Note Sample
EXPLANATORY NOTE TO ANNUAL ACCOUNTING REPORTING
FOR 2016
1. Basic information about the organization
Limited Liability Company ____________
Legal address:______________________________________________
The actual address: _________________________________________________
Date of state registration: ______________
PSRN: ____________
TIN: _____________
PPC: _______________
It is registered in IFTS No. __________ "___" _________ 20__
Certificate No. __________
The accounting statements of the Company are formed on the basis of the accounting and reporting rules applicable in the Russian Federation.
The number of employees at the end of the reporting period was ______ people.
In 2016, there was an increase in the authorized capital:
Due to retained earnings of previous years in accordance with Protocol No. __ of "___" _________ 20__ in the amount of ____ rubles.
Due to the contribution of the founder to the authorized capital in accordance with Protocol No. ____ of "___" _________ 20__ in the amount of _______ rubles.
The amount of the authorized capital of the Company as of December 31, 2016 is ______ rubles.
The main activities of the Company are ____________________________.
Production and financial activities were carried out by the Company throughout the entire period of 2016 and were aimed at generating income in the reporting and subsequent periods.
The materiality level fixed by the Company in the accounting policy for accounting purposes is 5% of the corresponding article of the financial statements.
2. Revenue (income) from sales
Proceeds from the performance of work, the provision of services, sales are recognized as the readiness of the work, services, products (Clause 13 of PBU 9/99 “Organization Income”).
Revenues from sales in 2016 amounted to ______________ rubles. (without VAT).
Revenues from sales for previous reporting periods amounted to (without VAT):
2015 - ________ rubles;
2014 - _______ rubles .;
2013 - ________ RUB.
Analysis of these indicators indicates a positive trend in the development of financial and economic activities of the enterprise.
3. Costs associated with the implementation.
Administrative expenses, recorded on the debit of account 26 “General expenses”, at the end of the reporting period are not distributed between the objects of calculation and as conditionally fixed are written off directly to the debit of account 90 “Sales of products (works, services)” with distribution between item groups in proportion to the specific weight of revenue from sales.
Selling and administrative expenses are recognized in the cost of sold products, goods, works, services in the reporting year in full recognition of them as expenses for ordinary activities (paragraph 9 of PBU 10/99 “Organization expenses”).
The costs associated with the implementation in 2016 amounted to ________ rubles. (without VAT).
For tax accounting purposes, the amount of expenses associated with the sale amounted to ________ rubles.
The costs associated with the implementation for the previous reporting periods amounted to (excluding VAT):
2015 - ________ rubles;
2014 - _______ rubles .;
2013 - ________ RUB.
Analysis of the above indicators indicates the optimization of costs associated with the implementation, which positively affects the economic activity of the enterprise.
4. The financial result obtained from the main activities
The financial result obtained from the main activities in 2016 amounted to _________ rubles.
For tax purposes, the amount of profit from sales amounted to ______ rubles.
5. Other income.
The amount of other income for accounting purposes in 2016 amounted to ______ rubles.
For tax accounting purposes, the amount of non-operating income amounted to ________ rubles.
6. Other expenses.
The amount of other expenses for accounting purposes in 2016 amounted to _____ rubles.
For tax accounting purposes, the amount of non-operating expenses amounted to _____ rubles.
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7. Income tax calculations.
The Company forms in accounting and discloses in the financial statements information on calculations of corporate income tax in accordance with the requirements of PBU 18/02 “Accounting for calculations of corporate income tax”.
The profit for the purposes of taxation on income tax in accordance with the data of tax accounting registers and data of the tax return amounted to _____ rubles.
The income tax rate in 2016 was 20%.
The amount of accrued income tax according to the tax return for 2016 amounted to ____ rubles.
The amount of accounting profit according to accounting registers was ____ rubles.
The amount of contingent expense reflected in accounting for debit of account 99.02.1 “Contingent expense for income tax” amounted to ______ rubles.
The amount of permanent tax liabilities (hereinafter referred to as PNO) in 2016 amounted to _____ rubles.
Current corporate income tax calculated in accordance with the provisions of PBU 18/02 according to the formula:
Current corporate income tax \u003d contingent expense + Accrued SHE + PNO - PNA.
is ______ rub. and complies with the tax return for 2016.
8. The financial result of economic activity
The financial result obtained in 2016 amounted to _______ rubles.
The financial result of the enterprise in 2016 was affected by the expenses incurred and written off to the financial result:
Managerial
Commercial
Other expenses.
9. Information about the accounting policies of the organization
The regulation on accounting policies used by the Company has been drawn up in accordance with the provisions of Federal Law No. 402-FZ of December 6, 2011. “On accounting” and requirements and other applicable provisions, directions, instructions.
Explanatory note - an appendix to the annual financial statements, which should contain essential information about the organization, its financial position, comparability of data for the reporting and previous periods, assessment methods and significant articles of the financial statements and other information. Essentially, the explanatory note summarizes the information contained in the statements of the organization, clarifies and comments on it, and also supplements with other necessary information that is not reflected in the forms of financial statements of organizations.
The explanatory note should perform the following main tasks:
disclose material information contained in the financial statements;
disclose material information not reflected in the financial statements;
provide users with additional information that reveals the main aspects of its activities.
Compilers of reports (including explanatory notes) in accordance with Federal Law of 21.11.1996 N 129-ФЗ "On Accounting" are all organizations, with the exception of budgetary institutions, as well as public organizations (associations) and their structural units that do not carry out entrepreneurial activities and not having, in addition to the retired property, sales for the sale of goods (works, services).
The users of the explanatory note are the users of the organization’s reporting - legal entities and individuals interested in information about it.
The requirements for the contents of the explanatory note include:
mandatory general requirements established by law;
mandatory requirements established by law, the reflection of which depends on the presence of certain facts of economic activity;
additional requirements related to the industry affiliation of the organization, its specifics, etc .;
additional requirements aimed at meeting the needs of a particular category of users of financial statements.
The process of compiling an explanatory note can be divided into three main stages:
the first stage is an analysis of the requirements for the content of the note, established by applicable laws and other requirements;
the second stage is the selection of the necessary sections (information blocks) of the note; collection, processing and editing of information for inclusion in the relevant sections; the choice of the form of presentation of information, the preparation of graphic material;
the third stage - the preparation and signing of the final version of the note; its approval as part of the annual reporting by the supreme management body of the organization.
Below are the mandatory requirements of the legislation for the content of the explanatory note in general terms by sections in the classification we have chosen.
1) Legislatively established requirements for the formation of an explanatory note
Section Name |
Regulations |
Notes |
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1) Mandatory general requirements (legally established) |
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1. General information |
The legal address of the organization. Main activities. The average annual number of employees for the reporting period or at the reporting date. Composition (surnames and positions) of members of executive and control bodies. Name of legal entity (full and abbreviated). |
PBU 4/99, p. 31 |
The legal form of organization, information about the founders, the amount of the authorized (joint-stock) capital specified in the constituent documents is also indicated. Information is given about the auditor, appraiser, trademark or service mark, telephones, etc. |
2. Accounting policies |
Information that the financial statements are based on the current accounting and reporting rules in the Russian Federation. The consequences of changes in accounting policies compared to the previous reporting period. Announcement of a change in accounting policy for the year following the reporting one. In accordance with RAS, certain rules for accounting for assets and liabilities adopted by the accounting policy are disclosed. |
PBU 4/99, p. 6 PBU 1/98, p. 19, 20, 21, 22 PBU 1/98, p. 23 PBU 6/01, PBU 5/01, PBU 14/2000, PBU 19/02, PBU 9/99, PBU 10/99, PBU 15/01, PBU 17/02 |
The financial statements are considered reliable and complete if they are formed on the basis of the rules established by Russian Accounting Regulations. Therefore, in the notes to the balance sheet and the income statement this should be indicated. If deviations from the general rules are allowed, then the organization must disclose in the explanatory note all cases of such deviations with an indication of their reasons |
3. Analysis and evaluation of the balance sheet structure and dynamics of profit |
A brief description of the organization's activities (ordinary activities, current, investment and financial activities). Key performance indicators and factors that influenced financial results in the reporting year. Assessment of financial condition for the short and long term. |
Law N 129-ФЗ, paragraph 4 of Art. 13 PBU 4/99, p. 31 by Order of the Ministry of Finance of Russia dated 07.22.2003 N 67n (hereinafter referred to as the Instructions), p. 19 |
The main performance indicators and factors that influenced the financial results of the organization in the reporting year are reflected. Since there are many different ways of calculating the same coefficients, it seems appropriate to disclose the applicable calculation procedure in the text. One of the methods of calculation may be the Rules for the arbitration manager of the financial analysis, approved. By the order of the Government of the Russian Federation of 06.25.2003 N 367 |
4. Explanations to significant items of accounting statements |
Information is disclosed in the case of its materiality and the absence of its disclosure in the forms of financial statements. Disclosure procedure - in accordance with the requirements of the relevant sections of RAS (“Disclosure of information in financial statements”) |
PBU for various accounting objects PBU 5/01, p. 27 |
Explanations and interpretations of not only significant balance sheet indicators, but also the Profit and Loss Statement can be provided. For example, for inventories, subject to materiality, at least the following information should be disclosed, taking into account materiality: on methods for assessing inventories by their groups (types); on the consequences of changes in the methods for estimating inventories; the value of inventories pledged; about the size and movement of reserves for reducing the value of material assets. Non-material reporting items may not be disclosed. |
2) Mandatory requirements established by law, the reflection of which depends on the presence of certain facts of economic activity. |
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5. Change in opening balances |
Data at the end of the previous reporting period. Data at the beginning of the reporting period. |
PBU 4/99, p. 9 |
As a general rule, opening balances on accounts at the beginning of the reporting year should correspond to the data that were reflected in last year’s balance sheet in the column “At the end of the reporting period”. If for some reason the opening balances of the reporting period do not match the data at the end of the previous period, then this is explained. |
The reason for the change in opening balances may be changes in the content of the statements and its form, the introduction of new RAS, reorganization of the organization (in the form of merger, merger, spin-off and separation) |
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6. Contingent facts of economic activity |
The following information is disclosed for each contingent liability: * A brief description of the nature of the obligation and the expected duration of its performance; * A brief description of the uncertainties that exist with respect to the time period for fulfillment and the amount of the obligation. For each reserve formed in connection with the consequences of a conditional fact, the following information is additionally disclosed: * the amount of the reserve at the beginning and end of the reporting period; * the amount of the reserve written off in the reporting period in connection with the recognition by the organization of an obligation previously recognized as contingent in accordance with paragraph 11 of PBU 4/99; * unused (excessively accrued) reserve amount allocated in the reporting period to other income of the organization. |
PBU 8/01, sect. 4 |
Information about contingent facts and reserves formed in connection with the consequences of a contingent fact may be disclosed by groups of homogeneous contingent liabilities or reserves formed in connection with homogeneous contingent facts of economic activity, for example, in connection with issued guarantee obligations of an organization, court proceedings. Information on the availability and amount of guarantees issued by the organization, obligations arising from bills taken into account (discounted) by the organization, and other similar obligations undertaken by the organization, as a rule, is disclosed in the explanatory note to the organization’s financial statements for the reporting period, regardless of the degree of probability of consequences such facts of economic activity. Information on contingent assets is disclosed in an explanatory note to the organization’s financial statements for the reporting period if there is a high or very high probability that the organization will receive them; at the same time, the contingent assets are not reflected in the balance sheet for the reporting period, and no accounts are made in the synthetic and analytical accounting of the reporting period. |
7. Joint activity |
The purpose of the joint activity (production of goods, performance of work, rendering of services, etc.) and contribution to it. A method of extracting economic benefits or income (joint operations, shared assets, joint ventures). The value of assets and liabilities related to joint ventures. Amounts of income, expense, profit or loss relating to a joint venture. Disclosure of information about shared assets. Disclosure of information on jointly performed operations. |
PBU 20/03, p. 8, 11, 16, 22, 23, 24 |
It is prescribed to use the rules for its isolation when disclosing information established by PBU 12/2000 "Information on Segments". This means that in order to determine whether the information is subject to disclosure or not, it is advisable to adhere to the provisions of paragraph 9 of PBU 12/2000. Disclosure of information in an explanatory note on joint activities depends on the form in which it is carried out. |
8. Explanations for discontinued operations |
A description of the discontinued operations, the value of the assets and liabilities of the entity expected to be disposed of or redeemed as part of the discontinuation. Amounts of income, expenses, gains or losses before tax, as well as the amount of accrued income tax relating to discontinued operations. Cash flows related to discontinued operations by current, investment and financial activities during the current reporting period. |
The amounts of income and expenses, profit or loss, as well as cash flows related to discontinued operations can be reflected in the Profit and loss account and the Statement of cash flows, respectively. |
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9. Segment Information |
The primary indicators for the reporting segment in the financial statements disclose the following indicators related to the reporting segment: * total revenue, including revenue from sales to external customers and from operations with other segments; * financial result (profit or loss); |
The organization establishes the list of segments for which information is disclosed in the financial statements based on its organizational and managerial structure. The list of reporting segments in the consolidated financial statements is established by the organization responsible for the preparation of the consolidated financial statements |
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* total carrying amount of assets; * total liabilities; * the total amount of capital investment in fixed assets and intangible assets; * the total amount of depreciation for fixed assets and intangible assets; * the total share in net profit (loss) of associates and subsidiaries, joint ventures, as well as the total amount of investments in these associates and joint ventures | |||
10. Explanations of events after the reporting date |
A brief description of the nature of the event after the reporting date. Evaluation of the consequences of the event after the reporting date in monetary terms. |
PBU 7/98, p. 11 |
If it is impossible to evaluate the event, then the reason must be explained in the explanatory note. An event after the reporting date is considered significant if, without knowledge of it by users of the financial statements, a reliable assessment of the financial condition, cash flow or the results of the organization’s activities is impossible. The materiality of the event after the reporting date is determined by the organization independently on the basis of the requirements of the provisions of accounting regulatory acts. |
11. Information on operations with affiliates |
The nature of the relationship with each affiliate. Types of transactions with each affiliate. The volume of each type of transaction in absolute and relative terms for the reporting period and the period preceding the reporting period. Cost indicators for transactions not completed at the beginning and end of the reporting period with each affiliate. The methods used for determining prices for each type of transaction with each affiliate. |
The list of affiliates, information about which is disclosed in the financial statements of the organization, is established independently by the organization preparing the financial statements, on the basis of RAS 11/2000 based on the content of the relationship between the organization and the affiliate, taking into account compliance with the priority of content over the form. Information about affiliates should be clearly and fully presented so that interested users of financial statements understand the nature and content of relations and transactions with affiliates. |
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If an organization or an individual controls another organization or an organization is controlled (directly or through third organizations) by the same legal entity or by the same individual (the same group of persons), then the nature of the relationship between them must be described in the financial statements independently on whether there were transactions between them in the reporting period. |
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12. Government assistance notes |
The nature and amount of budget funds recognized in accounting in the reporting year. Purpose and amount of budget loans. The nature of other forms of state aid, from which the organization directly receives economic benefits. The conditions for the provision of budget funds and the contingent liabilities and contingent assets not fulfilled as at the reporting date |
PBU 13/2000, p. 22 | |
13. Other explanations |
Information disclosed: * on extraordinary facts of economic activity and their consequences for the reporting period and the period preceding the reporting * on any issued collateral of obligations and payments of the organization for the reporting period and the period preceding the reporting * about any secured collateral of obligations and payments of the organization for the reporting period and the period preceding and reporting * decisions based on the consideration of annual financial statements and distribution of net profit. |
PBU 4/99, paragraphs 10, 27, Instructions, paragraph 19 |
The main purpose of the explanatory note is to decipher the financial statements. A well-written explanatory note will place inspectors to your company, greatly facilitate the balance sheet and reduce the likelihood of an extraordinary tax audit.
The notes to the balance sheet and the statement of financial performance may consist of two parts - tabular and text. To reflect the quantitative data, it is more convenient to use the tabular form provided in Appendix No. 3 to the order of the Ministry of Finance of Russia dated 02.07.2010 No. 66н.
The numbers of the explanations are indicated in column 1 (“Explanations”) of the balance sheet.
If the information presented in tabular form is not enough to fully disclose the picture of the financial condition of the organization (and this is exactly how it most often happens), additional explanations are given in text form.
In the appendix, it is advisable to disclose:
Fixed assets
Section 2 of the notes to the balance sheet and statement of financial performance consists of four tables.
2.1. Availability and movement of fixed assets.
2.2. Incomplete capital investments.
2.3. Changes in the value of fixed assets as a result of completion, retrofitting, reconstruction and partial liquidation.
2.4. Other use of fixed assets.
In table 2.1 enter information on the availability and company. The data in the columns of the table reflect separately for fixed assets, separately - for profitable investments in tangible assets. Information is disaggregated into groups of fixed assets and profitable investments, respectively. Data indicate for the reporting and previous years.
The presence of groups of fixed assets and profitable investments is reflected in the columns “At the beginning of the year” and “At the end of the period”. The accumulated depreciation amount must also be entered here.
The column “Changes for the period” should include information on the receipt, disposal, revaluation of groups of objects, as well as the amount of depreciation calculated on them.
Please note: in case of revaluation of objects in the columns “Initial cost” the current market value or current (replacement) value is given.
EXAMPLE. REFLECTING OS AND PROFITABLE INVESTMENTS
Fixed assets
At the beginning of the reporting year, the assets of the asset included the building and the car used by the administration.
Their initial cost was respectively 1,000,000 rubles. and 180,000 rubles, and accrued depreciation - 240,000 rubles. and 36 000 rubles.
In addition, in the reporting year, Asset built a warehouse with an initial value of 1,300,000 rubles.
Amounts of depreciation accrued on existing and acquired objects in the reporting year amounted to:
By car - 24,000 rubles .;
For buildings - 64,000 rubles.
Profitable investments
Assume that the main type of activity of Aktiv JSC is car rental. At the beginning of the reporting year, the company had 10 rental cars with a total initial cost of 1 000 000 rubles.
The amount of depreciation accrued on them amounted to 250,000 rubles. For the reporting year, it increased by another 200,000 rubles.
In June of the reporting year, Asset bought another car worth 180,000 rubles. (excluding VAT). Over the year, it depreciated in the amount of 18,000 rubles.
The total depreciation charged for the reporting period amounted to 218,000 rubles. (200,000 + 18,000).
Thus, depreciation is accrued in the amount of:
At the beginning of the reporting year - 250,000 rubles .;
At the end of the reporting year - 468,000 rubles. (250,000 + 200,000 + 18,000).
The accountant will fill out Table 2.1 as shown on page 34 (to simplify the example, data for the previous year are not given).
Table 2.2 reflects the value of unfinished capital investments.
Incomplete capital investments include:
- unfinished operations for the acquisition, modernization and other similar actions with fixed assets. Information is disaggregated into groups of fixed assets. Data is entered for the reporting and previous years.
Capital investments are reflected in columns with a breakdown of “At the beginning of the year”, “Changes for the period” and “At the end of the period”.
Recall that in the form of the balance sheet there is no line to reflect information on incomplete capital investments. Therefore, such information is reflected in line 1170 “Other non-current assets”.
In line 1140, costs for incomplete capital investments cannot be indicated, since they do not meet the requirements according to which the asset is taken into account as an item of property, plant and equipment (paragraph 4 of PBU 6/01).
Table 2.3 should contain data on the change as a result of completion, retrofitting, reconstruction and partial liquidation.
In the rows of the table separately indicate the increase and decrease in the value of fixed assets. An increase can occur as a result of completion, retrofitting and reconstruction, and a decrease due to partial liquidation.
Information on the increase or decrease in value is indicated for each value of which has changed.
The data in the columns of table 2.3 are for the reporting and previous periods.
Table 2.4 reflect information on other uses of fixed assets of the company. Here, in particular, cost information is indicated:
- fixed assets that are transferred or received for rent and are listed both on the balance sheet of the company and behind it;
- fixed assets transferred for conservation;
- real estate, which is accepted for operation and actually used, but is on state registration;
- other (for example, transferred or received as collateral, but used by the company).
The columns of table 2.4 indicate their cost:
- at the reporting date (column 2);
Accounts receivable and payable
This section details the receivables and payables of the company. It consists of four tables.
5.1. Availability and movement of receivables.
5.2. Overdue receivables.
5.3. Availability and movement of accounts payable.
To fill in the tables, use the data on settlement accounts:
- 60 "Settlements with suppliers and contractors";
- 62 "Settlements with buyers and customers";
- 63 “Provisions for doubtful debts”;
- 66 "Calculations on short-term loans and borrowings";
- 67 "Settlements for long-term loans and borrowings";
- 68 “Calculations on taxes and fees”;
- 69 "Calculations for social insurance and security";
- 70 “Settlements with staff for remuneration”;
- 71 “Settlements with accountable persons”;
- 73 "Settlements with personnel for other operations";
- 75 "Settlements with founders";
- 76 "Settlements with various debtors and creditors."
Preliminarily, divide all debts by maturity into short-term (must be paid within 12 months following the reporting date) and long-term (with a maturity of more than a year).
When filling out this section of the notes to the balance sheet and the report on financial results, in the column “At the beginning of the year” reflect the balance on the corresponding accounts as of January 1 of the reporting year: - debit, on the payable - credit.
In the column “At the end of the period” indicate the balances of receivables and payables at the end of the reporting year. In the column “Changes for the period” reflect the income and disposal of debts, as well as the transfer of debt from long to short.
EXAMPLE. REFLECTION OF DEBT INFORMATION
Last year, Asset JSC issued an interest-free loan to the employee in the amount of 50,000 rubles. for a period of two years with a condition of lump-sum repayment. In accounting, this operation was reflected by the wiring:
Debit 73, sub-account "Long-term receivables" Credit 50
- 50 000 rub. - granted interest-free loan.
At the beginning of the reporting year, these receivables were included in non-current assets of the balance sheet, and at the end of the reporting year (as of the reporting date), the accountant transferred it to current assets. In analytical accounting, this operation is reflected in the record:
Debit 73, sub-account "Short-term receivables" Credit 73, sub-account "Long-term receivables"
- 50 000 rub. - transfer from long-term to short-term debt.
In this case, the corresponding fragment of Table 5.1 “Asset” will look like this.
The Ministry of Finance of Russia recommends not to reflect in table 5.1 debts received and paid off (written off) in the reporting year. Therefore, include in this table only those receivables and payables that are not repaid at the end of the reporting year. For example, to reflect the debit and credit turnover on account 70 “Settlements with personnel for remuneration” is not required. Therefore, the accountant should focus on the balances as of January 1, 2016, tracking their retirement, and also reflect the receipt of debts that you have as of December 31, 2016.
Table 5.2 reflects information on overdue receivables. Data on debt are indicated by its types. The columns indicate the amount of debt accounted for under the terms of the contract and the book value.
The book value is the value under the terms of the contract, reduced by the amount created under it.
- at the reporting date (column 2);
- December 31 of the previous year (column 3);
- December 31 of the year preceding the previous one, i.e., the year before last (column 4).
Table 5.3 is intended to reflect the availability and movement of accounts payable. It is filled in by analogy with table 5.1.
Table 5.4 reflects information on overdue payables.
The columns indicate the data:
- at the reporting date (column 2);
- December 31 of the previous year (column 3);
- December 31 of the year preceding the previous one, i.e., the year before last (column 4).
Text Explanations
It is advisable to include essential information in the text part of the explanations:
- about your company;
- about her financial situation;
- comparability of data for the reporting and preceding years;
- on valuation methods and significant items of financial statements;
- on the deviations from the accounting rules, if following them did not allow to reliably reflect the property status and financial performance of your company (paragraphs 6 and 37 of PBU 4/99);
- on changes in the accounting policies of the company for the next reporting year;
- financial activities, such as the purchase of shares in other enterprises;
- on the investment activities of the company, for example, on the development of the material and technical base;
- on subsidiaries and affiliates (Articles 105 and 106 of the Civil Code of the Russian Federation);
- about the reorganization of the company;
- about events after the reporting date.
Information about the company
In this section you can cite:
- a brief description of the size and structure of the company;
- a brief description of its usual activities;
- sales volumes of products, goods, works, services by types and geographical sales markets;
- data on extraordinary facts of economic activity and their consequences;
- information about the business activity of the organization;
- resource efficiency indicators, etc.
If possible, provide information in dynamics (over several years). At the same time, indicate the factors that influenced the financial results of the company in the reporting year.
Partially, the size of a company (scale of business) can be judged by the size of its number of employees, the size of production facilities and other resources.
Briefly describe the production structure of the organization: its production, workshop, service, as well as including branches and representative offices.
Describing the activities of the company by type, do not skimp on the details. Provide information:
- on the assortment and volumes of products (work performed, services rendered) for the reporting and previous years;
- about the directions of her investments;
- plans to expand or change the industry and species structure of the company.
Disclosing information on sales volumes of products (goods, works and services) by type, provide not only general data, but also information in the context of the main geographical distribution areas.
If extraordinary events occurred during the past year, then describe them in the explanations. This may be a fire, flood, technological accident, theft of property and other similar situations.
Reflect also the economic consequences of these incidents: the amount of direct damage and liquidation expenses, the amount received from the guilty citizens and organizations or from insurance companies reimbursements, etc.
The following data testify to the business activity of the company:
- availability of contracts for export deliveries, indirectly confirming the quality of products (works, services) and the breadth of markets;
- the presence of well-known customers purchasing products, works and services of the company;
- participation of the company in research and development, the effectiveness of such activities;
- conducting environmental and other similar activities.
Beneficial Owner Information
Since the end of last year, the company has a new responsibility. According to the Federal Law of June 23, 2016 No. 215-ФЗ, all companies are required to have information about their own and to document it and confirm the accuracy of this data.
So, in the Federal Law of 07.08.2001 No. 115-ФЗ (hereinafter - the Law No. 115-ФЗ) “On Counteracting the Legalization (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism”, article 6.1 “Obligations of a legal entity to disclose information” was added about their beneficial owners ”, according to which individuals and legal entities have new rights and obligations.
Clause 7 of the new article establishes that information on the beneficial owners of the company is disclosed in its statements. Therefore, in the financial statements for 2016, special attention should be paid to the disclosure of data on their beneficial owners.
The beneficial owner is an individual who ultimately directly or indirectly (through third parties) owns (has a predominant participation of more than 25% in the capital) a client - legal entity or has the ability to control the actions of the client (Article 3 of Law No. 115-FZ) . In contrast to Law No. 115-ФЗ, the Tax Code uses the term “interdependent persons”.
EXAMPLE. REFERENCE OF BENEFICIARY INFORMATION
IP Sidorov owns 51% of the shares in Alpha. In turn, Alpha owns a 60% stake in Gamma JSC. Since I.P. Sidorov does not directly own Gamma shares, his participation in the capital of this company should be recognized as indirect. Sidorov’s indirect share in Gamma JSC will be: 0.51 × 0.6 \u003d 0.306 or 30.6%. Consequently, Sidorov has a predominant share in the capital (more than 25%) and meets the characteristics of the beneficial owner of Gamma JSC.
1) have information about their beneficial owners and take reasonable and accessible measures in the circumstances to establish the following information regarding its beneficial owners:
- full Name;
- citizenship;
- date of Birth;
- details of an identity document;
- data of a migration card, a document confirming the right of a foreign citizen or stateless person to stay (reside) in the Russian Federation;
- address of place of residence (registration) or place of stay;
- TIN (if available).
If it is impossible to determine the beneficiary in such a simple way, then to secure it, you need to have evidence confirming that the company has taken measures to establish it.
According to the explanations of the Russian Federal Financial Monitoring Service, documents confirming the adoption of such measures may be copies of requests to the founders and answers to them:
2) regularly, but at least once a year, update information on their beneficial owners and document the information received;
3) to store information about its beneficial owners and about the measures taken to establish them for at least five years from the date of receipt of such information;
4) provide available documented information about its beneficial owners or about measures taken to establish information regarding its beneficial owners at the request of the authorized body, tax authorities or other federal executive body authorized by the Government of the Russian Federation.
For non-compliance with the above requirements, an administrative fine has been established (article 14.25.1 of the Administrative Code of the Russian Federation):
- for officials - from 30,000 to 40,000 rubles;
- for legal entities - from 100,000 to 500,000 rubles.
In accordance with PBU 4/99 “BU”, statements of profit, movement of funds and capital are supplemented by notes. The balance sheet is no exception. The explanatory note to the balance sheet is a part of enterprises. It contains detailed information about income and expense items.
About the document
The explanatory note is part of the reporting. There is no standardized form for its completion. In general, the document should contain information reflecting the performance of planned targets. The note is compiled based on the results of the financial statements and discloses information about elements of accounting policies. Based on the materials provided, you can draw up a plan for future development.
Structure
An explanatory note to the balance sheet of a public institution should disclose such data:
- To characterize the main activities, as well as the most significant factors of work.
- Display accepted accounting methods.
- Give a comparative description of the current and previous periods.
- In case of data discrepancy, provide information on the reasons for their occurrence.
The basis for filling in the data is the balance sheet. The explanatory note to the balance sheet contains 19 sections. Let's consider them in more detail.
Organization Details
- Form of ownership and name of legal entity.
- Address.
- The average annual number of employees at the reporting date.
- The composition of the control organs.
- Information about the founders.
- The amount of capital.
- Information about the auditors.
- Availability of licenses.
- Managment structure.
- The amount of taxes paid in the reporting year.
Accounting Policy Information
The note displays the following data:
- rules for registering assets and liabilities;
- the cause and consequences of a policy change;
- data on accounting rules for the next year;
- corrected data is indicated.
An explanatory note to the balance sheet of the institution, which is compiled according to should include information on subsidiaries, group members, their location, the amount of their capital, the share of assets of each of them. The consequences of a policy change that may affect the financial position or other performance of the organization are evaluated in cash.
Asset and liability information
The explanatory note to the balance sheet of the Republic of Belarus contains such data about the OS:
- initial cost and amount of accrued depreciation at the beginning and end of the year;
- term of use of the facility;
- depreciation methods;
- the movement of leased and fixed assets in groups;
- real estate at the stage of state registration, but accepted for operation;
- asset valuation methods;
- the amount of the markdown of the asset, which is transferred to retained earnings.
Filling out an explanatory note to the balance sheet also consists in displaying data on the IBE:
- stock assessment methods;
- consequences of method changes;
- the size and movement of funds under the reduction in the value of values.
Information on loans, loans and financial investments is also displayed:
- availability, maturity, changes in the amount of debt;
- types, maturities of issued bills and bonds;
- the amount of interest costs, which is part of operating expenses and the value of assets;
- weighted average rate;
- ways to evaluate investments at their disposal and the consequences of their changes;
- cost, types of securities, encumbered with a pledge;
- cost of transferred securities and financial investments;
- the composition and movement of the reserve for impairment;
- assessment of debt securities and loans, taking into account the discount.
For assets and liabilities in foreign currency, the note shows:
- attributed to financial results or otherwise accounted for;
- exchange rate of the Bank of Russia at the reporting date.
Analysis of the balance sheet structure
This section includes an assessment of the economic condition of the enterprise. It is compiled in accordance with the Instructions for monitoring the solvency of entities. The section analyzes all types of liquidity, the level of provision with funds, profitability, the level of financial dependence and stability.
The analytical part of the note should contain the procedure for calculating indicators. Consider the main ones.
1. Current liquidity - reflects the level of asset provision. A high value of the ratio indicates a stable financial condition:
Ktl \u003d A2: (P5 - p. 640), where:
- A2 - the result of the second section of the asset balance (p. 290);
- P2 - the result of the fifth section of the liability (p. 690).
2. Coefficient of provision with current assets - shows which part of the joint-stock company is formed at the expense of own funds:
To ao \u003d (P3 + p. 640 - A1): A2, where:
- P3 - the third section of the liability (p. 490);
- A1 is the first section of an asset (p. 290).
3. The ratio of accounts payable - shows the ability of the organization to pay for obligations after the sale of assets:
To KZ \u003d (P4 + (P2 - p. 640)): WB, where:
- P4 - the result of section 4 of the liability (p. 590);
- WB - balance sheet currency (p. 300).
An organization is considered insolvent if within 4 quarters an unsatisfactory balance structure is displayed, as evidenced by the value of the debt security ratio at a level above 0.85.
4. The solvency index shows which part of short-term loans the company can repay at the time of reporting:
And pl \u003d (short-term arrears - long-term arrears): balance sheet currency.
Income and expense data
This part displays information on sales volumes and geography of sales markets, cost structure, availability of reserves for future payments, structure of other income and expenses, emergency factors. Information is given separately on contracts providing for a non-monetary form of settlement: their quantity, share of revenue, methods for determining the value of the goods transferred.
Activity rating
The standard form for the explanatory note to the balance sheet contains a section that displays:
- the breadth of markets, the availability of exports;
- company reputation in the market;
- level of performance indicators;
- resource efficiency.
Change balances
If in the reporting period there was a reorganization of the enterprise, then these data are recorded in the balance sheet. An explanatory note to the balance sheet should contain information on the reasons and extent of the changes. This section is also filled in if the data at the beginning of the year changes.
Affiliates
Drawing up an explanatory note to the balance sheet provides for the display of information on the presence of subsidiaries, founders and shareholders:
- their list;
- nature of the relationship;
- reasons for referring to affiliates;
- types of operations and methods for determining prices for them;
- share of owned shares.
Activity Facts
This section displays information about the warranty and judicial obligations of the organization, their value and the amount of the created reserve.
Joint activity data
- Number of partnership agreements.
- Objectives of the activity.
- Amount of deposit.
- The value of property and liabilities, profit or loss for the current year.
- Information about the assets used and joint operations.
Segment Information
The format of the explanatory note to the balance sheet for the FSS implies the presence of a section that displays information about associations and unions - provided that the constituent documents stipulate that the information on the financial statements is submitted summary:
- list of units;
- total revenue;
- profit or loss;
- assets, liabilities, capital investments in fixed assets and intangible assets;
- depreciation amount;
- share in net profit of subsidiaries;
- amount of investments in joint ventures.
Events after the reporting date
This section displays information on facts of economic activity that have greatly affected the value of assets and liabilities. They need to be fully disclosed. Failure to display data may affect the decision of users of financial statements. Events are added to the note, but no changes are made to the report. An assessment of the consequences in monetary terms must be documented or indicated that this is not possible.
A copy of the explanatory note to the balance sheet may contain the following facts:
- declaring a debtor of an organization bankrupt;
- valuation of assets, the results of which confirm a change in their value;
- obtaining data on the financial condition of a subsidiary whose securities are quoted on an exchange;
- overpricing stocks;
- declaration of dividends;
- indemnification from an insurance company;
- adoption of a court decision requiring the creation of a reserve;
- reorganization, reconstruction of the organization;
- making decisions on the issue of securities;
- transaction related to the sale of OS;
- fire, emergency, which entailed the destruction of part of the assets;
- termination of core business;
- oS cost reduction;
- actions of state authorities;
- unpredictable changes in exchange rates, asset prices.
State aid
An explanatory note to the balance sheet of an educational institution and any other organization that receives assistance from the budget should contain information about:
- the nature and magnitude of cash and credit receipts;
- targeted use of financial resources;
- unfulfilled conditions for the provision of funds and related obligations.
Environmental performance
The sample explanatory note to the balance sheet of enterprises whose activities negatively affect the environment differs from the standard document. Additionally, it is entered in it:
- data reflecting the degree of impact (emissions, waste);
- land restoration information;
- data on environmental protection costs.
Information about JSC
An example of an explanatory note to the balance sheet presented below contains such information about the Central Bank:
- the number of issued and paid securities, their nominal value;
- stock movement at the beginning and end of the period;
- the value of securities owned by AO and its subsidiaries;
- the availability of reserves and the purpose of their creation.
In case of additional issue:
- reason for release;
- date;
- conditions of sale;
- the number of issued ordinary shares;
- the amount of proceeds from the placement.
Section 17
This item displays the data required by RAS 18/02:
contingent expense (income) on NPP;
differences resulting in tax adjustment;
PNO, IT, IT;
reasons for changes in tax rates;
the amounts of IT and ITA written off in connection with the disposal of the operating system.
Termination of activity
If the organization is at the liquidation stage, then the final balance sheet is submitted to the Federal Tax Service. The explanatory note to the balance sheet contains the following information:
description of the liquidated activity;
completion date;
value of property and disposal obligations;
movement of funds in the framework of current, investment and financial activities;
the amount of income, expenses, profits, losses before tax, accrued by NPP;
abolition of liquidation.
Other indicators
There are few of them, but you should not discard them:
competitiveness of goods;
credit policy, solvency;
information about the property transferred and received to the management.
An example of an explanatory note to the balance sheet
Explanations to the balance sheet of JSC “Organization” for 2015:
1. General information
The Joint-Stock Company “Organization” was registered by the Federal Tax Service Inspectorate No. 5 in St. Petersburg on October 28, 2010 (The checkpoint, TIN, state registration certificate data, address are then provided.)
The balance sheet is prepared in accordance with applicable accounting and reporting rules. (IFRS).
Statutory fund: 2,000,000 (two million) rubles.
Number of ordinary shares: 1,000 with a par value of 2,000 (two thousand) rubles.
Main occupation: milk processing (OKVED 15.50).
The composition of the founders of persons:
Ivanov Andrey Sergeevich - member of the board of directors;
Averin Stepan Pavlovich - member of the board of directors.
2. Accounting policies
Order on accounting policy No. 158 was signed by the director on December 25, 2013. (briefly describes the provisions: methods of calculating depreciation, valuation of liabilities and assets, etc. ).
3. Balance structure (the specific weight of each line of the balance is shown and changes in indicators are calculated).
4. Valuation of assets (the value of the property is correlated with capital).
5. Analysis of financial indicators (calculated liquidity, profitability, provision with reserves, level of financial dependence, etc.).
6. The composition of the OS (million rubles) - for convenience, we will present in the form of a table.
Name | Initial cost | Accrued depreciation | Book value |
Land | |||
Vehicles | |||
Equipment | |||
Inventory |
7. Liabilities and reserves
As of December 31, 2015, an estimated obligation to pay holidays in the amount of 1.5 million rubles was created, the number of days was 66, and the term of use was 2016. The reserve for doubtful debts is formed in the amount of 1,687 million rubles. due to the presence of overdue and unsecured debt of LLC “Enterprise”. There is no reserve for reducing the cost of inventories, since there is no evidence of their depreciation.
8. Labor and salary
Salary arrears for December 2015 are 1.79 million rubles. The payment term is 01/15/16. Staff turnover is 24.99%, the payroll is 166 people. The average monthly salary is 20,765 rubles.
9. Issued and received security (types are indicated).
Director of Organization JSC Signature
Conclusion
According to the results of the calendar year, the balance sheet is handed over to the Federal Tax Service. An explanatory note to the balance sheet is drawn up in any form. It may contain tables and charts. It provides a variety of details of information: from the provisions of accounting policies to the calculation of financial indicators. The main requirement is that the information should be reliable and useful to users.
Finally, I completed the process of preparing an explanatory note for the annual financial statements, which I decided to approach, meeting the requirements of the current legislation.
I offer you my version of the explanatory note. Along with the text I give possible comments.
So, on the letterhead of the organization (if any) we write the following:
EXPLANATORY NOTE
to annual financial statements
Limited liability companies
"OUR COMPANY"
for 2011
Introduction
The accounting statements of OUR FIRMA Limited Liability Company for 2011 were formed according to the simplified system established for organizations - small businesses in clause 6 of the Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n “On Forms of Accounting Statements of Organizations”, namely:
The financial statements for 2011 are formed in the following volume:
1) balance sheet;
2) income statement;
3) statement of changes in equity;
4) cash flow statement;
5) explanations to the balance sheet and income statement (in tabular form, taking into account Appendix 3 to the Order of the Ministry of Finance of the Russian Federation of July 2, 2010 No. 66н);
6) this explanatory note.
Information, the disclosure of which is provided in the statements by separate accounting standards, but which is not available in the reporting forms listed in paragraphs 1-5, is presented in this explanatory note.
This section was introduced by me not according to the requirements of the legislation, but according to the spirit of the soul - I wanted to start with some introduction. I think the section can be completely omitted (it appeared for the first time in my explanatory note).
1. Brief description of the enterprise
LLC OUR FIRM TIN 0000000000 was registered by the Interdistrict Inspectorate of the Federal Tax Service No. 46 in Moscow on January 01, 2010 for OGRN 0000000000000. As of December 31, 2011, the Authorized Capital in the amount of 10,000 (ten thousand) rubles consists of the nominal value of the shares of participants and paid by the participants completely (100%). The authorized capital of a company consists of a share of one natural person (sole founder).
OUR FIRM LLC (hereinafter - the Company) is a company that provides a range of services for creating very important systems for civil and industrial facilities, from infrastructure design and installation of preparatory structures, equipment supply and ending with servicing these wonderful customer systems.
The main activities of the Company - wholesale trade in other machines, devices, equipment of general industrial and special purpose; installation, commissioning, repair work, maintenance and development of working documentation. Geographical sales markets - all regions of Russia (there are no representative offices or branches in other cities; delivery to other regions is carried out with the involvement of transport companies).
The requirements of clause 27 of PBU 4/99. The data for the 2nd and 3rd paragraph can be taken from the website of the company, from an advertising booklet or compose a text with the head.
The average annual number of employees for 2011 is XX.
The number of employees as of December 31, 2011 is XX.
The sole executive body of the Company is the General Director, who, in accordance with Decision No. 1 of the sole founder, has been appointed Ivan Ivanov.
Requirements p.31 PBU 4/99.
2. Notes to the statement of profit and loss
2.1. Decoding line 2110
The proceeds from the sale of goods, work performed, services rendered for 2011 amounted to (excluding VAT) - ХХХХХ thousand rubles. (p. 2110).
LLC "OUR FIRM" is a diversified enterprise. Revenues and expenses by type of activity are presented in table 1.
Table 1 (in thousand rubles)
Kind of activity
Sales revenue (excluding VAT)
Cost price
Name of activity (OKVED code XX.XX.X) XXXXX (p. 2120)
TOTAL on line 2110 TOTAL on line 2120 The main activity of the Company was profitable.
The requirements of clause 27 of PBU 4/99.
2.2. Decoding lines 2120 and 2210
The composition of production costs (distribution costs) of the Company for the reporting year (lines 2120 and 2210) is presented in table 2:
Table 2 ( in thousand rubles)
The requirements of clause 27 of PBU 4/99. Decoding of indicators - according to the analytics used in accounting for cost accounts (20,25,26,44).
2.3. Decoding line 2340
The composition of the Company's other income for the reporting year (line 2340) is presented in table 3:
Table 3 ( in thousand rubles)
The requirements of clause 27 of PBU 4/99.
3. Notes to the statement of cash flows
3.1. Decoding line 4119
The composition of other income from current operations (line 4119) is presented in table 5:
Table 5 ( in thousand rubles)
Requirements of clause 29 of PBU 4/99.
3.2. Decoding line 4129
The composition of other payments from current operations (line 4129) is presented in table 6:
Table 6 ( in thousand rubles)
Requirements of clause 29 of PBU 4/99.
4. Explanations for accounting liabilities reflected in accounting
4.1. At the end of the reporting year, the Company formed an estimated obligation to pay employees leave for working hours in the amount of XXXX thousand rubles. The total number of vacation days due to employees as of December 31, 2011 is XXX days. The expected term for fulfillment of the obligation is during 2012.
The requirements of Clause 3 of RAS 8/2010, Clause 22 of RAS 10/99.
5. Explanations for the estimated reserves reflected in accounting and reporting
5.1. The provision for doubtful debts as of December 31, 2011 was not formed due to the lack of grounds for formation (the outstanding debt was recognized by the buyer, payment is expected to be received until 30.06.2012).
5.2. As of December 31, 2011, the reserve for depreciation of the inventories was not formed due to the lack of grounds for formation (the stocks of inventories left at the warehouse did not lose their original properties, their current market value did not decrease).
Requirements of clause 6 of PBU 21/2008.
6.Financial express analysis of the enterprise
OUR FIRM LLC is at the initial stage of development, the characteristic features of which are a small turnover and high risks of cash shortages.
6.1. Balance sheet asset structure
At the end of the reporting year, 100% of the share in the structure of total assets of the balance sheet (hereinafter referred to as BB) is accounted for by current assets, which indicates the formation of a fairly mobile asset structure that helps to accelerate the turnover of enterprise assets. The company has a "light" asset structure, which indicates the mobility of the property of the enterprise.
6.2. Balance sheet liability structure
The sources of the formation of the aggregate liabilities of the enterprise are capital and reserves (53%) and short-term liabilities (47%).
The presence of retained earnings at the end of the reporting year indicates the efficient operation of the enterprise.
6.3. Performance
Return on sales: the company received 7.54 rubles of net profit per ruble of turnover.
Return on equity for profit before tax: for one ruble invested by the owners, the company received 125.41 rubles of profit before tax in the reporting year.
The return on assets is 66.72%, which indicates the high efficiency of the use of property.
Formulas for calculating indicators are shown in table 7.
Table 7
Name of indicator Calculation formula
Payment
(in thousand rubles)
Indicator value
Return on sales ratio (p. 2200 of the OPU /
(p. 2120 + p. 2210 + p. 2220 of the RAM)) * 100
Return on equity for profit before tax (p. 2300 OPU /
p. 1300 BB) * 100
Pre-tax profit margin (p. 2300 OPU /
Page 1600 BB) * 100
6.4. Financial stability
The values \u200b\u200bof liquidity ratios indicate a good solvency of the enterprise (current liquidity ratio is 2.14, urgent activity ratio is 1.98, absolute liquidity ratio is 1.15, net working capital is 1.09).
According to the results of the fiscal year, one can ascertain the stable financial position of the enterprise as the result of skillful management of the totality of production and economic factors. Thus, the financial independence ratio is 0.53, the working capital security ratio with own sources of financing is 0.53, the total liabilities to total assets are 0.47, and the total liabilities to equity are 0.88.
Formulas for calculating indicators are shown in table 8.
Table 8
Name of indicator
Calculation formula
Payment
(in thousand rubles)
Indicator value
Absolute liquidity ratio (p. 1240 + p. 1250) / (p. 1510 + p. 1520 + p. 1540 + p. 1550) (WB) Quick ratio (p. 1230 + p. 1240 + p. 1250 + p. 1260) / (p. 1510 + p. 1520 + p. 1540 + p. 1550) (WB) Current ratio p. 1200 / p. 1500 (BB) from 1.5 to 2.5
Net working capital (p. 1200-p. 1250) / (p. 1500-p. 1530-p. 1540) (WB) Coefficient of financial independence p. 1300 / p. 1700 (BB) The ratio of working capital own sources of financing (p. 1300-p. 1100) / p. 1200 (BB) Total liabilities to total assets (p. 1400 + p. 1500) / p. 1600 (BB) Total liabilities to equity (p. 1400 + p. 1500) / p. 1300 (BB)
The requirements of paragraph 4 of the Law on the accounting. accounting for 129-FZ. The law does not say how much indicators will be necessary and sufficient. The approach may be as follows: the set of indicators reflected in the explanatory note should characterize the enterprise in the way that we ourselves want. For example, if we want to show that everything is fine with us, we omit those indicators that indicate the opposite, and indicate only those indicators that will confirm our wonderful condition. And vice versa: we want to show that everything is bad, we include in the explanatory note precisely those indicators that will testify to this.
7. Accounting Methodology
LLC “OUR FIRM” maintains accounting records in accordance with the accounting policies of the enterprise, approved by order No. 06 of 08/01/11, developed on the basis of and in accordance with the Federal Law of the Russian Federation of 11.21.96. No. 129-ФЗ “On Accounting”, the Regulation on Accounting and Financial Reporting in the Russian Federation (approved by Order of the Ministry of Finance of the Russian Federation of July 29, 1998 No. 34n), accounting standards for certain accounting issues.
The main methodological provisions of the accounting section of accounting policies:
7.1. Fixed assets include assets with a long period of use (more than 12 months) and a value in excess of the limit established in PBU 6/01 for assets whose reflection is permitted as part of inventories.
7.2. Depreciation on property, plant and equipment is calculated on a straight-line basis over the entire useful life determined in accordance with the provisions of Decree of the Government of the Russian Federation of 01.01.2002 No. 1.
7.3. Revaluation of fixed assets on a voluntary basis is not carried out.
7.4. The acquisition of inventories is reflected in accounting with an estimate of the actual cost in account 10 “Materials”.
7.5. The used option for estimating stocks and calculating the actual cost of material resources allocated for production: at the cost of first-time purchases (FIFO).
7.6. The cost of special equipment and workwear is paid off at a time at the time of transfer to operation.
7.7. Purchased goods during the sale (vacation) are estimated at the cost of the first-time acquisition of inventories (FIFO method).
7.8. To account for the direct costs of the main production, a custom method of accounting is used. The basis for the distribution of overhead costs between the objects of calculation is the salary of personnel directly involved in the execution of work on order.
7.9. Indirect costs are reflected in account 25 “General production expenses”, account 26 “General business expenses” (in the absence of trading activities).
7.10. Indirect expenses collected on account 26 “General expenses” are debited directly to account 90 “Sales” every month.
7.11. Management expenses include only general expenses, excluding elements of general production expenses.
7.12. In carrying out trading activities, income and expenses are recorded as a whole (by the boiler method), without a breakdown of contracts and accounts. Costs of sales and selling expenses are accounted for on account 44 and are included in the cost of sales of products, goods, works, services in full in the reporting period of their recognition as expenses for ordinary activities.
7.13. Reserves for future expenses and payments are created in accordance with applicable law.
7.14. Income and expenses in accounting are recognized on an accrual basis (at the time of transfer of ownership of the goods to the buyer or at the time of acceptance of work by the customer, the provision of services).
7.15. To account for calculations of income tax at the enterprise, PBU 18/02 “Accounting for calculations of income tax” is applied. Information on the current income tax is generated in the accounting records by adjusting the conditional income tax expense for the amounts of permanent tax assets and liabilities recognized in the reporting period, as well as for the differences between the amounts of deferred tax assets recognized and extinguished in the reporting period.
7.16. Estimated reserves are formed in accordance with the methods set forth in the accounting policy.
7.17. The estimated liability for vacation pay is formed in accordance with the methodology set forth in the accounting policy.
7.18. In connection with the classification of enterprises as small businesses, the following accounting provisions do not apply:
- PBU 11/2008 “Information on related parties”;
- PBU 16/02 “Information on discontinued operations”.
7.19. In connection with the classification of enterprises as small businesses, financial statements are compiled according to the simplified system established for organizations-small businesses in paragraph 6 of the Order of the Ministry of Finance of the Russian Federation of July 2, 2010 No. 66n “On the forms of financial statements of organizations”, namely:
a) the balance sheet and the profit and loss account include indicators only for groups of items (without detailing indicators for items);
b) in the annexes to the balance sheet and the profit and loss statement, only the most important information is provided, without knowledge of which it is impossible to assess the financial position of the organization or the financial results of its activities.
In order to form indicators of the balance sheet, a significant amount is recognized, the ratio of which to the total result of the report article is at least 80%.
7.20. Changes made to the accounting policy for accounting for 2012 are technical in nature.
8. The methodology of tax accounting
LLC "OUR FIRM" maintains tax accounting in accordance with the accounting policies of the enterprise, approved by order No. 06 of 08/01/11, developed in accordance with the Tax Code of the Russian Federation.
The main methodological provisions of the tax section of the accounting policy:
8.1. The sales date for the purposes of calculating value added tax is recognized upon receipt of funds in payment for goods shipped (work performed, services rendered).
8.2. For the purposes of calculating income tax, income and expenses are recognized on an accrual basis.
8.3. The method of evaluating the materials used in the performance of work (rendering of services), as well as purchased goods upon sale: at the cost of first-time acquisitions (FIFO).
8.4. For depreciable property, depreciation is calculated on a straight-line basis at the depreciation rates determined at the time the facility is commissioned. Special ratios and reduced depreciation rates are not applicable.
8.5. Reserves of future expenses for warranty repairs and major repairs are not created. These expenses are recognized for tax purposes in the reporting (tax) period when they were incurred.
8.6. The reserve for vacation pay is created in accordance with Article 324.1 of the Tax Code of the Russian Federation according to the methodology enshrined in the accounting policy.
8.7. A reserve of future expenses for the payment of annual remuneration for long service and at the end of the year is not created.
8.8. Reserves for doubtful debts are created in accordance with Article 266 of the Tax Code of the Russian Federation.
8.9. Income tax reporting period: quarter. The company applies the following procedure for paying advance payments during the year:
- tax payment in monthly advance payments calculated on the basis of profit received for the last quarter (no later than the 28th day of each month in the reporting period),
- payment based on the results of the year (no later than March 28 of the year following the expired tax period).
8.10. Changes to the 2012 tax accounting policy are technical in nature.
There is no specific requirement to include information on tax accounting policies in reporting in the legislation, but I think this section is appropriate: we must disclose the differences between accounting and tax accounting (paragraph 25 of PBU 18/02).
The same can be said about the next section: I have included most of it in the text not based on the requirements of accounting legislation, but to show that the company maintains tax records in accordance with the requirements of the Tax Code, and as an explanation for the differences in accounting.
9. Explanations for tax returns
9.1. Income tax
In accordance with Article 313 of the Tax Code of the Russian Federation, the enterprise calculated the tax base based on the results of the tax period based on tax accounting data.
The calculation of the tax base for the tax period is made in accordance with the norms established by the Tax Code of the Russian Federation, based on tax accounting data on an accrual basis from the beginning of the year.
In accordance with Article 315 of the Tax Code of the Russian Federation, the calculation of the tax base contains the data shown in table 9:
Table 9 (in thousand rubles)
1. The period for which the tax base is determined (from the beginning of the tax period on an accrual basis) From July 22, 2011 to December 31, 2011 2. The amount of income from sales received in the tax period, including: 1) revenue from the sale of goods (works, services) of own production, as well as revenue from the sale of property, property rights; 2) revenue from the sale of securities not traded in an organized market; 3) revenue from the sale of securities traded in an organized market; 4) revenue from the sale of purchased goods; 5) revenue from the sale of fixed assets; 6) revenue from the sale of goods (works, services) of service industries and farms. 3. The amount of expenses incurred in the tax period, reducing the amount of income from sales, including: 1) the costs of production and sale of goods (works, services) of own production, as well as the costs incurred in the sale of property, property rights; 2) expenses incurred in the sale of securities not traded in an organized market; 3) expenses incurred in the sale of securities traded in an organized market; 4) expenses incurred in the sale of purchased goods; 5) the costs associated with the sale of fixed assets; 6) the expenses incurred by service industries and farms in the sale of goods (work, services) by them. 4. Profit (loss) from sales, including: 1) profit from the sale of goods (works, services) of own production, as well as profit (loss) from the sale of property, property rights; 2) profit (loss) from the sale of securities not traded in the organized market; 3) profit (loss) from the sale of securities traded in the organized market; 4) profit (loss) from the sale of purchased goods; 5) profit (loss) from the sale of fixed assets; 6) profit (loss) from the sale of serving industries and farms 5. The amount of non-operating income, including: 1) income from operations with financial instruments of derivatives transactions circulating on the organized market;
2) income from operations with financial instruments of derivatives transactions that are not circulating on the organized market.6. The amount of non-operating expenses, in particular: 1) the costs of operations with financial instruments of derivatives transactions circulating on the organized market; 2) the costs of operations with financial instruments of derivatives transactions that are not traded on the organized market. 7. Profit (loss) from non-operating operations 8. Total tax base for the tax period According to tax accounting, taxable profits amounted to XXXX thousand rubles.
According to accounting data, profit before tax amounted to XXXX thousand rubles. (p. 2300 OPU), net profit - ХХХХ thousand rubles. (p. 2400 of the OPU).
Actually, to this point section 9.1 can be omitted. Tables 10,11,12 reflect the requirements of paragraph 25 of PBU 18/02 (if it is used in the organization).
Factors that affected the deviation of taxable profit from accounting profit are presented in table 10.
Table 10 (in thousand rubles)
Types of income and expenses
Amounts taken into account when determining accounting profit
Amounts taken into account when determining taxable profit
Differences arising in the reporting period and resulting in the adjustment of the conditional income tax expense in order to determine the current income tax
Expenses incurred by the organization at the expense of net profit
Expenses recorded in accounting on the account for other income and expenses (in accordance with PBU 10/99), but not taken into account when taxing profits (in accordance with the Tax Code)(permanent difference increasing tax base)
Excessive hospitality (permanent difference increasing tax base)
Using the data shown in table 10, the necessary calculations were made for income tax in order to determine the current income tax (table 11):
Table 11
The size of the current income tax generated in the accounting system and payable to the budget, reflected in the Profit and Loss Statement and in the tax return on income tax, is ХХХ thousand rubles.
In order to check the effect of the mechanism for reflecting income tax calculations in the accounting system on the correctness of calculating income taxes intended for payment to the budget, the current income tax was calculated using the method of adjusting accounting data in order to determine the income tax base.
The required adjustments are shown in table 12:
Table 12 (in thousand rubles)
1. Profit before tax according to the income statement (accounting profit) (p. 2300OPU) 2. Increases including: the amount of expenses incurred by the organization at the expense of net profit the amount of expenses reflected in accounting on the account for the accounting of other income and expenses (in accordance with PBU 10/99), but not taken into account in the taxation of profits (in accordance with the Tax Code) excessive hospitality 3. Total taxable profit Current income tax \u003d ХХХХ (thousand rubles) * 20/100 \u003d ХХХ (thousand rubles)
9.2. Value added tax
The calculation of the amount of value added tax payable to the budget for 2011 on the basis of tax returns was made in accordance with Chapter 21 of the Tax Code. In 2011, OUR FIRMA LLC did not carry out tax exemptions.
Section 9.2 may also be omitted.
10. Information on the distribution of net profit
At the time of signing the financial statements of OUR FIRMA LLC for 2011, it was not approved by the sole founder, the decision on the distribution of the profit remaining at the disposal of the Company after taxation was not made.
General manager
Chief Accountant
I introduced Section 10 in order to logically finish, although in the light of PBU 7/98 it seems to me appropriate.
I hope my experience will be useful to someone.
I wish all accountants conjuring over the annual reporting, creative success!